FARM TO FORK NEWS: THE WORK GOES ON

Carbon Farming was one of the topics discussed by the Agri Committee during this month. Even if in agreement with the propositions of the Commission, MEPs raised their concerns over the methodology that would be used to put in place the certification system, how this system will be financed, how to monitor it, and the risk of increasing administrative burden.

From the Council, Ministers discussed and took position on the promotion policy of agri-food products amongst other things. They are strongly opposing the idea of alignment of this policy to the F2F strategy that would result in the loss of the promotional support to some agri-food industries.

A draft of the revision of the Sustainable use of Pesticide Directive has leaked the Commission’s services.  The Commission intends to implement rules to face the need for the introduction of stricter rules to increase coherence among member States and have more binding effects on policies in individual Member States.

During the Plenary session of the European Parliament of February, MEPs voted on the report on animal welfare (Rapporteur: Decerle, FR, Renew), agreeing on the fact that standards should be harmonized amongst Member States and calling for more stringent rules.

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NEW GENOMIC TECHNIQUES: SOME MEPS STILL HAVE DOUBTS

Some MEPs have sent a letter to the Commission ahead of the publishing of draft regulation on plants varieties obtained thanks to new genomic techniques, calling for further research and attention to safety. The 31 elected representatives asked the Commission to analyse in more details the risks related to new genomic techniques, pointing out that the Working Programme of the EU innovation programme Horizon does not foresee research in this sense. However, German MEP Lins, chair of the Agri Committee has declared that the EP is committed to foster research and to give concrete alternatives to farmers by 2030.

In England, the process of the revision of the legislation that aims to relax the legal context for research on new genomic techniques saw the scrutiny of the parliamentary committee of secondary legislation. The Lords pointed out that the draft law lacks of clarity on the general wider reform process, and on definitions.

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LIVESTOCK IN THE EU – PERIODIC NEWS

The proper treatment of farm animals is increasingly important to consumers, which is reflected in the desire to ban long transports and the transport of newborns. As a result, European livestock production (dairy and beef herds) is expected to decrease in the future – in line with European dietary trends, visible through the appeal of meat substitutes and to meet sustainability objectives – while global consumption is increasing. Furthermore, the European Union supports this shift towards a more plant-based diet. To increase transparency and trust, the French government has introduced origin labelling for all meat served in canteens and restaurants.

States are investing in their agriculture: in Italy, the finance law grants two billion euros to agriculture, fisheries and agri-food, in France, the amount of aid for cattle for 2021 remains stable, in Greece, 490 million euros are being invested in organic farming, including 130 million for cattle and sheep farming.

European livestock farming is particularly affected by the many diseases, especially animal diseases, present in the country: African swine fever, bird flu, bovine respiratory diseases and covid-19. Massive preventive culls have been imposed in France and Italy, as well as ostracism measures and bans on restocking. This, coupled with soaring energy and feed costs, makes the global market for animal products highly volatile. As a result, French egg companies are on their knees, beef prices are hitting record after record, milk prices are rising. As a result of this damage, many associations have requested emergency aid in France, Ireland and Poland.

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FARM TO FORK NEWS: FRANCE GIVES NEW IMPULSE ON MIRROR CLAUSES

January marks the beginning of the six months rotating presidency of the Council for France. French Minister for agriculture exposed its priorities on the legislative initiatives, namely the advancement of the reciprocity clauses in international trade, the sustainable use of pesticides, and the initiative on carbon cycles. Wageningen University published a second study on the impact on the market of the Farm to Fork Strategy, confirming the decreasing trends already underlined by other similar analysis. These trends were discussed in a public debate in the European Parliament’s COMENVI.  The EP approved as well a report on animal welfare during transport, calling for increased protection of animals in several conditions.

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WINE NEWS: 2021 EXCEPTIONAL YEAR

The beginning of 2022 marks the occasion to look back 2021 and see that the global wine trade has reached its highest ever figure, with France consolidating its position as the world’s largest supplier by value, despite sales volumes significantly lower than those of Spain and Italy. Total champagne sales for 2021 are also expected to reach a new record of €5.5 billion. In addition, the transition to more sustainable production in the sector continues, with Maker’s Mark becoming the largest distillery to achieve B Corp certification and Absolut Vodka committing to being “fossil fuel free” by 2025.

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NUTRITION & FOOD POLICIES: NOT ENOUGH FRUIT & VEGGIES IN THE EU

A study from UNICEF finds that children in the world are not fed correctly, calling for joint action on nutrition policy coordination. At the same time, statistics from the EU reveal that Europeans do not reach the recommended portions of fruit and vegetable daily. More evidence on the importance of a healthy diet show the reduced risk of blood cots and stroke risk.

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NEW GENOMIC TECHNIQUES: UK & CHINA FRONTRUNNERS IN RELAX OF RESTRICTIONS

More and more crops that have been genetically modified are being approved for field experimentation, such as lettuce, rice, maize. Whereas in the UK political declaration are pointing at the direction of a more relax legislative environment for gene editing, in China, public authorities are about to draft new rules to ease the application and approval procedure for edited crops.

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Italy: CAP Strategic Plan 2023-27

Strategic priorities: organic farming and livestock 

The Plan recognizes the importance of organic farming to contribute to the achievement of all environmental objectives; indeed, the sector is allocated about 2.5 billion euro in the five-year period within the rural development. The allocation already foreseen by rural development (1.5 billion euros) is in fact integrated with an additional endowment of about 1 billion euros, partly transferred from the first pillar (90 million euros/year) and partly coming from the increase in national co-financing. 

The relaunch of Italian livestock farming and its competitiveness goes through a great attention to sustainability. With this objective, a significant share of the resources for eco-schemes is dedicated to animal welfare and the reduction of the use of antimicrobial in animal husbandry (about 1.8 billion euros). This initiative is accompanied by other important interventions in rural development for the adoption of good zootechnical practices for animal welfare (330 million euros), for commitments aimed at improving the management of livestock effluents (70 million euros). 

The green architecture 

In total, around 10 billion euros, between Pillar I and II, are allocated to interventions with clear environmental aims. 

In this context, great importance will be given to the 5 national eco-schemes, to which 25% of direct aid resources will be allocated (around 4.4 billion euros) to support farms in adopting agro-ecological practices for climate and environmental sustainability. The eco-schemes will operate in synergy with the 26 agro-environment-climate measures (AECM)  (1.5 billion euros), measures in favor of sustainable forestry (500 million euros), productive, non-productive and infrastructural investments for environmental purposes (650 million euros), with the environmental actions foreseen within the sectoral interventions and the environmental investments of the NRRP, an integral part of this strategy. 

ECO-SCHEME 1  – Payment for the reduction of antimicrobial resistance and animal welfare 

A specific eco-scheme has been foreseen to pursue the goal of reducing the use of drugs in animal husbandry, to counter the antimicrobial resistance, a real global health emergency. A significant part of the resources for eco-schemes, i.e. around 1.8 billion euros for the entire programming period, has been allocated to this intervention. In particular, payment for animal welfare and antibiotic reduction is foreseen, with two levels of commitment, the first relating to compliance with thresholds for the use of veterinary drugs (antibiotics), the second for farms that commit to specific obligations in the field of animal welfare and practice grazing or semi-wild farming. This initiative is accompanied by a specific intervention in rural development aimed at supporting the adoption of good zootechnical practices for animal welfare (330 million euros). 

Approximately 360 million euros per year, around 41% of the resources foreseen for the adoption of eco-schemes go to the eco-scheme 1.

ECO-SCHEME 2 Weeding of tree crops, for which all areas occupied by permanent crops and other permanent tree species in quick rotation are eligible.

The total cost of this intervention is estimated at 161 million euros / year, about 17.8% of the resources provided for the adoption of eco-schemes. 

ECO-SCHEME 3 – Safeguarding olive trees of particular landscape value, on which the following specific commitments are met: 

-annual pruning of the foliage according to established criteria; -prohibition of burning on site of pruning residues, unless otherwise specified as a result of adherence to certified quality systems or by the competent phytosanitary authorities.

To access the support of ECO-3 it is necessary to adhere also to the commitments provided by ECO-2, with the possibility of combined payments. 

The total cost of this intervention is estimated at 156 million euros/year, about 17% of the resources provided for the adoption of eco-schemes. 

ECO-SCHEME 4 – Extensive fodder systems, aimed at encouraging the introduction in rotation of leguminous and fodder crops, as well as renovation crops with a commitment to residue management in a carbon sink perspective, in order to support production guidelines less impactful in terms of use of productive inputs. 

The total cost of this intervention is estimated at 169 million euros/year, around 19% of the resources foreseen for the adoption of eco-schemes. 

ECO-SCHEME 5 – Specific measures for pollinators (both on herbaceous and tree crops), arable land and land occupied by permanent crops are eligible on which the following commitments are met: 

-cultivation of crops of melliferous interest in arable land, including a commitment not to use herbicides and other plant protection products in the field and borders in the year of commitment; -cultivation of crops of melliferous interest in the inter-row of permanent crops, including a commitment not to use herbicides and other phytosanitary products in the field and in the borders in the year of commitment. 

The total cost of this intervention is estimated at 45 million euros/year, about 5% of the resources provided for the adoption of eco-schemes. 

In addition to the eco-schemes in the first pillar, the green architecture is supported by the agro-environment-climate measures (AECM) and forestry interventions in the second pillar. A total of 26 AECM interventions are foreseen with a planned expenditure of around 1.5 billion euros, 5 forestry interventions with clearly environmental objectives with around 250 million euros. 

Essential elements of green architecture are also all the measures of the innovation system that can be envisaged both in rural development and in sectoral interventions. Training and advice are fundamental to ensure that in their path towards ecological transition, each beneficiary is accompanied by adequate support action aimed at strengthening their skills and/or offering dedicated advisory services. 

Internal Convergence

The process of progressive equalization of the level of income support continues, taking the entire national territory as a reference. The reference to Italy as a single region puts into effect – through internal convergence to 85% of the national average by 2026– a considerable rebalancing in the allocation of direct payment resources, to the advantage of intermediate rural areas and rural areas with development problems, as well as to the advantage of mountainous areas and some inland hill areas. At the same time, 10% of the national envelope is allocated to redistributive support, focusing attention on small and medium-sized farms; also in this case there are no territorial or regional differentiations.

Coupled payment

In order to take into account the challenges and difficulties faced by sectors and products that are important for social, economic or environmental reasons, and with the aim of improving their competitiveness, sustainability and quality, the Strategy allocates 13% of the direct payment budget to coupled support. 

To this is added a further 2% of resources to be allocated to the support of protein crops, in order to reduce the relative deficit of Italy and the Union, supporting crops that also allow to achieve an improvement of organic matter in the soil. 

Coupled payments for: durum wheat; rice; sugar beet; tomatoes-processing; oilseeds; citrus fruits; olives; protein crops; cow’s milk; mountain milk, buffalo milk, suckler cows, ewe lambs for replacement; slaughtered sheep and goats.

Risk management

Almost 3 billion euros allocated to subsidized insurance and the new national mutual fund, to which farmers also contribute through a 3% deduction from direct payments. 

In order to increase the participation of farmers, the activation of a basic mutual coverage against catastrophic weather and climate events has been foreseen for all farms receiving direct payments, through the establishment of a national mutual fund. This intervention is integrated with support for the subscription of subsidized insurance policies, which cover losses caused by adverse weather, animal and plant diseases or parasite infestations. 

Young farmers

The Plan foresees the strengthening of policies in favor of young people, integrating the instruments of the first and second pillar, so as to mobilize a total of 1,250 million Euros. In fact, young farmers are more receptive to innovation and digitization, thus more ready to face the new challenges of competitiveness and resilience of the agricultural sector. With these objectives, 2% of the direct payments ceiling (350 million euros) will be used as complementary income support for young farmers and 1% will be transferred to the second pillar. In this way, the allocation already provided for in rural development (540 million euros) is supplemented by an additional endowment of around 360 million euros, partly transferred from the first pillar, partly from the increase in national co-financing.

LIVESTOCK IN THE EU – PERIODIC NEWS

Rising production costs for all agricultural sectors, particularly livestock, are a concern. Many sectors are demanding higher producer prices and improved farm incomes.

Opportunities have developed for some UK livestock sectors as a result of Brexit. In Ireland, however, the vote by MEPs to ban the transport of very young animals is described as a ‘blow’ to the calf exports industry.

Since the end of summer 2021, in Europe (geographical), 26 countries have been affected by influenza viruses, involving more than 400 outbreaks in livestock and 600 cases in wildlife. Affected farms are subject to strict biosecurity measures and disease control zones are in place.

Animal health companies have developed 49 new vaccines over the past two years as part of an industry-wide strategy to help reduce the need for antibiotics. In addition to producing vaccines, some industries have launched a range of other preventive products and 17 new diagnostic tools.

In Germany, the new government will act to improve farm animal welfare and a mandatory animal welfare label will be introduced for meat from 2022.

The European Commission has presented its carbon farming initiative, which aims to increase the amount of carbon dioxide stored in the soil – with the aim of achieving climate neutrality in the land sector by 2035. This ‘carbon farming’ proposal would reward farmers for managing or sequestering carbon, becoming a new source of income for land managers.

In France, a reduction in methane emissions from livestock has been observed since the 1990s, thanks to various levers. In order to pursue these methane reduction objectives, changes in the livestock production system will have to be made, as well as the implementation of certain actions on the farm, changes and actions that have yet to be prioritised.

The European Commission has published a report on the European Union’s Agricultural Outlook for 2021-31, but without incorporating the potential impact of the measures put forward in its Farm to Fork and Biodiversity strategies. Meat and dairy markets will be influenced by sustainability, social and health issues over the coming decades, both in terms of production types and consumption patterns.

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NUTRITION & FOOD POLICIES: NUTRI-SCORE ACCUSED TO DISTORT MARKET

The BECA Committee on Beating Cancer has finally approved the report on the European strategy to fight against cancer. Nutrition is not addressed as much, despite the important role that plays in preventing some type of cancers.

Lab-grown meat industry, at the same time, is on the rise, with more million invested in the business and the opening of an office in Brussels to represent their interests.

On the Front-of-package debate, the Italian competition authority has opened some cases against the Nutri Score, accused of distorting the market and of unfair trade practices.

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