Thu 17 October 2024| View online

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Welcome to your daily Agrifood Pro Briefing. In today’s edition, we’re uncovering the EU executive’s upcoming steps to support EU farmers facing extreme weather challenges. Dive in to also learn about trade insights and the latest developments in the agrifood sector across the bloc.

Commission to ease fund access for disaster-affected farmersFrench potato growers oppose EU ban on herbicideCouncil nods to one-year delay in anti-deforestation rules

🟡Top story

Commission to ease fund access for disaster-affected farmers

The EU executive is working on a regulation to allow member states to use unspent rural development funds to support farmers, forest owners and SMEs in the food processing industry affected by extreme weather events, sources familiar with the discussions told Euractiv.

The proposed changes, which the Commission is expected to present shortly, would apply to 2014-2022 funds under the “second pillar” of the CAP and benefit EU countries that have faced climate-driven disasters since January 2024, the sources said.

Recent examples include last month’s severe floods in central and eastern Europe and the wildfires that raged in Portugal.

The source told Euractiv that unspent funds in the affected countries could be redirected to compensate the food and forestry sectors for lost income through direct payments, with preliminary estimates suggesting a total amount slightly under €600 million. Under the normal rules, rural development funds cannot be used as direct subsidies to farmers.

The exceptional measure being considered by the Commission is similar to an emergency initiative introduced in 2020 to support EU farmers and food producers during the Covid pandemics.

🟡Crops & Livestock

French potato growers oppose EU ban on herbicide

The French National Union of Potato Growers (UNPT) has spoken out against the EU decision not to renew the authorisation of the herbicide metribuzin. The decision, taken at a PAFF meeting in early October, "threatens the future of potato production in France and Europe," the UNPT said in a press release, adding that growers are already burdened by the bans on several plant protection products - including neonicotinoids from 2018.

The metribuzin ban is based on the scientific opinion of the European Food Safety Authority (EFSA), which identified the molecule as an endocrine disruptor of the thyroid gland in humans and did not exclude "a high risk for bees". The regulation proposed by the Commission and approved by member states also states that a wide range of non-chemical methods are available to replace the herbicide.

Manufacturer Bayer told Euractiv that "there is no comparable alternative" to the substance, adding that it is "an important weed control tool for farmers in Europe".

"Despite the arguments put forward by the applicant the concerns regarding the active substance metribuzin could not be eliminated," the EU adopted text read.

So far, only growers in France, Europe's second largest potato producer after Germany, have reacted to the decision.

🟡Trade

Council nods to one-year delay in anti-deforestation rules

Member states yesterday (16 October) approved the Commission's proposal to delay the implementation of the anti-deforestation rules by one year. The Council said in a press release that the decision was due to “the lack of key elements” needed for companies and third countries to comply with the rules, and that the postponement would provide “predictability and sufficient time” for due diligence systems to be put in place.

The European Parliament is expected to give its green light to the delay at its plenary session on 13 and 14 November. If approved, the ban on deforestation-related products – including cattle, timber, cocoa, soy, palm oil, coffee and rubber – will become mandatory for large operators and traders by 30 December 2025, and for micro and small enterprises by 30 June 2026.

Reacting to the news, Anke Schulmeister-Oldenhove, policy officer at WWF, condemned the move, saying in a press release that EU countries were “explicitly condon[ing] 12 more months of forest destruction for European consumption”.

Food industry calls for EU ‘open trade’ agenda

Over 40 European business organisations, including more than a dozen from the food industry, have issued a joint statement calling for a "bold and open trade policy". The call is a move to push a pro-trade agenda ahead of parliamentary hearings to confirm von der Leyen’s commissioners-designate.

The document, signed by food sector organisations representing the processors, traders and retailers, calls for "lowering market access barriers for both imports and exports", speeding up the implementation of all concluded trade agreements and concluding ongoing trade negotiations within a framework of "robust" multilateralism and trade diplomacy.

🟡Food & Drink

Arla Foods makes bid for company in Egypt

The Nordic dairy producer Arla Foods has made an offer to acquire a majority stake in Domty, a listed company in Egypt. “The dairy market in Egypt is substantial, Domty is a leading player in the market and the company is well aligned with our strategy in Egypt,” said Kim Villadsen, Arla’s senior vice president for MENA countries, in a press release.

Villadsen added that Arla was still “looking at the details” before deciding whether to proceed with the offer.

🟡 The Capitals

The Hague – Agriculture minister wins parliamentary backing for manure plan

The Dutch national parliament on Monday (14 October) gave the green light to Agriculture Minister Femke Wiersma's plan to tackle the country's manure surplus and reduce livestock numbers to comply with EU rules. Wiersma, a member of the Citizen Farmers' Party BBB, has proposed percentage of animals farmers can keep when they sell their businesses outside the family which are upsetting especially the poultry sector. Dutch poultry associations are particularly concerned about the impact of the measures and have threatened to take legal action.

Vilnius – Lithuania ready to defend ‘economic viability’ of fisheries

Lithuanian Agriculture Minister Kazys Starkevičius met yesterday (16 October) with representatives of the fishing industry to discuss the country position in the negotiations on fishing quotas in the Baltic Sea for 2025. The issue will be discussed at the Agrifish Council in Luxembourg on Monday (21 October) in order to reach an agreement.

Minister Starkevičius promised to defend “the economic viability of the fisheries sector, the stability of pelagic fishing opportunities and the maintenance of the same conditions for hobbysts fishing for salmon in the Baltic Sea”. A meeting on the same subject was also held yesterday in Riga, with the Latvian Agriculture Minister Armands Krauze.

Valletta – Government launches public consultation on national food strategy

The Maltese Minister of Agriculture, Fisheries and Animal rights, Anton Refalo, yesterday (16 October) invited stakeholders to share their views on a draft food strategy. The document revolves around three main goals: ensuring the viability of the farming and aquaculture sectors, addressing the dependency on food imports, and raising awareness about the value of local consumption.

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Today’s brief was brought to you by Euractiv’s Agrifood team

Today’s briefing was prepared by the Agrifood team; Angelo Di Mambro, Maria Simon Arboleas, Sofia Sanchez Manzanaro, and Hugo Struna. Share your feedback or information with us at [email protected].

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