Author: Wyn Grant

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So, goodbye then, President Chirac

he announcement that he will be stepping down as French President by Jacques Chirac reminds us that for a long time France has had a head of state and government who has also seen himself as Minister of Agriculture. Two of his last public appearances were at the Paris agricultural show and a European summit in Brussels, the site of his many battles in defence of French farming subsidies. Chirac owns a chateau in the Massif Central which is one of the poorest and most sparsely populated rural areas of France.

The Financial Times commented, ‘His near-umbilical attachment to the country’s farmers throughout his career, which included a spell as agriculture minister, means he can at least count on them to be saddened that the Chirac era is coming to an end.’… Read the rest

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‘Suspended pessimism’ remains Doha mood

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’.… Read the rest

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Biofuels may push up beer prices

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

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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

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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

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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

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Parliament throws out modulation plan

The European Parliament has thrown out a plan agreed at the 2005 summit of EU heads of government to allow the transfer of funds from Pillar 1 expenditure on farm subidies to Pillar 2 rural development to be increased up to a maximum of 20 per cent. Only the UK was planning to use the full amount, given that it receives low levels of rural development funding and wants to find money for its ambitious agri-environmental schemes. The Parliament can only delay the eventual decision, as it is not part of the co-decision procedure.… Read the rest

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Green box does distort trade, claims Indian study

A report commissioned by the Indian Department of Commerce and carried out by UNCTAD’s Indian team challenges the EU’s argument that decoupled aid payments have only a minimal trade distorting effect. According to the researchers’ model, EU farm exports would fall by a massive 45 per cent if Green Box subsidies were removed and production would fall by close to 6 per cent.… Read the rest