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Wednesday, 01 February 2012

Ministers exhange views on Single CMO regulation

Last week at the 3140th Council meeting on Agriculture and Fisheries, ministers discussed on the proposal for a regulation establishing a common organisation of the markets in agricultural products within the framework of the common agricultural policy (CAP). The debate focused on the exceptional measures in case of market disturbances and on the proposed measures aiming at a more competitive and well functioning food supply chain, in particular the reinforcement of producer organisations.
Regarding measures to respond rapidly to an agricultural crisis, most of the Member States considered the proposal went in the right direction. While some delegations welcomed the creation of a specific crisis fund in case of major disturbance applying to all the agricultural productions, some other highlighted the need for this fund to be used only in exceptional circumstances which should be clearly defined. In addition, some Member States questioned the financing of this crisis fund.
Concerning the reinforcement of producer organisations and the role to attribute to interbranch organisations, many countries backed the proposals from the Commission. They considered that this should help to better balance the bargaining power of producers in the food chain. However a number of delegations stressed that the new rules concerning producer organisations should be voluntary in order to adapt to the different national situations. Some Member States insisted that this should not introduce a competition distortion.
Many countries mentioned that the end of sugar quotas scheduled for 2015 should be postponed to allow the sector to better adapt.

Source: Council of the European Union