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Wed 30 October 2024| View online Estimated reading time: 4-5 minutes |
| Hello
Welcome to your daily Agrifood Pro Briefing. In today's edition, we take a dive into food and geopolitics and diplomacy, from Mercosur to China, with stops in Ukraine and Morocco. Read on for an update on the decision-making process on forest rules and the latest from capitals.
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| | Will food security make it into Niinistö’s preparedness report? |
| Former Finnish President Sauli Niinistö will today (30 October) present his report on bolstering Europe’s civilian and defence readiness against a range of threats, from Russia’s war on Ukraine to natural disasters.
Nicholas and Nicoletta have reported on what might come out of the document, expecting Niinistö to take a broad approach to security.
According to Agriculture Commissioner-designate Christophe Hansen, food should be part of it. “Food security should be considered as a critical component of any preparedness,” said Hansen in his written answer to questions from MEPs last week. He also pledged to strengthen the existing crisis management tools to protect Europe’s food supply if he is confirmed as the next EU farm chief after his hearing next Monday (4 November).
Given that agriculture was barely mentioned in Mario Draghi's report on European competitiveness last month, it remains to be seen whether Niinistö's vision will live up Hansen’s high expectations. |
| | | New rules for forest reproductive material deadlocked in Council |
| Member states have reached an impasse over new EU rules on forest reproductive material (FRM), EU diplomatic sources told Euractiv.
EU countries, a diplomat explained, remain divided on whether FRM should be included in the scope of the Official Controls Regulation - a set of rules put in place by the European Union to ensure that food, animals and plants meet safety and quality standards.
The Hungarian presidency is pushing for FRMs to be included in official controls, but some EU countries are wary of the move as it could mean increased costs and administrative burdens for member states. To unlock the situation, EU ambassadors will discuss the issue on 6 November.
Outlining the presidency's priorities to the Parliament in, Hungarian Agriculture Minister Istvan Nagy said the presidency would do its "utmost" to reach a common position on the regulation by December. However, a diplomatic source also told Euractiv that Budapest has ruled out a general approach during the presidency due to the current disagreements. |
| | | Producer-industry rift heats up French milk market |
| Negotiations between the Sunlait Association of Producer Organisations (APO) and French dairy giant Savencia to renew the milk supply contract have broken down, Sunlait said in a press release. This is the latest blow to the French dairy market after multinational Lactalis announced it was cutting its purchases.
Sunlait markets 415 million litres of milk produced by 700 dairy farms, while Savencia is the second largest dairy group in France and the fifth largest in the world.
EU legislation allows producer organisations (POs) or associations of producer organisations (APOs) to negotiate collectively on behalf of their members.
In the same press release, Sunlait said that despite the breakdown in negotiations, Savencia intends to continue buying milk from producers who are members of the PO, but under individual contracts.
Sunlait representatives see this as a way for the industry to 'bypass' the POs and call on all producers to remain united. On 25 October, French Socialist MEP Éric Sargiacomo sent a written question to the European Commission warning of attempts by large dairy companies in France to isolate PO members and calling for the practice to be added to the list of unfair trading practices recognised by the EU, with specific sanctions. |
| | | Agri-food sector braces for Chinese respose to EV tariffs |
| The EU food sector is bracing for Beijing’s response after the European Commission approved tariffs of up to 35.3% on Chinese electric vehicles (EVs) on Tuesday (29 October). The new tariffs, which come into force on Thursday, add to the existing 10% tariffs on Chinese EVs, according to the Commission’s latest release.
Beijing's initial reaction was to lodge a complaint with the World Trade Organisation against the EU's decision. But in earlier stages of the dispute, China has already retaliated by targeting the bloc's food exports.
Beijing imposed tariffs on EU brandy starting 11 October. The measure mainly targets French cognac producers, who now face tariffs between 34.8% and 39% via "security deposits." Pork and dairy could be next, as both are under Beijing’s investigations.
Philipp Lausberg, senior policy analyst at the European Policy Centre, told Euractiv that China is likely to counter with more measures, although its economy can ill afford a full-scale trade war.
For further insights on the EU-China trade tensions, check out Thomas’ article. |
| Farmers, agri workers reiterate opposition to EU-Mercosur deal |
| The EU should stop negotiations with the Mercosur countries for a trade deal which is “in strong contradiction” with the principles of the Strategic Dialogue on Agriculture, farmers and agrifood workers organisations reiterated yesterday (29 October) in a press release.
In particular, the possible conclusion of the negotiations at the G20 summit in Rio de Janeiro on 18-19 November, would be “an extremely worrying development for the European agricultural community”. But the date is far from set. “It will have to wait a little longer,” said the head of the EU diplomacy Josep Borrell in an interview with France24 on Monday evening (28 October).
If it were up to the Latin American countries, they would "sign tomorrow", Borrell explained. "The ball is in the Europeans' court", he added, "let's see if we can reach an agreement by the end of the year".
However, another opportunity to finalise the agreement could come at the summit of Mercosur presidents in Montevideo, Uruguay, in December. |
| Agriculture day for Emmanuel Macron in Morocco |
| French President Emmanuel Macron, who has been in Morocco since Monday (28 October), will today hold a series of meetings on agriculture with the Kingdom’s authorities. The talks are aimed at strengthening cooperation in training and scientific research, but also to sign new partnership agreement, the French Ministry of Agriculture confirmed to Euractiv.
Agriculture Minister Annie Genevard will be part of the delegation, along with the heads of the cereals industry association Intercéréales. This is a strategic decision to consolidate exports, as 55% of wheat imported into Morocco is French.
Hugo will have more to say about the trip later today. |
| Ukraine wants to become Europe’s “El Dorado” for agriculture |
| Ukraine’s new agriculture minister, Vitaly Koval, wants to turn the country’s agricultural sector into Europe’s farming "El Dorado.” Speaking to Ukrainian media from the French city of Dijon, he said that Ukraine’s accession to the EU would strengthen the bloc’s food security and reduce its reliance on imports from third countries.
Koval outlined plans for Kyiv to supply the EU with key agricultural products, like soybeans and rapeseed, traditionally sourced from other regions. “We can replace them (...) our products, from a neighbouring EU country, will be delivered faster”.
He also dismissed that the trade benefits granted by Brussels to Kyiv were disrupting the EU market, a concern repeatedly raised by several member states, notably in Eastern Europe. While acknowledging the “sensitive positions” of these countries – some of which still have unilateral bans on some Ukrainian imports –, he said the way forward was a quota-free trade relationship with the EU.
To control the inflow of imports considered to be particularly sensitive, the EU has triggered an “emergency break” for oats, honey, sugar, and eggs. Meanwhile, the limits set by Brussels for poultry and maize imports have not yet been reached.
It will be up to the next trade commissioner, potentially Slovakia’s Maroš Šefčovič, to negotiate a permanent trade liberalisation with Ukraine before the current temporary Autonomous Trade Measures (ATMs) expire in June 2025. |
| | | | Paris – Government divided over sugar tax With a tax on sweets and soft drinks being discussed as part of the 2025 budget, positions in French society are hardening. Yesterday (29 October), the director of Leclerc supermarkets, Michel-Edouard Leclerc, spoke out against the idea on France 2. “It is not the best tool” to fight obesity at a time when inflation on food products is just beginning to slow down, he said. The French government is also divided. While defended by Health Minister Geneviève Darrieussecq, the idea has been rejected by Agriculture Minister Annie Genevard, who sees it as an attack on food companies “when they are fighting to defend their position on world markets,” she said in an interview with the Agra press agency.
Madrid – Ministry starts new evaluation of fish stocks in the Cadiz Gulf The Spanish Ministry of Agriculture and Fisheries yesterday (29 October) launched a new edition of a campaign to collect data on the state of fish stocks in the Gulf of Cadiz. The survey, co-financed by the EU through the European Maritime, Fisheries and Aquaculture Fund (EMFAF), will last 14 days and is part of the country’s data programme for the sustainable management of marine resources. The Cadiz fleet is particularly dependent on anchovy fishing, for which the Commission proposed in early September to halve the quotas for 2024-2026 – a move strongly opposed by Spanish Minister Luis Planas. |
| | | | | Today’s brief was brought to you by Euractiv’s Agrifood team |
| | | Today’s briefing was prepared by the Agrifood team; Angelo Di Mambro, Maria Simon Arboleas, Sofia Sanchez Manzanaro, and Hugo Struna. Share your feedback or information with us at digital@euractiv.com. |
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