The new promotion policyPolitical agreement

1st APRIL 2014

DG Agriculture and Rural DevelopmentEuropean Commission

PPA(14)4669

Planning - Promotion policy reform process

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14 July 2011 – January 2012Green Paper – Public debateExternal evaluation of the current regime

Commission Communication 30 March 2012

21 November 2013 Legal proposal on the promotion policy

Discussions in the European Parliament and the Council

1 Avril 2014Political Agreement on the NEW Promotion policy

between European Parliament, Council and Commission

Finalisation of the legislative phase2014

2015

1 December 2015 Entry into force

Approval of Delegated and Implementing

Acts

Delegation to the Executive agency in

Luxembourg

How will the future promotion policy address those challenges

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Cost pressure

Fierce competition

Lack of awareness

Policy objectives

Enhance competitiveness of agricultural sector

Increasing awareness about merits of EU agri.

products

Developing and opening up new

markets

Greaterefficiency and effectiveness

Policy objectives Reform objectivesChallenges

What's new in the reform to meet the objectives?

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• Enlarge to new beneficiaries

• Wider list of eligible products including processed products

• Recognition of the strategic importance of brands and origin

• Reactive in case of crisis

• Technical support services

• Clear priorities established annually - work programme

• Increase the promotion campaigns in third-country market

• Enhance the cooperation between operators from different MS through multi programmes

• Incentive EU cofinancing rates

• New selection process with gain in time and evaluation exclusively at Commission level through external experts

• End-up of national cofinancing

• Simplification of administrative procedure for Multi-programmes : directly managed by the Commission

• Delegation to an executive agency foreseen

Align with needs of the sector

Targeted on EU added value

Greatereffectiveness

Increased expenditure : up to 200M€

a) Eligible products and schemes

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All agricultural products covered excluding tobacco Open to certain processed products listed in Annex

(beer, chocolate, pasta, sweet corn, cotton...) Spirits with a Protected Geographical Indication

Wine: Simple programmes = Basket approach Multi programmes = Wine alone possible On the internal market = Information on

quality schemes + responsible consumption

A wider list of eligible products including processed products.

Consistent with other CAP promotion measures and EU policy on alcohol consumption

Fishery and aquaculture products : Basket approach

Schemes : EU quality schemes, organic, RUP, national quality schemes

b) Proposing organisations

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Trade or inter-trade organisations representative of the sector(s) concerned at MS

Trade or inter-trade organisations at EU level

Producer organisations

Bodies with public service mission in charge of promotion of agricultural products (example: Agence Bio, Chambers of agriculture)

Clarification of the status of beneficiaries New beneficiaries coherent with Single CMO post 2013

c) EU generic promotion with recognition of the strategic importance of brands and origin (1/2)

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VISIBILITY OF BRANDS

Each brand equally visible

Graphic presentation smaller format than the main European EU message of the campaign

In general, several brands displayed

Brands : example for poster

Banner with several brands under the main message

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Brands : example for web-site

Rolling banner with several brands under an EU message

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Brands : example for a stand

Individual but identical corner for each representative of brandsSame size of the names of the brands – under an EU message

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c) EU generic promotion with recognition of the strategic importance of brands and origin (2/2)

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MENTION OF ORIGIN

Internal market : always secondary in relation to the main EU message of the campaign

Third country market may be on the same level as the main EU message of the campaign

Products recognised under EU quality schemes (PDO, PGI...) : the origin as registered in the denomination may be mentioned without any restriction

Not acceptable: programmes which encourage or give preference to the purchase of domestic products

• Article 34 TFUE

• Case 249/81 Commission v Ireland [1982] ECR 4005

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Example: origin on Internal market

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Example: third countries

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Example Internal Market : PDO/PGI/STG

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d) Different types of actions

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Information and promotion programmes :

1 to 3 years

Submitted by proposing organisations (PO)

SIMPLE programmes : one or more PO from the same MS

MULTI programmes : several POs from several MS + EU organisations

Commission initiatives :

Information and promotion measures :

High-level missions Participation in trade fairs Own campaigns

Technical support services

New technical support services offered by the Commission

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As example :

Help proposing organisations to design their programmes and implement them in an effective manner

Create a platform for exchanges – generate contacts between proposing organisations (e.g. interest in carrying out a multi programme)

Organising trainings, conferences to exchange views and methodology

Help operators to develop their export activities

e) Which measures in case of crisis ?

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• Information and promotion cofinanced programmes

• Programmes running 2 or 3 years

• Need time to be elaborated adequately

• Crisis situation taken into account in the annual work programme

• Priority points for the selection

• Possibility to precise an indicative amount by priority

• Higher cofinancing rate : 85 %

• Exceptional measures (sCMO Regulation (UE) n°1308/2013) for the sectors concerned

• Information measures (art 45 Regulation (UE) n°1306/2013): direct communication from the Commission

• Commission's own initiatives : information and promotion campaigns

Targeted on short termTargeted on long term

CAP offers complementary tools

f) New selection procedures

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Programme directly submitted to European Commission

1 selection per year based on priorities established in annual work programme

Implementation adapted to the specificities of simple-multi programmes

CALLS FOR PROPOSALSPublished by Commission

SIMPLEMEMBER-STATES

Shared management

WORK PROGRAMMEAdopted by Commission

Implementing actExamination procedure

SIMPLE

SUBMISSION of programmes proposals BY proposing organisations

TO Commission

MULTI

SELECTIONBy Commission

MULTICOMMISSION

Direct management

Implementing actExamination procedure

Grants agreements

No national cofinancing anymore

g) Cofinancing rates

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Type of programmesSimple Multi

Internal market 70% 80%External market 80% 80%In case of crisis 85% 85%

National cofinancing

+ 5% for MS under financial assistance

EU cofinancing rates :

Next steps

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Finalisation of the legislative

stage

Legal and linguistic finalisation Formal approval of the basic act

ExecutiveAgency

Commission Decision needed to amend the mandate of CHAFEA

Integrating promotion into the existing EA

Delegated & implementing

acts

New rules to be prepared Annual work programme to be prepared

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1 April 2014

Full entry into force of the new Promotion policy

4th Quarter 2014

Oct/ Nov 2014

Summer 2015 Adoption of the Delegated acts

Political agreement on a new direction for the promotion policy

Adoption of the decisions to delegate to anexecutive agency

Adoption of the legal basic act

Publication of the Delegated acts and Implementing acts

1 December 2015

Tentative calendar for the NEW Promotion policy

Summer 2015

For further informationEuropa web-site

http://ec.europa.eu/agriculture/promotion/policy/index_en.htm

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Thank you

Annual work programme

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Set the strategic priorities :

1- Based on profound analysis of market opportunities, FTA's negotiations...

2- To respond to specific sector needs

3- To support actions with higher impacts for SMEs

4- Provide for specific arrangements to react in case of crisis

Annual work programme

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Set the minimum requirements on key messages : e.g. Common signature

Annual work programme : in practice (1/2)

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Actions defined under thematic priorities set in the basic act• increasing awareness about the merits of EU agricultural products and

the high standards applicable to the production methods in the EU;• increasing the competitiveness and consumption of EU agricultural

products and certain food products and raise their profile both within and outside the Union;

• increasing awareness and recognition of Union quality schemes;• increasing the market share of EU agricultural products and certain food

products, with a specific focus on those markets in third countries with the highest growth potential;

• restoring normal market conditions in the event of a serious market disturbance, loss of consumer confidence or other specific problems.

Indicative amounts dedicated by actions

Annual work programme : in practice (2/2)

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Year (n-1) Year n

Collection of inputs :• Trade data

• Sectorial inputsOpinion of

Committee for CMO

Draft annual work

programme

Adoption annually through an

implementing act