Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-03-23-Speech-1-179"
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"en.20090323.21.1-179"2
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"First of all, I would like to thank Mrs Batzeli and the members of the Committee on Agriculture and Rural Development, who drew up this report. We are discussing it at a time of major difficulties, at a crucial time for the European Union food supply chain.
As you all know, the recession has led to a sudden slowdown in activity in most economic sectors in the European Union. The agricultural sector has seen a real collapse in market prices, something which puts a serious question mark over farm incomes. The situation is particularly serious in sectors of high added value, such as meat and dairy products.
In this context, it is essential for the food supply chain to work effectively if we wish to mitigate the effects of the crisis on farm incomes and ensure that consumers enjoy food products at more modest prices. That is why the food supply chain and the issue of food prices remain at the forefront of the Commission’s concerns.
In addition, analysis of the structural factors leads us to fear a further escalation of prices of agricultural raw materials in the medium and long term. By improving the operation of the food supply chain, it ought to be possible in future to avoid such high rises in food prices and to curb the instability of consumer prices. I share most of the concerns raised in the report in relation to the need to improve the overall operation of the food supply chain. In particular, there is a need for increased transparency all along the chain, in order to offer consumers better information and to improve the way added value is shared out along the chain.
Since last year, the Commission has introduced a series of initiatives aimed at improving the operation of the food supply chain. As a result, the High Level Group on the Competitiveness of the Agro-Food Industry has just drawn up a set of strategic recommendations. In addition, a Green Paper on Agricultural Product Quality was presented last year.
In the communication on food prices adopted in December, the Commission also proposed, in the form of a road map, several solutions for improving the operation of the food supply chain in Europe. It is absolutely essential to make progress in the implementation of this road map. In particular we must make progress in the introduction of a permanent European Observatory on the food supply chain and food prices. By supplying reliable information on prices from one end of the chain to the other, we will be able to help combat the lack of transparency, whilst improving our understanding of how the chain operates.
We must also make progress in analysing how added value is shared out along the chain. I attach particular importance to this issue. As is recognised in the communication on food prices, imbalances between the negotiating power of agricultural producers and the rest of the chain are having a serious effect on producer margins in the agricultural sector. It goes without saying that an effort to bring clarity and understanding to the question of how added value is shared out would be a first step towards restoring the balance of negotiating power all along the chain. In this regard, it should be stressed that the competitiveness of the European Union’s food chain cannot be built to the detriment of some of its component parts. It is essential for food producers and retailers in the agro-food sector to be able to continue to rely on a sustainable, competitive agricultural production platform within the European Union.
I am convinced that once it has been fully implemented, the road map proposed by the Commission will allow us to answer most of the questions and concerns raised in Mrs Batzeli’s report."@en1
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