The hard line being taken by France’s new president, Nicolas Sarkozy, on the future of the CAP could have a paradoxical outcome: further re-nationalisation of the policy once seen as the cornerstone of the European Union.… Read the rest
New French farm minister: a ray of hope for reform?
After Nicholas Sarkozy appeared to indicate that it was ‘business as usual’ in French agricultural policy, the appointment of Christine Lagarde as farm minister gives a ray of hope. Named as the 30th most powerful woman in the world by Forbes in 2006, she was formerly trade minister.
She was formerly chief of a big American law firm. Although she has been careful to say that agriculture would continue to have a ‘strategic’ role, Ms Lagarde also said that France could continue its position of ‘intransigence’ for ever. Perhaps she can use her skills as a synchronised swimming champion to move the debate on CAP forward.… Read the rest
Wine reform will lead to job losses
An impact assessment of the European Commission’s proposed reforms to the CAP wine regime warns that job losses are inevitable in parts of Europe most responsible for the distillation of wine. The report quotes Italian organisations, not an entirely disinterested source, that the sector could lose 75 per centr of its jobs in Italy.… Read the rest
Sugar reform hits trouble
Last year’s sugar reform has hit trouble and it’s a familiar story: too much sugar is still being produced in the EU. 2007 production plans show that quotas have only fallen by 2.2 million tonnes over the first two years, well below the 5-6 million tonne target.… Read the rest
Commission waters down wine reform
The Commission has backed away from radical plans to reform Europe’s perennially troubled wine sector in the face of opposition from member states. The proposals put forward last June offered EU winemakers €2.4 billion over five years as an incentive to dig up their vines and concentrate on producing quality wines.… Read the rest
Butter mountain finally melts
The satisfied look of cows in the Azores is no great surprise as they receive one of the biggest cattle subsidies in the EU, although still not enough for Portugal who voted against the last CAP reform on the issue of the fate of dairy cows in the Atlantic islands. After 39 years of a butter mountain under the CAP, it has finally melted away. When the Soviet Union still existed, stocks of ‘ageing’ butter used to be sold off to its consumers who were glad to get any butter at all.
The last remaining stocks (in the Czech Republic, Finland and Spain) have been sold off.… Read the rest
Fruit & veg reform could bring health benefits
Seeing through the Commission’s proposal for reform of the fruit and vegetable regime could bring health benefits. With the exception of Greece and Italy no EU member state is currently meeting the World Health Organisation’s recommended consumption rate of 400kg per day per capita. From the viewpoint of Commission officials, getting consumption up to the WHO minimum level would also provide a commercial answer to the sector’s marketing problems.… Read the rest
One vision, two steps
It sounds like a Maoist slogan, but farm commissioner Mariann Fischer Boel set out a ‘one vision, two steps’ plan for the reform of the CAP at the recent Agra Europe conference in London. As she has made clear before, the forthcoming Health Check which will address the period up until 2013 is seen largely as a tidying up exercise rather than an opportunity for further fundamental reform. The Commission is currently preparing a Green Paper on the Health Check but this is not expected to be ready until after the summer.… Read the rest
Sea of Ignorance
A new Eurobarometer survey has found that 72 per cent of respondents considered themselves to be uninformed on agricultural issues and over half (54 per cent) had never heard or read about the CAP. The 43 per cent who claim to have at least some degree of awareness comprises of 34 per cent who say ‘they don’t really know exactly what it is’ and just 9 per cent who say they know ‘exactly what it is’.… Read the rest
New market develops in farm subsidies
Given that milk quota has been actively traded in the UK, producing so-called ‘sofa milkers’, it should come as no surprise that Single Farm Payments are now being bought and sold. Agricultural brokers WebbPaton did fifteen deals in one day recently. The market has been described as ‘ferocious’ with rights to subsidies ‘flying off the shelf’. There’s an element of risk, but an investor could receive one-third of the original investment back each year.… Read the rest