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Federation of European Rice Millers (FERM) LAUNCH RESIDENCE PALACE BRUSSELS 19 JUNE 2002.

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Presentation on theme: "Federation of European Rice Millers (FERM) LAUNCH RESIDENCE PALACE BRUSSELS 19 JUNE 2002."— Presentation transcript:

1 Federation of European Rice Millers (FERM) LAUNCH RESIDENCE PALACE BRUSSELS 19 JUNE 2002

2 WHY A NEW ORGANISATION? zFormer European rice milling representation: yUARCE yNERMA yCORISE zDifferent interests in past - farming/importing  separate north/south organisations + UARCE

3 Changing landscape z Recent developments effect EVERYONE yRice reform (this year?!) yEnlargement (2002 forward) yWTO (agreement March 2003?) yEverything But Arms (TRQs now with increased liberalisation to 2009) zRationalisation and acquisition in industry  North/South split NOT relevant

4 WHAT WAS THE RESULT? zONE European organisation: yOne voice ySpeaks authoritatively for all yCommon purpose and goal yProactive yEfficient and can respond quickly yVisible

5 Membership zCorporate members as the norm with national associations where appropriate to that country z24 members y19 companies representing: x+ 90% European rice milling capacity x9 countries (Belgium, France, Germany, Greece, Holland, Italy, Portugal, Spain, United Kingdom) y5 national associations: France, Holland, Italy, Portugal, Spain

6 Structure zGeneral Assembly yhighest authority - meets once a year zBoard ypolicy making body yapproves annual strategic plan zExecutive Committee yimplements Board mandate ycomprises 5 rice millers from different member states

7 Executive Members zPresident - Ernesto Morgado (Portugal) zVice-President - Peter Allart (Holland) zOther Executive members: yMario Preve (Italy) yAntonio Hernandez (Spain) yRohit Samani (United Kingdom)

8 Secretariat zSecretary General - Michael Bellingham zPolicy Advisor - Alain Galaski zFood Safety Advisor - Mireille Heijnen

9 FERM zCORE AGENDA reflects changing landscape: 1.Rice reform 2.Enlargement 3.WTO 4.‘Everything But Arms’

10 1. RICE REFORM zIntervention reduction (25% or more)  Safety net for farmers, not price-setting mechanism  EU rice export without refund zPLUS yNo change to current import mechanism yAid export - less bureaucracy + more open export markets yBetter fit between EU supply and market demand yEncourage consumption yFurther limits to export refunds linked to value not volume yIntervention last resort - no premiums, one category, standard yield, for farmer only

11 2. ENLARGEMENT zLARGE POTENTIAL MARKET yImpact on EU rice production. First wave could add +200,000 t consumption zBUT major pitfall = compensation necessary to third countries under GATT. yMust avoid TRQs which are trade distorting and inefficient PLUS double gift to exporters; guaranteed access + current duty level (264 EUR/t) yIf unavoidable, must be on brown, limited in time and handled by Brussels

12 3. WTO zNegotiations must result in import regime that is open, transparent, equitable and fair zTrade issues yMarket access 1.Continued trade liberalisation which maintains opportunity to mill in EU 2.Improved access for husked rice (key for developing countries). 3. BUT NO TRQs ( CMO reform + EBA give near total access)

13 zTrade issues (cont) yExport Competition & Internal support Current market imbalance due to refund commitment not mirrored by reduction in internal prices. Don’t give way on one without action on the other. zNon-Trade Concerns yProtect consumer expectation for safe rice zPaddy Rice yLevel playing field - prohibit ban of exports from third countries

14 4. Everything But Arms zTotal duty free access for rice from Least Developed Countries by 2009 zEnormous threat to European rice industry. If action not take will wipe out production and milling of rice in EU. zFERM seeks to ensure: 1.Safeguard rules effective 2.EU rice able to compete 3.Safety of imported product, eg pesticide, GM 4.No requirement for export license for TRQs

15 And finally zThank you for your attention zThere are packs with all the details and a copy of the presentation zAny questions, please speak to any member or contact the secretariat. zAND let us all work together for a viable rice industry in the EU.

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