09.12.2024
Industries: Agrofood
Legal Field | 15 – 30 november
Abreu Advogados at the II Conference on Vine and Wine Law
Alexandre Miguel Mestre and Francisco Costa Leite, consultants at Abreu Advogados, took part in the “II Conference on Vine and Wine Law”, which took place on 27 November at the Escola Superior Agrária de Santarém.
Alexandre Miguel Mestre spoke on the panels “Wines and the Legal Framework” and “Economy, Labour and Business Perspectives”, as speaker and moderator respectively, and Francisco Costa Leite was a speaker on the second topic.
The conference, co-organised once again by Abreu Advogados, brought together experts and professionals from the sector to discuss the legal and regulatory challenges linked to the production and marketing of wine and covered topics such as sustainability, the protection of appellations of origin, innovation in the wine sector and the impact of European policies.
AGRIFISH Council of 18 November: main results
The Council (in its Agriculture and Fisheries configuration) received the Ukrainian Minister of Agrarian Policy and Food, Vitalii Koval, who presented information on the situation of the agricultural sector in Ukraine to his European counterparts.
In the ensuing internal EU debate, the Council took stock of the situation on the EU markets as regards agri-food products.
The Council recognised that the EU’s agri-food markets are showing some positive signs of a partial return to stability, with improvements in demand for agri-food products in most sectors, a decrease in fertiliser costs and a reduction in food inflation.
The agriculture ministers addressed current challenges, including the impact of climate change, the spread of animal diseases, such as the bluetongue virus or avian flu, and plant diseases, the geopolitical situation and trade tensions. Some sectors, such as cereals and fruit and vegetables, have been particularly affected by recent adverse weather events, leading to a decrease in production.
With regard to China, the Council urged the Commission to continue monitoring the situation and to defend the EU’s position. Regarding the trade negotiations between the EU and Mercosur, some ministers emphasised the need to ensure that EU farmers are treated fairly.
In this context, several member states called on the Commission to make additional funding available through the agricultural reserve to help farmers in the most affected regions and sectors cope with the recent market disruptions. In addition, some ministers emphasised the need for stronger crisis management tools and to increase the size of the crisis reserve and its flexibility.
In addition, the Council reiterated its firm solidarity with Ukraine, while taking into account the impact of Ukrainian imports into the EU. At the same time, some ministers said they would welcome further restrictions on imports of agri-food products from Russia and Belarus.
Under the “Other business” heading on agriculture, the Hungarian Presidency also presented information on the results of the sectoral debates it organised in the Special Committee on Agriculture on the challenges facing the different agricultural sectors and their future prospects.
In particular, summarising the main conclusions of these sectoral debates, the Presidency stressed the need for policies and strategies that promote sustainable agricultural practices and help farmers adapt to changing conditions. Improving farmers’ bargaining power and their position in the value chain were also identified as priorities. The importance of prevention measures was another factor that emerged from the sectoral debates.
On the fisheries front, the Council held an initial exchange of views on two Commission proposals on fishing opportunities:
- fishing opportunities in the Atlantic and North Sea for 2025 and, in the case of some stocks, also for 2026, and
- fishing opportunities for 2025 in the Mediterranean and Black Seas.
The proposals aim to set catch and effort limits for most commercial stocks, along with Member State quotas for each species.
Some of the fishing opportunities in the proposals will be set independently by the EU, while others will be set following multilateral or bilateral consultations with third countries.
During the Council meeting, the Commission presented its two proposals and ministers exchanged views on their main priorities for this year’s fishing opportunities exercise.
The fisheries ministers emphasised the need to ensure a balance between the social, economic and environmental sustainability of the sector.
They also mentioned the need to ensure a level playing field with the fishing fleets of third countries and to achieve timely and balanced results within the framework of the EU’s consultations with third countries, in particular the United Kingdom and Norway.
The debate aimed to lay the foundations for the AGRIFISH Council meeting in December, at which the ministers will have to reach a political agreement on the two proposals.
The Council’s decision in December will be based on the best available scientific advice, while respecting the objectives of the Common Fisheries Policy and taking into account the EU’s multi-annual plans for the different sea basins.
In public session and under the “Other business” heading, the Council also received information on:
- an EU protein strategy (German and Danish delegations)
- the use of funds under the rural development programme (Spanish delegation)
- imports of Ukrainian honey to Bulgaria and Romania (Bulgarian and Romanian delegations)
On that date, the Council adopted a regulation amending phytosanitary legislation as well as the fishing opportunities in the Baltic Sea for 2025, following the political agreement reached in October. (Documentation on the Council is available in Documents and studies)
November MARS Bulletin from the European Commission’s Joint Research Centre
According to the November edition of the MARS Bulletin – Crop Monitoring in Europe, in most of Europe, predominantly average to above-average temperatures and drier than usual conditions helped farmers speed up sowing and (where still necessary) harvesting, and were favourable to the emergence and early development of newly sown crops.
However, conditions were unfavourable in large parts of Spain, Italy, Romania and Bulgaria, as well as in the Maghreb, Turkey and parts of Ukraine and Russia.
(see Documents and studies)
AGRI Committee: Highlights
On 18 November, the European Parliament’s Committee on Agriculture and Rural Development discussed the harvest and market situation; the recent ECJ ruling on the Morocco Agreement; forest reproductive material produced in third countries with regard to the “tested” category and exceptional support measures under the EAFRD to provide additional assistance to Member States affected by natural disasters.
INE’s Monthly Bulletin of Agriculture and Fisheries for November
According to the latest bulletin from the National Statistics Institute, agricultural forecasts on 31 October pointed to an increase in productivity in olive groves, essentially due to new plantations coming into production in the Alentejo.
Pear production in the Western region was once again hampered by adverse weather conditions and recurring phytosanitary problems, namely fire blight and stenphyliosis.
The passage of Storm Kirk caused a drop in apple production in the northern region, particularly in the southern Douro and Carrazeda de Ansiães, as well as in chestnuts, where strong winds knocked down trees and branches laden with chestnuts and led to the fall of immature hedgehogs.
Kiwi yields are expected to be the lowest of the last five years, as a result of the various problems that affected the formation and development of the fruit throughout the cycle.
Wine production is expected to fall by 5 per cent compared to last year’s harvest, but despite the phytosanitary problems, good quality wines are expected.
With regard to temporary crops, the production of irrigated grain maize is expected to be the lowest in the last decade, due to the decrease in area and productivity.
On the other hand, production of tomatoes for industry is expected to increase by 3 per cent, as a result of the increase in area (5 per cent), while rice production is expected to be similar to the previous season, also as a result of the increase in area.
(More information – namely on Livestock, poultry and rabbits slaughtered, Poultry and egg production, Milk and dairy products production, Fish caught, Prices and agricultural price indices – available in Documents and studies)
Estimating the climate change mitigation potential of CAP strategic plans
On 22 November, the European Commission published a study estimating the climate change mitigation potential of 19 CAP strategic plans for the 2023-2027 period. The study concludes that these plans have the potential to make a significant contribution to climate objectives, with an estimated mitigation potential of 31 million tonnes of CO2e per year, mainly in terms of carbon sequestration and reducing soil emissions.
Crop rotation or diversification, the expansion of cover crops and conversion to organic farming are the three agricultural practices that contribute most to the estimated mitigation potential (overall 78%). In terms of CAP instruments, eco-schemes account for 38 per cent of the estimated mitigation potential and environmental and climate commitments under rural development for 30 per cent.
The analysis also indicates a potential positive contribution to the protection of existing carbon sinks of 29 million tonnes of CO2e per year in the 19 CAP strategic plans covered by the study. Support for the maintenance of organic farming accounts for more than half (54 per cent) of the estimated protection potential, followed by the maintenance (or management) of forests (22 per cent) and the protection of grasslands (18 per cent).
It should be noted that the mitigation and protection potentials are estimated on an annual basis, so they could be realised every year from 2023 to 2027. The full realisation of these potentials and the magnitude of their contribution to the 2030 climate objectives will depend on the final acceptance of the measures and their annual additionality also compared to the previous CAP programming period, which cannot be assessed at this stage.
The resulting analysis establishes a starting point for the development of a more refined methodology, using data from the Member States on the actual adoption of the measures and more precise mitigation coefficients for the agricultural practices supported. On the other hand, it can contribute to reducing the current high level of uncertainty in the national inventory of emissions and removals in the land sector. The study includes recommendations addressed to national authorities in this regard. The Commission continues to work and collaborate closely with all Member States to improve action, monitoring and reporting related to CAP strategic plans and climate change mitigation.
The 2024 progress report on climate action, published by the European Commission in October 2024, showed that agricultural emissions fell by 2% between 2022 and 2023, maintaining or increasing their production to guarantee food security for all EU citizens. Work is underway to continue making progress, particularly with regard to carbon sequestration.
The CAP’s strategic plans allocate 32 per cent of the CAP’s total budget to voluntary actions that promote environmental, climate and animal welfare objectives. 35% of the EU’s agricultural land should benefit from actions to fix carbon and reduce nitrous oxide emissions. Progress is also being made in protecting the sustainable management of natural resources, with substantial efforts in soil protection, with voluntary practices covering 47 per cent of EU farmland. In addition to the CAP, many EU funds, such as LIFE, Horizon Europe (especially Mission Soil) and the Cohesion Fund, are available to incentivise carbon removal.
The study will be finalised with the inclusion of the remaining 9 CAP strategic plans, scheduled for the beginning of 2025.
In the meantime, capacity-building activities have been launched with the participation of the competent authorities of the Member States to train national experts in the application of the study’s methodology in order to improve the accuracy of the estimates.
(See Documents and studies)
European Commission: EU Agri-Food Trade Monthly Report
According to the latest report, released on 28 November, in August 2024 the EU’s agri-food trade surplus reached 5.2 billion euros, despite a slight decrease compared to July 2024.
The surplus from January to August 2024 totalled 44.8 billion euros, an increase of 431 million euros compared to the same period in 2023, thanks to the strong start in EU exports at the beginning of the year.
The EU’s agri-food sector continues to perform solidly at international level.
This monthly publication was accompanied by a thematic study on historical trade flows between the EU, Canada and Japan.
(See Documents and studies)
European Court of Auditors: “Food labelling in the EU – A maze of labels where consumers can get lost”
The European Court of Auditors’ Special Report 23/2024, released on 25 November, analysed whether food labelling in the EU helps consumers make informed decisions when buying food.
The Court checked the EU’s legal framework and how consumers’ understanding of labels is monitored. It also looked at Member States’ control systems, how they monitor food companies’ compliance with labelling rules and how the Commission and Member States report on these controls. The audit focused specifically on the labelling of pre-packaged foods.
We carried out this audit because of the growing interest in food information among consumers, EU institutions and other stakeholders, and the fact that consumer choices made on the basis of labelling can also have consequences for their health and well-being.
As part of the Farm to Fork Strategy, the Commission has announced a revision of the Food Information Regulation. The Court hopes that its findings and recommendations will contribute to the discussions on this revision.
(See Documents and studies)
Glocal” opportunities for young people in rural and remote areas: Council adopted conclusions
At its meeting on 25 and 26 November, the Council, in its Education, Youth, Culture and Sport configuration, adopted conclusions based on those adopted in November 2023 entitled “A long-term vision for rural areas in the EU”, in which member states were invited to “actively support young rural citizens, notably by facilitating their access to finance and land, providing diversified and flexible employment, training and education opportunities, and bringing them into policy design and local decision-making processes”.
The conclusions are part of one of the overall priorities of the Hungarian Presidency, which is demographic challenges.
The Council calls on the EU authorities to step up their efforts to ensure equal access to essential services for young people in rural and remote areas, enabling them to benefit from “glocal” opportunities. The term “glocal” refers to the ability to think globally and act locally, as well as the integration of local and global dimensions.
In particular, the Conclusions encourage Member States to:
- improving rural young people’s access to digital services, in particular by strengthening digital infrastructures
- getting young people living in rural and remote areas involved in decision-making at all levels
- promote the creation of more job opportunities, quality education and training and their greater diversification in rural and remote areas, in sectors such as agriculture and adaptation to climate change
- encouraging solidarity and intergenerational interaction, particularly through local youth organisations
- train youth workers, educators and professionals to recognise the diversity of young people’s talents
The Council also called on the Commission to improve access to relevant EU initiatives and funds and to increase the visibility of rural youth in EU youth programmes, including the post-2027 EU Youth Strategy.
(See Documents and studies)
EU fishing fleet improves profitability, but structural challenges remain, says European Commission
On 18 November, the Commission published the 2024 annual economic report on the European Union’s fishing fleet, which shows a substantial improvement in the fleet’s economic performance, with an increase in gross profits in 2022 and 2023 to an expected 1.673 billion euros in 2024.
The improvement is attributed to several factors, including
- progress towards sustainable stocks
- higher average first sale prices for several key species
- a reduction in fishing capacity
- lower fuel prices
- lower fuel consumption
The improvement in the sustainability of fish stocks in the European Union, driven by measures to reduce fishing effort in recent years, has proved to be economically beneficial: fleets targeting stocks that have been exploited sustainably over several years tend to improve profitability and wages.
The study also shows that the switch to less fuel-intensive fishing techniques has not only brought environmental benefits, but has also reduced costs and strengthened socio-economic resilience.
However, the report also highlights a number of challenges facing the EU fishing fleet, including structural problems such as ageing vessels and a lack of new young entrants to the sector.
The number of inactive vessels in the EU fleet continues to rise, accounting for 25 per cent of the EU fleet register, and the socio-economic performance of the small-scale coastal fishing (SSC) fleets is declining.
This publication includes: 1) a structural and economic overview of the EU fishing fleet in 2022,
analyses of trends for the years 2013-2022 and, where possible, current forecasts for 2023 and 2024; a regional analysis of the EU fishing fleet by major sea basins, as well as the fleets operating in the EU’s outermost regions and other fishing regions; 3) a detailed structural and economic overview of each Member State’s fishing fleet, including qualitative assessments of economic performance for 2022 and forecasts for 2023 and 2024.
(See Documents and studies)