"Enjoy, it's from Europe": the new promotion policy adopted today by the European Commission will help the sector's professionals break into or consolidate international markets and make European consumers more aware of the efforts made by European farmers. To achieve this goal, the Commission will make more resources available, will increase the co-financing rate and will cut the red tape for the approval of projects. This is part of an effort to increase progressively the available EU budget for promotion, from €61 million in 2013 (when the new rules were proposed) to €200 million in 2019.
Under the new rules, the EU co-financing rates will also go up from 50% to 70-80% (up to 85% for Greece and Cyprus). At the same time, national co-financing disappears, thereby creating a level playing field across Member States. Red tape will be significantly cut during the selection process of projects, making it easier to apply.
The 2016 programme targets a selected list of third countries (full list available in annex) where there is the highest potential for growth in particular to the sectors experiencing a particularly difficult market situation, like dairy and pig meat. Of the total amount, €30 million were specifically earmarked in the support package unveiled by Commissioner Hogan early September to support promotion measures in these two sectors.
Commissioner for Agriculture & Rural Development Phil Hogan stated today: "Europe's agri-food produce is second to none in the global marketplace. The €110 billion EU export market creates jobs and growth in rural areas across Europe. To continue this export drive, I am delighted to unveil this new promotion regime, which will see €111 million leverage further opportunities for EU agri-food produce in new markets, as well as grow our presence in existing markets. I am particularly pleased to announce the ring-fencing of €30 million for the troubled milk and pigmeat sectors as part of the recently announced €500 million agri-markets package. I look forward to mounting a diplomatic offensive in the coming months, leading trade missions to open further opportunities for EU producers across the globe."
Background:
The main elements set out in the new promotion rules are:
- A significant increase in the aid allocated to information and promotion campaigns: European aid should increase progressively from €61 million in the 2013 budget to €200 million in 2019 (€111 million in 2016);
- Significantly higher EU co-financing rates in comparison to the current regime (EU co-financing rate of 70% for simple programmes presented by an organisation from one Member State, 80% for multi programmes and programmes targeting third countries, 85% for crisis programmes, 75-85% for countries under financial assistance, i.e. Cyprus and Greece); whereas the national co-financing disappears thereby creating a level playing field.
- The establishment of a European promotion strategy, which will allow for promotion measures to be more targeted. This strategy should lead to:
- an increase in the number of programmes aimed at third countries and multi-country programmes (programmes represented by organisations from several Member States) through a higher co-financing rate for these two categories
- on the internal market, overcoming consumers' lack of awareness about the merits of European agricultural products in general and products endorsed by European quality systems in particular
- Widening the scope of measures by: extending eligible beneficiaries to include producer organisations; extending the range of products, particularly to processed agri-food products, such as, for example, bread, pasta or chocolate; allowing to specify the origin of products and their brands, within certain limits;
- Simplifying administrative procedures, with the assessment and selection of programmes henceforth taking place in one phase at the Commission, rather than in two phases as is currently the case (first Member State and then the European Commission)
- Facilitating management of multi-country programmes developed jointly by organisations from several Member States via a one-stop shop at the Commission (via the CHAFEA executive agency).
In order to fully implement this basic act, the Commission adopted delegated and implementing Regulations.
The relevant legal acts are published today in Official Journal.
A key element of the new promotion policy is the establishment of an annual work programme (Commission implementing decision), which sets out the strategic priorities for promotion measures in terms of products, schemes and markets to be targeted, and the corresponding allocated budgets. The objective is to have a dynamic and pro-active policy, adapted each year to emerging market opportunities and the needs of the sector.
For more information on agriculture promotion policy, see here.
Annex
Repartition of the budgets per priority for co-financed programmes in the 2016 Annual work programme
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Amount foreseen
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Simple programmes - Internal Market
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€26 M
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Action 1*- Information and promotion programmes aiming at increasing the awareness and recognition of Union quality schemes as defined in Article 5(4)a,b and c of Regulation (EU) 1144/2014
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€10 M
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Action 2*- Information and promotion programmes aiming at highlighting the specific features of agricultural methods in the Union and the characteristics of European agricultural and food products
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€ 7 M
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Action 3- Information and promotion programmes on milk/dairy, pig meat products or a combination of those two
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€ 9 M
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Simple programmes - in Third countries
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€68 M
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Action 4*- Information and promotion programmes targeting China, Japan, South Korea and customs territory of Taiwan
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€12 M
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Action 5*-Information and promotion programmes targeting USA and/or Canada
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€12 M
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Action 6* - Central and South America and the Caribbean
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€7 M
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Action 7* - South East Asia, meaning Brunei, Cambodia, Indonesia, Lao, Malaysia, Myanmar, Philippines, Singapore, Thailand, Timor Leste and Vietnam
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€7 M
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Action 8*- Africa and Middle East
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€4,5 M
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Action 9*- other geographical areas
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€4,5 M
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Action 10 - Information and promotion programmes on milk/dairy products, pig meat products or a combination of those two targeting any third country
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€21 M
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Multi programmes
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€14 M
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Simple programmes - in case of serious market disturbance
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€3 M
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*These programmes shall not cover milk/dairy products, pig meat products or a combination of those two. They may however cover milk/dairy products, pig meat products or a combination of those two if they are associated with other products.
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Total €111 M
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N.B.
A simple programme is a promotion programme submitted by one or more proposing organisations from the same Member State.
A multi programme is a programme submitted by at least two proposing organisations from at least two Member States or one or more European organisations.
