Opinion of the European Economic and Social Committee on the "Proposal for a Council Regulation amending Regulation (EC) No 1251/1999 establishing a support system for producers of certain arable crops"

(2001/C 193/11)

On 26 February 2001 the Council decided to consult the Economic and Social Committee, under Articles 36 and 37 of the Treaty establishing the European Community, on the above-mentioned proposal.

On 27 February 2001 the ESC Bureau instructed the Section for Agriculture, Rural Development and the Environment to prepare the Committee's work on the subject.

At its 381st plenary session, held on 25 and 26 April 2001 (meeting of 25 April 2001), the Economic and Social Committee decided, in view of the urgency of the matter, to appoint Mr Sabin rapporteur-general and adopted the following opinion by a large majority, with no votes against and three abstentions.

1. Introduction

1.1. The Commission initially implemented a number of measures aimed at removing any exposure of consumers to the risks of transmission of the BSE prion. One of them seeks to prohibit the use of meat meal in animal feed, which would also aggravate the EU's deficit in plant proteins. Following the loss of consumer confidence in beef and veal the Commission submitted market adjustment measures on 13 February 2001 in line with the room for manoeuvre authorised by the Berlin agreement and a measure to help fodder legumes produced in accordance with organic principles. This opinion analyses the proposal aimed at encouraging the cultivation of fodder legumes and makes recommendations.

2. Contents of the Commission's proposal

2.1. Regulation (EC) No 1251/1999 provides that producers must set aside a predetermined percentage of their land to qualify for area payments and the areas set aside may also be used for non-food purposes.

2.2. In addition, the Commission proposed a regulation, adopted by the Council on 24 June 1991, which lays down special rules for the development of organic farming(1).

2.2.1. Annex I of this regulation specifies that the principles of organic production must have been applied on plots for a conversion period of at least two years before sowing for products to be designated "organic".

2.3. The European Commission proposes to encourage the organic cultivation of fodder legumes used to make animal feed by permitting the production of fodder legumes on set-aside land, irrespective of whether such set-aside is compulsory or voluntary.

2.3.1. The holdings concerned will have to be entirely converted to organic principles. This authorisation would apply from the 2000/2001 marketing year and have a neutral budget impact.

3. General comments

3.1. The ESC takes full note of the Commission proposal aiming to develop the organic production of fodder legumes on compulsory or voluntary set-aside land. It would point out that these crops are of interest from both an animal feed and from a agronomic point of view.

3.2. However, this measure has no direct link with the management of the beef and veal market. It raises the much more general question of animal feed and the EU's protein supply.

4. The proposal concerning the support system for producers of certain arable crops

4.1. The Commission's proposal results from the conclusions of the Nice Summit of 7, 8 and 9 December 2000. The European Council "took note of the Commission's intention to analyse oil and protein plant supply and demand in greater detail, in strict compliance with financial estimates". The ESC considers that this proposal is positive but it is grossly inadequate and deals only partially with the problem.

4.2. The Commission proposal raises several questions:

4.2.1. The proposal only covers fodder legumes. The ESC stresses that seed legumes and protein crops are of great interest from both an animal feed and from a agronomic point of view because of their positive role in maintaining the structure of the soil.

4.2.2. Although this Commission proposal is positive, the ESC questions the need to restrict this measure to holdings that apply the principles of organic production, since none of the legumes or protein crops are demanding as regards fertilisers or pesticides (no nitrogenous fertiliser).

4.3. As farmers should be encouraged to adopt good soil management practices, the ESC considers that the use of crop rotation systems which include soil-improving crops (legumes and protein crops) would make it possible to achieve a dual objective:

- increasing the production of quality plant proteins, and

- encouraging good agricultural practices.

In this way the positive environmental effect sought by the Commission would be strengthened, and without any additional cost.

4.4. In conclusion, the ESC asks that the amendment of Regulation (EC) No 1251/1999 concerning a support system for producers of certain arable crops should not be reserved for organic production alone, so that all farmers can develop environmentally friendly practices, and suggests that the proposal be extended to seed legumes and protein crops not covered by the Blair House agreements.

5. The issue of vegetable proteins

5.1. The temporary ban on the use of meat meal in animal feed heightens the need to analyse in depth the EU's situation of dependence in the field of vegetable proteins and seek sustainable and suitable solutions, especially as the Commission is in the process of reviewing the broader issue of the balance of the EU's sources of supply of plant protein. The ESC wishes to be consulted on this subject, which is of concern both to farmers and consumers. It has noted the Communication from the Commission to the Council and the European Parliament on options for promoting the cultivation of plant proteins in the European Union(2) and reserves the right to comment on it.

5.2. Although this is not the problem posed by the Commission proposal, the present opinion does explore some paths for reflection which should lead to an opinion dealing more specifically with the issue of the EU's supply of plant proteins.

5.3. The table which follows requires no comment. The EU produces a third of its needs and this situation will worsen still further. This degree of dependence is disturbing for the security of livestock farming in the EU and requires a new strategy.

EU protein account (in millions of tonnes) during the 1999/2000 marketing year

>TABLE>

Source:

EU Commission economic and statistical information for 1999.

5.4. The ESC would like to take this opportunity to state the reasons why this question is of special importance:

- European production covers less than 30% of the EU's needs;

- the current ban on meat meal in animal feed makes this deficit worse;

- world consumption of plant proteins is showing annual growth of 4 to 5 % and supplies may become more scarce;

- the USA has a very firm policy for these products, which for them are strategic;

- Agenda 2000 set aid for oilseeds at the same level as that for other major crops, which discourages oilseeds production. Even if this decision has the merit of freeing the EU from the constraints of Blair House, it has three disadvantages: it encourages monoculture, it does not fulfil the domestic need for security of quantity and quality (are there any GMOs in imported raw materials?) and aggravates the situation of the EU within the WTO, since it is easier to produce for one's own market than to produce goods for export;

- as part of the enlargement process it would be wise to offer the countries of central and eastern Europe real opportunities for developing the production of goods for which the EU constitutes a genuine market,

- the development of oilseeds production for non-food purposes for processing into the fuel (methyl ester) would make it possible both to produce plant proteins and to fulfil the EU's commitments to reduce emissions of greenhouse gases (Kyoto agreement).

Finally at the time of the Berlin agreement, a meeting clause was decided for a mid-term review, if necessary, of the Common Agricultural Policy in order to correct agricultural policy in the field of plant proteins.

5.5. In conclusion, all the elements are present for preparing a plan to develop the production of plant proteins in the EU and the applicant countries. For this reason the ESC has to tackle this question as soon as possible in order to make proposals to the Commission with an eye on the mid-term review of the Common Agricultural Policy.

Brussels, 25 April 2001.

The President

of the Economic and Social Committee

Göke Frerichs

(1) OJ L 198 of 22.7.1991, page 1. Last amended by Commission Regulation (EC) No 2020/2000 (OJ L 241, 26.9.2000, p. 39).

(2) COM(2001) 148 final, p. 2.