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Reform of the common market organisation for
fruit and vegetables
A new Common Market Organisation for fruit
and vegetables, together with a fresh set of
implementing rules, is in place as from 1
January 2008. The aim of the reformed CMO is to
improve the competitiveness and market
orientation of the fruit and vegetable sector,
reduce income fluctuations resulting from
crises, promote consumption – so contributing to
improved public health – and enhance
environmental safeguards. New measures set out
to encourage growers to join Producer
Organisation. POs are offered a wider range of
tools for crisis management; the fruit and
vegetable sector is integrated into the Single
Payment Scheme; a minimum level of environmental
spending is required; EU funding for promotion
and organic production is increased; and export
subsidies for fruit and vegetables are
abolished.
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Details of the reform
Producer Organisations (POs): POs will
gain greater flexibility and their rules will be simplified
There will be additional support (60 percent Community
co-financing rather than of 50 percent) in areas where
production covered by POs is less than 20 percent, and, in
particular, in the new Member States, to encourage the creation
of POs. Member States and POs will develop Operational
Programmes based on a national strategy.
Crisis Management: This will be organised
through Producer Organisations (50 percent financed by the
Community budget). Tools will include green
harvesting/non-harvesting, promotion and communication tools in
times of crisis, training, harvest insurance, help in securing
bank loans and financing of the administrative costs of setting
up mutual funds. Withdrawals can be carried out by POs with 50
percent co-financing. Withdrawals for free distribution to
schools etc will be 100 percent paid by the Community. Community
aid to POs will remain limited to 4.1 percent of the total value
of marketed produce, but this may rise to 4.6 percent provided
that the excess is used only for crisis prevention and
management. For three years, state aid may be granted to extend
crisis management measures to non members who enter into a
contract with a PO. Compensation for non members will be no more
than 75 percent of the Community support received by PO members.
Inclusion of fruit and vegetables in the
Single Payment Scheme (SPS): Land covered by fruit and
vegetables will become eligible for payment entitlements under
the decoupled aid scheme which applies in other farm sectors.
All existing support for processed fruit and vegetables will be
decoupled and the national budgetary ceilings for the SPS will
be increased. The total amount that will be transferred to the
SPS is around €800 million. For tomatoes, Member States will be
allowed to apply transitional payments for a four-year
transitional period (2008-2011), provided that the coupled
proportion of the payment does not exceed 50 percent of the
national ceiling. For non-annual crops, they will be allowed to
apply transitional payments for five years, provided that after
31 December 2010, the coupled proportion does not exceed 75
percent of the national ceiling. Member States may if they so
choose postpone the distribution of fruit and vegetable
entitlements for up three years.
Environmental measures: The inclusion of
fruit and vegetables in the SPS means that Cross Compliance
(i.e. mandatory environmental standards) will be compulsory for
those farmers receiving direct payments. In addition, POs must
devote at least 10 percent of expenditure in each Operational
Programme to environmental measures. There will be a 60 percent
Community co-financing rate for organic production in each
Operational Programme.
Encouraging greater consumption: Higher
consumption of fruit and vegetables was one of the goals
identified in the Commission's White Paper on Nutrition,
published in May. POs will be able to include promotion of fruit
and vegetable consumption in their operational programmes. There
will be an additional €6 million under the general promotion
regulation for the promotion of fruit and vegetables targeted at
children in educational establishments. There will be an €8
million budget for free distribution of fruit and vegetables to
schools, hospitals and charitable bodies, which will be 100
percent financed by the Community up to a limit of 5 percent of
the quantity marketed by a PO. The Council asked the Commission
to carry out a feasibility study into the creation of a school
fruit and vegetable scheme.
Transitional soft fruit payment: To allow
producers of strawberries and raspberries for processing to
adapt to market circumstances, they will receive a transitional
direct payment worth €230 per hectare for maximum period of 5
years for a set number of hectares. Member states may pay a
national top-up so that the total shall not exceed €400/hectare.
Separate fruit and vegetable payment for SAPS
countries: Countries applying the Single Area Payment Scheme
will be able to introduce a decoupled fruit and vegetable
payment to historical producers of fruit and vegetables. They
will have to decide by 1 November 2007 the amount to be deducted
from the SAPS envelope to cover this and the criteria used for
the allocation of the fruit and vegetable payment.
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proposal
Background
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[pdf]
Council Regulation (EC) No 1182/2007 of
26 September 2007 laying down specific rules as regards the
fruit and vegetable sector, amending Directives 2001/112/EC and
2001/113/EC and Regulations (EEC) No 827/68, (EC) No 2200/96,
(EC) No 2201/96, (EC) No 2826/2000, (EC) No 1782/2003 and (EC)
No 318/2006 and repealing Regulation (EC) No 2202/96
Available in:
                     
Commission Regulation (EC) No 1580/2007
of 21 December 2007 laying down implementing rules of
Council Regulations (EC) No 2200/96, (EC) No 2201/96 and (EC) No
1182/2007 in the fruit and vegetable sector
Available in:
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