MAGAZINE - Copa-Cogeca

EU Farmers &
Agri-Cooperatives
MAGAZINE
N°6 - April 2012
• Copa- and Cogeca Presidents present Copa-Cogeca
detailed reaction to EU Commission proposals on
CAP post-2013
• Interview with Danish Minister Mette Gjerskov
• MEP La Via warns final decision on CAP could be
held up by EU budget talks
• Copa-Cogeca reaction to EU promotion policy plans
• International Year of Cooperatives 2012 under the
spotlight
• Copa-Cogeca demands for EU olive oil and wine
sectors
• Copa-Cogeca views on EU rural development policy

2 │ April 2012
CONTENTS
• Copa-Cogeca Secretary-General talks on EU
Trade Policy................................................. 3
• Copa President Gerd Sonnleitner presents
new Copa-Cogeca detailed reaction to EU
commission proposals on CAP post-2013,
highlighting measures to ensure food
security, productivity, sustainable growth
and employment........................................ 4
• Chairman of Copa-Cogeca working party on
promotion policy Mr Jochum Broadly
welcomes new EU commission plans on
future promotion policy and highlights need
for good budget.......................................... 5
• MEP LA VIA warns final decision on CAP
could be held up by EU budget talks........... 6
• Copa-Cogeca welcomes Ciolos move to
create high level group on wine planting
rights but warns it must not delay proposals
to keep planting rights in sector ................ 7
• Euro Coop highlights benefits of principles
of good practice in food chain and events
scheduled for international year of
cooperatives............................................... 8
• Many aspects of future EU rural
development policy proposals welcomed
but serious concerns over IFA review, Peter
Pascher chairman of commission advisory
group “rural development” stresses........... 9
• Falkenberg claims currently looking into
applying at international level same high EU
production and environmental standards to
imports and stepping up controls............. 11
• Interview with Danish Agriculture Minister
Mette Gjerskov on greening and the EU
Commissions' future Common Agriculture
Policy (CAP) proposals.............................. 12
• In International Year of Cooperatives 2012,
Cogeca President Paolo Bruni highlights
crucial role cooperatives play in market
place and outlines events for 2012 .......... 15
• Copa-Cogeca calls for private storage aid for
olive oil to be opened and for long-term
strategic plan for sector............................ 16

April 2012 │ 3
Copa-Cogeca Secretary-General
Pekka Pesonen
talks on EU Trade Policy
Negotiations are also continuing between the EU and India
for a Free Trade Agreement (FTA). Such an agreement would
benefit the EU dairy, poultry, cereals and oils sectors but we have
defensive interests on rice (in the EU we produce only 65% of
the rice we consume and we import around 1.3 million tonnes
of rice per year). The two sides have not however exchanged
offers on agriculture yet and an agreement was postponed in
February.
With little progress being made in the Doha round of World
Trade Negotiations, the EU Commission is pressing ahead with
negotiating bilateral trade liberalising agreements. But Copa-
Cogeca urges the EU to properly assess the socio-economic
impact of the deals . We were very disappointed about the
recently agreed trade liberalising deal between the EU and
Morocco, set to apply from May 1, as it will have a drastic effect
on the EU fruit and vegetables sector, particularly tomatoes.
A socio-economic impact assessment should have been carried
out first by the EU Commission, before going ahead with such
a deal. It will jeopardise thousands of jobs in EU rural areas
which have already been seriously affected by the economic
crisis. Imports from Morocco also do not have to meet the EU’s
high production standards which is a major concern for us.
This agreement will dramatically increase the positive trade
balance already in Morocco’s favour and have a disastrous
impact on employment in EU rural areas. I nevertheless
welcome the fact that European Parliament made some slight
improvements to the agreement, such as changes to the EU
system of controls and safeguards for imports from Morocco
which have proven to be ineffective in the past. I urge the EU
Commission to ensure that these controls and safeguards are
properly enforced, to prevent the market from being severely
disrupted. The Commission must also work on the entry price
system and manage the monthly quota properly.
Trade liberalising talks are also continuing between the EU and
Latin American Trade bloc Mercosur, which if agreed, would
have a severe impact on the EU agriculture sector, notably on
meat producers. Based on demands made by the Mercosur
countries in 2006, a study carried out by Copa-Cogeca reveals
that there would be losses to the EU agriculture sector of up to
13 billion euros. And this does not even look at the impact on
employment in EU rural areas where job losses are likely to be
huge given that the EU agri-food sector provides for 40 million
jobs in EU rural areas. Little progress has however been made
recently in the talks.
Negotiations were also launched between the EU and Canada
in 2009 and trade liberalisation for the majority of products
is foreseen, with an agreement expected at the earliest by the
end of the year. If a deal is reached, it would benefit the EU
wine and dairy sectors. Copa-Cogeca is also keen to launch an
ambitious FTA with Japan at the EU-Japan Summit at the end
of May.
You can find the Commissions response to some of our concerns
on trade policy in this magazine as well as read about our newly
agreed position on the Commissions’ proposals on the future of
the CAP. The future of EU rural development policy and of EU
promotion policy are also put under the spotlight. In addition,
our demands to maintain planting rights in the EU wine sector
are highlighted. We very much hope that you enjoy reading the
magazine and take on board our views.

4 │ April 2012
Copa President Gerd Sonnleitner
presents new Copa-Cogeca detailed
reaction to EU commission proposals
on CAP post-2013, highlighting
measures to ensure food security,
productivity, sustainable growth and
employment
Presenting Copa-Cogecas’ new detailed reaction to the EU
Commission’s legislative proposals on the future CAP to 2020,
Copa President Gerd Sonnleitner highlighted the need to boost
productivity and efficiency in a sustainable way, warning that
the Commission proposals to further green the CAP are too
bureaucratic, will not increase sustainability or have the desired
effect.
Copa President Gerd Sonnleitner stressed “If the EU agricultural
sector is to meet society’s concerns over the coming years it must
confront two major challenges. First, how to ensure food security
in the face of rising world demand, dwindling resources of land
and water and climate change. Secondly, how to contribute to
much-needed economic growth and employment. The answer
is to improve the productivity and efficiency of EU agriculture
and to do it in a sustainable way. If EU agriculture can respond
positively to these challenges, we believe the public will recognise
that the cost of the CAP – less than 1% of EU public expenditure
–is an extremely good investment”.
But he warned that the Commission proposals to impose further
mandatory environmental constraints on farmers, without taking
into account the impact on food security, will actually undermine
farmers’ ability to meet these challenges and weaken their position.
Applying the same 3 measures across-the-board to 13 million EU
farms is not the best way to achieve environmental benefits and
will, at the same time, increase farm costs, reduce production
and have a negative impact on farmers’ already low incomes.
He criticised the Commission plans to reduce the amount of
agricultural land available for production, saying in many member
states it would mean taking 7% of land out of production, not
less as suggested by the Commission. This will mean less raw
materials for the food industry and less feed for livestock, which
will have serious effects on the EU dairy and beef sectors which
are already being squeezed by high input costs.
He continued “That is why Copa-Cogeca is calling for the CAP
to focus on measures which ensure green growth in the future:
measures which benefit the environment at the same time as
maintaining production capacity, efficiency and employment.
There should be an EU list of measures so that farmers can make
a choice based on their own farm situation”.
He insisted “The Commission’s proposal to cap direct payments
also runs counter to achieving a more dynamic and efficient
sector since it would penalise farms which have improved their
structure, or wished to do so through economies of scale”.
Copa-Cogeca is also calling for a fair and equitable treatment
of farmers, taking into account differences in conditions, when
redistributing the budget between Member States. The move
towards a more uniform hectare payment within Member States
proposed by the Commission will have extremely adverse effects
on some farmers and they must be given more time and flexibility
to adapt.
Mr Sonnleitner went on to underline the need for more CAP
simplification, saying that many Ministers and MEPs also agree
with Copa-Cogeca views on having much less red tape and less
greening under the future CAP, in order to ensure a dynamic,
innovative sector in the future which employs around 40 million
people. The future CAP must focus on improving the economic
performance of farmers and cooperatives as well as improve the
functioning of the food chain to ensure they get a better return
from the market.
But in view of the current financial crisis hanging over us, Mr
Sonnleitner stressed that its crucial first to solve the crisis and
agree on the EU budget for 2014-2020 before making a final
decision on the future CAP. We have to know what money we
have available. This is at the forefront of everyones minds, he
stressed.

April 2012 │ 5
Christian Jochum, Chairman of Copa-Cogeca Working Party on
Promotion Policy broadly welcomed new EU Commission plans
on future EU promotion policy of agricultural products, saying
they include many of our demands, especially the urgent need for
simplification of administrative procedures. But he highlighted
the need for a good budget to fund an ambitious EU promotion
policy.
position is to make it possible to promote the origin of a product
when it is not covered by EU legislation on quality policy and
when it is a secondary message and Mr Jochum welcomed the
fact that this has been included in the plans. Mr Jochum was also
pleased to see that our demands on policy for branding and the
need for it to be relaxed slightly to enable pragmatic solutions
to be found in co-financed EU programmes are also included in
plans. But Mr Jochum insisted that there must be a big boost in
EU funds allocated to this policy as many of the problems in the
past have been to a lack of funds.
EU Agriculture Ministers have also adopted EU Council
conclusions on the future of EU agriculture promotion policy,
stressing that the EU needs a more ambitious promotion policy
which Copa-Cogeca welcomes.
Copa-Cogeca organised a Seminar “The Reform of European
Promotion Policy for Agricultural Products: Moving towards a
new EU promotion Policy for Agricultural Products” with the
support of the EU food industry organisations FoodDrink Europe
and Celcaa, in Brussels in March to debate the reform. It gathered
together over 100
stakeholders, leading
politicians and experts
to exchange ideas.
Participants concluded
that an ambitious
promotion policy is
needed, with a more
targeted, strategic
approach. Mr Jochum
welcomed the debate, stressing it provided a good marketplace to
exchange ideas early on in the legislative process.
Chairman of Copa-Cogeca working party
on promotion policy Mr Jochum Broadly
welcomes new EU commission plans on
future promotion policy and highlights need
for good budget
The move came as the
Commission released its
Communication, with
legislative proposals
expected at the end of the
year. The Communication
includes measures to
simply administrative
procedures – a key
demand of Copa-Cogeca - as a big problem with the policy up
to now has been down to the very complicated administrative
procedures which has reduced the uptake of it. Although Mr
Jochum welcomed the move, he insisted that we will now have to
see the details of it and if it can work in practice as often things
just end up becoming more complicated. Labelling rules also
need to be simplified and made understandable for consumers at
the same time as meeting EU consumer expectations, he said.
In addition, the Communication highlights the need to tap into
new export markets, such as India. Copa-Cogeca believes that
its important to promote products on new emerging economy
markets, such as India, where demand for meat is expected to
grow substantially. But Mr Jochum stressed that the priority must
still to be to target EU funds at promotion measures destined for
the internal market as 85% of EU produce is sold on the domestic
market. Copa-Cogeca is calling for promotional measures to
be stepped up on both domestic and external markets. He also
welcomed the Commission move to increase recognition of EU
quality standards. Activities targeted at the internal market that
focus on the EU’s unique selling points such as high quality
produce are suggested. Another key point of Copa-Cogecas’

6 │ April 2012
MEP LA VIA warns final
decision on CAP could be
held up by EU budget talks
MEP Giovanni la Via warned in an interview that a final
decision on the future Common Agricultural Policy (CAP)
could be held up by talks on the EU budget for 2014-2020,
preventing implementation of the new CAP reform on January
1 2014.
In an interview with Copa-Cogeca, Mr Giovanni La Via , who
is rapporteur on the financing, management and monitoring
aspects of the EU Commissions’ proposals on the future CAP,
said he doubts there will be an agreement on priorities for the
new EU financial framework 2014-2020 under the Danish
Presidency. This will make it difficult to get a final agreement
on it by the deadline of December 2012. It will also be hard
to agree in 2013 in view of the German elections, he added. So
far, seven Member States, namely UK, Germany, NL, Sweden,
Finland, Austria, Czech Republic, Denmark, have argued
that expenditure proposed under the Commission proposal
must be cut whilst the majority viewed it as a good basis
for discussion, underlining the need for a strong CAP and
Cohesion Policy.
Without an agreement, there will not be a final vote in
Parliament´s Agriculture Committee on the future CAP
which could delay implementation of the new CAP reform
scheduled for January 1 2014, he added. Mr La Via, together
with MEPs Luis Manuel Capoulas Santos and Michel Dantin
who are reporting on behalf of European Parliament on the
Commissions’ proposals on the future CAP, have also agreed
to state in their reports that if the final vote on the budget
is different from the Commission proposals, everything will
have to be re-thought. He believes that there must be a strong
budget to fund the future CAP. Copa-Cogeca believes too that
there needs to be a strong budget and that its crucial first to
agree on the EU budget for 2014-2020 before making a final
decision on the future CAP.
Mr Giovanni La Via went on to highlight the need for much
more simplification in the Commissions proposals on the
future CAP and for procedures to be streamlined. He pointed
out that there are currently 81 payment agencies at EU level
and many regional agencies. For example in Italy, there are
five different payment agencies in one region. He insisted that
Giovanni la Via
there should only be one national payment agency in each
member state, with delegated regional offices, to ensure there
is one system in each country. He also believes that sanctions
charged to farmers for not complying with the proposed new
rules under the CAP are too severe in some cases. For example,
farmers not applying mandatory greening measures under
the Commission proposal could lose not only 30% of their
direct payments but also a cut in the basic payment. He wants
clarification on this and believes sanctions should be reduced
for small farmers if for example they do not manage to comply
with the rules on taking 7% of land out of production. Copa-
Cogeca also believes the penalties are unacceptable

To:
Jacques Eugene
Subject:
photo thierry coste- wine article
Date: mercredi 22 septembre 2010 17:32:53
April 2012 │ 7
Copa-Cogeca welcomes Ciolos
move to create high level group on
wine planting rights but warns it
must not delay proposals to keep
planting rights in sector
Copa-Cogeca has welcomed EU Farm Commissioner Dacian
Cioloş’ move to create a high-level group to look at wine
planting rights. We look forward to contributing to the work
of this Group but stress that a proposal to maintain planting
rights for all types of wine in the EU sector must be released
and the establishment of this group must not delay the
process.
IMG_0295
Thierry Coste
Copa-Cogeca Secretary-General Pekka Pesonen stressed “The
wine sector is an area where the agri-food trade between the
EU and non-EU countries excels, with exports reaching €6.7
billion in 2010, accounting for nearly a quarter of European
exports of agricultural products. From an economic point of
view, European production consequently plays a strategic role
and is also an important source of employment in many rural
areas of the EU”.
Luxembourg, Austria, Hungary, Portugal, Romania, Czech
Republic, Greece, Spain, Slovakia, Slovenia and Bulgaria – also
now oppose plans to phase them out in 2015. Copa-Cogeca has
just published a Communication on this which is available on
our website.
Chairman of Copa-Cogeca wine working party Thierry
Coste said “Copa-Cogeca is very worried about what would
happen in the EU wine sector if planting rights were to be
abolished. Liberalisation of planting rights would cause major
changes to Europe’s wine-growing areas and it would add to
the existing imbalances in the food chain, to the detriment of
the production sector. The system of planting rights helps to
accompany the EU wine market and wine production with a
regular increase in the area under vines as well as guarantee the
quality of wine produced in the EU”.
Copa-Cogeca consequently urges the EU Commission to
proceed without further delay with a proposal which maintains
planting rights in the wine sector, instead of phasing them
out, as this has already caused major concerns in the EU-wine
producing sector. A rapid decision on maintaining planting
rights is required to enable producers to make the necessary
investments.
MEPs have already called for planting rights to be kept after
2015, when voting on the report on the future of the CAP in
May and they held a successful hearing on 19 March on the
issue. Fifteen Member States – France, Germany, Italy, Cyprus,

8 │ April 2012
Euro Coop highlights benefits
of principles of good practice in
food chain and events scheduled
for international year of
cooperatives
In a bid to combat unfair and abusive practices along the food
chain, notably in contractual relations, Rodrigo Gouveia,
Secretary-General of Euro Coop, highlighted in an interview
the benefits of the recently agreed set of principles of good
practices. The move signifies a major achievement for all
actors along the food chain, from farmers, agricooperatives,
traders, food industry, to retailers.
These unfair commercial practice s may include cases where
contracting parties refuse to put essential terms in writing
in agreements, making it difficult to establish rights and
obligations. This work led to a set of principles of good
practices and examples of fair and unfair practices to ensure a
better functioning food supply chain and was carried out by
a multistakeholder dialogue group composed of 11 European
representative organisations. This was set up within the
framework of the High Level Forum for a Better Functioning
Food Supply Chain, chaired by Vice-President Tajani. The
general and specific principles cover aspects such as written
agreements, predictability of changes in contractual terms,
compliance, information, confidentiality, responsibility
of contractual partners. For example, contracting parties
must ensure that the agreements are put in writing where
practicable.
Mr Gouveia went on to outline other major challenges facing
him at the moment such as the Commissions sustainable
consumption and production action plan which includes
issues such as labelling, educating consumers. He is also
working on the retail action plan which could include issues
such as harmonising labelling requirements.
Euro Coop will also participate in the International Year of
Cooperatives 2012,highlighting the crucial role cooperatives
play in the marketplace and the key contribution they make to
the EU 2020 strategy for growth and employment. Together
with Copa-Cogeca, Euro Coop will hold a major Seminar
in Cooperative Week on “Cooperatives Working Towards a
Fair and Competitive Food supply Chain” and co-organise a
Youth Conference in June as well as a Consumer Cooperative
Worldwide workshop in the last week of October.
The agreement was warmly welcomed by the High Level
Group and Mr Gouveia stressed that it represents a big step
forward, especially as it applies to the whole food chain and
does not discriminate a single sector. It demonstrates we can
bridge our differences, he added. For those that sign up to
it, it will mean that they will have to take up and apply the
principles. It should be widely used, he insisted. Mr Gouveia
is chairing the group responsible for drawing up a framework
for implementation and enforcement before the end of
June to ensure the rules are properly enforced and disputes
are solved when principles are not applied. This is a major
challenge, he said. Among other features, there will have to
be sanctions if the principles are not applied, he added, but
the group is reflecting on the best type of dissuasive penalties
to impose.

April 2012 │ 9
Peter Pascher, Chairman of the EU Comissions Rural
Development Advisory Group , welcomed in an interview
many aspects of EU Commission proposals on Rural
Development Policy under the future Common Agricultural
Policy (CAP). But he expressed major concerns about
proposed criteria for a new delimitation of less favoured areas
(LFA), warning it will be a disaster for some Member States.
He also highlighted the need to reduce red tape under the
proposals.
Mr Pascher stressed “Overall,
we favour the Commissions’
approach on future EU
rural development policy. In
particular we like the move
from the ‘axis’ approach to
a thematic approach under
the Rural Development
Policy proposals. We think this will give Member States or
regions more flexibility to take account of their own specific
conditions. We also support the new and further developed
measures, such as knowledge and innovation transfer and
cooperation measures. We welcome the new European
Innovation Partnership which will bring together farmers,
advisors and researchers”.
But we are very worried about the review of LFA whereby
much of the previous LFAs would lose their status and others
would gain. “We don’t know how we can explain this to
Many aspects of future EU rural
development policy proposals welcomed
but serious concerns over IFA review,
Peter Pascher chairman of commission
advisory group “rural development”
stresses
farmers or taxpayers”, he said. Copa-Cogeca urges Ministers to
take into account its proposals and hopes Council and MEPs
will agree on a delimitation of LFAs which is comprehensible
and takes in account the real difficulties in land management.
He continued “We also have serious concerns about
Commission proposals to further green the CAP and make
30% of farmers direct payment dependent upon complying
with environmental conditions. It increases the burden on
farmers significantly and raises farm costs or diminishs farm
receipts, reducing their competitive position. For example, it
is very difficult for many farmers to grow 3 crops for climatic
or agronomic reasons. If this measure remained under the
second pillar of the CAP, farmers would be able to decide
voluntarily whether to do it, promoted with a premium, or
whether to choose other measures”. Copa-Cogeca is calling
for measures to encourage “green growth”. For example,
measures which help farmers achieve resource efficiency – to
use less water, fossil energy and fertilizers - such as precision
farming. That way farmers benefit from reduced costs, they
maintain production but they also benefit the environment.
Or measures to encourage more bio-energy production
including the use of residues.
Copa-Cogeca is calling for a
specific article under Rural
Development on green growth
measures, just as there is a
specific article for animal
welfare and so on. “We
meanwhile welcome the 7
specific articles on forestry even
if some improvements are needed”, he added.
Mr Pascher went on to highlight the need to simplify the
Leader initiative, which aims to encourage sustainable
development in the region, saying it takes too much time
for many farmers and needs to become more attractive
for entrepreneurs in order to become effective and more
sustainable.

10 │ April 2012
people
resilient
sufficient
sustainable
productivity
planet
agriculture
People Planet Agriculture
An appetite for measurable sustainability
viable
The crop protection industry works daily for the quality,
quantity and sustainability of European food. Pesticides
are part of a solution that balances the needs of.
We must grow more, from less. Europe needs policy
measures that encourage sustainably productive
agriculture.
people, the planet and agriculture.
The Common Agricultural Policy (CAP) should be
a central part of Europe’s drive for measurable
sustainability, and a focal point for innovation.
resilient
Efficient agriculture protects and preserves natural resources
and minimises the environmental impact of food production
European Crop Protection believes that success
depends upon concrete measures and objectives for
competitiveness, productivity, and the development and
uptake of science based solutions for the sustainable
intensification of agriculture.
sufficient
Rising demand for food, the constraints of natural resource
use, the challenges of a changing climate and biodiversity
conservation inspire a new vision for agriculture
viable
European society, environment and economic
competitiveness all stand to benefit from a regulatory
framework that boosts innovation for a truly resource
efficient production of food, feed and fibre

April 2012 │ 11
Falkenberg claims currently looking into
applying at international level same
high EU production and environmental
standards to imports and stepping up
controls
In an interview with Copa-Cogeca, EU Commission Director-
General for the Environment Karl Falkenberg said they
are stepping up import controls and work at international
level on how to apply the same high EU production and
environmental standards to imports of agricultural products
and food imported to the EU.
Copa-Cogeca argues that the EU is imposing higher and
higher environmental constraints and costly regulations onto
EU producers, which reduces their competitivity, and the same
rules are not applied to imports. For example, the EU has just
imposed a ban on un-enriched cages for laying hens on its own
producers, which has cost them over 5 billion euros, and not
on imports. Prices have risen as a result of this ban and producers
have had to de-populate in the short term to give time to adjust
to the new standards and costs or cease their production. And
now the industry is looking to boost imports, which do not
have to meet the same standards, in order to fill the gap.
Copa-Cogeca insists that the same standards which are
applied in the EU must apply to imports. Mr Falkenberg
acknowledged the problem, saying that this hasn’t been achieved
at international level yet within the WTO but they are working
on it. They nevertheless try and incorporate it into bilateral
trade agreements and have been looking at enhanced labelling
requirements for imports. They have also stepped up import
controls, he added.
Copa-Cogeca also warns against imposing further mandatory
environmental constraints onto EU farmers, which has been
proposed by the Commission under its CAP post-2013
proposals, and which again do not apply to imported products.
Copa-Cogeca arges that we are already far ahead in terms of
greening than other non-EU countries and now is not the time
to impose further costly constraints onto EU farmers. Copa-
Cogeca instead advocates the need for green growth measures
which benefit the environment at the same time as maintaining
productivity and competitivity. Copa-Cogeca argues that there
is no sense in taking land out of production, as proposed by the
Commission, in the wake of growing food demand and when
the environmental benefits of it are questionable. It is not the
right way forward. This has also been supported by many EU
Farm Ministers and MEPs. Defending the move, Mr Falkenberg
insisted that its an intelligent form of set-aside.
Mr Falkenberg went onto highlight the benefits of innovation
which Copa-Cogeca supports, believing it essential to boost
productivity using less resources. Copa-Cogeca welcomes the
EU Commission latest move to set up European Innovation
Partnerships.

12 │ April 2012
Interview with Danish Agriculture
Minister Mette Gjerskov on greening
and the EU Commissions' future
Common Agriculture Policy (CAP)
proposals
What business opportunities do you believe can come
from a further greening of the CAP and how can it be
made worthwhile for farmers and their cooperatives,
especially livestock farmers What examples can we
learn from Denmark
I believe that we need a greener and sustainable
Europe and farmers play an important role in
achieving this. In the future, there will be increasing
competition for natural resources as land and water
which also will affect livestock production. We must
learn to produce more from less as well as ensure
a sustainable use of the resources throughout the
supply chain. A greener CAP can support a more
sustainable production. And the agri-food sector
can enjoy new business opportunities from this.
Ultimately it will enhance the farmer's role as
environment keeper and provide the farmer with
new earnings such as supplier of renewable energy.
There is great potential for the sector to supply
renewable energy by using residual products for
the production of 2nd generation bioenergy.
In Denmark we also have an interesting example
of a new earning which at the same time is a new
solution to some challenges in the health sector:
mucosa from pigs are used to avoid embolus.
I think the main focus on the reform is to ensure
that we get further reel greening of the agricultural
sector and that this is achieved in an economical
sustainable way. Member States in general support
a greener focus in the agricultural policy. But the
crucial point for all will be that the framework for
the future greening allows farmers and Member
States to handle the new challenges in a cost
effective way. In a time of economic crises, the
Agriculture and Fisheries Council has an obligation
to ensure that the future CAP – holding 40 pct of
the EU-budget – contributes in paving a way out
of the crisis.
Copa-Cogeca believes that the Commission proposals to
impose further mandatory environmental constraints
on farmers and apply the same 3 measures acrossthe-board
to 13 million EU farms is not the best way to
achieve environmental benefits and will, at the same
time, increase farm costs, reduce production and have
a negative impact on farmers' already low incomes.
Copa-Cogeca is therefore calling for the CAP to focus
on measures which ensure green growth in the future:
measures which benefit the environment at the same
time as maintaining production capacity, efficiency and
employment. Do you agree with Copa-Cogeca views
On the food chain, do you believe that Commission
proposals to extend the product coverage for
recognition of POs is a step in the right direction What
other measures do you think are needed to improve
farmers and cooperatives positioning in the food chain
What reactions have so far been given by Ministers on
this and what kind of result do you see emerging on
this
In the Council - I think I can safely say this - we are all
concerned about the functioning of the food supply
chain. Not to forget though - that as many different
agriculture and production structures there are in

April 2012 │ 13
the EU, as many different opinions there are on
this issue. The Commission has also made several
attempts to address this – for instance by setting
up the High Level Forum for a better functioning
food supply chain. I am a member of the Forum
and I value the efforts to improve the functioning
of the food supply chain. It is good that business
organisations as Copa-Cogeca are also represented
in the Forum as you actually represent actors in the
food chain.
I believe that balance in the food chain is best
achieved when the initiative to cooperate comes
from the market actors themselves. And in general,
I believe that it is important that we do not create
administratively or economically burdensome
solutions but rather solutions that are efficient and
create results. Above all, I find it very important
that we do not impose mandatory solutions before
we have identified whether there is a problem and
considered any unintended side-effects solutions
might create on the functioning of the internal
market or the free competition. It is central that
we provide the best possible policy framework for
farmers and business to produce sustainably in both
an economic, environmental and social sense.
What do you think of the EU Commissions Rural
Development Policy proposals and what kind of picture
is emerging on this from Ministers
I believe the Commission’s proposal on the Rural
Development policy has been a good starting
point for our ongoing discussions. However, it is
clear that many Member States wish for a more
simple framework, both from an administrative
perspective, and for the beneficiaries of the
different rural development schemes.
On the same line, it is my impression that Member
States would like to see a framework regulation
with more flexibility to programme funds towards
regional and/or local challenges. As opposed to the
direct payments, the RDP is intended to support
targeted initiatives. As the EU has expanded to 27
Member States, the challenges that the individual
countries face will obliviously vary. I especially
believe the instruments for environmental
measures needs to be strengthened and it should
be possible to support the implementation of other
policies, such as the Water Framework Directive
and Natura 2000.
Further, we need to make the next RDP future
proof. Europe is in a transitional phase, where
we have to prepare our economies for the future
challenges in a globalised world economy.
Therefore the new RDP should contain enough
flexibility and vision to support a green transition
of the European economies. This would benefit
both the environment, job creation and growth.
What sort of proposals do you want or expect to see
from European Parliament on the future CAP, especially
concerning greening
It is difficult to predict, but I think there will be a call
for more flexibility for Member States compared to
the present proposal.
When do you think an agreement can be reached on
the CAP reform package
It is very difficult to predict when we will reach
an agreement but most likely during the Irish
Presidency. For the first time an agricultural reform
will also depend on the process in the European
Parliament. This is decisive and at the same time
new to us in the Council for agriculture –and it
will of cause influence the decision process. One
thing is sure – we are working very hard on making
progress on the reform proposals in order to
advance as quickly as possible.

14 │ April 2012
Farmers have to eat
Feeding Life
Farming is a tough business.
To have a good year, a hundred things
have to go right.
Mineral fertilizers help making farming
financially, as well as environmentally,
viable. On average, each euro invested
in fertilizers yields a 5 fold return. No
wonder 95% of European farmers use
mineral fertilizers to boost their financial
independence.
Avenue E. van Nieuwenhuyse 4/6
B-1160, Brussels, Belgium
Tel: +32 2 675 3550
Fax: +32 2 675 3961
mark@fertilizerseurope.com
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April 2012 │ 15
In the International Year of Cooperatives 2012, Cogeca
President Paulo Bruni highlighted the important role
agri-cooperatives play in the market place. They help
farmers get a better return
from the market and make
a key contribution to the EU
2020 Strategy for growth and
employment, which is vital in
the current economic climate.
Mr Bruni insisted "Agri-
Cooperatives are key to ensuring
a competitive, innovative EU
agri-food sector. They enable
farmers to join forces to market their produce; add value
to produce; help protect farmers against risks and help
ensure product development through research and
innovation, which is more important than ever given the
current economic climate and increasing market volatility
. In the fruit and vegetables sector, for example, where
there are strong seasonal variations in supply, cooperatives
play a vital role in balancing out the market".
He continued: “With farmers currently getting little
return from the market place, it is more important than
ever to further concentrate supply via the development
of cooperatives to help them get a better return. This is
vital in view of the increasing world food demand which
is expected to rise by 70% by 2050. That is why it is crucial
to ensure that much more is done under the EU policies
to strengthen cooperatives’ role”.
Mr Bruni highlighted the major breakthrough Copa-
Cogeca achieved in February in agreeing a position on
the EU Commissions legislative proposals on the future
Common Agricultural Policy (CAP). He is pleased to see
the EU Commission has recognised the importance of
agri-cooperatives and has come forward with plans to
reinforce their role in its proposals . This is a move in the
right direction. The Commission intends to work on each
sector and see how producer organisations (POs), such as
cooperatives, can be strengthened, focusing in particular
on the fruit and vegetables, wine, olive oil and sheep
sectors. But he called for a more precise definition of
POs, their aims and tasks
and a guarantee of
In International Year of Cooperatives
2012, Cogeca President Paolo Bruni
highlights crucial role cooperatives
play in market place and outlines
events for 2012
“legal certainty” under
Community competition
law so that they are able to
consolidate. Copa-Cogeca
has just agreed a position
paper on this. We also
need specific measures
to eliminate unfair and
abusive commercial practices in the food chain. With
increasing market volatility, Mr Bruni called for strong
safety nets and measures to manage the markets.
In a bid to launch at European level the International Year
of Cooperatives 2012, Cogeca, together with Cooperatives
Europe and other European sector member organisations,
held a major press conference in January , hosted by MEP
Capoulas Santos. Cogeca will also carry out new initiatives
in 2012 and step up efforts to promote agri-cooperatives.
We are jointly with other stakeholders organising a
number of targeted events, like the Cooperative Week
in April, in Brussels. In a bid to stimulate innovation,
Cogeca will present the European Award for Cooperative
Innovation in June, Mr Bruni said. This award is intended
to show how creative and innovative European agricultural
cooperatives are and to encourage others to improve their
competitiveness and positioning in the food chain and to
create more innovative products.

16 │ April 2012
Copa-Cogeca calls for private storage
aid for olive oil to be opened and for
long-term strategic plan for sector
In a bid to alleviate the crisis on the EU olive oil market,
Copa-Cogeca sent a letter to the EU Commission in March
calling for private storage for olive oil to be opened for at
least an additional 100, 000 tonnes of extra virgin olive oil
and virgin olive oil.
Chairman of Copa-Cogecas’ Olive Oil Working Party
Rafael Sanchez de Puerta stressed “The latest tendering
procedure for aid for private storage of olive oil showed
that there are still large quantities of virgin olive oil and
extra virgin olive oil which urgently need to be taken off
the market immediately. Prices remain very low at the
moment and below the trigger price for activation of
private storage. If no action is taken, they will plummet
further”.
“In many production regions, there is also severe drought
which is expected to cut olive oil production for the new
campaign. The stored quantities will consequently enable
a smooth transition into the new campaign to maintain
the level of supply and to ensure market balance”, he
added.
Copa-Cogeca Secretary-General Pekka Pesonen continued
“To help prevent such serious disturbances from
happening again in the future, we urge the EU Commission
to develop a Strategic Plan for the sector. This crop is vital
for the main producing countries – Spain, Italy, Greece,
Portugal, France – in terms of maintaining employment
in their rural areas. We are pleased that the Commission
plans to make the food chain work better and reinforce
producers bargaining power”.
The EU Commission has announced that they will present
an economic study and on the basis of the findings they
hope to be able to start discussing concrete ideas to
address certain structural issues facing the sector in the
coming months. Copa-Cogeca looks forward to examining
the study and debating ideas to help improve the sector.
Copa-Cogeca
61, Rue de Trèves
B - 1040 Bruxelles
Telephone 00 32 (0) 2 287 27 11
Telefax 00 32 (0) 2 287 27 00
www.copa-cogeca.eu