1. “Copa-Cogeca proposals for strengthening the role of agricultural economic organisations - discussions on the future of the CAP post 2013” “Copa-Cogeca proposals for strengthening the role of agricultural economic organisations - discussions on the future of the CAP post 2013”

2. Copa-Cogeca | The voice of European farmers and their cooperatives | 2 Commission’s legislative proposals EU “legislative package” on the future of the CAP post 2013 CAP – part of the 7 regulations Direct Payments Rural development financing & management « Single CMO » Regulation

3. Commission’s legislative proposals Specific parts of the Single « CMO » Regulation Recognition and operation of POs, APOs and IBOs (Title II chapter III) Competition rules applying to undertakings (Part IV Chapter I) Specific provisions apply for the milk sector support for setting-up of POs, including fruit & veg.- pillar 2 Copa-Cogeca | The voice of European farmers and their cooperatives | 3

4. Background elements: initial steps Communication « a better functioning food supply chain in Europe » (28 October 2009) 1. Improving the structure and consolidation of the agro food sector: “COM will encourage the creation of voluntary agricultural producer organisations in the broader context of post 2013 CAP”. “COUNCIL intends to step up the integration of primary producers […] through IBOs or any appropriate forms of organisation (such as agricultural cooperatives) and to widen their scope of activities”.

5. Background elements: initial steps Communication « a better functioning food supply chain in Europe » (28 October 2009) 2. CAP and competition policy: “COM will work with the European Competition Network (ECN) to develop a common approach”. “COUNCIL wishes to explore the flexibility margin in the application of competition rules […] to ensure a harmonious relationship between competition policy and the CAP: careful consideration should be given to the opportunity to amend the provisions of Council Regulation (EC) 1234/2007”.

6. Background elements: initial steps Communication « a better functioning food supply chain in Europe » (28 October 2009) 3. Combating unfair trading practices and encouraging self regulation initiatives

7. Copa-Cogeca activities relating to the functioning of the agro food chain Copa-Cogeca reaction to the legislative proposals on the future of the CAP “Copa-Cogeca proposals for strengthening the role of economic organisations in the agricultural sector within the discussions on the future of the CAP” (adopted by Copa and Cogeca Praesidia on 16 February 2012) “Initial considerations for clarifying the conditions for recognizing producer organisations” “Considerations in view of better coherence between CAP mechanism and EU competition policy” Copa-Cogeca | The voice of European farmers and their cooperatives | 7

8. Involvement in EU activities on the functioning of the food supply chain 1. Participation in various EU “high level” forums “High Level Forum for a better functioning food supply chain” DG Competition Task Force for food Copa-Cogeca | The voice of European farmers and their cooperatives | 8 Copa-Cogeca activities relating to the functioning of the agro food chain

9. -2. Initiation of self/co regulated initiative projects Multi-stakeholders dialogue on fair commercial practices along the food chain “Copa-Cogeca “Non-exhaustive listing of (potential) unfair and abusive commercial practices and contractual conditions” (February 2011) Copa-Cogeca code of good practices for the food supply chain Copa-Cogeca | The voice of European farmers and their cooperatives | 9 Copa-Cogeca activities relating to the functioning of the agro food chain

10. Copa-Cogeca’s reaction to the « Single CMO » Regulation « Copa and Cogeca consider that the proposals tabled by the European Commission constitute a major initial step forward » Copa-Cogeca | The voice of European farmers and their cooperatives | 10

11. “Single CMO” Regulation - “a major step forward” A common EU “legal basis” for all sec tors 1. “The product coverage for recognition of POS, APOs as well as IBOs by MS is expanded to all sectors…”  An incentive is given to private operators to use tools which should help concentrating the primary production sector. Copa-Cogeca | The voice of European farmers and their cooperatives | 11

12. “Single CMO” Regulation - “a major step forward” A common EU “legal basis” for all sec tors 2. “Existing rules on the definition and recognition of such organisations […] should therefore be harmonized […] and extended to provide for recognition on request under statutes set out in EU law in all sectors”.  “legal security” of operators’ activities with regard EU competition rules. Copa-Cogeca | The voice of European farmers and their cooperatives | 12

13. A common EU “legal basis” for all sectors 3. The specific objectives and/or recognition criteria (e.g: legal status, min. number of producers and volume of marketable production, etc.) must be individually defined for each agricultural sector.  the specific characteristics of each “sector” shall be maintained However… One shall keep a “watchful eye” over possible amendments of important parts of Community legislation “The essential elements of an area shall be reserved for the legislative act” (art. 290 of TFEU) Copa-Cogeca | The voice of European farmers and their cooperatives | 13 “Single CMO” Regulation - “a major step forward”

14. A common EU “legal basis” for all sectors 4. The use of these instruments by operators shall remain voluntary These tools are available to sectors/countries that whish to implement them: consideration shall be given to “different situations” between EU countries and/or sectors. But … MS shall recognize organisations at their request provided that they fulfill the conditions laid down in EU Regulation. Copa-Cogeca | The voice of European farmers and their cooperatives | 14 “Single CMO” Regulation - “a major step forward”

15. Extension of rules and financing 1.Art. 110 provides the possibility for MS, under certain conditions and at the request of a PO, APO or IBO to make binding agreements agreed within that organisation to non-member operators. 2.Those who benefit from activities covered by such agreements shall pay the financial contributions for costs directly incurred as a result of pursuing the activities in question (art. 111) Copa-Cogeca | The voice of European farmers and their cooperatives | 15

16. “Single CMO” Regulation - “a major step forward” Extension of rules and financing  These proposals may be of interest for operators and MS by underpinning “already existing” mechanisms in certain countries’ national legislation.  The precise conditions and activities covered by the “extension” shall be further defined within EU legislation. Copa-Cogeca | The voice of European farmers and their cooperatives | 16

17. Copa-Cogeca’s reaction to the « Single CMO » Regulation « We believe these proposals would need to be improved for them to have full effect » Copa-Cogeca | The voice of European farmers and their cooperatives | 17

18. “ Single CMO” Regulation – “some room for improvement” Need for “more precise” definitions and recognition criteria 1.Copa-Cogeca calls for a more “precise definition of POs: POs shall be formed on the initiative of farmers who are the “driving force” for defining the organisations’ strategies and practical operations decisions. These principles apply irrespective of the legal form of the PO/ Agricultural cooperatives shall be considered as POs. Copa-Cogeca | The voice of European farmers and their cooperatives | 18

19. “Single CMO” Regulation – “some room for improvement” Need for a “more precise” definitions and recognition criteria 2. POs must fulfil clear objectives and tasks defined within EU legislation Adapting production to market needs, concentrating supply and marketing members’ production and optimising production costs. Promotion of best practices in the area of environment. Copa-Cogeca | The voice of European farmers and their cooperatives | 19

20. “Single CMO” Regulation – “some room for improvement” Need for a “more precise” definitions and recognition criteria But also… Responsibilities in the area of risk management Collective negotiation Copa-Cogeca | The voice of European farmers and their cooperatives | 20

21. “Single CMO” Regulation – “some room for improvement” Need for a “more precise” definitions and recognition criteria 3. POs must fully assume the "economic responsibility" assigned to them POs shall play an active role in terms of marketing their members’ production. POs must have adequate resources/structures for carrying out their activities. Copa-Cogeca | The voice of European farmers and their cooperatives | 21

22. “Single CMO” Regulation – “some room for improvement” Need for a “more precise” definitions and recognition criteria 4. A Clear distinction should be made between objectives that POs, APOs and IBOs shall fulfil (see art.110) IBOs allow dialogue between actors along the supply chain and may carry out actions in the areas of promotion, development of standard contracts, promotion of best practices, economic transparency, stabilization of markets,… POs must play an “active economic” role, which is to concentrate supply and marketing of production’ members. APOs responsibility may be of “economic nature”. Copa-Cogeca | The voice of European farmers and their cooperatives | 22

23. Copa-Cogeca’s reaction to the « Single CMO » Regulation Significant efforts shall be made to ensure the “legal security” of operators’ activities, given the limitations that EU competition law can impose on them. Copa-Cogeca | The voice of European farmers and their cooperatives | 23

24. “Single CMO” Regulation – articulation with EU competition rules Limitations imposed by EU competition rules legislation EU Competition rules (see art. 143 and following) shall not compromise the ability of POs, APOs and organisations to achieve the tasks assigned by EU legislation Copa-Cogeca | The voice of European farmers and their cooperatives | 24

25. “Single CMO” Regulation – articulation with EU competition rules Limitations imposed by EU competition rules legislation A special approach should be allowed towards POs or APOs’ activities aiming at better concentration/integration of primary producers (eg: joint production, marketing of agricultural products,…) Margin of flexibility should be permitted as regards IBOs activities provided that “they do not distort or eliminate competition, or create discrimination. Copa-Cogeca | The voice of European farmers and their cooperatives | 25

26. “Single CMO” Regulation – articulation with EU competition rules Towards a more Coherent and harmonized implementation of EU competition rules at national level Relevant criteria the delimitation of the “relevant market” and determining situations of “dominant position” : -admitting the EU markets realties - considering the “substitutability” of the products - careful assessment on the potential effects on “intra EU trade” Copa-Cogeca | The voice of European farmers and their cooperatives | 26

27. “Single CMO” Regulation – articulation with EU competition rules Towards a more Coherent and harmonized implementation of EU competition rules at national level A more extensive interpretation of the specific derogations for agriculture, consistently with CAP objectives (article 39 of the Treaty) Strengthening action taken by the European Competition Network (ECN) Ensuring appropriate powers of sanction at national level Copa-Cogeca | The voice of European farmers and their cooperatives | 27

28. Copa-Cogeca | The voice of European farmers and their cooperatives | 28 www.copa-cogeca.eu Thank you!