In 1996 and 2007 two EU reforms of the Common Agricultural Policy (CAP) occurred in the fresh produce sector. “We were close to a new reform in 2013/14, but eventually we came to an evaluation of the previous policy,” explained Rudy van der Stappen during the cooperative event of the VBT.
The adjustments
Van der Stappen continues: “Globally speaking there have been positive developments regarding the level of organisation in the sector. However, some member states have a low level of organisation, or even none at all. In addition, there was a need for crisis prevention and management instruments. There also had to be more focus on research and experimental production. As a final point, the rules had to be simplified and there had to be more legal certainty.”
The latest CAP took effect on 1 January 2014 and is valid until 2020. The budget for the CAP for the 2014-2020 period amounts to 373 billion euro; more than 47 billion euro less than the 2007-2013 period. For fruits and vegetables there is an annual budget of 800 to 900 million euro. EU support in the fresh produce sector is, in essence, for POs (product organisations), and therefore not for individual producers. EU spending is only limited on levels for individual POs. The more POs, the higher the EU budget contribution. It is the only sector with this exception in the CAP. The budget is therefore not limited in absolute budget terms concerning POs.
Spain has the most POs
Product organisations are the cornerstone of the EU regulation. POs are an answer to an increasingly stronger concentration of demand. The operational programme has to be approved by all member states, and can have a running time of three to five years. “The EU has about 1,300 POs with an operational programme for 2015/16. The largest number of POs can be found in Spain, with about 500 POs. Italy is next with around 300 POs, and France has about 300.” Four countries do not have POs, Estonia, Lithuania, Luxembourg and Slovenia.
Level of organisation
The level of organisation is revenue divided by the number of product organisations. “Noticeable is that Belgium is the leader with the highest level of organisation of all member states (figures 2013). Almost 100 per cent of fruit and vegetables in this country is marketed through a PO. Ireland, Germany, Spain and the Netherlands score high in the level of organisation after Belgium.”