The parliament magazine on food for thought

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EU must boost innovation to ‘unlock potential’ of agri-food sector

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Parliament Magazine event has heard a call for the vast potential of Europe’s agri-food sector to be unlocked and exploited as a means of boosting EU growth and ensuring food security. Ian Duncan, a UK ECR deputy who hosted the event on Tuesday in the European parliament, warned that consumers “sometimes take for granted what we find on our plate and yet we do so at our cost and at our peril”.

“Sometimes we forget how difficult the process of growing and raising and harvesting and processing can be,” said the MEP, adding that policymakers must answer the call to “legislate and assist” where possible. “The common agricultural policy (CAP) reform itself may seem to be over, but I suspect it is indeed far from over. There is still much work to do and I do not doubt that people will have many questions for us on how we will assist in the process as it goes forward.”

The event - Food for Thought: A vision for unlocking the potential of agriculture and the food industry in the EU - was organised in partnership with the Agri-Food Chain Coalition made up of 11 leading industry associations who are calling for sustainable, solution-orientated policymaking. With this in mind, the Agri-Food Chain Coalition has issued a report

urging EU policymakers to push for a shift towards innovation as a means of realising the potential of Europe’s agricultural and food industries and allowing them to tackle the many challenges facing the sector.

Also speaking at the event was chair of parliament’s agriculture and rural development (AGRI) committee Czesław Adam Siekierski, who agreed that, “We need to unlock the potential of the agriculture and food industry in Europe. “We take this very seriously in the AGRI committee,” he stressed, adding that it was vital to “provide food security and food safety at the heart of our actions” and “protect the quality of our products”. “We must promote products from the member states within the internal market, as well as for worldwide export,” he said, adding that MEPs were working on solutions to the “challenges that the European agriculture and agri-food industry is facing”.

Also in attendance was Italian MEP Paolo De Castro, who expressed his hope that the European parliament would “again put farmers in the centre of our interest and how they can be more competitive and strong in the market”. De Castro echoed Duncan’s comments on the CAP, saying the reform process had been “just a step” and that Europe’s farmers must “reflect

European policymakers are being urged to support and promote the socioeconomic and environmental benefits of a productive and innovative EU agri-food sector

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Food for Thought

A most persistent issue Now that CAP reform is over it would be easy to forget about the agricultural agenda in Europe. Yet CAP reform was but one step in an industry that is constantly innovating and developing to meet the needs of 500 million consumers in Europe and beyond.

Food security is one of the most often overlooked yet most persistent issues in Europe. Challenges exist in every part of the agri-food chain: from the farmer struggling to make a decent price for his stock to the consumer who cannot afford to buy fresh food, it is clear that now is the time for an honest assessment from farm to fork.

That is why I was pleased to host the ‘Food for Thought’ event last week in the European parliament. The initiative brings together a coalition of no fewer than 11 industry associations from across the agri-food chain that have a common vision of how to steer the agri-food agenda in Europe. At the heart of their plan is innovation – how to drive forward knowledge and research, particularly among young people, as a way to breathe new life into our agricultural sector and build smarter, better regulation from the ground up.

“The common agricultural policy reform itself may seem to be over, but I suspect it is indeed far from over” Ian Duncan on their future”. “We need to help farmers be more competitive, not just give them more bureaucracy.”

Further comment came from Belgian ALDE deputy Philippe De Backer who chose to highlight “one point that is not often thought of, especially by the broader public, when they think of the food on their plate; and that is innovation”. “When you look at the whole value chain of food production you still see a lot of innovation going on. If we want our farmers to create

In Scotland we have a highly successful example of this in our Scottish agricultural college (SAC). The SAC has been providing research knowledge and training in Scotland’s agricultural sector for years, ensuring farmers and producers benefit from the latest developments in everything from health and safety to reducing their carbon footprint. Now that the common agricultural policy has passed, we have to turn to local initiatives like this for answers to key agri-food chain questions that will persist even with CAP reform. Removing burdensome regulation at an EU level to make way for local innovation will be absolutely key to a smarter, more efficient, and ultimately more sustainable agri-food chain in Europe.

Ian Duncan is a member of parliament’s environment, public health and food safety committee

Fundamental goals The model of European agriculture was shaped in the course of the more than 50-yearlong functioning of the common agricultural policy (CAP), with its fundamental goals included in the treaties of Rome and envisaging a common accessibility of foodstuffs at reasonable prices, an adequate level of income for farmers, stabilisation of agricultural markets and an increase in productivity of agriculture through technological development and optimisation in the use of means of production. These goals were reached to a significant extent, although there were new challenges that appeared; developments in European and global agriculture have a highly dynamic character.

It may be said that we were able to reach food security and food safety, as well as a proper level of food quality, which has a significant impact on the health of our society.

Within the CAP, regarding the agri-food sector, high expectations have been set regarding environmental protection, which significantly influences the rise in production costs, and by that, diminishing its competitiveness on the global market.

An example from the last CAP reform for the period 2014-2020 would be greening, which is meant to favour the environment, increase biodiversity, but at the same time hits our competitiveness. Greening does not make CAP simpler, but actually increases administrative burdens on farmers and agencies responsible for its implementation.

High requirements regarding the, so-called directive on natural habitats or the

water directive, pose the necessity of limiting the insensitivity of production methods through actions – such as lowering the use of chemicals – that result in lower productivity. High standards for animal welfare, as well as animal and plant health, reflect our values, however, their implementation is bound with high costs – all the more since the majority of imported agri-food products are produced without any regard for such standards.

Also, our efforts aimed at maintaining agricultural holdings of different scale that bring important social, environmental and cultural values, translate to lower profits regarding the scale of production, which results in lowered competitiveness when competing with large companies from around the globe. European agriculture is becoming progressively more dependent on external factors, and that is why trade relations with other parts of the world are so important in order to establish similar terms for competition. Relevant trade agreements are made to serve that purpose, but are they at the level of WTO, or bilateral agreements such as EU-US, EU-Mercosur, EU-Canada or EU-Japan. We also have examples of transferring political relations to the domain of trade resulting, for instance, in the Russian embargo.

Czesław Siekierski is chair of parliament’s agriculture and rural development committee

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news analysis

The right tools?

The last few months’ events have raised several concerns over the ability of European agricultural policy to react to unforeseen situations. In an increasingly multi-centric scenario, responding effectively to emergencies of different types should be a priority for the EU, through policies which have the full expression of the potential of European agriculture as their flagship objective. The crafting of the tools needed in order to effectively respond and manage uncertainty and emergency situations, must be combined with the long-term challenges of the EU’s common agricultural policy (CAP). This entails both increased and improved production patterns, while allowing ecosystems to sustain their regeneration cycles. The aim is to ensure future generations enjoy the same opportunities, in terms of the availability of natural resources, that we have enjoyed.

“We need to help farmers be more competitive, not just give them more bureaucracy” Paolo De Castro

A new phase of transformation has started. In this framework, Europe’s ambitions have to deal with growth objectives based on research and innovation, social inclusion and environmental sustainability. These general principles need, however, to be put into practice by European farmers, to the benefit of all European citizens. This is the reason why a greater risk and emergency management resource is needed, together with a further boost to the creation of organisations across the whole agri-food supply chain and a substantial simplification of European legislation. Therefore, the reform of the CAP could still be largely improved on these and other fronts, despite the co-decision procedure and the remedial work carried out by the European parliament throughout the negotiations: the mid-term review may represent an important opportunity in this regard. These are the issues I would like to carry out through a strong commitment within the agriculture and rural development committee, in order to successfully support European agribusiness during the parliamentary term that has just begun. As well as a continuous and fruitful dialogue with the council, I hope to find a new commission sensitive to these issues, ready to enter into discussions in order to re-launch a sector representing a crucial economic and social resource for the EU.

new and innovaPaolo De Castro is a member of parliament’s agriculture and rural tive foods, in new development committee ways with new business models that are more sustainable and more environmentally friendly then I think innovation is the key.” “We at the European level need to do everything possible,” stressed De Backer, adding that this is why he supports the call for the creation of “a regulatory framework that allows new innovations to come to the market and really serve the consumers and clients who are out there.”

Mella Frewen, the director general of FoodDrinkEurope and speaking on behalf of the Agri-Food Chain Coalition, said the event was evidence of the “ongoing productive dialogue” with the European parliament. The Food for Thought initiative, which began in April this year, was launched with two aims in mind, said Frewen. “The first was to identify the challenges we face as a group collectively and the second was to propose a set of recommendations for policymakers so that the European agri-food sector can reach its full economic and social potential.” “We are an integral part of the economic and social Czesław Adam Siekierski fabric throughout Europe. We employ more than 30 million people, which is a lot. We

“We need to unlock the potential of the agriculture and food industry in Europe”

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Food for Thought

“If we want our farmers to create new and innovative foods, in new ways with new business models that are more sustainable and more environmentally friendly then I think innovation is the key” Philippe De Backer

An ambitious policy The EU can boost its innovation and jobs agenda with an ambitious policy that can unlock the potential of the European agri-food chain. The EU needs to balance the precautionary principle with the innovation principle.

The combined agricultural and food sector accounts today for 30 million jobs and for 3.5 per cent of total gross value added in the EU-28. To meet the challenges of the coming years, the EU and Member States will require ambitious policies to unlock the potential of the European agri-food chain and maintain its place.

Especially now, our agriculture and food industry has come under pressure, following Russia’s ban on EU food imports.

One point that is not often thought of, especially by the broader public, when they think of the food on their plate, is innovation. If we want our farmers to create new and innovative foods, in new ways with new business models that are more sustainable and more environmentally friendly, then I think innovation is the key.

On top of that, we need a business environment rooted in the three pillars of sustainability: the social pillar, the economic pillar and the environmental pillar.

Achieving this will require leadership and decisive action from European policymakers and in particular the new parliament.

That’s why we at the European level need to do everything possible. We need a regulatory framework that allows new innovations to come to the market and really serve the consumers and clients who are out there. The existing administrative barriers should be reduced.

European policymakers should create a science-based framework that allows us to bring these innovations to the single market. This will benefit research, our agriculture and economy, and consumers. In doing so, we ensure that innovation is at the core of policymaking, with a particular focus on agriculture and food chain research.

Philippe De Backer is a member of parliament’s industry, research and energy committee

“We must ensure innovation is at the core of policymaking, with a particular focus on agriculture and food chain research and we need to build a better functioning single market, with a reduction in unnecessary administrative barriers” Mella Frewen also account for 3.5 per cent of EU’s total gross value added.”

“We are aware that the future presents uncertainties and challenges and we must be adequately equipped and prepared to face these if we are to remain stable and able to create the jobs which are so desperately needed through the region, particularly for Europe’s youth.”

“The challenges we have identified are: providing food security, ensuring food safety, helping create jobs and growth, safeguarding the environment and making sure we can continue to meet the diverse needs of all of Europe’s consumers.”

“In order to meet these challenges,” said Frewen, “we need a business environment rooted in the three pillars of sustainability: the social pillar, the economic pillar and the environmental pillar. Achieving this will require leadership and decisive action from European policymakers and in particular the new parliament. “We must ensure innovation is at the core of policymaking, with a particular focus on agriculture and food chain research and we need to build a better functioning single market, with a reduction in unnecessary administrative barriers,” she concluded.

The organisations which make up the Agri-Food Chain Coalition are: CELCAA, CEMA, COCERAL, Copa-Cogeca, the European Association for Bio-industries (Europabio), the European Crop Protection Association (ECPA), European Seed Association, European Feed Manufacturers’ Federation (FEFAC), Fertilizers Europe, FoodDrinkEurope and the International Federation of Animal Health - Europe (IFAH-Europe)

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