Adopting a 2024 promotion coverage work programme, the EC will plough the multi-million-euro funding into creating new market alternatives for the agrifood sector.
“For 2024, the work programme accommodates a funds 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), advised FoodNavigator.
Whereas a welcome signal of assist and progress in pursuing agrifood growth, the €185.9m quantity is identical as 2023.
“The funds must be sturdy and keep its capability for adaptation to reply to ongoing challenges,” Ignacio Sanchez Recarte, Secretary Basic on the Comité Vin, which represents the European wine sector and intently follows the Promotion File, advised FoodNavigator. “But, it’s price mentioning that the funds in 2020 was nearer to €200m.”
Optimistic variations are current within the 2024 EU agrifood promotion coverage, nevertheless. Sanchez experiences there’s “no discriminatory standards in opposition to alcoholic drinks and pink/processed meat put ahead because it was executed within the 2023 preliminary proposal, beneath the ‘relevance’ sub-criterion throughout the award standards evaluation”.
Allocating budgetary spend
By means of its capital injection, the EC goals to develop prospects for farmers and the broader meals sector within the EU and assist them in sustaining their current work. Together with boosting sustainable agricultural product manufacturing and consumption, the promotion coverage strives to assist 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, cut back greenhouse fuel emissions (GHG), increase natural farming, and elevate animal welfare.
Sustainably produced agrifood merchandise will obtain €62m, together with €42m for natural merchandise. As a part of their aims, the EU hopes to additional increase European customers’ recognition of the EU natural emblem and natural product consumption, aligning with the present EU motion plan for natural manufacturing.
The EC will break up the whole quantity of funding between EU inner market campaigns and people in third nations, with €81.3m going to European tasks and €85.1m injected into third nations.
In assigning the spend to tasks inside and out of doors the EU, the EC has recognized nations and areas with excessive progress potential as primary promotion targets. These embody 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 international manufacturing
“The EU’s promotion coverage helps EU producers promote their farm merchandise in an more and more aggressive international market whereas delivering jobs and progress at dwelling,” stated Gill.
The idea 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 nations. The Regulation units out the primary goal of agrifood promotion coverage: to boost the competitiveness of EU farmers and agrifood companies.
Based mostly on the stated Regulation, the European Fee prepares an annual work programme to assist EU farmers and agrifood companies, Gill stated, “whose merchandise meet the top quality, security and environmental requirements relevant within the EU”.
As per the Regulation, two particular kinds 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, comparable to diplomatic offensives by the Commissioner in non-EU nations to increase upon agrifood commerce or participation in festivals and communication campaigns.
“The coverage was carried out to extend customers’ 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 assist all agricultural sectors to realize the notice of the excessive requirements of the EU by way of meals manufacturing and value-added,” stated Sanchez. In any other case, the priority is that EU merchandise will lose market share to others. “The general geopolitical ferment is creating uncertainty concerning the commerce relations with third nations sooner or later and their attainable implications for tasks,” added Sanchez.
Commerce alternatives for agrifood in 2024
Funding in 2024 will assist EU high quality schemes and the normal and gastronomic options of EU agrifood merchandise. As well as, it’ll additionally assist natural merchandise, contemporary 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 beneath the coverage. It goals to make sure customers 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 comparable to pastry and pasta, supplied they meet the authorized necessities. Promotion actions geared toward customers on the interior market should discuss with and align with the focused Member State(s) dietary pointers.
“Agrifood product builders will have the ability to open new markets for his or her merchandise and high quality schemes, diversify their buying and selling companions and change into extra aggressive,” Gill continued. Furthermore, these alternatives can be attainable within the EU and international markets.
“Finances allocations have to mirror market realities and consider the submission statistics,” continued Sanchez. The programme, subsequently, Sanchez continues, requires extra vital assist for easy programmes, high quality schemes and different sustainable agricultural practices on the interior market. “As for multi programmes, ideally, the funds would should be boosted for third nations,” 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 attainable budgetary reductions on the grounds that the funds is underused. Nevertheless, Sanchez famous that the challenge submissions lower is principally as a result of continuation guidelines and never lack of curiosity.
Transferring previous manufacturing limitations
“The principle goal is to assist the competitiveness of EU farmers and agrifood companies whereas supporting their transition in direction of extra sustainable meals manufacturing,” added Gill.
“The annual work programmes ought to assist the event of consumption traits and never pre-empt customers’ behaviour,” stated Sanchez. Because of this, Sanchez highlighted that any disproportionate allocation between natural and different sustainable practices that don’t match the provide 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,” stated 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 strain this places on agrifood growth and provide chains, the EC’s monetary assist is seen as a optimistic step in direction of bolstering meals safety.
“This assist is very vital at a time when the sector is going through inflation and geopolitical uncertainties,” stated Gill. “Within the occasion of great 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 stated: “The coverage and, subsequently, the annual spending had a optimistic impression 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,” stated Sanchez. Regardless of this, sustaining the general funds and eliminating discriminatory standards present certainty to these operators who depend upon 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 classes on thirty first January and 1st February 2024. The European Analysis Govt Company (REA) will maintain proposal calls from 18th January to 14th Might 2024.
