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Wed 9 October 2024| View online Estimated reading time: 4-5 minutes |
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Hello Welcome to your daily Agrifood Pro Briefing. Today we got some great insights from the Council on new agricultural trade restrictions and how member states are responding to a leaked plan for a major shake-up of the Common Agricultural Policy.
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Country coalition pushes for tariff hike on Russian food imports |
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A group of countries will push for higher EU tariffs on certain Russian and Belarusian food products at the next summit of EU leaders (EUCO) on 17-18 October, diplomatic sources confirmed to Euractiv. According to the sources, Latvia presented this initaitive during Monday’s (7 October) meeting of EU ambassadors, which obtained support from Lithuania, Estonia, Czechia, Denmark, and Sweden.
In May, the Council gave the green light for a sharp increase in tariffs on cereals and oilseeds from the two countries, which took effect on 1 July. At the time, six member states backed a statement tabled by Riga calling for restrictions on other agricultural products.
Latvia is now pushing for expanding the list of agrifood affected by the tariff hike, but which specific products would be affected remains unclear. The country had previously called for EU sanctions against Moscow to be expanded to food and agricultural products, which have so far been exempted to safeguard food security.
However, Riga appears to have shifted its approach. "The adoption of sanctions requires a unanimous decision by EU member states, so the possibilities of limiting or banning the import of agricultural and food products from these two countries to the EU (...) are very small," said a press release issued by the Latvian agriculture ministry yesterday (8 October).
“Future work should focus on the possibility of raising customs tariffs (...) because it can be done faster and has the same effect as sanctions,” it added. |
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Strong feelings over leaked plan to merge CAP and cohesion funds |
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A proposal from the European Commission to create a mega-fund by merging cohesion policy and the Common Agricultural Policy (CAP) in the next EU budget (2028-2034), as outlined in a document seen by Euractiv, has triggered strong reactions from several member states.
“It is a stupid idea and a potential suicide for regions across the EU,” a diplomatic source told Euractiv. “It is a risky game and almost certainly death to the EU's regional policy,” they added. The source also noted that centralising EU funds would give “an awful amount of power to a limited group of people,” cutting the direct link between regions and Brussels.
According to the draft plan, member states would need to fulfill certain conditions in order to access the funds, such as “promoting organic farming” to get the CAP’s direct payments.
Another EU diplomat said they would be “strongly against this idea,” while a different member state did not have a clear stance but emphasised that it is “definitely necessary” to review both the CAP and cohesion policy. |
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Agrifood caught in the crossfire of EU-China trade dispute |
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The EU’s pork and dairy sectors fear they might be next in line after China imposed temporary anti-dumping measures on EU brandy imports yesterday (8 October). Read Hugo's article for more details and reactions. |
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China’s EU brandy imports |
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Since the electric vehicle trade dispute, China has also initiated anti-dumping and anti-subsidy investigations into other EU agrifood imports. Pork could be the next target. In June, China launched an investigation into EU pigmeat imports - although products like Spanish jamón serrano and other cold cuts were exempt. This move would particularly affect Spain, the EU’s largest pork exporter to China.
Alberto Herranz, Director of Spain's pork producers' association, Interporc, told Euractiv about the strong ties between Spanish producers and Chinese authorities and businesses, noting that he is hopeful for a "rapprochement" to prevent harm to either side. He emphasised that Spanish producers have cooperated fully with the investigation, meeting all requirements over the summer. Currently, Spain’s pigmeat exports to China generate €1.2 billion annually, he added.
Alexander Anton, Secretary General of the European Dairy Association (EDA), highlighted that China’s actions reflect the "extent of trade tensions" between Beijing and Brussels. "We’re increasingly concerned these tensions could spill over into the ongoing anti-dumping probe into other sectors," Anton told Euractiv.
Anton added that Chinese and EU authorities are exploring dates for further consultations on the matter. Last month, the European Commission challenged China’s actions at the WTO, marking the first time the EU has done so early in a trade investigation.
For more on the dairy probe and the specific products involved, read the report by Sofia and Hugo. |
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Tensions rise over Ukrainian imports |
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The Bulgarian Agriculture Minister, Georgi Tahov, yesterday announced €100 million in state subsidies for local farmers, who have threatened new protests against imports of Ukrainian agricultural products.
Last week, in neighbouring Romania, his counterpart Florin Barbu called on the European Commission to tackle the surge in imports of Ukrainian poultry products, which according to an EU official have reached 80% of the threshold level set by the regulation setting trade benefits for Kyiv. |
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Commission gives the green light to two imported GMOs |
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The EU executive has authorised the import of two new genetically modified (GM) crops, maize and cotton, and renewed the approval of two maize varieties. In line with EU rules, the Commission has taken the decision after member states failed to reach the required majority to approve or reject the authorisation proposal. |
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EU braces for worst cereal harvest in 10 years |
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The 2024/25 EU cereal harvest will be the worst in a decade, according to the European Commission’s latest estimates. Against a background of stabilising prices, the Commission's Autumn short-term outlook report shows significant differences between sectors. While cereal and oilseed harvests are expected to fall, the outlook for olive oil is positive after two years of drought. For wine, meat and dairy, the report confirms long-term trends.
Demand for wine continues to fall, while supply from EU producers will remain above the 5-year average. Beef demand and production continue to decline, pork will suffer from the impact of African swine fever and poultry stands out with positive indicators in both 2024 and 2025. The dairy sector also confirms its growth trend, driven in particular by cheese products. |
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Greenpeace: Emissions from meat 'giants' rival with 'Big Oil' |
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The methane emissions of the world's 29 largest meat and dairy companies "rival" those of the world's 100 largest fossil fuel companies, according to a report by Greenpeace Nordic. The study calls for food systems to move away from "industrial meat and dairy production" and shift consumption towards plant-based foods, according to a press release.
It also includes a "hopeful projection" in which high- and middle-income countries reduce meat and dairy production and consumption in line with the EAT-Lancet Planetary Health Diet, which would have a "cooling effect" on global temperature rise. "These are incredibly hopeful results," said Shefali Sharma, senior agriculture campaigner at Greenpeace Nordic, adding that "we have shown that the way forward is clear". |
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First step to review tariff suspension system for seafood products |
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The Commission wants to update the rules on Autonomous Tariff Quotas (ATQs) for seafood products to make them more sustainable. Every three years, the EU sets ATQs that exempt certain fish and fish products from tariffs, to meet growing demand for seafood.
At a time when many voices are being raised about the lack of sustainability of these products, the EU executive published an impact assessment on possible changes to the scheme to make it more sustainability-friendly. Specifically, depending on the results of the stakeholder consultation and parallel impact assessment, the Commission could review Council Regulation (EU) 2023/2720 and add sustainability criteria to ATQs. |
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Madrid – Agriculture ministry approves new CAP simplification measures The Spanish government yesterday (8 October) introduced several changes to the country's CAP strategic plan aimed at reducing the administrative burden on farmers, including greater flexibility in the management of eco-schemes and the voluntary use of geo-tagged photos for farm controls.
Berlin – New forest inventory warns of damage from climate change The results of the Federal Forest Inventory, unveiled yesterday (8 October), show that German forests are not contributing to carbon storage as expected. “The forest has become a source of carbon, it takes patience and perseverance to reverse this,” said the country’s Minister of Food and Agriculture, Cem Özdemir. |
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UK to facilitate research into cultivated meat The UK’s Department for Science, Innovation and Technology yesterday (8 October) announced £1.6 million (€1.9) in funding for the Food Standards Agency (FSA) and Food Standards Scotland (FSS) to set up a “regulatory sandbox” aimed at improving scientific knowledge on the safety of cultured meat products. Earlier this year, the country became the first in Europe to approve the sale of cultured meat-based pet food. |
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Today’s brief was brought to you by Euractiv’s Agrifood team |
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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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