Source:
http://europa.eu.int/rapid/pressReleasesAction.do?reference=SPEECH/06/631&format=HTML&aged=0&language=EN

Mariann Fischer Boel
Member of the European Commission responsible for Agriculture and Rural Development
Reform of the Fruits and Vegetables CMO

European Parliament Inter-group on fruit and vegetables
Strasbourg, 25 October 2006

Mr Chairman, Members of the Inter-group on fruits and vegetables, Ladies and Gentlemen,

Last year we concluded the reform of the sugar CMO. Before the end of the year I hope that the same can be said about bananas. And we have also started our work on a reform of the Wine CMO.

In a few months time the Commission will be taking another important step in order to complete the work that was started with the CAP reform of 2003 and 2004, by adopting a proposal for a reform of the Fruits and vegetables CMO.

As we set out to reform the fruits and vegetables sector we need to stay loyal to the path that we have chosen for our European agriculture over the last three years. Lessons have been learnt. We should draw the full benefit of these. But it goes without saying that the specificity of the fruits and vegetables sector should and cannot be lost.

But what characterises our fruits and vegetables sector today and why is reform necessary?

First of all I see a sector under pressure.

High levels of concentration among retailers and discount chains have enabled these to assume a leading role in the determination of market prices.

These are problems we are not unfamiliar with in other sectors such as milk – but they seem to put our fruits and vegetable sector in a particular stranglehold.

Increasing competitive pressure from third country imports is only making matters worse.

Our sectors ability to tackle these challenges is not being helped by the high producer fragmentation that continues to characterise the fruits and vegetables sector. This problem is not new – unfortunately is remains very relevant.

But we are not only facing problems on our own markets. We have important offensive interest to pursue in many of the emerging third country markets. But often our exports are hampered by sanitary and phytosanitary barriers. Although this is not a matter to be tackled within the context of this reform, it is a problem that is weighing down on our sector and contributing to the need for reform.

And problems are not confined to the fresh fruit and vegetables sectors. Products intended for processing are also increasingly suffering from the increased exposure to competition from third countries imports. Examples are many: Tomato paste, frozen fruits and canned mandarins from China or orange juice from Brazil are but a few.

Where then do I see the need to intervene?

Firstly it is crucial that we address the structural problems faced by our sector. We should not accept unfair competition from third countries. But on the other hand trade protection should not be considered as an excuse to postpone for tomorrow, what needs to be done today.

The efforts to tackle fragmentation of our sector therefore needs to be reinforced. We have existing support schemes that provide financial support for the operational programmes of fruit and vegetable growers who market their products via producer organisations.

In spite of these schemes the number of producers that market their products through these groups remains disappointing. But rather than giving up this approach – I want to reinforce it.

We cannot afford to give up on our producer organisations. We will therefore put forward ideas to make these producer organisations even more attractive.

Another key concern in our present work is the impact of Fruit and vegetable production on the environment. The sectors use of water, energy (greenhouses), pesticides and fertilisers, and the amounts of waste (packaging, plastic polytunnels) that it generates are not negligible.

Our farming sector has managed a tremendous transformation in recent years enabling it to make a much more positive contribution to the preservation and maintenance of our environment. We must be able to expect the same of our fruits and vegetables sector – and this will be reflected in the tools that we will propose.

In my introduction I stressed the specificity of the fruits and vegetables sector – a specificity that we should be careful not too loose by introducing one-size-fits all measures in this sector. On the other hand we also need ask ourselves the question if the sector is sufficiently different to justify keeping it out of the single farm payment scheme – I am not so sure.

One thing however will be sure. Some parts of our current fruits and vegetables CMO are no longer compatible with the reformed CAP. The production support schemes that we know from the CMO for processed fruit and vegetables are one such example. This cannot continue.

We are dealing with a sector that faces difficulties – I think much can be improved, particularly by addressing the structural problems that I have mentioned previously. But we also need to be realistic. Problems will not simply disappear – and stay away. During our analysis of the sector it has become obvious to me that the fruit and vegetables sector is an obvious example of a sector where it will be opportune to introduce targeted risk management measures – in line with the conclusion of the overall risk management communication that was endorsed by European Parliament and member states last year.

Finally I want to stress a very important issue. Fruit and vegetables are important components of a healthy diet and could help preventing major diseases such as cardiovascular diseases, diabetes and gastrointestinal cancer.

Nevertheless the consumption is stagnating in the EU. The WHO recommends an average daily intake of 400 g of fruit and vegetables. Since 1995, the available data show that the average daily intake in the EU has ranged from a little above 200 g in UK and Austria to about 500g in Greece and Finland.

I am therefore convinced of the need of improving consumption of fruit and vegetables. Specific measures to promote consumption are also being examined in the framework of this reform.

In order to summarise these points I can say that we want to make a reform :

• To improve the EU fruit and vegetables' competitiveness and market orientation.
• To reduce fluctuations in fruit and vegetables producers' income resulting from crises.
• To increase consumption of fruit and vegetables in the EU.
• To continue the efforts made by the sector to maintain and protect the environment.
• To simplify and where possible reduce the administrative burden for all concerned.

We have been busy for long. We are currently finalising a comprehensive impact assessment, which will accompany the legislative proposal.

In the framework of the impact assessment's procedure, the Commission launched a two months' public consultation on the F&V sector's reform in May.

130 contributions namely from Member States, stakeholders, NGOs and industries have been carefully examined by my services before drafting the legislative proposals and the impact assessment report.

I want to launch a reform that makes a positive difference. But I want to be on solid ground. With the preparatory work that we have made I believe that we are.

Today I have given a first impression of some of the considerations that are currently shaping our work. I suspect that many of you wanted to know more. I assure that you will not have to wait long.

As so many MEP’s and sector representatives are here today I will also be looking forward to gathering your observations. We are at the early stages of a process that should hopefully enable us to adopt a reform proposal which would come into force in 2008.

I am looking forward to your capable input throughout this process.

Thank you