market perspectives ue market for sustainable food cesare zanasi - bologna university
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SALSA Project Sustainability meeting Mexico city 14 November 2013. Market perspectives UE market for sustainable food Cesare Zanasi - Bologna University. Latin America beef exports to EU. Latin America export to EU. Latin America : 2013 + 20% respect to 2012 Breakdown by country - PowerPoint PPT PresentationTRANSCRIPT
Market perspectives UE market for sustainable food Cesare Zanasi - Bologna University
SALSA ProjectSustainability
meetingMexico city
14 November 2013
Latin America beef exports to EU
Latin America export to EU
Latin America: 2013 + 20% respect to 2012
Breakdown by countryBrazil + 37% shipment of beef first quarter 2013 : Causes: Brazilian Real devaluated against Euro – increase in supply
Uruguay : first quarter 2013 + 30% Shipments of Uruguayan beef to the EU. Increased product differentiation (Certified Natural Meat Program of Uruguay)
Argentina : reduced Argentinian export in the first quarter(-18% shipment of beef). Government policy (high export taxes); reduced supply : substitution with soybean closure of many export plants
Mexico EXPORT of Beef
NO EU
Demand for sustainable beef
Not directly measurable since a “sustainable beef” definition does not
existAnyway in EU organic beef or other certified beef is
still a very small niche
Driving forcesDemand for imported sustainable
food
Consumers
The importers
EU trade regulation
Tariffs – quotas – Sanitary and
Phytosanitary barriers
Media/civil societyOrganizations (NGOs)
Investors
Voluntary schemesOrganic – Fair trade –
SAN…
Retailers/processors
Key challenges influencing EU supply and import decisions
Demand for imported meat - EU
iii) Food Safety: Recognize & implement high standards across the world
ii) Cost of production: the key challenge of the Europeanmeat sector
iv) Animal welfare: a global responsibility – Alignment with OIE needs to be a priority
i) Dependency on beef import from third countries to increase
Source: World Trade Organization, 2008 pp.42-43
Demand for imported meat
v) Animal Transport: Enormous efforts made as cost of production skyrocketon animal transport; all the requirements that operators have to fulfill ….. lead to a considerable increase in the cost of production
vi) No feed import – no livestock – no competitive EU meat industry in the future
Source: World Trade Organization, 2008 pp.42-43
The Import Scenario
EU IMPORT MANAGEMENT
IMPORT IN EU
EU Tariff Barriers: duties
EU REGULATIONS AFFECTING BEEF IMPORT
EU Barriers: import licenses
Imports of some agricultural products must be accompanied by an import licence.
Allow the EU authorities to monitor trade flows and administer tariff quotas and safeguard measures.
EU REGULATIONS AFFECTING BEEF IMPORT
Demand for imported meat
EU Quotas
The EU Commission may provide import tariff quotas• HILTON grass fed beef quota• Hormone-treated beef ban Quota• Import Tariff Quota for Grain Fed High Quality Beef• GATT Frozen beef quota etc..
Specifically limits on the volume of goods which may be imported with a reduced customs duty.
Demand for imported meat
Safeguard measures
Exceptional market support applied to beef and veal, milk and milk products, pigmeat, sheepmeat and goat meat, eggs and poultry meat
Related to or consequent upon health and veterinary measures adopted in order to combat the spread of disease. Or to avoid serious disruption on the markets concerned.
EU policies regarding SPS requirements, food safety and agricultural product quality standards
Animal welfare and animal production methods could well gain increasing prominence in the coming years, with potentially important consequences for trade flows.
SPS requirements
Environmental requirements
EU Regulations mostly related to Beef sustainability
EU and Mexico and other Lat. Am. regulations compliance to Sustainability
SALSA Results• Lack of regulation on sustainability issues
• A greater focus on food safety, traceability and quality• Almost all legal regulations showed a very low association with
environmental, social and economic issues• Only very few regulations (e.g. Mexican Regulation for
Sustainable Rural Development) jointly consider the environmental social economic aspects.
• Most of the regulations are associated with food safety, especially in countries such as Brazil and Mexico
• Food traceability issues showed high values in Brazil and in the EU
• Legal regulations for Mexico focused most on food quality issues
EU food Sustainability future strategy
1. Better technical knowledge on the environmental impacts of food
2. Stimulating sustainable food production 3. Promoting sustainable food consumption4. Reducing food waste and losses5. Improving food policy coherence
Towards a more resource efficient and sustainable food system
Proposed areas for action presented for discussion:
EU food Sustainability future strategy
Source: DG Agriculture and Rural Development.
The CAP post-2013: From challenges to reform objectives
EU food Sustainability future strategy
Source: DG Agriculture and Rural Development.
The new greening architecture of the CAP
EU International Role
It is in the interest of the EU, to act in favor of a global equitable governance of resources and of food exchanges,
preserving both global availability of food and local access to food
WHY?
because of its dependence on external mineral resources, its position as a major player in the global food markets (both as
importer and exporter)• identify coalitions for a better multilateral governance
with all countries, and particularly with emerging countries
• better analyze the consequences of domestic European policies on food security and the environment in the rest of the world
HOW?
Demand for imported meatPrivate Standards vs Regulations
Private standards also play a large role, in that they are going beyond national legislation and are placing increased and in part undue pressure on suppliers.
Credibility in governmental and WTO rules needs to be restored in order to arrest the multiplication of these expensive private standards, however these standards remain difficult to control and bring under legislation.
Source: World Trade Organization, 2008 p.44
https://mc9.wto.org/official-documents-bali-ministerial
Private Standards compliance to Sustainability dimensions
SALSA Results
• Most of the private standards regulate environmental aspects as well as social issue.
• A majority of private standards have higher n. of requirements for food quality, traceability and food safety than the legal regulations examined.
• Most of the private standards are based on the legal regulations and integrate legal food safety and traceability requirements.
Private Standards compliance to SAFA Sustainability dimensions
SALSA Results
EU Animal Protection strategy and its impact on third
countries
Prof. Leonardo Nanni Costa
Potential for expansion of environmentally and ethically oriented
food quality standards in EUand Latin America
CONSEQUENCES
Opportunities
Opportunities
Little room for the export of sustainable beef in EU at the moment
Potential to be exploited by
• Improving a Country level strategy for valorizing the quality of
Beef according to the main players and Regulations’ expectations
• Exploiting the internal market for sustainable products to build dimensions of scale able to support sustainability implementation
• Building regional alliances and advocate for a global sustainability governance
Big Players’ increasingly dominant role or chance for a mainstream sustainability
implementation?
Sainsbury’s: “a sustainable supply chain is not just about sourcing with integrity, it’s about actively working with suppliers to educate them”
“Unilever has invested heavily in improving farming practices among tea farmers, building capacity to more than 170,000 tonnes of Rainforest Alliance certified tea for brands such as Liptons.
Source: How to commercialise a sustainable supply chainBy Claire Manuel
Mcdonalds: There is no definition of what sustainable beef is
“With some products [like beef], there’s not even a definition for what sustainable is. We want to use our size and influence to work with the industry and NGOs to come up with definitions of sustainable beef.
…….What I mean by that is that there are no standards, measures, accountability and traceability to make those claims today.”
Big Players’ increasingly dominant role or chance for a mainstream sustainability
implementation?
WALLMART and the Sustainability Consortium
Big Players’ increasingly dominant role or chance for a mainstream sustainability
implementation?
ConclusionsConsumers and civil society pressure
Investors’ pressure
Sustainability as an opportunity
Sustainability difficult to manage
Big Players involvement in sustainability
EU role (not fully Developed)
Latin AmericanSustainable
development