I was giving a presentation on the CAP during this week and I was asked if ending it would threaten food security in Europe. My reply was that no one was advocating dismantling the CAP overnight, so any adjustments would be phased in, but that the real challenge to food security came from the rapid expansion of growing crops as biofuels. A structural shift is going on in farm markets. An illustration of this is what is happening to the price of barley which is used for beer, whisky and animal feed. … Read the rest
Biofuels- a cold look at a hot issue
Biofuels have been all the rage lately among EU decision makers and Council seems bound on setting an ambitious new binding target for their use. As climate change has finally made it to the top of the political agenda biofuels are being hailed as the silver bullet. Everybody seems to agree they are also a key to the future of the CAP, but consensus ends there. Some see energy production as the perfect excuse to maintain and even restore production subsidies, while others see the opportunity to junk the subsidies as farmers will be making a living from selling (subsidised) biofuels.… Read the rest
EU's share of global milk production falling
The EU’s share of global milk production is falling as a result of the quota system according to Rabobank dairy specialist Mark Voorbegen. Addressing a seminar organized by Dairy UK, he said that the EU had a 27 per cent share of the global market in 2005, down from the 1995 level of 31 per cent. By 2015 it is forecast to fall to 25 per cent (although by then quotas may have been abolished).… Read the rest
EU’s share of global milk production falling
The EU’s share of global milk production is falling as a result of the quota system according to Rabobank dairy specialist Mark Voorbegen. Addressing a seminar organized by Dairy UK, he said that the EU had a 27 per cent share of the global market in 2005, down from the 1995 level of 31 per cent. By 2015 it is forecast to fall to 25 per cent (although by then quotas may have been abolished).… Read the rest
Fischer Boel: one vision, two steps
Speaking at the annual conference of the National Farmers’ Union, EU Agriculture Commissioner Mariann Fischer Boel set out her priorities for next year’s CAP ‘health check’. She described her approach as ‘one vision, two steps’, the first step being the health check and the second step being the EU budget review scheduled for 2008/09. It will be very interesting to see how successful she will be in keeping these two steps separate, as the sheer size of the CAP in relation to the rest of the EU budget (in 2005 it was a shade under 50%) makes it impossible to have any meaningful budget discussions without addressing the future of the CAP.… Read the rest
Mariann Fischer Boel in blog shock
With her silvery hair, Marks & Spencer outfits and matronly demeanour, EU Agriculture Commissioner Mariann Fischer Boel can give the impression of being rather old fashioned. So it comes as some surprise to discover that she is in fact a techno-geek. … Read the rest
Farm trade deal faces many hurdles
Talks on the resumption of the stalled Doha Round took place in the margins of the World Economic Forum at Davos, Switzerland during the past week, but many hurdles remain to be overcome before an acceptable farm trade deal can be sketched out.… Read the rest
Top level push on Doha Round may not work
An attempt by President Bush and Commission President Barosso to re-start the stalled Doha Round trade talks may not succeed in the face of rising protectionist sentiment in the new Congress and intransigence over subsidies in the EU. Meeting in Washington last week the two leaders instructed their chief trade negotiators to come forward with a deal ‘as soon as possible’. Talks involving the EU, US, Brazil and India are likely to take place in the margins of the World Economic Forum in Davos, Switzerland at the end of January.… Read the rest
Phase out subsidies by 2020 says Miliband
Britain’s Defra secretary told the Oxford Farming Conference is committed to a system by 2020 where ‘public funds are only used for public goods, in particular environmental benefits.’ This would mean the effective end of Pillar 1 and of restraints on trade. ‘I see an inevitable process of trade liberalisation, with huge pressure on subsidies and restraints on trade.’ Contrary to the views of the farm commissioner, the 2008 CAP health check should be used to pursue a ‘further fundamental reform’.… Read the rest