1. The reform of the CMO Fruit & Vegetables – Better policy for a stronger Sector PROGNOSFRUIT 2007 Vilnius, Lithuania DG Agri/C.2

2. August 2007 2 Better for the … 1. Farmer: Freedom to farm 2. Taxpayer: Sustainable expenditure 3. Citizens: Transparence & coherence

3. August 2007 3 Better for the … 4. Consumer: Focus on health benefits 5. Environment: Sustaining the effort 6. Global partners: Full WTO conformity 7. Sector: Level playing field

4. August 2007 4 1.A Better for the FARMER: Freedom of choice which Producer Organization (PO) to join for which product (fresh & processed) Simplified mergers and cooperation's (transnational, Associations of PO) MS to design ‘National programs’ as overall guidelines for Operational Programs (OP)

5. August 2007 5 1.B Better for the FARMER: OP to be elaborated in coherence with MS National strategy setting out overall objectives, priorities and eligible measures Single Payment Scheme (SPS): Integration of all agriculture land in line with respective MS model Application of rules of cross-compliance in line with Rural Development rules (good agriculture practice)

6. August 2007 6 Share of PO in national F&V production (in 2004, %) Source: AGRI/C.2

7. August 2007 7 1.C Better for the FARMER: No ceiling on budget for POs, annual growth rate foreseen due to increased organisation of 50 Mio€ MS with low degree of organisation (under 20% VMP) receive additional aid (e.g. NMS, RUP, PT, EL) New instrument for crises management, managed by PO to provide for security and stability

8. August 2007 8 Expenditure of Operational Funds (in 2005, Mio€) Source: AGRI/C.2

9. August 2007 9 2. Better for the TAXPAYER: Less distortive expenditure: No more export restitutions, EU-funded market withdrawals More sustainable expenditure: 50% co-financing of Operational Programs e.g. for crises management Overall ceiling of max. EU-cofinanced support up to 4,1% of VMP for POs retained Rural Development: No double financing of measures eligible both under CMO and Rural Development

10. August 2007 10 3.A Better for the CITIZENS: Decoupling of aid: Processing aid abolished, transferred into Member states national SPS envelopes Coherence: Introduction of performance indicators in Operational Programs Transparency by publication of MS National Programs for comparison

11. August 2007 11 EU co-funded expenditure per category (in Mio€) Source: AGRI/C.2

12. August 2007 12 3.B Better for the CITIZENS: Drastic reduction of withdrawals: - EU-funded only for free distribution and - PO co-funded as part of new crises management instrument (max. 33% of OP budget) Abolishment of export restitutions

13. August 2007 13 4.A Better for the CONSUMER: Focus of F&V promotion programs within OP on ‘young consumers’ Free distribution for charitable organisations and also for schools 100% EU-funded Obligatory labeling of country of origin for all fresh F&V

14. August 2007 14 4.B Better for the CONSUMER: Within OPs, if the focus of promotion programs is on young consumers, co-financing rate is increased to 60% Increase of indicative budget for direct EC-funded promotional actions under reg. 2826/2000 from 6 Mio€ to 12 Mio€

15. August 2007 15 4.C Better for the CONSUMER: Council declaration on School Fruit Scheme: « Commission invite to present as soon as possible a proposal based on the evaluation of the benefits, practicability and administrative costs involved in such a Scheme. »

16. August 2007 16 5.A Better for the ENVIRONMENT: Environmental standards (GAP) in line with Rural Development All area under SPS: cross-compliance fully applicable Measures to protect the environment not only cover production but the whole marketing chain (transport, packaging et al.)

17. August 2007 17 5.B Better for the ENVIRONMENT: OP measures supporting organic production eligible for 60% co-financing All PO must spend at least 10% of their total Operational Fund on measures to protect the environment Investments with harmful impact on the environment are not eligible for funding within OP

18. August 2007 18 Expenditure on environmental measures (% of total OF, 2005) Source: AGRI/C.2

19. August 2007 19 6. Better for the GLOBAL PARTNERS: All measures in conformity with WTO obligations: No more export restitutions, No more processing aid coupled to production No 100% financing withdrawals except for free distribution Marketing standards harmonized with international rules

20. August 2007 20 Extra EU-25 trade (Mio €) in fresh vegetables, 2005 Source: AGRI/C.2

21. August 2007 21 7. Better for the SECTOR: Transition rules for the decoupling of the processing aid in some Member states Special area-based temporary aid for the restructuring of the soft fruit sector in several Member states

22. August 2007 22 Background O bjectives of the reform Time table

23. August 2007 23  To contribute to achieving sustainable production that is competitive both on internal and external markets  To reduce fluctuations in fruit and vegetables producers' income resulting from crises  To increase consumption of fruit and vegetables in the EU Reform objectives 1

24. August 2007 24 Reform objectives 2  To continue the efforts made by the sector to maintain and protect the environment  To simplify and where possible reduce the administrative burden for all concerned

25. August 2007 25 Reform objectives 3 These objectives of the reform have been identified taking into account: - consistency with the reformed CAP, market support and rural development policy, -WTO compatibility, -conformity with the financial perspectives.

26. August 2007 26 Time table  Commission publishes proposal on 24th January 2007  Discussion in Council Working Group and Special Committee for Agriculture  Political agreement in the Council on 11th June 2007  Adoption by the Council in September 2007  Commission implementing rules elaborated by end 2007  Entry into force by 1st January 2008

27. August 2007 27 Thank you for your attention ! http://ec.europa.eu/agriculture/capreform/fruitveg/index_ en.htm