Adopting a 2024 promotion coverage work programme, the EC will plough the multi-million-euro funding into growing new market alternatives for the agrifood sector.
“For 2024, the work programme comprises a finances of €185.9m for co-finance promotion actions designed to boost consciousness of EU agricultural merchandise’ high quality, gastronomic traditions, and dietary and sustainability options,” Olof Gill, spokesperson for commerce and agriculture on the European Fee (EC), instructed FoodNavigator.
Whereas a welcome signal of help and progress in pursuing agrifood improvement, the €185.9m quantity is similar as 2023.
“The finances must be sturdy and keep its capability for adaptation to answer ongoing challenges,” Ignacio Sanchez Recarte, Secretary Common on the Comité Vin, which represents the European wine sector and carefully follows the Promotion File, instructed FoodNavigator. “But, it’s value mentioning that the finances in 2020 was nearer to €200m.”
Optimistic variations are current within the 2024 EU agrifood promotion coverage, nonetheless. Sanchez experiences there’s “no discriminatory standards in opposition to alcoholic drinks and pink/processed meat put ahead because it was finished within the 2023 preliminary proposal, underneath the ‘relevance’ sub-criterion inside the award standards evaluation”.
Allocating budgetary spend
Via its capital injection, the EC goals to develop prospects for farmers and the broader meals sector within the EU and help them in sustaining their present work. Together with boosting sustainable agricultural product manufacturing and consumption, the promotion coverage strives to help the EU agrifood sector’s sustainable restoration in a difficult financial context.
In 2024, agrifood promotion campaigns will deal with that includes merchandise from sustainable farming practices that decrease dependence on pesticides and antimicrobials, minimise fertilisation and water air pollution, scale back greenhouse fuel emissions (GHG), enhance natural farming, and elevate animal welfare.
Sustainably produced agrifood merchandise will obtain €62m, together with €42m for natural merchandise. As a part of their goals, the EU hopes to additional elevate European shoppers’ recognition of the EU natural brand and natural product consumption, aligning with the present EU motion plan for natural manufacturing.
The EC will break up the overall quantity of funding between EU inner market campaigns and people in third international locations, with €81.3m going to European initiatives and €85.1m injected into third international locations.
In assigning the spend to initiatives inside and outdoors the EU, the EC has recognized international locations and areas with excessive development potential as foremost promotion targets. These embrace China, Japan, South Korea, Singapore, and North America. Within the EU, the UK stays a key export market, the EC detailed, making up over a fifth of exports.
Rising EU and world manufacturing
“The EU’s promotion coverage helps EU producers promote their farm merchandise in an more and more aggressive world market whereas delivering jobs and development at house,” mentioned Gill.
The premise for the EU agrifood promotion coverage is Regulation EU 1144/2014, which considerations the promotional measures for agrifood merchandise within the inner market and third international locations. The Regulation units out the principle intention of agrifood promotion coverage: to boost the competitiveness of EU farmers and agrifood companies.
Primarily based on the mentioned Regulation, the European Fee prepares an annual work programme to help EU farmers and agrifood companies, Gill mentioned, “whose merchandise meet the prime quality, security and environmental requirements relevant within the EU”.
As per the Regulation, two particular forms of promotion motion can be found: these run by European commerce or inter-trade associations and co-financed by the EU and people run instantly by the EU itself, reminiscent of diplomatic offensives by the Commissioner in non-EU international locations to increase upon agrifood commerce or participation in gala’s and communication campaigns.
“The coverage was carried out to extend shoppers’ consciousness of the deserves of the Union’s agricultural merchandise and manufacturing strategies and to extend the notice and recognition of Union high quality schemes,” added Gill.
“The promotion coverage should proceed to help all agricultural sectors to realize the notice of the excessive requirements of the EU by way of meals manufacturing and value-added,” mentioned Sanchez. In any other case, the priority is that EU merchandise will lose market share to others. “The general geopolitical ferment is creating uncertainty in regards to the commerce relations with third international locations sooner or later and their doable implications for initiatives,” added Sanchez.
Commerce alternatives for agrifood in 2024
Funding in 2024 will help EU high quality schemes and the normal and gastronomic options of EU agrifood merchandise. As well as, it’ll additionally assist natural merchandise, recent fruit and greens within the context of wholesome diets and sustainably produced merchandise.
The plan goals to boost the notice of the EU’s high quality schemes and merchandise registered as protected designation of origin (PDO), protected geographical indication (PGI) and conventional speciality assured (TSG). Over 3,500 names of agrifood merchandise and drinks are at present protected underneath the coverage. It goals to make sure shoppers have entry to genuine merchandise and protect the EU’s cultural and culinary heritage.
All agricultural merchandise within the context of meals are eligible, as are sure processed meals merchandise reminiscent of pastry and pasta, supplied they meet the authorized necessities. Promotion actions aimed toward shoppers on the inner market should discuss with and align with the focused Member State(s) dietary pointers.
“Agrifood product builders will be capable to open new markets for his or her merchandise and high quality schemes, diversify their buying and selling companions and turn into extra aggressive,” Gill continued. Furthermore, these alternatives can be doable within the EU and world markets.
“Finances allocations must mirror market realities and have in mind the submission statistics,” continued Sanchez. The programme, due to this fact, Sanchez continues, requires extra important help for easy programmes, high quality schemes and different sustainable agricultural practices on the inner market. “As for multi programmes, ideally, the finances would should be boosted for third international locations,” Sanchez added.
The 2024 coverage has launched a “flexibility clause”, a welcome transfer for a lot of operators. Re-allocating unused funds from easy to multi-products will keep away from doable budgetary reductions on the grounds that the finances is underused. Nevertheless, Sanchez famous that the challenge submissions lower is principally because of the continuation guidelines and never lack of curiosity.
Shifting previous manufacturing limitations
“The primary goal is to help the competitiveness of EU farmers and agrifood companies whereas supporting their transition in the direction of extra sustainable meals manufacturing,” added Gill.
“The annual work programmes ought to help the event of consumption developments and never pre-empt shoppers’ behaviour,” mentioned Sanchez. In consequence, Sanchez highlighted that any disproportionate allocation between natural and different sustainable practices that don’t match the supply and demand pushed by the market must be averted.
“The EU Promotion Coverage has been very profitable in boosting the competitiveness of EU agrifood merchandise,” mentioned Sanchez. The hope is for it to proceed for all meals and beverage trade sectors.
Reaching agrifood manufacturing and consumption objectives
Amid rising well being and sustainability consciousness and subsequent stress this places on agrifood improvement and provide chains, the EC’s monetary help is seen as a optimistic step in the direction of bolstering meals safety.
“This help is particularly necessary at a time when the sector is dealing with inflation and geopolitical uncertainties,” mentioned Gill. “Within the occasion of significant market disturbance, lack of shopper confidence or different particular issues, the coverage helps restore regular market circumstances.”
In an analysis of the EU agricultural promotion coverage, Gill mentioned: “The coverage and, due to this fact, the annual spending had a optimistic influence on the agrifood sector, and promotion actions had been efficient.”
“The disproportionate allocation between natural and different sustainable practices represents a problem as a result of it doesn’t match the truth of manufacturing and consumption,” mentioned Sanchez. Regardless of this, sustaining the general finances and eliminating discriminatory standards present certainty to these operators who rely on these programmes for promotion.
In 2023, the EU held a sequence of info days detailing the annual work programme and requires proposals, exploring commerce alternatives and selling agrifood merchandise within the EU and overseas. The EU will maintain info periods on thirty first January and 1st February 2024. The European Analysis Government Company (REA) will maintain proposal calls from 18th January to 14th Might 2024.
