Organic production in the EU State of the process for a reviewed legislation Multi-beneficiary workshop on the reform of the Common Agriculture Policy of the EU (CAP) Serge MASSART, DG AGRI Brussels ● December 2014

Content of the presentation The EU organic (r)evolution The review process and outcome: the review package What will change: Production rules Control system Trade regime

Production and consumption of organic goods in the world

The EU organic (r)evolution

Organic farming in the EU is expected to develop in line with market developments The EU organic (r)evolution

EU legislation on organic farming is under REVIEW, having as aim… To adjust EU legislation to dynamic development of organic market by… (1) removing obstacles to the sustainable development of organic production in the Union (2) guaranteeing fair competition for farmers and operators and allowing the internal market to function more efficiently (3) maintaining or improving consumer confidence in organic products 11

Review process: wide stakeholder and public consultation Hearings: 75 experts for advice, data gathering, experience, suggestions – Sept-Nov 2012 Enlarged Advisory Group meetings on Organic Farming Online public consultation: Jan-Apr 2013 (45000 replies free contributions) Bilateral meetings with stakeholders 12

Review process: impact assessment The EU political and legislative framework does not provide the appropriate basis for sustainable development of organic production Risk of limitation to organic market expansion Risk of limitation to the environmental benefits associated with OF Lost opportunities for EU producers Risk of loss of consumer confidence Unfair competition and threat to the functioning of the internal market Obstacles to the development of domestic supply

Three broad policy options 14

Review process: OUTCOME 24th March Adoption by the European Commissioners of the organic review package: Action Plan: Directly applicable Recommendation for a negotiating mandate: Authorisation granted by the Council on 16 June 2014 Proposal for a Regulation: Discussions with Council and European Parliament in progress Process takes at least 2 years New rules not applicable before

Action Plan for the future of Organic Production in the EU Previous Action Plan in 2004, 21 actions including creation of new logo New Action Plan: 18 actions to be implemented from 2014 until areas: competitiveness, consumer confidence and external dimension (Actions 14-18: cooperation with trade partners in developing countries, increased convergence of standards, data on trade (volume/value), Codex (aquaculture, wine), protection of EU logo in third countries 16

Legislative proposal to… CLARIFY the RULES, ADDRESS GAPS in the legislation, SIMPLIFY where possible, GUARANTEE as much as possible FAIR COMPETITION for farmers and operators, ADDRESS CONSUMERS' evolving CONCERNS (environment, quality), REMOVE EXCEPTIONS to the rules, STREAMLINE the CONTROL system and REFORM the TRADE regime. 17

Production rules : what will change? General policy trend: removing exceptions to the rules Mixed organic/non-organic farms Retroactive recognition for conversion Use of non-organic seeds Feed from farm or region Use of non-organic ingredients  Issues discussed with Council and EP 18

Production rules : what will change? EU harmonisation of rules if detection of non-authorised products or substances Products where presence of non-authorised products or substances beyond levels set taking into account Directive 2006/125/EC (babyfood) shall not be marketed as organic 19

20 A fully risk-based approach  more effective  focus on areas most at risk  more efficient use of resources  less red tape for compliant operators  No more compulsory annual inspection of all operators regardless of their risk profile N.B. : Like other sectors in agri-food chain and other CAP schemes/measures … Control system: what will change?

21 A comprehensive control system  All operators in organic chain covered  To prevent different treatment across MS  To overcome management, supervision and control difficulties  To increase consumers' confidence NB: each operator will need to be inspected according to the risk and not the category of the activity Control system: what will change?

22 Enable small farmers to join organic farming  Group certification in the EU  Cut individual costs and administrative burden  Better market outlets for farmers  Level playing field with third countries Small farmers (up to 5 Ha)  Both for production and on-farm processing activities  Certified and marketing products as a group Internal control system  Central management to check members' compliance  Failures  withdraw certification of whole group Control system: what will change?

Trade Regime: current situation Import of organic products from:  11 recognised TC (Australia, New Zealand, Argentina, Costa Rica, India, Israel, Tunisia, Switzerland, United States, Canada and Japan) of which 6 with mutual equivalence arrangements, all others unilateral  61 recognised Control Bodies for the purpose of equivalence  >60 different sets of rules applied for imports from non-equivalent countries  Compliance regime not applicable yet  (Import authorisations by MS phased out by July 2014) 23

Trade regime: what will change? New provision on exports, to facilitate access of EU organic production to international markets (Article 27) Recognition of equivalence of TC granted only through trade agreements (Article 30) Third Countries already recognised  5 years following date of application of new Regulation (Article 31) Third Countries having applied under Art. 33(2) of Regulation (EC) No 834/2007 and not yet recognised  applications to be examined (Article 42) Third countries who do not have a trade arrangement with the European Union  import through control bodies: Move from equivalence to compliance Reinforced rules for accreditation of CBs (accreditation bodies need to be members of IAF) 24

Thank you for your attention 25