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Federation of European Rice Millers (FERM)

Federation of European Rice Millers (FERM). LAUNCH RESIDENCE PALACE BRUSSELS 19 JUNE 2002. WHY A NEW ORGANISATION? . Former European rice milling representation: UARCE NERMA CORISE Different interests in past - farming/importing separate north/south organisations + UARCE.

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Federation of European Rice Millers (FERM)

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  1. Federation of European Rice Millers (FERM) LAUNCH RESIDENCE PALACE BRUSSELS 19 JUNE 2002

  2. WHY A NEW ORGANISATION? • Former European rice milling representation: • UARCE • NERMA • CORISE • Different interests in past - farming/importing separate north/south organisations + UARCE

  3. Changing landscape • Recent developments effect EVERYONE • Rice reform (this year?!) • Enlargement (2002 forward) • WTO (agreement March 2003?) • Everything But Arms (TRQs now with increased liberalisation to 2009) • Rationalisation and acquisition in industry  North/South split NOT relevant

  4. WHAT WAS THE RESULT? • ONE European organisation: • One voice • Speaks authoritatively for all • Common purpose and goal • Proactive • Efficient and can respond quickly • Visible

  5. Membership • Corporate members as the norm with national associations where appropriate to that country • 24 members • 19 companies representing: • + 90% European rice milling capacity • 9 countries (Belgium, France, Germany, Greece, Holland, Italy, Portugal, Spain, United Kingdom) • 5 national associations: France, Holland, Italy, Portugal, Spain

  6. Structure • General Assembly • highest authority - meets once a year • Board • policy making body • approves annual strategic plan • Executive Committee • implements Board mandate • comprises 5 rice millers from different member states

  7. Executive Members • President - Ernesto Morgado (Portugal) • Vice-President - Peter Allart (Holland) • Other Executive members: • Mario Preve (Italy) • Antonio Hernandez (Spain) • Rohit Samani (United Kingdom)

  8. Secretariat • Secretary General - Michael Bellingham • Policy Advisor - Alain Galaski • Food Safety Advisor - Mireille Heijnen

  9. FERM • CORE AGENDA reflects changing landscape: 1. Rice reform 2. Enlargement 3. WTO 4. ‘Everything But Arms’

  10. 1. RICE REFORM • Intervention reduction (25% or more)  Safety net for farmers, not price-setting mechanism  EU rice export without refund • PLUS • No change to current import mechanism • Aid export - less bureaucracy + more open export markets • Better fit between EU supply and market demand • Encourage consumption • Further limits to export refunds linked to value not volume • Intervention last resort - no premiums, one category, standard yield, for farmer only

  11. 2. ENLARGEMENT • LARGE POTENTIAL MARKET • Impact on EU rice production. First wave could add +200,000 t consumption • BUT major pitfall = compensation necessary to third countries under GATT. • Must avoid TRQs which are trade distorting and inefficient PLUS double gift to exporters; guaranteed access + current duty level (264 EUR/t) • If unavoidable, must be on brown, limited in time and handled by Brussels

  12. 3. WTO • Negotiations must result in import regime that is open, transparent, equitable and fair • Trade issues • Market access 1. Continued trade liberalisation which maintains opportunity to mill in EU 2. Improved access for husked rice (key for developing countries). 3. BUTNO TRQs (CMO reform + EBA give near total access)

  13. Trade issues (cont) • Export Competition & Internal support Current market imbalance due to refund commitment not mirrored by reduction in internal prices. Don’t give way on one without action on the other. • Non-Trade Concerns • Protect consumer expectation for safe rice • Paddy Rice • Level playing field - prohibit ban of exports from third countries

  14. 4. Everything But Arms • Total duty free access for rice from Least Developed Countries by 2009 • Enormous threat to European rice industry. If action not take will wipe out production and milling of rice in EU. • FERM seeks to ensure: 1. Safeguard rules effective 2. EU rice able to compete 3. Safety of imported product, eg pesticide, GM 4. No requirement for export license for TRQs

  15. And finally • Thank you for your attention • There are packs with all the details and a copy of the presentation • Any questions, please speak to any member or contact the secretariat. • AND let us all work together for a viable rice industry in the EU.

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