EU agri-food trade increased in January – April 2021, compared to last year
EU agri-food trade increased in January – April 2021, compared to last year

Publication of the latest agri-food trade figures.

During the period from January to April 2021, EU agri-food trade (exports plus imports) reached a value of €103.4 billion; i.e. 1.1% less than in January-April 2020. While EU exports increased by 1.7% compared to the same period in 2020, reaching €63 billion, EU imports attained €40.3 billion, still 5.1% less than in the first four months of 2020. The monthly value for EU exports in April 2021 were 7.7% lower than March 2021, but also 9.8% higher than April 2020. EU imports in value also were 2.5% lower in April 2021 compared to March 2021, but 3.7% higher than the value observed in April 2020.  On a year over year basis, for the period January-April 2021, EU agri-food export values fell most with respect to those towards the United Kingdom (minus €806 million, -6%), when compared with the same period in 2020.

The highest increases in the EU export values were recorded with respect to China (plus €912 million, +16%). This continued to be primarily driven by an increase in the EU exports value of pork meat. EU export values to the United States have also increased by 7.1% (plus €488 million) compared to the same period in 2020, mainly driven by wine and spirits. Looking at agri-food imports over January-April 2021 compared to the same period in 2020, a significant fall in the value of EU imports from the United Kingdom continues to be observed (minus €1.844 million, -37%).

A further decrease was also observed in the EU imports from the United States (minus €387 million, -10%). On the other hand, countries for which the EU import values increased the most over the first four months of 2021 include India, Brazil, Serbia, Australia and Argentina. The resulting agri-food trade surplus’ value stood at €22.7 billion, an increase of 17% compared to the period January-April 2020. This net trade balance continued to be driven by high exports of wine, spirits and liqueurs, pork meat, chocolate and confectionary, bulbs, roots and live plants. More information is available here.

EU farm policy reform: Parliament and Council strike a deal
EU farm policy reform: Parliament and Council strike a deal

News | European Parliament

  • More support for those who apply climate- and environmentally-friendly practices
  • 10% of national direct payments to support small and medium-sized farms
  • Tailor-made measures to help farmers deal with crises
  • More transparency on how EU funds are spent, higher sanctions for repeated infringements

Parliament’s and Council’s negotiators reached an informal political agreement on three EU laws that will govern the 2023-2027 EU farm policy, on Friday.

Negotiators endorsed a policy shift that should tailor the EU’s farm policy better to the needs of individual member states, but they insist the European Union’s agricultural policy must also remain common. The new rules provide that national governments should draft strategic plans, which the Commission will endorse, specifying how they intend to implement EU objectives on the ground. The Commission would be checking their performance as well as their compliance with EU rules.

Promoting a better environmental performance for EU farms

Thanks to MEPs, preserving and strengthening biodiversity in the EU and meeting the European Union’s commitments under the Paris Agreement will become one of the objectives of the future EU farm policy. Parliament also ensured that the Commission, when assessing national strategic plans, should check their contribution to the EU’s environmental and climate commitments and the 2030 EU Farm to Fork and Biodiversity strategies targets.

During the negotiations, Parliament insisted on strengthening mandatory climate and environmentally-friendly practices, the so-called conditionality, that each farmer must apply to get direct support. On top of that, MEPs got EU governments on board to dedicate at least 35% of the rural development budget to environmental and climate-related measures and, as a general rule, at least 25% of the direct payments budget to eco-schemes, which would be voluntary but would increase farmers’ income.

More money for small farms and young farmers, and better working conditions

MEPs ensured that at least 10% of national direct payments would have to be used to support small and medium-sized farms. To this end, member states could use a redistributive top-up payment or decide to progressively reduce annual direct payments to farmers above €60 000, and cap them at €100 000. If such a scheme is introduced, national governments could allow farmers to deduct 50% of agriculture-related salaries from the total amount before reduction.

EU states could use at least 3% of their CAP budgets to support young farmers. Support for new farmers could be granted from rural development funding.

MEPs also insisted on protecting the rights of farm workers more robustly. They got Council on board for setting up a mechanism to connect, as of 2025 at the latest, national labour inspectors with CAP paying agencies to penalise breaches of EU labour rules.

Helping farmers deal with risks and crises

Throughout the negotiations, Parliament pushed for further measures to help farmers cope with risks and potential future crises. They introduced measures to ensure that the market will be more transparent and better prepared for potential turbulence, and that practices aiming for higher environmental, animal health, or animal welfare standards will be exempt from competition rules. The existing crisis reserve, helping farmers with price or market instability, will be turned from an ad-hoc instrument to a permanent one with a proper budget.

More transparency to protect EU funds and higher sanctions for repeated breaches

MEPs insisted on more transparency on the final beneficiaries of EU subsidies and ensured that member states will be given access to the EU data-mining tool to avoid circumventing EU rules and to duly protect EU funds.

Parliament also made sure that those who repeatedly fail to comply with EU requirements (e.g. on the environment and animal welfare), will face increased sanctions. This should cost farmers 10% of their entitlements (up from today’s 5%).

More information about the approved texts is available in the Q&A.

Next steps

Following the political agreement, the text still need to be technically and legally fine-tuned. It will then have to be approved by the Parliament – first by the Agriculture Committee and then by the full House- and by the Council, to enter into force. New EU farm policy rules should be applicable as of 1 January 2023.

Background

The last reform of the EU farm policy, established in 1962, dates back to 2013. The 2013-2020 CAP rules expired on 31 December 2020 but they were extended and replaced by transitional rules, until the end of 2022.

The CAP accounts for less than a third (31.95% or €386.6 billion) of the 2021-2027 EU’s Multiannual Financial Framework budget (€1.21 trillion). Around 70% of the CAP budget supports the income of six to seven million EU farms.

An initiative to achieve deforestation-free supply chains from Brazil
An initiative to achieve deforestation-free supply chains from Brazil

According to Proterra Foundation “Soy Protein Concentrate Brazilian industry announced end of 2020 that they are taking increased responsibility for the entire value chain of soy-production. The Brazilian soy suppliers, CJ Selecta, Caramuru and Cervejaria Petropolis-Imcopa, will implement a 100 percent deforestation and conversion free soybean value chain with 2020 as their cut-off date.”

Their press communication continues saying that it was the first time that companies in the animal feed industry have set such a voluntary and sector wide benchmark.

The cut-off date of soybeans that are already certified under the ProTerra Standard, abide to the provision that areas of native vegetation cannot be cleared or converted into agricultural areas, or used for industrial or other commercial purposes, after 2008. These companies source soy only from farmers who refrain from clearing forests on their property after the cut-off date of August 2020.

The commitment

The SPC and soymeal exporters CJ Selecta, Caramuru and Cervejaria Petropolis-Imcopa, are committed to stablishing an economical, environmentally sustainable and socially responsible supply chain. The commitment calls for:

• Promote a soy supply chain free from illegal and /or legal deforestation.

• Respect the rights of workers, indigenous peoples and local communities.

• Ensure that sourcing is fully compliant national and local environmental laws and regulations including Forest Code.

The plan to get there

Code of Conduct for soybean suppliers

The companies have developed a Code of conduct, motivating their suppliers to create and maintain a sustainable chain, to encourage good agricultural practices, to assure the protection of high conservation values, environment, and biodiversity, and in the meantime to respect rural workers and communities.

Monitoring based on a socio-environmental analysis

Processors and traders obtain farm-level traceability from all the soy direct sourcing of the company. Before every soy purchase, the trader’s origination team must check if the soy farm is compliant.

In addition, the suppliers are preparing a new sustainability sourcing policy for all their soy, GMO and non-GMO, which includes monitoring farms with satellite geospatial tools, preparing for audits and engaging their soy suppliers. 

The corporate system of the industrial processors shall comprise sufficient thorough tabular data about each supplier, such as the CAR (federal environmental registry).

To achieve this commitment risk assessment and additional mapping will be implemented:

  • Improving monitoring systems in direct soy purchase in order to achieve 100% of traceability in direct suppliers.
  • Start dialogue with indirect suppliers on risk assessment and action plans for the next steps.

In the case of indirect suppliers, complementary information may be gathered through field observations, community-based monitoring and stakeholder engagement. The definition of the level of monitoring for each supplier will be based on an assessment of the suppliers’ social and environmental risk and / or their location.

More about Proterra Foundation here.

A building material from banana peels and algae have been created
A building material from banana peels and algae have been created

The development is the work of specialists from the Institute of Industrial Sciences at the University of Tokyo.

Japanese scientists have created a new building material, for the production of which they used food waste, the Daily Mail writes.

The development is the work of specialists from the Institute of Industrial Sciences of the University of Tokyo.

For the new building material, scientists have used banana peels, cabbage leaves, algae, and other food waste. Initially, they were dried to a powdery state, after which they were mixed with water and subjected to strong heat, adds BTA.

The tests performed show that the obtained material exceeds the target bending strength and does not yield to the strength of the concrete.

Scientists also used salt and sugar to create the new building material, but they did not affect its strength.

Researchers at the University of Tokyo are squeezing cabbage, fruit peels, and other food scraps into sturdy building material.

The witch in Hansel and Gretel’s tale may have been something about her edible house and attractiveness to children. A research team from the Institute of Industrial Sciences at the University of Tokyo has discovered how to make durable, healthy, and still edible building materials from food.

Sprinkled cabbage leaves, seaweed, and banana peels may not be as exciting as gingerbread and pastries, but they could be part of a sustainable construction product recipe.

“Our goal was to use ordinary seaweed and food scraps to build materials that are at least as strong as concrete,” said Yuya Sakai, a specialist in sustainable building materials and lead author of an upcoming material study, on Tuesday. food waste, we also wanted to determine if the recycling process has affected the taste of the original materials. ”

The team is testing a hot pressing technique commonly used to compress wood dust into building materials. Instead of wood, they are vacuum dried and then sprayed with a variety of food waste, including onion and fruit peels, as well as cabbage.

“The processing technique consists of mixing the food powder with water and spices, then pressing the mixture into a mold at high temperature,” the university said. All products obtained, except for the pumpkin skin, passed the team’s stress tests.

Researchers have found a solution to the pumpkin problem. “We also found that Chinese cabbage leaves, which produce material more than three times stronger than concrete, can be mixed with a weaker pumpkin material to provide effective strengthening., said Kota Machida, project associate.

The molded materials remained edible, although the team did not say whether they were difficult to chew. Even leaving the materials exposed to the air for four months did not change the taste and there was no problem with decay.

The development of potentially plasterable materials is still at an early stage, but maybe one day you could build your own home from them. This will lead the witch’s house to the modern age.

EU farm policy reform: Council must be more flexible – we cannot waste more time
EU farm policy reform: Council must be more flexible – we cannot waste more time

Council’s lack of flexibility threatens security for EU farmers, Agriculture Committee Chair Norbert Lins warned, calling on Council to return to proper negotiations.

Chair of the Agriculture Committee and head EP negotiator on the post-2022 EU farm policy Norbert Lins (EPP, DE) issued the following statement after the lack of results in this week’s “supertrilogue” negotiations:

“For the past six months we have been negotiating in good faith, trying to deliver a greener, fairer and future-oriented Common Agricultural Policy for our farmers and consumers. This week, Parliament’s negotiators engaged in intensive talks trying to deliver a deal by the end of the week that would be fit for purpose and give member states and farmers enough time to prepare.

I am very disappointed that the Portuguese Council Presidency has broken off negotiations on the CAP today. If you want an agreement, you have to be ready to negotiate and be flexible. The Council Presidency seemed surprised that we did not simply rubber-stamp their compromise proposal, but stated our own red lines. I expect the Council to respect directly elected representatives as co-legislators. This is already the second reform after the Lisbon Treaty and the Parliament will not give up on our citizens’ expectations to give way to Council’s demands.

This step is bad for all our farmers and for climate and environmental protection. Farmers now lack planning security and urgently needed measures continue to be delayed. This is a serious blow to the negotiations, and I hope Council realises there are consequences to their stubborn approach.

In the coming days, we will discuss the recent developments internally. Parliament stands ready to resume negotiation with the Portuguese Council Presidency before the end of their mandate at the end of June, but only if Council shows more flexibility. I hope they return to the negotiating table with a renewed mandate to approve a truly sustainable farm policy that is fit for purpose.”

Click here to watch the press conference by lead EP negotiators that took place after this week’s “supertrilogue”.

Background

The trilateral negotiations between the Parliament, Council and Commission on the post-2022 EU farm policy began in November 2020. The latest round of “supertrilogue” talks started on Tuesday morning.

The main sticking points that need to be resolved consist of green architecture of the future EU farm policy, including the financial envelope for eco-schemes and for other environment– and climate-friendly measures and rules for some of the so-called Good Agricultural and Environmental Conditions (GAECs), redistributive payment to channel more money to small and medium-sized farmers, and the social dimension of the CAP. On all these points, Parliament is more ambitious than the Council.

 

Portuguese Presidency outlines priorities to EP committees
Portuguese Presidency outlines priorities to EP committees

Ministers are outlining the priorities of the Portuguese Presidency of the Council of the EU to parliamentary committees, in a series of meetings.

Portugal holds the Presidency of the Council until the end of June 2021. The first set of hearings takes place between 25 and 28 January. A second set of hearings will take place the following week. This press release will be updated regularly.

Foreign Affairs

On 26 January, Foreign Affairs Minister Augusto Santos Silva outlined a range of external action priorities to the Foreign Affairs Committee. He spoke of the importance of reviving the transatlantic dialogue between the EU and the new Biden administration, promoting stronger ties between the EU and the Asia-Pacific region, notably India, as well as intensifying EU cooperation with Africa and the African Union, for example when it comes to finalising a new Post-Cotonou Partnership Agreement.

MEPs quizzed the minister on several topics, such as the EU’s strategy vis-à-vis China, the Presidency’s approach to Russia, and migration issues. They welcomed the initiative to hold the EU-India summit in Porto this year as well as Portugal’s readiness to further engage in enlargement efforts. MEPs also questioned Mr Santos Silva on how the EU will guarantee respect for social, environmental and human rights in its commercial policy with third countries.

Fisheries

On 26 January, Maritime Affairs Minister Ricardo Serrão Santos told the Fisheries Committee that the Presidency is committed to advancing negotiations on quotas with the UK and reaching a deal on this with Norway. MEPs complained about the uncertainty around fishing conditions following Brexit and how the Brexit Reserve Adjustment is to be distributed among countries.

They also highlighted the importance of concluding the regulation on the European Maritime and Fisheries Fund, obtaining a general agreement on the new Fisheries Control, and concluding fishing deals with third countries, like Mauritania, Guinea-Conakry and Madagascar. Serrão Santos assured them that these are all priorities for the Portuguese Presidency.

Transport and Tourism

On 26 January, Infrastructure and Housing Minister Pedro Nuno Santos and Secretary of State for Tourism Rita Marques stressed that tourism and transport are two of the sectors hit hardest by the pandemic, which will also recover last from this crisis. Therefore, the Presidency will strive to contribute to a swift recovery and transformation of the transport sector, to make it more resilient, greener and smarter. The focus will then turn to the railway sector, implementing a new EU mobility strategy and further work on Single European Sky and Eurovignette draft rules.

Transport Committee MEPs welcomed the Presidency’s focus on sustainable mobility, rail and their attempt to support, in particular, passengers as well as companies working in the transport and tourism sectors. They urged the Presidency to advance further on the Connecting Europe Facility, air passenger rights and alternative aviation fuels draft rules.

Culture and Education

Culture Minister Graça Fonseca told the Culture and Education Committee on 26 January that supporting the recovery of the cultural and creative sectors is a priority, as is strengthening social security for artists, authors and other workers. MEPs called on the minister to earmark at least 2% of the recovery funds for cultural and creative sectors, and to make it binding for all member states to invest in the social protection of workers.


Education Minister Tiago Brandão Rodrigues
 and Science, Technology and Higher Education Minister Manuel Heitor stressed their commitment to reducing inequalities in access to education, as well as on re-training and up-skilling of professionals of all ages. MEPs noted that young people find it hard to enter the labour market, and asked for the European Youth guarantee to be strengthened.

Agriculture and Rural Development

Concluding the talks on the Common Agricultural Policy (CAP) reform is one of the Presidency’s top priorities, Agriculture, Forestry and Rural Development Minister Maria do Céu Antunes told the Agriculture Committee on 26 January. An agreement should be reached in April, the Minister said. The Presidency will focus on promoting structural development within the food system, sustainability in rural areas, digital growth and supporting organic farming. Other priorities include the Farm to Fork strategy and fostering more sustainable and biodiverse agriculture.

Negotiations on the CAP reform should be finalised as quickly as possible, but not at any cost, MEPs said. They called on member states to come closer to Parliament’s position, which is more ambitious than the Council’s, and stressed that the future CAP must be greener, ensure a level playing field and a fair income for EU farmers, and guarantee food security for EU citizens.

Women’s Rights and Gender Equality

On 26 January, Mariana Vieira Da Silva, Minister of State for the Presidency reminded the Women’s Rights and Gender Equality Committee that women are particularly affected by the COVID-19 crisis. They are on the front line in combatting the pandemic, are hit harder by the economic crisis and are facing an increase in domestic violence during periods of confinement. The Presidency will organise a conference on violence against women and aims to create an EU-wide single hotline to report domestic violence, she announced.

The Minister also said that they will work on reaching a consensus on the Women on Boards Directive, blocked for years in the Council. In addition to this legislation, MEPs called for the Anti-discrimination Directive, which has been in a deadlock for 12 years, to be unblocked. Some MEPs expressed concern that certain EU countries are moving away from democracy and not upholding respect for gender equality. They called on the Presidency to highlight the strong link between the rule of law mechanism and respect for gender equality.

Environment, Public Health and Food Security

On 25 January, Environment and Climate Action Minister João Pedro Matos Fernandes told the Environment, Public Health and Food Security Committee that Portugal will promote the EU as a leader in Climate Action. The presidency is prioritising a green recovery and getting a deal on the EU Climate Law. MEPs raised questions on issues such as the EU Climate Law, biodiversity, the CAP reform, hydrogen, CO2 emissions from shipping and the need for a green industrial strategy and green investments. They also stressed the importance of the upcoming UN climate change conference in Glasgow.

On 26 January, Agriculture Minister Maria do Céu Antunes emphasised the need for a green and sustainable recovery from the COVID-19 crisis, which includes a follow-up on the Farm to Fork strategy. Council conclusions in spring 2021 will shape the EU’s position for the COP26 in Glasgow. MEPs quizzed the Minister on a number of topics including biodiversity, desertification, food waste, animal welfare, the reduction of pesticides and biological control agents.

Legal Affairs

On 27 January, the Legal Affairs Committee held a debate with Justice Minister Francisca Van Dunem, in which digitalisation and access to legal recourse, the protection of vulnerable adults, environmental crimes, the fight against illegal and online hate speech, and women and children’s rights figured prominently. MEPs underlined the importance of tackling the negative impact of COVID-19 on the justice sector. To increase citizens’ trust in EU justice systems, member states should provide support, and systems and proceedings should be simplified and made more inclusive and comprehensible, explained Van Dunem.

Members asked about the Presidency’s position on the Digital Services and Digital Markets Acts, particularly in relation to removing illegal or harmful content while respecting fundamental rights. In response to questions from MEPs regarding the state of play of the Non-Financial Reporting and Women on Boards directives, as well as public country-by-country reporting files, the Minister expressed hope for progress in these areas.

Development

The Presidency’s main goals include stronger ties with Africa, a greater emphasis on human development in development policies as well as resolving the ongoing issues linked to the NDICI external financing tool and the Post-Cotonou agreement, emphasised Secretary of State for Foreign Affairs and Development Cooperation Francisco André when he spoke the Development Committee on 27 January. Defining the EU’s relationship with African, Pacific and Caribbean countries is also a priority, he said.

MEPs welcomed the Portuguese focus on Africa, calling for special attention to be placed on education and inequality, which is growing in the pandemic and damaging the social fabric. Several MEPs called for the EU to ensure that vaccination happens in Africa. Others urged Portugal to set up a long-awaited summit between the EU and the African Union before the latter meets China in a similar format.

Constitutional Affairs

On 28 January, the Constitutional Affairs Committee met with Secretary of State for European Affairs Ana Paula Zacarias and stressed the need to quickly finalise the joint declaration on the Conference on the Future of Europe. They also asked the Presidency to commit to the prospect of treaty changes. Ms Zacarias reiterated the Presidency’s intention to make progress on the reform of the Ombudsman Statute, Parliament’s rights of inquiry and initiative, and the accession of the EU to the European Convention on Human Rights.

MEPs welcomed the Presidency’s commitment to protecting EU values and asked Ms Zacarias for more information on ongoing Article 7 procedures and the new mechanism to protect the EU budget. They also raised the creation of an independent EU ethics body, the rules on financing European political parties and foundations, Parliament’s role in the governance of the agreement with the UK, and transparency concerns regarding the Council’s activities.

Security and Defence

On 28 January, National Defence Minister João Gomes Cravinho told the Subcommittee on Security and Defence that the Presidency will continue promoting EU strategic autonomy and work on developing the common European Strategic Compass. It will pay particular attention to EU relations with Africa, maritime security in key areas such as the Gulf of Guinea and the Atlantic, transatlantic relations, military mobility and cyber defence. Other priorities include activating the European Defence Fund (EDF), he said.

MEPs questioned the Minister on several topics, such as the European Peace Facility (EPF), Russia and China’s hostile activities, the situation in the Eastern Mediterranean and issues with Turkey, as well as relations with the UK.

International Trade

Following Foreign Affairs Minister Augusto Santos Silva’s presentation in the International Trade committee, most MEPs were concerned that ongoing talks with Mercosur countries must include further reassurances on environmental, labour and social standards. MEPs reiterated that the deal in its current form is unacceptable for Parliament, due to continued concerns about deforestation, biodiversity loss and human rights.

MEPs welcomed the Presidency’s intention to revive talks on an EU-India investment agreement, but emphasised that including clauses on environmental, labour and social obligations is vital. Likewise, most MEPs underlined that China must commit to ending forced labour in light of the EU-China investment agreement. They also asked the Presidency about its plans to unblock talks on the international procurement instrument, a helpful tool to ensure a level playing field in EU-China relations.

Internal Market and Consumer Protection

In the Internal Market and Consumer Protection Committee on 28 January, Economy and Digital Transition Minister Pedro Siza Vieira stressed that the Presidency will focus on the EU making a resilient and fair recovery from the pandemic. They will do this by making as much progress as possible on Next Generation EU, as well as approving and executing national recovery plans. He emphasised the impact that recovery plans will have on both digital and green transitions, including increased EU strategic autonomy and a diversification of production.

As the single market plays an important role in all these areas, the Presidency aims to reduce regulatory barriers and fragmentation, especially to services. It will focus on improving the single market for SMEs. With regard to digital goods and services, the Minister stressed the importance of improving digital skills and digitising public administration (including electronic ID), as well as the Digital Services Act.