Reform of the EU Fruit and Vegetable Regime
The current EU Fruit and Vegetables Regime was last reformed in 1996 with the aim of increasing market orientation among EU growers, whilst reducing reliance on intervention (or market withdrawals) and increasing growers' competitiveness in the supply chain. The regime offers aid at 50% of costs for measures taken by growers in ‘operational programmes’. These are aimed to improve produce quality, reduce production costs and improve environmental practices. The aid is only available to groups of growers that collectively market their produce in ’producer organisations’.
Further reforms were launched by Commissioner Fischer-Boel in January 2007, intended to improve competitiveness and market orientation in the sector, to enhance environmental protection and to simplify administration. These proposals were considered by the Council of Ministers in April ‘07.
While the discussions in the Council of Farm Ministers have yet to cover the full scope of the reform proposals, the general direction for reform seems broadly acceptable to most member states, with dispute focussing mainly on the timetable for implementation. The European Parliament is also progressing its response to the proposals, so it seems possible that Commissioner Fischer Boel will get her wish, and the proposals will be agreed largely as per the Commission proposals sometime this summer, possibly as early as June ‘07
The fruit & vegetable (F&V) sector is responsible for 17% of total EU agricultural production in terms of value, utilising 3.1% of the Community budget. Producer organisations account for about one-third of the EU’s total production and they have grown at a lower rate than the sector as a whole. On current trends, the Commission’s target of 60 % of supply concentrated in producer organisations by 2013 will not be reached.
This briefing sets out the possible implications of the proposed reforms for producers and growers (including those in registered Producer Organisations) in UK and the opportunities which may arise to secure further EU funding for beneficial business investments.
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