Select Committee on European Scrutiny Twenty-Sixth Report


2 Organic food and farming

(25741)

10436/04

COM(04) 415

+ ADD 1

Commission Communication: European Action Plan for Organic Food and Farming

Commission staff working document: Annex to Communication on European Action Plan for Organic Food and Farming

Legal base
Document originated10 June 2004
Deposited in Parliament16 June 2004
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 28 June 2004
Previous Committee ReportNone, but see footnote 3 below
To be discussed in CouncilSecond half of 2004
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information awaited

Background

2.1 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.[2] 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 subsequent 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 Communitys Sixth Environmental Action Programme to encourage more environmentally responsible farming; and the 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 sought in a staff working paper[3] at the end of 2002 to analyse the possibility of a European Action Plan for organic food and farming, noting that it intended before the end of 2003 to propose further steps. It has now done so in the present document, which comprises a Communication setting out the proposed Action Plan, accompanied by an updated staff working document.

The current document current document

2.2 The Commission first summarises the impact of organic farming on the environment, identifying in particular 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 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).

2.3 It 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. As a result, it says that the organic sector now accounts for about 2% of the value of total agricultural production in the Community.

2.4 The Commission goes on to analyse in greater detail a number of factors which affect the development of organic farming, which it identifies as having a dual role — on the one hand meeting consumers needs, and on the other delivering public goods, such as environmental benefits. It suggests that much depends upon consumers' perception that quality is higher than that of non-organic products, but cautions that this is a subjective concept. At the same time, however, it notes that the reasons for not buying organic produce include lack of availability, doubts as to its true organic nature, and, most importantly, price (where it says the typical premium for consumers is about 50-60%, reflecting in part at least higher costs of production and distribution). The paper also suggests that, although there has been a tendency to regard organic markets as unlimited, an organic premium can in practice be maintained only if the growth of supply and demand is in line.

2.5 Other factors noted in the paper are the importance of better consumer information; the variations in the standards applied by different regions, coupled with a lack of transparency and an unwillingness of inspection bodies to recognise each other's standards; the need for a wider use of the Community logo, in order to facilitate trade and enlarge the overall market in the Community; and the collection of more complete data on the production and marketing of organic products. Finally, the paper notes that organic farmers not only receive support under the Common Agricultural Policy through its direct payments and price support measures, but are well placed to benefit from, and contribute to, the agri-environmental benefits associated with its rural development pillar; that, if the sector is to expand, research into new processing technologies is especially important since the use of additives in processed organic products is restricted; and that, if consumer confidence is to be maintained, there should be agreed production standards and reliable controls throughout the organic chain.

2.6 Against this background, the report sets out a number of proposed actions, including:

·giving the Commission greater power to organise information and promotion campaigns, in conjunction with Member States;

·establishing a database, listing the various national standards and comparing these with the Community standard;

·improving the collection of statistical data on both the production of, and market for, organic produce;

·allowing Member States to give aids topping up Community support for those fruit and vegetable producer organisations involved in organic production;

·developing a web-based list of Community measures which can be used by the organic sector;

·encouraging Member States to make full use within their rural development programmes of the instruments available to support organic farming;

·strengthening research on organic agriculture and production methods;

·achieving greater transparency by defining the basic principles of organic agriculture;

·ensuring the integrity of organic agriculture by reinforcing standards;

·completing and further harmonising the standards for organic agriculture, in areas such as additives, animal welfare, energy use, biodiversity and landscape;

·establishing an independent expert panel for technical advice;

·clarifying the relationship between labelling of organic produce and that containing genetically modified organisms;

·improving the performance of inspection bodies by targeting operators presenting the highest risk, by ensuring better coordination between them, and by developing a specific accreditation system;

·developing sampling and analytical methods which can be used in organic farming;

·stepping up efforts to ensure that produce from third countries complies with the standards applicable within the Community;

·stepping up efforts towards global harmonisation and the development of a multilateral concept of equivalency, based on Codex Alimentarius guidelines; and

·reinforcing recognition by third countries of Community organic farming standards and inspection systems.

The Government's view

2.7 In his Explanatory Memorandum of 28 June 2004, the Minister for Nature Conservation and Fisheries at the Department for Environment, Food and Rural Affairs (Mr Ben Bradshaw) says that the constituent parts of the UK already have Organic Action Plans or similar documents, but that the proposed Plan — which the Government has broadly supported — would for the first time give a European perspective for the development of organic food and farming. However, he points out that the various actions proposed by the Commission are in general terms, and that further development will be required to put them into effect. He also says that UK organic food and farming interests will be consulted on the Plan, and that an analysis will be submitted by means of a further Explanatory Memorandum in due course. In the meantime, he expects that, following the referral of the Plan to a meeting of the Agriculture and Fisheries Council on 21 June 2004, it will receive a more detailed consideration during the Netherlands Presidency in the second half of 2004, although there is at present no timetable.

Conclusion

2.8 In many ways, the current document covers ground similar to that contained in the earlier Community staff working paper on which we reported in February 2003, and, although it takes this a stage further by proposing a number of action points, these are — as the Minister has pointed out — couched in fairly general terms, and will presumably need to be followed by more specific proposals if they are to be put into effect. This makes it difficult for us to take a clear view on the precise significance of the document. We note that the Government intends to provide in due course a further Explanatory Memorandum giving an analysis of the consultations it intends to hold. In view of this, we think it would be sensible to consider the matter further when that information is available, but we are in the meantime drawing the document to the attention of the House.


2   OJ No. L.198, 22.7.91, p.1. Back

3   (24239) 15619/02; see HC 63-xiii (2002-03), para 10 (26 February 2003). Back


 
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