Select Committee on European Scrutiny Thirteenth Report


10. EUROPEAN ACTION PLAN FOR ORGANIC FOOD AND FARMING


(24239)

15619/02

SEC(02)1368


Commission staff working paper: Analysis of the possibility of a European Action Plan for organic food and farming.

Legal base:
Document originated:12 December 2002
Deposited in Parliament:3 February 2003
Department:Environment, Food and Rural Affairs
Basis of consideration:EM of 13 February 2003
Previous Committee Report:None
To be discussed in Council:No date set
Committee's assessment:Politically important
Committee's decision:Cleared


Background

  10.1  The requirements, including labelling, which agricultural products and foodstuffs must meet in order to be regarded as organic are currently laid down in Council Regulation (EEC) No. 2092/91.[20] Since that Regulation was enacted, there have been a number of significant developments, most notably the increased emphasis which the Common Agricultural Policy (CAP) now places upon environmentally friendly production and food quality as a result of Agenda 2000 and the current mid-term review; the wider part, recognised by the Council in 1999, which organic production can play in the integration of the environment and sustainable development into the CAP; the need identified in the Community's Sixth Environmental Action Programme to encourage more environmentally responsible farming; and the wider need, endorsed by the Johannesburg World Summit on Sustainable Development in September 2002, to support World Trade Organisation (WTO) initiatives to expand markets for environmentally friendly goods and services. Against this background, the Commission has sought in this staff working paper to analyse the possibility of a European Action Plan for organic food and farming, thereby also meeting a request made by the Agriculture Council in June 2001.

The current document

  10.2  The Commission first summarises the impact of organic farming on the environment. The areas it identifies include a reduction in pesticide use, lower nitrogen levels, increased soil protection arising from greater crop rotation and mixed grazing, the preservation of biodiversity and natural habitats, and reduced energy use. It also suggests that other areas where benefits arise include rural development (through higher added value and labour intensity, coupled perhaps with the boost to tourism which a more attractive rural environment might provide) and animal welfare (where a number of organic requirements go further than the mandatory provisions applicable in this area).

  10.3  The paper then traces the development of organic production, and the reasons for this. It notes that, although organic production was originally developed in certain Member States (including the UK) in the first part of the twentieth century, it did not really take off until the 1980s, as a result of consumer interest. However, it says that further development was hampered by a lack of clarity over what such production actually covered, a problem which the Council sought to address by its adoption of Regulation 2092/91. Since then, there has been a very rapid growth in both the supply base and the market, with Member States having adopted programmes to promote organic production, thus complementing the efforts already made by the private sector. However, the Commission suggests that it is uncertain whether this strong growth can be maintained without further concerted efforts by itself, Member States, consumers and producers.

  10.4  The paper goes on to analyse in greater detail a number of the factors affecting the development of organic farming. More specifically, it suggests:

  • that current organic farming should not be equated with conventional farming fifty years ago, since it relies heavily on many modern techniques;

  • that, although organic products have traditionally been sold with a minimum of processing, consumers would like to have them available in processed form as well;

          

  • that, since only a few additives are allowed in organic products, this will require the development of new processing methods, greater research into processing and preservation techniques, and the need to ensure that companies dealing with both non-organic and organic products do so separately;

  • that, although existing Community legislation prohibits the use of genetically modified organisms in organic produce, these cannot in practice be excluded completely, and that a realistic balance has to be found;

  • that organic farmers may receive market support payments under the CAP on the same basis as non-organic farmers, but may in addition qualify for payments under various aspects of the rural development pillar (though the extent to which they receive such payments in practice varies according to the Member State);

  • that, although the organic sector has succeeded in establishing a market for its products, this development has rested on clearly defined production methods whose quality is guaranteed by control and certification systems, and on the health benefits seen by consumers;

  • that this development has however been hindered by the generally higher price of organic produce, and consumer doubts as to whether a particular product is genuinely organic; and

  • that, since a substantial part of the price premium for such produce goes to the processing and distribution chain, it is important to look for distribution systems - such as direct delivery from farmer to consumer - which can reduce costs.

  10.5  The paper then examines a number of specific areas. As regards standards, it notes that, before the Community itself introduced harmonised rules, only private certification organisations provided guarantees to buyers of organic produce, and that it can be difficult now for consumers to know how far these standards — which often reflect different local preferences — differ from those laid down by Community legislation. A further complication is that inspection bodies do not always recognise each other's standards. The paper also notes that, although a Community logo was introduced in 1999, it is still not commonly used, and is sometimes seen as compromising the position of existing logos. Next, the paper notes the increase in organic imports, not least tropical products from developing countries, but comments that producers in those countries must first secure approval from the Commission or a Member State, which often proves difficult, particularly in the latter cases which account for a high proportion of approvals . It also notes that consumer interest within many third countries has increased substantially, and that, if export markets are to be developed, it is important that Community production standards and controls should be recognised worldwide. Finally, the paper points to the importance to this sector of inspection, research, training and advisory arrangements.

  10.6  The paper concludes by looking at the possible elements for an action plan. It suggests that the main areas to be considered would include:

  • developing and facilitating various systems for organic produce sales;

  • targeting organic farming to environmentally sensitive areas;

  • encouraging the exchange of technical information between farmers;

  • ensuring that the CAP supports the development of organic farming; and

  • ensuring the traceability and authenticity of organic food.

  10.7  It also points out that some actions can be based on existing instruments, but that consideration should be given to pursuing others further in the development of a European Action Plan. It suggests that these would relate mainly to:

  • the means to reinforce the use of the Community logo;

  • access to information on additional inspection requirements;

  • the harmonisation of testing methods, control procedures, supervision and accreditation, together with efficient co-operation;

  • the implementation of appropriate standardised procedures to ensure that imported products respect both fair competition with Community products and Community's commitments to developing countries;

  • the establishment of a body for delivering independent and transparent advice on which production methods can be accepted;

  • the collection and communication of official statistical data on production, consumption and trade; and

  • the effective funding of research into the quality and safety of organic farming, including the development of new products and processing methods.

The Government's view

  10.8  In his Explanatory Memorandum of 13 February 2003, the Minister of State (Environment) at the Department for Environment, Food and Rural Affairs (Mr Michael Meacher) simply notes that this document represents work in progress, and that, following consultations with Member States and other interested parties, the Commission intends to propose further steps before the end of 2003.

Conclusion

  10.9  Since this document merely sets out the background to the need for further action in this sector, and is likely to be followed by more specific proposals later in the year, we are clearing it. Nevertheless, it does touch upon an area of wider public interest, and, for that reason, we are drawing it to the attention of the House.

                      


20   OJ No. L.198, 22.7.91, p.1. Back


 
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