organic farming and the new CAP
WSG
SPEECH/98/0527BIO
Organic farming and the new common
agricultural policy
Dr Franz Fischler
Conference on
Organic farming in the European Union –
the prospects for the 21st century
Baden/Austria, 27 and 28 May 1999
Website: http://europa.eu.int/comm/dg06/com/htmfiles/welcome.htm
e-mail: kabinett-fischler@cab.cec.be
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Ladies and Gentlemen,
I should also like to add my own thanks to those of my
colleague Ritt Bjerregaard our conference hosts. The
Austrian Ministry of the Environment, Youth and Family
and the Ministry of Agriculture, the Land government of
Lower Austria and Agrarmarkt Austria have put together
an impressive programme, providing the right platform for
examining the prospects for organic farming from all
angles. I should like to begin my speech by taking a closer
look at the conditions for organic farming that we have
created in the European Union. Then I should like to point
out which parts of Agenda 2000 are designed to promote
the "greening" of farming, which will of course be of
special benefit to organic farms.
Finally, in the last part of my speech, I will outline the
future prospects, because, as we all know, we cannot afford
to rest on our laurels.
So what is the state of play in organic farming today? It is
currently one of the most dynamic sectors in agriculture in
the European Union. Demand is on the increase in the
European Union, North America, Japan, Australia and in
some of the developing countries. The percentage of food
trade in the European Union accounted for by organic
organic farming and the new CAP
WSG
products has risen from 1% to 3%. Market experts expect
this share to double or even treble over the next few years.
Between 1993 and 1997 the area of organically farmed
land more than doubled from around 890 000 ha to
2.2 million ha. Over the same period, the number of
recognised organic farms and farms converting to obtain
organic status rose from 35 000 to almost 97 000.
This development is part of the general trend towards a
new relationship between consumers and farming. Firstly,
food safety and quality are becoming more and more
important criteria for consumer demand. Secondly, there is
growing recognition of the need to minimise the negative
environmental impact of farming and increase its positive
external effects through sustainability.
Safety and quality
Of course, all foods are covered by safety and quality
guarantees, and these have been and are being constantly
improved. However, organic farming is also subject to
additional, special requirements as regards production and
processing.
requirements
In
the
are
case
laid
of
crop
down in
products,
Regulation
these
(EEC)
No 2092/91, and in the case of animal products, the
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organic farming and the new CAP
WSG
Commission submitted a proposal to the Council and
Parliament some time ago, and I hope it will very soon be
possible for the Council to adopt a Decision. In crop
production, only specified fertilisers, soil improvers and
plant protection products are allowed. Processing is
governed by strict limits on the use of additives and
processing agents. There are also clear rules on controls,
labelling and imports from third countries. The Community
system also protects against impostors jumping on the
organic bandwagon. Consumer reaction has been very
positive, and I am convinced that with this Regulation the
Community has been instrumental in the success achieved
by organic farming.
To make it easier for consumers to find their way around
and thus improve the chances of success on the market for
organic products, we have proposed that a Community
logo should be introduced for organic products side by side
with the labels already used by organic associations. The
draft shows an ear of corn blowing in the wind and the
European Union stars on a blue background framed in
green. We hope that this logo will be just as successful as
the label for regional designations of origin which we
introduced in 1998.
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organic farming and the new CAP
WSG
Let there be no mistake: in my view it is imperative that
the common agricultural policy should address the need to
guarantee and improve safety and quality standards. We
have made considerable progress in recent years and will
continue to develop our standards and uphold them at
international
level.
The
recent
dispute
over
hormone-treated meat imports from the United States is
evidence that not all our trading partners take the same
standpoint. We must therefore take advantage of the
forthcoming round of negotiations in the World Trade
Organisation (WTO) to highlight the importance of
consumer and environmental protection.
This is necessary, because the original purpose of the
GATT was to restrict trade distorting measures and it
therefore includes only few provisions which deal
explicitely with the environment or with production
standards. Nevertheless, there is a general understanding
that every WTO Member State is authorised to establish
environmental norms as long as they do not create an
unjustifiable discrimination between countries, or a
disguised restriction on trade.
However, European farmers are not the only farmers who
produce organic food or produce according to high
standards. Quality and safety are essential elements of the
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organic farming and the new CAP
WSG
European model of agriculture, but high standards will not
prevent us from competition and imports. It is a
misunderstanding, that our European level is so much
higher than in other countries, that no food would comply
with our requirements and would be allowed to enter into
the common market. On the contrary, farmers in third
countries have very well adapted to growing consumer
requirements and high quality production. The recent
debate on hormones, for instance, has changed the
perception of many US-consumers and the farmers will
have to accept this development.
Up to now, WTO has taken a quite critical position
concerning production norms and procession methods as
far as these have been used for unilateral trade
restrictions,
because
they
would
constitute
an
extra-territorial interference with other countries. A
possible way out would be to establish multilateral
agreements on commonly applied standards outside the
narrow WTO process. Sanctioning of non-respect of these
provisions could be linked to WTO ruling. However, to
achieve such a multilateral agreement is a heavy
procedure often stretching over several years.
In any case, our rural development measures including
support for organic farming have been notified as green
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organic farming and the new CAP
WSG
box measures. As such, there is no requirements for them
to be reduced.
The original purpose of the GATT was of course to restrict
trade distorting measures. Therefore it includes only few
provisions which deal explicitely with the environment or
with production standards. Nevertheless, there is a general
understanding that every WTO Member State is authorised
to establish environmental norms as long as they don not
create a unjustifiable discrimination between countries, or
a disguised restriction on trade. As a general rule, trade
measures must be non-discriminatory in dealing with
domestic or imported commodities.
However, it would be a misunderstanding to expect
Up to now, WTO has taken a quite critical position
concerning production norms and procession methods as
far as these have been used for unilateral trade
restrictions,
because
they
would
constitute
an
extra-territorial interference with other countries. A
possible way out would be to establish multilateral
agreements on commonly applied standards outside the
narrow WTO process. Sanctioning of non-respect of these
provisions could be linked to WTO ruling. However, to
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organic farming and the new CAP
WSG
achieve such a multilateral agreement is a heavy
procedure often stretching over several years.
In any case, our rural development measures including
support for organic farming have been notified as green
box measures. As such, there is no requirements for them
to be reduced.
The environmental requirements
I should now like to move on to the second part of my
speech and outline how we intend to apply the overhauled
agricultural policy to "green" farming in general. Ritt
Bjerregaard has already discussed this in detail.
The integration of environmental concerns is – as agreed
by the heads of government in Amsterdam – an objective
to be pursued by all Community policies. Agricultural
policy has long recognised its responsibilities in this area,
farming as it is being the main user of land and other
natural resources. To stand the test of time, farming must
therefore ensure that our limited resources are exploited in
such a way that future generations can continue to enjoy
them. Sustainability is nothing less than that.
Europe's farmers, and agriculture politicians, also know
that they are not the only ones to live and work on the land.
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organic farming and the new CAP
WSG
Sustainable exploitation of natural resources must therefore
bring all parties involved together in an integrated
approach to rural development. This is one of the main
results of the Cork conference I organised in Ireland in
November 1996. The principles set out in the final
communiqué were the starting point for the Agenda 2000
proposals on rural development which were accepted by
the Council of Ministers without too much wrangling.
To implement our new rural development policy, the
Member States and regions are required to submit
integrated programmes by the end of the year. The main
new feature is that all rural areas can be included, and all
development measures are to be combined in one single
programme. A wide range of measures are available from
which programme managers can select those best meeting
the development requirements of the particular region.
However, all programmes and thus all regions are required
to incorporate the agri-environmental measures on offer.
Agri-environmental measures
Agri-environmental measures are at the heart of our
strategy, as they allow us to reward environmental
conservation services and stewardship of the countryside,
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organic farming and the new CAP
WSG
and go beyond the basic requirements of good farming
practice.
Agri-environmental
measures
include
land
use
in
compliance with the aims of environmental protection and
upkeep of the countryside, extensification and promotion
of
low-input
farming
methods,
organic
farming,
maintaining valuable biotopes, landscape protection,
preserving traditional elements of the landscape and
biodiversity.
As in the past, financial support for farmers is to be
calculated on the basis of lost income and the additional
expenditure
generated
by
special
environmental
requirements. Limited financial incentives may also be
provided to make participation in these schemes more
attractive to farmers. In the next financing period the upper
ceilings on Community subsidies have been raised from
those laid down for measures accompanying the 1992
reform to 600 euro per hectare for annual arable crops, 900
euro per hectare for perennial special crops and 450 euro
per hectare for other forms of land use.
I believe that this makes an important contribution to
strengthening organic farming even further.
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organic farming and the new CAP
WSG
Other rural development measures
In addition to the agri-environmental measures, however,
rural development support measures can also be used to
promote sustainable production methods and organic
farming.
In particular, I would like to draw your attention to the
schemes
encouraging
farm
investment,
which
providesassistance to farmers converting or expanding their
holdings. Part-time holdings are no longer unfairly
excluded from such schemes.
Balanced development of the organic farming sector rests
not just on increased organic production, but also on
appropriate processing of organic products. The Union is
therefore calling for investments in the processing and
marketing sectors. As well as promoting marketing,
investments should be directed towards improving
environmental protection and hygiene conditions, quality
and quality control. The possibilities for producer groups
are to be discussed by a Working Party this afternoon.
Training and further training may also be promoted in
future under the rural development programmes. Member
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organic farming and the new CAP
WSG
States may choose to focus on sustainable agriculture or
organic farming.
Sustainable agriculture is also being promoted by two other
measures in particular: first, the compensatory payment for
less-favoured farming areas, and second, measures to
support sustainable forestry. This possibility has been
completely remodelled under the ‘Agenda 2000’ reform
package and the compensatory payment can now be
extended to areas that have to comply with specific natural
and environmental requirements, such as national parks
and nature reserves.
Further environmental elements in the Agenda 2000
reforms
Under the ‘Agenda 2000’ reform package, environmental
objectives have been strengthened not only through rural
development policy but in other ways too. New elements
benefiting the environment have also been incorporated
into market policy, for instance. These include the
extensification premium for livestock, the introduction of a
grassland premium and tighter environmental requirements
for set-aside land.
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organic farming and the new CAP
WSG
I would also like to draw your attention to another major
change: we have created a horizontal Regulation covering
all the market organisations which links direct payments to
farmers to compliance with good agricultural practice. If
farmers do not adhere to minimum standards ensuring
environmentally-compatible farming, Member States will
be able to reduce direct payments and use the money saved
as additional funding for rural development measures,
including the agri-environmental schemes. Whether the
Member States will actually make use of this drastic
measure remains to be seen.
Future tasks
In the third part of my speech, which takes a look at the
prospects for the future, I would like to expand on three
points made by Ritt Bjerregaard:
1. Decentralisation and increased flexibility are the
guiding
principles
underlying
the
new
rural
development policy. It is now up to the Member States
to present proposals for rural development programmes
at the most suitable regional level. They may choose
those measures which best meet their needs and
priorities from the range of options provided by the new
rural development regulation.
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organic farming and the new CAP
WSG
2. Consumer confidence in organic foodstuffs hinges on
compliance with organic production standards, and
adequate checks. If farmers want to make full use of the
market opportunities for organic products, they have to
accept these strict standards and make sure they meet
them.
3. We learn not only from our own experience, but also
from the examples of others. Looking beyond national
or regional boundaries can also be an extremely useful
way to promote organic farming. The European level is
ideal for exchanges of experience between Member
States and the regions.
Summary
I should like to finish by summarising the main points of
my speech: as a result of public interest in environmental
issues
and
improved
quality
of
life,
environmentally-compatible farming methods such as
integrated farming, traditional low-input farming and
organic farming in particular are becoming more and more
important.
Organic farming can offer an interesting alternative for
many farms, but we also need corresponding sales
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organic farming and the new CAP
WSG
channels. We have by no means exhausted the market
potential for organic products. But organic farmers will
only be able to make full use of this potential if they
manage to build a bridge to consumers by linking up with
the processing sector and by intelligent marketing.
By reforming rural development policy we hope to
establish sustainability as a basic principle underlying rural
development in rural areas. Promoting organic farming
through agri-environmental measures and the many other
promotion possibilities are important building blocks in
this strategy.
I believe that the reform of the CAP has created a firm
foundation for sustainable agriculture. It is now up to us to
make good use of these opportunities. Quality is not
created by chance: as well as funding it needs intelligent
thinking and a real determination to make things better.
Thank you for you attention, ladies and gentlemen. I wish
us all every success in this conference.
**********
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