Tuesday, August 19, 2014

Brussels releases funds for the vegetable sector – Echoes

Brussels releases funds for the vegetable sector – Echoes

The European Commission announced Monday the release of some € 125 million to support the vegetable sector in the European Union, the Russian embargo struck by a year on Western food

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Facing the Russian embargo Moscow for a year on European food, Brussels opens its purse to prevent overproduction crisis. The European Commission announced on Monday the release of 125 million euros for the vegetable sector. By showing speed, the European Commission wants to ensure that Member States do not divide and bicker, the impact of the embargo weighing more on some than on others.

However, the spokesperson of the Commission, Roger Waite warned that Brussels did not intend to listen to the individual demands of member states, but it will reason by sector, market by market, to try to drive as close as the impact of the embargo. Hence the release of funds to support the weakest sector, the vegetable sector, due to its highly perishable nature.



Playing on volumes to regulate markets

The European Union proposes clear to allow producers play on volumes to regulate markets. They will be allowed to withdraw up to 10% of their production of carrots, tomatoes, peppers, cucumbers, pickles, pears, grapes … if they expect too much price decline case of overproduction. Major exporters to Russia, Poland, Lithuania, Belgium and the Netherlands would be the first beneficiaries of the measure. The volumes withdrawn from the market will be compensated at 50% or 100% of their value, as the product is marketed in another form, is not collected or distributed free. But this compensation calculated on the basis of average European prices are rarely satisfactory for producers, especially French.

The European Commission itself also points out that the best solution is still to explore and find other outlets. The agriculture ministers will take stock on September 5 in Brussels. Some are very concerned, especially in Poland, where the supply of apples to Russia accounts for only one-a turnover of EUR 200 million. Others are rather optimistic, as the German minister expects a limited impact of the embargo, believing that Russia will not change as fast as it grows its import routes.

Clan optimists point out that the ban on pork already decided by Moscow there six months, finally made more fear than harm, because the Union has succeeded to conquer other markets. In France, Agriculture Minister Stéphane Le Foll hailed him a “ convergence analysis ‘to the focus on fruits and vegetables and the speed of the chosen solutions.

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