6. We have given further
consideration to the following on the basis of a Supplementary
Explanatory Memorandum. We maintain our opinion that it raises
questions of political importance, but now make no recommendation
for its further consideration:-
MINISTRY OF AGRICULTURE, FISHERIES AND FOOD
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(17474)
9782/96
COM(96)366
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Draft Council Regulation on organic production of agricultural products.
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Legal base:
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Article 43; qualified majority voting.
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Background
6.1 The proposal would
extend the harmonisation of organic production to cover livestock
products such as meat, milk, eggs and honey. We considered it
on 30 October 1996[14]
and asked for further information on compliance costs, following
consultation with the industry. An assessment has now been provided
with a Supplementary Explanatory Memorandum dated 30 January from
the Parliamentary Secretary (Commons) at the Ministry of Agriculture,
Fisheries and Food (Mr Boswell).
Compliance cost assessment
(CCA)
6.2 The main cost of
the measure would arise from the registration and inspection of
livestock operators[15].
The Government believes that the vast majority of UK organic
livestock producers are registered with the relevant associations
and already comply with UKROFS standards[16].
There is, however, less certainty with processors, particularly
retail butchers, who may not all be registered. The UKROFS standards
for organic livestock products are generally similar to those
contained in the proposal.
6.3 However, there are
differences. The proposal as drafted would set rules on livestock
densities (including limits on nitrate levels) and more restrictive
rules on the use of conventional feedingstuffs, which together
with the prohibition on non-organic animals on the same holding
as organic animals, could lead to increased costs. On the other
hand, the proposal would allow meat from animals which have been
subject to conversion from traditional farming to be sold as organic,
which is prohibited under the UKROFS standard.
6.4 According to the
CCA, organic food accounts for less than 1% of total UK household
food sales. Almost all the livestock products are of UK origin.
The Soil Association indicates there are approximately 370 registered
organic livestock producers, and over 65 processors. In addition,
there are a number of registered organic butchers and a unknown
number of unregistered butchers who would be required to register
under the new provisions. Approximate charges for registration
would be about £300, with a further £165 for on farm
processing operations. An annual licensing fee, currently 0.27%
of sales or a flat rate of £160, is charged. There are variations
between the charges made by different organisations within the
organic movement.
6.5 The Government considers
that the inclusion of organic livestock standards as part of Community
organic production standards is consistent with the aim of providing
for harmonised trade and competition in organic products within
the Community, and that it also protects the consumer and genuine
producers against bogus organic claims. The alternative of continuing
to rely on voluntary organisations each with their own special
standards would not, according to the Government, provide the
same coherent framework for development for what may be a potentially
fast growing sector.
Conclusion
6.6 We welcome the
consultation which the Government has undertaken with the various
organisations in the organic movement, and note that it will consult
them again when discussions are nearing completion. As we said
in our earlier Report, there is obvious merit in a coherent Community
structure for organic farming and labelling of organic products.
The costs of registration do not appear to be out of line with
charges already made under voluntary arrangements in the UK.
In light of the further information, we are now clearing the document.
14 (17474) 9782/96; see HC 36-i (1996-97), paragraph 11 (30 October 1996). Back
15 Producers, processors and importers. Back
16 UKROFS is the United Kingdom Register of Organic Food Standards. Back
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