Farm Europe welcomes Coldiretti as a partner representing Italian farmers

IMG_6611Coldiretti, the largest representative organisation of Italian farmers, decided to join Farm Europe as of 1st April 2019. Farm Europe welcomes this decision which will strengthen the capacity of the think tank to develop forward looking policy paths for the future of EU food systems.
Working in close cooperation with other Farm Europe’s Partners and Members, Coldiretti will bring its expertise and dynamism in order to boost EU policies. Our common aim is to shape vibrant agricultural economies, healthy food and ecosystems while anticipating and being always closer to societal expectations and consumers’ needs.
 EU agriculture and food are at a crossroads. Farm Europe is therefore delighted to gather food chain actors willing to join forces to set the ground for a better future and for an Europe that can count on its agri-food systems.

The Commission confirms a rescue operation for palm oil biofuels

Despite the agreement reached on the Renewable Energy Directive last year and the concerns expressed on the draft submitted for consultation a month ago, the European Commission confirmed its intention to rescue palm oil in EU biofuels, in breach with the decision of the colegislators and with the will of the European citizen expressed strongly including via the #NotInMyTank website by almost 65.000 people.

The delegated act tabled today would allow large quantities of palm to be excluded from the freeze at 2019 level and phasing out from 2023 decided by the co-legislators that now have a very short period of time to object and request a new text, in line with the RED2 deal.

The text proposed by the Commission recognises that expansion of palm production is bad for the environment but, immediately after, offers a wide open door for the same palm to still be used in EU biofuels.

The low iLUC definition  does not take into account the overall objective of the regulation which is to cut the link between the EU framework for biofuels and global deforestation.

On the contrary, the text is a collection of loopholes, in particular an exemption for small plantations whose number is growing at a steady pace, and are controlled by big operators for palm crushing, certification and export even when independent. It is estimated that by 2030 small holders will manage 60% of the palm oil plantation area and will double their production capacity (1).

This means that under such a scenario proposed by the European Commission, in the coming years, EU imports of palm oil for biofuels would continue to expand. According to business estimates, small holders represent already now more than 6 million tonnes of palm oil, meaning more than twice the volume imported in Europe to produce biofuels.

Stefan Schreiber, President of Farm Europe’s Green Energy Platform said : « The European Commission decided, despite the consultation process, to circumvent the mandate given by the co-legislators in order not to disturb its trade conversation with Indonesia and Malaysia. This puts at risk the capacity of the EU to fully mobilise sustainable biofuels in order to decarbonise transport and achieve its climate objectives. This strategy undermines the credibility of the RED2 and should not be accepted by the European Parliament and Council ».
(1) https://www.iopri.org/wp-content/uploads/2017/10/WPLACE-17-1.1.-OIL-PALM-SMALLHOLDER-Bungaran-Saragih.pdf

Farm Europe welcomes the adoption of a European framework to combat UTPs in the food supply chain

By a very large majority the European Parliament has adopted the Unfair Trading Practices Directive within the agri-food supply chain. Farm Europe commends the work done during this term by the European Commission and the European Parliament, in particular at the instigation of Paolo De Castro and Mairead McGuinness, who played a key role in raising the level of ambition of the initial text. This directive will be the main step forward for the agricultural and agri-food sector during this term of office – alongside the Omnibus which has made it possible to update the CAP.

The Directive will apply to anyone involved in the food supply chain with a turnover of up to 350 million euros and differentiated levels of protection provided below this threshold. The new rules will apply to retailers, food processors, wholesalers, cooperatives or producer organizations or a single producer who engages in any of the identified unfair trading practices.

Prohibited UTPs – initially limited only to perishable products (payment after 60 days) – have been extended to cover: late payments for perishable food products (payment after 30 days); cancellations of last minute orders; unilateral or retroactive contract amendments; forcing the supplier to pay for wasted products and refusing written contracts. Other practices will only be permitted if they are subject to a clear and unambiguous prior agreement: a buyer returning unsold food products to a supplier; a buyer charging a supplier to guarantee or maintain a food supply agreement; a paying provider for a promotional, advertising or marketing campaign of a buyer.

Member States will be able to extend the scope of the Directive into national law, in particular by adopting a threshold of more than EUR 350 million or take additional measures if they wish so. It will be up to them to designate the authorities responsible for enforcing the new rules, including their ability to impose fines and initiate investigations on the basis of complaints. Confidentiality may be requested by the parties filing a complaint to address concerns about possible retaliation.

The Commission will put in place a coordination mechanism between the supervisory authorities to enable the exchange of good practice.

The agreement also includes a review clause set at 4 years. The provisions of the legislative text will therefore have to be assessed and possibly revised during the next term of Parliament.