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Present Danish situation and perspectives of the CAP reform after 2013. 23 February 2012 Erik Kam. Background. DAFC established in June 2009 through a merger of: The Danish Agricultural Council The Danish Bacon & Meat Council Danish Pig Production

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Present danish situation and perspectives of the cap reform after 2013

Present Danish situation and perspectives of the CAP reform after 2013

23 February 2012

Erik Kam


Background

Background

  • DAFC established in June 2009 through a merger of:

  • The Danish Agricultural Council

  • The Danish Bacon & Meat Council

  • Danish Pig Production

  • Danish Agriculture (including Media Service)

  • The Danish Agricultural Advisory Service

  • The Danish Dairy Federation (part)

Danske Slagterier


Danish agriculture food council

Danish Agriculture & Food Council

  • Denmark’s trade organisation for agriculture and food

    • Brings together and represents:

      • Farmers

      • Food and processing industry as well as farm supply, mainly cooperatively owned

      • Agribusiness

    • Key activities include

      • Lobbying – representation of the sector’s political interests

      • Gaining market access and export promotion

      • Providing advisory services for farmers

      • Supporting knowledge and innovation


Our members include

Foreninger

Virksomheder

Brancher

Our members include…


Location of personnel 1 100

Knowledge Centre for Agriculture

Kolkærgård

Kolle Kolle

AgroTech

Kjellerup

Axelborg

Media

Vejen

Bruxelles

London

Tokyo

Beijing

Location of personnel(1,100)


Our roles

Our roles

Global market access and promotion

Political advocacy

Advice for farmers

and industry

members

Knowledge and innovation


Lobbying

Lobbying

  • Copa – working group’s

  • EDA

  • CLITRAVI

  • UECBV

  • EU-Commission – advisory Committees

  • European Parliament

  • Danish Ministries

  • Danish Parliament


The danish agriculture and food industry 2009

The Danish Agriculture and Food Industry (2009)

  • Approx. 40,000 farms

    • Approx. one third are full-time farmers

    • Average farm size is 80 ha

    • Average size of full-time farm is 160 ha

  • Denmark's largest industry grouping

    • 145,000 employed in agriculture and related industries

  • The industry's production accounts for 3% of GDP

  • Two-thirds of production are exported

  • The industry accounts for 12% of exports from Denmark

    • 20% if agribusiness is included


  • Farms and cooperatives structural development

    Farms and cooperatives - structural development


    Structural development companies

    Structural development - companies

    • The two biggest coop’s is Arla (dairy), Danish Crown (pig meat)

    • Shareholding – open for external finance in the future

    • Huge activities outside Denmark

    • Their total yearly turnover is more than 14 billion Euro

    • More than half of their turnover is generated outside Denmark


    Production livestock products

    Production Livestock products

    Source: Statistics Denmark


    Production crops

    Production Crops

    Source: Statistics Denmark


    Employees 2009

    Employees 2009


    Exports 2010

    Exports2010

    Denmark's total exports of goods: DKK 544 billion

    Agricultural exportsDKK 66.4 billion

    Agroindustrial exports DKK 43.5 billion

    Source: Statistics Denmark


    Development of agricultural exports

    Development of agricultural exports


    Agricultural exports 2010 by product category

    Agricultural Exports 2010 By product category

    Total DKK 66.4 billion

    Others of animal origin covers also export of live pigs which in 2010 had a value of DKK 3.8 billion


    Agricultural exports 2010 by country

    Agricultural Exports 2010By country

    Total DKK 66.4 billion


    Agricultural exports 2009 by continent

    Agricultural Exports 2009By continent

    Export DKK billion

    Europe

    41.7

    Americas

    Asia

    2.3

    15.6

    0.8

    Africa

    Oceania

    1.2


    Exports of agricultural goods agribusiness products and services

    Exports of agricultural goods, agribusiness products and services


    Agriculture cap and the global challenge

    Agriculture, CAP and the global challenge

    • The fact

      • Global population in 2050: 9 bn

  • The challenge

    • To increase agricultural production in a sustainable manner

  • The international focus

    • G20 – Final declaration, Cannes, Nov. 2011

      • “Increasing agricultural production and productivity is essential to promote food security and foster sustainable economic growth. ...”

  • This must be reflected in a reformed CAP


  • Definition of competiveness

    Definition of competiveness

    Version 1:

    Protection of markets to keep competitors out.

    Version 2:

    Sales of products in direct competition with others – based on price and quality.


    Future cap

    Future CAP

    • What is likely to happen with the CAP

      • Decreasing overall budgets for agriculture

      • Flat rate of direct payments

      • Greening component

      • Modulation (up to 10 % can be moved)

      • Producer organizations for all products

      • Safety-net (market management)


    Multiannual financial framework 2014 20

    Multiannual financial framework 2014-20

    • Overall budget increased by 2.3%

      • 1,025 bn €

  • Agriculture budget reduced by 11%

    • 383 bn €

    • Direct support budget nominally unchanged

  • Further 15.2 bn € complements the agricultural budget

    • 4.5 bn € research and innovation

    • 2.2 bn € food safety

    • 2.5 bn € support for most deprived

    • 3.5 bn € reserve for crisis in agricultural sector

    • 2.5 bn € European Globalisation Fund


  • Distribution of direct payments

    Distribution of direct payments

    Pillar 1:

    DK loses approx. € 34 mio. or 5.7%

    (Uncertainty about modulated funds)

    • DAFC position:

    • We agree that is fair to establish a new distribution of the direct payments to benefit some new member states

    • However, present distribution reflects “objective criteria”

    • Proposal for new distribution discriminates against member states with many livestock


    Challenge

    Challenge

    • How to compete in the future, with countries outside

    • the EU, who do not face the same restraints on

    • animal welfare , environment, appliance of new

    • technology etc. ?

    • WTO – reducing import protection in the future.

    • Agricultural budget is declining – overall less support

    • for the EU-farmer.

    • Supermarket chains are getting bigger and more

    • concentrated and powerful


    Greening general position

    Greening – general position

    • DAFC generally support a greener CAP – including pillar 1

    • Subsidies should be linked to the delivery of public goods (e.g.: environment and climate change)

    • Concrete proposal should be

      • more flexible;

      • more targeted to challenges in different member states;

      • incentives for introducing general regulation;

      • less bureaucratic for the farmer


    Conclusion we need simplification

    Conclusion: We need simplification!

    • More proportionality

      • The same sanction should have the same consequence for different farmers

  • Fewer, clearer and more targeted cross compliance requirements

  • Reduction in the number of controls, if control system is working well


  • In conclusion

    Pillar 2

    In conclusion

    • Greening of the CAP

      • recognising the frontrunners

  • Increasing share of RD-budget

    • to better reflect our challenges

  • Convergence between MS

    • distribution to reflect ag. production

  • Flat rate

    • internal distribution to be determined by MS


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