The different changes introduced in the European reulation for fruit and vegetables. It concludes with strengths, weaknesses and some lessons for the future

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ENPARD-IAMM Seminar
Exploring potentially useful lessons from the EU
experiences
Reform in the fruit and
vegetable sector, particularly on
how to strengthen the role of
cooperatives
García Azcárate Tomás
Instituto de Economía, Geografía y Demografía-CSIC; Solvay
Brussels School of Economics and Management
E-mail: tomasgarciaazcarate@gmail.com
http://tomasgarciaazcarate.com

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Some historical elements
• Before 1996, withdrawals of products were the
main activity of the Producers´ organisations
(PO´s).
• The worst you were in selling, the biggest
support you were receiving from the European
Union
• Complete change in 1996: Public support is now
related to market sales; private cofinancing: 1 €
EU if 1 € private.

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A great success …

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… which continues

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… with some limits: Organisation
rate by MS (2010)

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Strengths I …
• Market oriented policy
• Environmental concerns can easily be included
• Requires a strong (financial) commitment from
the beneficiaries
• Support farmers´ organisations therefore
contributes to the rebalancing of the food chain
• A model (partially) extended to the other sectors
with the last CAP reform

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Strengths II …
• Open to all kind of producers´ organisations: not
only cooperatives
• Important new figure: the association of
producers´ organisations
• (limited) exception from the normal competition
rules
• No EU budget limitation: good projects can
always be financed
• WTO Green box support

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… and weaknesses I
• Well organised producers´ organisations receive
a lot of money: Are they those more in need?
• Regional imbalance in organisation rates, in
particular in the new Member States
• Not flexible enough to catch the increasing
diversity of market situation: short circuit, direct
sales, peri-urban farmers, small productions

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… and weaknesses II
• Management complexity, bureaucratic
requirement and heavy controls
• Different interpretations of the same rules in
different MS (and even regions inside a MS)
• Trans-national activities are difficult to implement
(Who is responsible for what?)

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Conclusion: some lessons I
• Market oriented policies make sense.
• It is a useful tool for contributing to the
rebalancing of the food chain
• Time is needed in order to be effective
• Association of POs are each time more relevant
• Clear rules are important. No retroactive
interpretation, please

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Conclusion: some lessons
• Some farmers will never been interested by this
kind of organisation
• The main resistance is cultural: individualism and
bad past experiences
• This is why training, mentoring ( by others PO´s)
and advisory services are useful.
• Flexibility: farmers organise themselves as they
wat, to do together what they want
• Consistency: cooperation initiatives have to be
supported by all policies

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