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Welcome to the last 2024 edition of Brussels in Brief! The BAB team wishes you a very merry Christmas and a happy New Year, and thank you for reading our newsletters. You can find out more on what is happening in Europe at our website - BAB (britishagriculturebureau.co.uk).
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Commission proposals on UTPs and position of farmers in the supply chain
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During the 2024 EU Agri-Food Days in Brussels last week, the Commission unveiled 2 legislative proposals to improve the position of farmers in the supply chain.
Revisions to the Unfair Trading Practises Directive (UTP) A new regulation on cross-border enforcement against UTPs has been proposed. The proposed amendments would enhance the cooperation of national enforcement authorities, notably by improving the exchange of information, investigations, and collection of penalties.
Targeted amendment to the Common Market Organisation (CMO) Regulation The amendments aim to strengthen the position of farmers in the supply chain and build trust between actors by: - enhancing rules for contracts between farmers and buyers, making written contracts a general obligation and improving the way long-term contracts take into account market developments and fluctuations of costs and economic condition
- making the establishment of mediation mechanisms between farmers and their buyers mandatory
- boosting producer organisations and their associations by improving their bargaining power, allowing Member States to grant them more financial support under CAP sectoral interventions, and simplifying the rules on their legal recognition
- allowing the EU to financially support producer organisations that would take private initiatives to manage crises
- defining when optional terms like “fair,” “equitable,” and “short supply chains,” can be used
The Commission's proposed targeted legislative amendments to the CMO and the proposed new Regulation on UTP cross-border enforcement will now be discussed by the European Parliament and the Council.
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EU deforestation regulation (EUDR): Council and Parliament agree on delay
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The Council reached a provisional agreement with the European Parliament on a proposed amendment of the EU deforestation regulation, postponing its date of application by 12 months, to 30 December 2025 and 30 June 2026 for SMEs. The Commission agreed to provide further clarifications and simplifications in the guidelines and FAQs by the end of the year. The Commission has also promised to examine further simplifications by the time of the review report on the Regulation in 2028, including the possibility of an additional category for countries that practices sustainable forestry and a comprehensive impact assessment. The provisional agreement will now have to be endorsed by the Council and Parliament. It will then be formally adopted by both institutions and will be published in the Official Journal of the EU, so that it can enter into force before the application date of the current regulation (30 December 2024).
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EU-Mercosur Partnership Agreement
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On 6 December, the EU signed a trade agreement with the Mercosur bloc (Brazil, Argentina, Uruguay and Paraguay), ending years of negotiations. The agreement contains commitments on sustainability, including the inclusion of the Paris climate change agreement as an essential element, and a legally binding commitment to halt deforestation by 2030. The FTA will provide Mercosur countries with additional market access possibilities, with limits for sensitive products. More information is here.
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The Commission has adopted an amendment to the State Aid 'de minimis' Regulation for the agricultural sector. With the following changes: The ceiling for de minimis aid per company over three years has been raised from €25,000 to €50,000, reflecting sector-specific inflation and market developments.
The revised regulation once in force will remain valid until 31 December 2032.
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€3 billion of EIB Group financing announced for farmers and bioeconomy
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European Investment Bank (EIB) President Nadia Calviño announced a €3 billion financing package for agriculture, forestry and fisheries along with moves to bolster farm insurance. EIB loans will be matched by other participating financial institutions, unlocking close to €8.4 billion of long-term investments. The support marks the largest EIB-backed financing initiative for European agriculture and will be directed towards small and medium-sized enterprises (SMEs) as well as mid-caps. It will be spread over the next three years, with the first loans due to be signed in the first half of 2025. A share of the loans will be earmarked for young or new farmers because they generally have more trouble obtaining traditional bank financing. The support will also target female farmers to overcome a gender imbalance in agriculture as well as green investments to support the European Union’s sustainability goals.
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New report highlights the growing climate change threats to cereal production in the European Union
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The report examines climate change’s impact on nine commodities, including cobalt, lithium, zinc, and three critical crops: wheat, corn and rice. By 2050, more than 50 percent of Europe’s corn and wheat could be at severe risk of drought, even under a low-emissions scenario. Rice, while less vulnerable to drought, is highly susceptible to heat waves, and although it is not grown on a large scale in the EU, much of its imports come from heat-sensitive countries such as Myanmar, Pakistan and Thailand. Wheat accounts for over half of the EU’s cereal production, with nearly two-thirds used for animal feed and one-third for human consumption. Corn is a key input for animal feed, biofuels and bioplastics and the report highlighted the risks of a food system that relies so heavily on only a few commodities, noting that this dependence amplifies climate risks.
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Council approves conclusions on post 2027 CAP
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The Council unanimously approved a set of conclusions on a farmer-focused post-2027 CAP, towards a competitive, crisis-proof, sustainable, farmer-friendly and knowledge-based future EU agriculture. The conclusions approved by 27 EU agriculture ministers point out the importance of the CAP in reaching those objectives, and underline the key goals of ensuring food security, while guaranteeing a fair standard of living for the agricultural community, and reasonable prices for consumers. Read more here.
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Whilst we wait to see the direction that the Commission will take on food labelling, BAB Senior Policy Adviser, Kate Adams, has taken a look ahead at what might be in a future Commission package. Read more here.
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Commission opens applications for new European Board on Agriculture and Food
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The Commission opened applications for the new European Board on Agriculture and Food (EBAF), a recommendation of the Strategic Dialogue on the Future of EU Agriculture. Chaired by Commissioner for Food and Agriculture, Christophe Hansen, the EBAF aims at sustaining a new culture of dialogue, trust and multistakeholder participation, among the actors of the food supply chain and civil society, as well as with the Commission. The group is open to lobby groups and NGOs, with a maximum of 30 member organisations, and will be set up for 5 years. It is expected to meet between 2 and 6 times per year, but additional meetings can be called if needed. Copa and Cogeca will apply to be a part of the EBAF and is calling for a larger number of participants to be representing farmers and coops. The first job of the group will be to feed into the Vision for Agriculture and Food, expected to be published on 19 February 2025.
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New Finnish dietary guidance recommends a more plant-based diet
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New national nutrition recommendations of the Finnish National Nutrition Advisory Board recommend that the public eat a more plant-based diet for health and environmental reasons. The board recommends consumers increase the amount of vegetables, berries and fruits, whole grains, legumes and fish on plates, and to reduce red meat, meat products and salt. As well as impacting consumer buying behaviour, there are concerns that less meat and dairy products will be provided in public catering as a result of the guidance. Read more here.
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EFSA published a Scientific Report on Risk and protective factors for ASF in domestic pigs and wild boar in the EU, and mitigation measures for managing the disease in wild boar. Five epidemiological aspects of ASF were evaluated. The study showed the importance of biosecurity and farming practices, including the spread of manure around farms and the use of bedding material as risk factors, while the use of insect nets was a protective factor. The statistical and mechanistic models did not show a clear effect of wild boar density on ASF epidemiology. Flies may introduce ASF to farms. Fences, alongside control measures e.g culling and carcass removal can help with ASF management.
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