Europe's common agricultural policy is broken – let's fix it!
Bilateral discussions have continued between the key participants in the Doha Round farm trade talks, most recently in London, but although clarification of the issues and what might be possible continues, there has been little real progress. Key participants in Geneva have described the overall mood as one of ‘suspended pessimism’.
Bilateral discussions have continued between the key participants in the Doha Round farm trade talks, most recently in London, but although clarification of the issues and what might be possible continues, there has been little real progress. Key participants in Geneva have described the overall mood as one of ‘suspended pessimism’.
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.
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
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).
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).
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
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.
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.
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.