european parliament producers’ organisations and the common market organisation of fishery...

European Parliament

Producers’ Organisations and the Common Market Organisationof fishery products

Brussels, 5th November 2008Dominique AVIAT, AND International

5th November 2008 European Parliament – POs and CMO

Contents

► Introduction : context, methodology approach

► Effectiveness of the measures concerning POs

► Effectiveness of the measures concerning the trade with third countries

► Contribution of the instruments of the CMO to the competitiveness of the industry

► Contribution of the instruments of the CMO to the employment in the fisheries sector

► General conclusion : which prospects for a CMO in line

with the stakes and the globalisation of the markets ?


Introduction : methodology approach

► Framework contract FISH/2006/22 : evaluation of the CMO as laid down in Council Regulation (EC) N°104/2000

► Time scope : 2001-2007► Geographical scope : EU-27► Methodology : 3 phases

► Structuring : October-December 2007► Observing : January-April 2008► Analysing-Judging : May-June 2008

► Methodology : 4 themes► Income of producers► Market development and balance► Consumer aspects and quality► Coherence with CFP


Introduction : methodology approach

► Core of the evaluation work : replies to of the 7 evaluation questions :

► Effects of CMO on stability of markets► Effects of CMO on competitiveness of the sector► Effects of CMO on employment ► Effects of CMO on producers’ income► Effects of CMO on product quality► Effects of CMO on consumers’ knowledge about fishery products► Effects of CMO on development of sustainable fisheries


Contents









Effectiveness of the measures concerning POs

► Data on POs : 2 main sources :

► Mail survey to all POs► Response rate : 39%

► 100 interviews in 10 MS :► POs► National authorities► Professional organisations► Experts (Research institutes, NGOs, …)



► POs’ main features : origin and role

► Origin :► Ex-nihilo creation► Recognition of a pre-existing organisation► Merger

► Motivations of PO’s constitution► Strengthening of marketing capacities► Strengthening of possibilities of collective action► Need to regulate the supply to adapt it to the demand► Need to concentrate the supply

► Reasons of membership for producers► Scope for benefiting from a marketing strategy or product valorization actions► Strengthening of political action possibilities► Access to better adapted fishing quotas► Scope for access to withdrawals and carry-overs



► POs’ main features : POs’ development

0

50

100

150

200

250

300

350

1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007

PL

LV

LT

EE

PT

ES

EL

SE

NL

IT

IE

UK

FR

FI

DK

DE

BE

EU entry of Spain and Portugal

CMO reform



► POs’ main features : POs’ development► Evolution of recognition withdrawals

0

2

4

6

8

10

12

14

16

1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007



► POs’ main features : recognition, representativeness and concentration of POs

Condition 1 PO members’ number of vessels > 20% of total number of vessels in the area

Condition 2 PO’s production > 15% of area’s total production

Condition 3PO’s production > 30% of total production an a major port or market in the area

► Production criteria more used than vessel criterion :

►Criterion 1 : 19% of POs►Criterion 2 : 43% of POs►Criterion 3 : 38% of POs►Conditions 2 and 3 cumulated in several MS

►1 of the 3 following conditions to be fulfilled



► POs’ main features : recognition, representativeness and concentration of POs

►Representativeness level : ►Very important for relevance and effectiveness of measures taken► 70% on average►Varies according to MS and regions

►Concentration► 53% of POs in 3 MS

Spain 44France 34Italy 34Germany 21United Kingdom 20Portugal 15Netherlands 11Sweden 6Poland 6Ireland 5Denmark 4Greece 3Estonia 3Lituania 2Latvia 2Belgium 1TOTAL 211

Number of POs in 2007



► POs’ main features : structuration level in MS

►On average 57% of EU fishermen are members of a PO

►Structuration level varies according to MS, activity and species

►3 groups of MS :►Strongly organized countries (75% to 90% of fishermen are members of a PO) : BE, DK, NL, PT, SE, UK.►Average countries (between 35% and 75%) : DE, ES, FR, …►New MS, in early stage of structuration (less than 35%) : LV, PL, …

►Activity :►Example of Spain :

►Frozen fish producers : 80% POs►Fresh fish producers : 35% POs

►Species : structuration level depends on location of fishing grounds, type of fishing, …



► POs’ main features : operational programmes (OPs)

►OPs = one of the main points of the 2000 review

►Obligation of PO’s : draw up every year an OP comprising :►the marketing strategy, ►a catch plan, ►anticipatory measures to adjust the supply of species difficult to market,►a system of internal penalties

►OPs’ target = giving more responsibility to POs in the planning of production and marketing of fishery products

►Content and quality of OPs : extremely variable = from a very basic and purely administrative document to a real strategic document with a reflection on market and management of resources

►Effectiveness of OPs : weak (a few local results on quality management and regulation of catches), but educational interest which could lead to medium-term results



► Assessment of the extension of rules

►CMO regulation : if a PO is considered to be representative of production and marketing in one or more landing places, the MS may require non-member producers who market products within the same area to comply with rules of the PO.

►Extension of rules : rarely used (in only 6 MS). ►Grounds for underutilization : lack of clarity of the measure and complexity of the procedure►No need of the measure for POs representing 100% of landings in their area

►Noticeable effects for POs using the measure, especially in addition to internal rules of limitation of daily catches



► Assessment of use of CMO measures and FIFG aid concerning quality

►Assessment of plans to improve quality (PIQ)

►PIQs give access to specific recognition and specific financial aid►PIQs must include :

►Improvement in the quality of products onboard or in farm►Optimal maintenance of quality along the marketing►Description of the planned measures (including preparatory studies, training and investments)

►Very weak success of the measure : only 5 plans submitted, 4 recognitions granted►Grounds for underutilization of the measure :

►Measure little known to POs ►PIQs demanding a lot of administrative work, costly and insufficiently subsidized►FIFG aids easier to obtain

Improvement of product quality : much more achieved with FIFG aids than with CMO tools



► Effectiveness of the measures adopted by interbranch organisations and POs’ associations

►Interbranch organisations (IOs)

►Target of the measure : recognition of interbranch organisations aimed at improving structuration of production, transparency of the market and organisation of the sector

►Very limited success of the measure :►Only 4 organisations recognized ►No impact of IO recognition on power and capacity of IOs to structure the sector►IO recognition = rather a recognition a posteriori, a sort of label granted by EC to existing organisations►Measure not motivating enough for the creation of new IOs►Measure not offering an adequate framework (in particular transnational) to the organisation needs of the sector



► Effectiveness of the measures adopted by interbranch organisations and POs’ associations

►POs’ associations at transnational level►Only 1 association recognized (Association of Danish and German POs producing North Sea shrimp)

►Positive effects :►Concentration of supply strengthening of producers’ weight vs. buyers positive effect on prices and producers’ income

1

1.5

2

2.5

3

3.5

4

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

market price level

Price of Noth Sea shrimp (crangon crangon) on the Dutch market(€/kg)


Contents









Effectiveness of the measures concerning the trade with third countries

►Measures : ►Suspensions of common customs tariff duties►Autonomous tariff quotas

►Noticeable and positive effects on supply of EU processing industry

►CMO trade measures have allowed EU processors who cannot find volumes and/or prices adapted to their needs in EU to work competitively and to maintain their activity►Strong financial impact (e.g. : economies on Alaska pollack imports = 60 M€)

►Positive effects on competitiveness and employment►Access to low price raw materials impact on margins maintenance of profitability of processing companies saving of associated jobs


Contents









Contribution of the CMO instruments to the competitiveness of the industry

►Measures : ►Strengthening of POs and IOs and obligation to define the marketing strategies in the OPs►Trade regime

►Only the measures of trade with third countries have had a direct effect, but only for the processing industry

►They have assured EU processors of supplies adapted to their needs in terms of volumes and prices to work competitively and to maintain their activity►They have had a net effect on economic performance of companies impact through the economy on raw materials►The application of these measures has not disturbed the EU production, which is in strong deficit on these markets (self-sufficiency rate of EU : 40% in 2006)


Contents









Contribution of the CMO instruments to the employment in the fisheries sector

►Measures : ►None of the CMO measures is aimed at direct intervention in favour of employment► Main tools concerned :

►Stucturation of POs and IOs ►Trade regime

►CMO has no effect on fisheries employment, much more dependent on CFP, TACs, oil price and lack of appeal of fisheries jobs

►Effects of CMOs on employment usually linked to volume direct aid to producers and first processors. CMO fishery : small level of financial aid to intervention (10 M€/year)



ProductEAGFF expenses

million €Value of production

million €EAGFF expenses/value of production

Fishery and aquaculture products 13 8 000 0,2%Cereals 17 812 28 063 63,5%Wine 1 267 14 870 8,5%Beef and veal 8 176 25 156 32,5%Pigs, eggs and poultry 124 49 444 0,3%Sheep and goat 1 837 5 394 34,1%Dairy products 2 755 43 500 6,3%Fruit and vegetables 1 748 67 101 2,6%Rice 436 522 83,5%Olive oil 2 311 5 237 44,1%Sugar 1 793 5 875 30,5%Hops 13 243 5,3%Seeds 109 932 11,7%Fibre plants 972 1 265 76,8%

EAGFF expenses for CMOs in 2005



►Professional structuration and concentration of supply : no effects on employment, except in some rare local cases

►Only the measures of trade with third countries have a direct effect, but only for the processing industry

►trade regime measures = effective tools to guarantee to processors an adequate supply with imported raw materials (whitefish, tuna, …) contribution to maintenance of companies and safeguarding of jobs►but CMO has not allowed to prevent relocation of canning companies in third countries with low labour cost


Contents









General conclusion

►CMO = a complex tool box, used in very various ways in EU

►CMO = a logic of action and sets of measures inherited from agricultural policies, but without the financial means of agricultural CMOs

►CMO = a not very interventionist and relatively efficient CMO (structuration and concentration of offer), which has assets for a transition towards a system in line with today’s stakes

►CMO = very limited effects on competitiveness, income and employment

►CMO = POs central actors in the system of market organisation and stabilization

►PO tool = main element of capitalization of CMO With some adaptations and clarifications of their missions and with strengthened and more durable means POs can be relevant and potentially effective supports for the implementation of most CFP policies

european parliament producers’ organisations and the common market organisation of fishery...

Documents

sectoreffects of cmo

european parliament

employment effects of

producers incomeeffects

fishery productseffects

product qualityeffects

methodology approachcore

evaluation questions