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Hilde Vautmans (Open VLD): “Intervention price of pears only covered 20% of costs”

European Commission doesn't want to give more to pear growers

The first Conference pears will be picked soon. However, not all pear cultivators will start harvesting with enthusiasm, because they have been selling below cost for two years already. Before the summer holiday period started, MEP Hilde Vautmans asked the European Commission whether Belgian pear cultivators could receive more compensation. The Commission answered in the negative.

No additional compensation
MEP Hilde Vautmans: “It is a shame that the European Commission will not consider any additional compensation. The intervention measures for the Conference pears are not sufficient. Only 20 per cent of costs are covered now. I asked for an appointment with Jean-Claude Junker and Phil Hogan to ask for support for the producers of Conference pears once again. The intervention measures Europe implemented miss their target entirely, because the cultivators would still rather sell their pears than destroy them.”

Vautmans: “In June, we asked the European Commission whether producers of Conference pears, who have been in crisis for two years already, could be given additional compensation. I made clear that the cultivators are now forced to sell their pears below cost. Meanwhile, export to new markets have increased, but this volume is much smaller than the export to Russia used to be. In 2015, 1,858 tonnes were exported to China, 2,549 tonnes to Hong Kong, 250 tonnes to India and 23 tonnes to Canada, amounting to a total export of 4,680 tonnes, or four per cent of the volume exported to Russia. Moreover, Moscow and St Petersburg can be reached within five days, while transport to all new destinations takes at least three weeks. An increase of sales in EU countries, mainly as a consequence of the low prices, is not sufficient to replace previous demand from Russia. The intervention measures implemented last season did not have the desired result. The price that was paid for destroying the pears was lower than the cost prices. The intervention price only covered 20 per cent of costs, which explains why the available amount was not used. Furthermore, it should be clear that it is anything but obvious to a fruit cultivator to destroy his harvest which he has been working on for a year. Upon comparing the seasons before the sanctions with the previous season, it shows that the loss amounted to 10 cents per kilogram. During these six years, cost price increased by two euro cents, meaning the total loss amounts to 12 cents per kilogram.”

Answer Commission: no additional compensation
The Commission answered as follows: “While the EU budget is exposed to pressure from various policy areas, the Commission has managed to provide exceptional support to the fruit and vegetable sector since the beginning of the Russian ban in mid-2014. Over budget years 2015 and 2016, a total of 410 million euros has been made available for the financing of exceptional measures. During that period, member states applied for aid requests amounting to 328 million euro, corresponding to 1.3 million tonnes of fruit and vegetables. This temporary and exceptional measure is not a structural settlement. The crisis prevention and crisis management measures of operational programmes of recognised producer organisations for fruits and vegetables do not always have to be accompanied by similar settlements. Thanks to both settlements, producers can use various instruments to achieve their goals.” 



“Furthermore, the European Commission announced in the July Agricultural Council its intention to increase the amount of support for withdrawals by increasing the ceiling for support to up to 40 per cent of the average prices of the past five years for free distribution and 30 per cent for destinations other than free distribution. The ongoing alignment and simplification exercise of Regulation (EU) No 543/2011 provides the perfect opportunity to adapt these withdrawal prices (application expected in 2017). An additional compensation is therefore not being considered.”

For more information:
Hilde Vautmans
European Parliament
Wiertzstraat 60, Office ASP 9 G 216
B-1047 Brussels, Belgium
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