European Parliament Producers’ Organisations and the Common Market Organisation of fishery products Brussels, 5th November 2008 Dominique AVIAT, AND International

5th November 2008 European Parliament – POs and CMO Page 2 Contents ► Introduction : context, methodology approach ► Effectiveness of the measures concerning POs ► Effectiveness of the measures concerning the trade with third countries ► Contribution of the instruments of the CMO to the competitiveness of the industry ► Contribution of the instruments of the CMO to the employment in the fisheries sector ► General conclusion : which prospects for a CMO in line with the stakes and the globalisation of the markets ?

5th November 2008 European Parliament – POs and CMO Page 3 Contents ► Introduction : context, methodology approach ► Effectiveness of the measures concerning POs ► Effectiveness of the measures concerning the trade with third countries ► Contribution of the instruments of the CMO to the competitiveness of the industry ► Contribution of the instruments of the CMO to the employment in the fisheries sector ► General conclusion : which prospects for a CMO in line with the stakes and the globalisation of the markets ?

5th November 2008 European Parliament – POs and CMO Page 4 Introduction : methodology approach ► Framework contract FISH/2006/22 : evaluation of the CMO as laid down in Council Regulation (EC) N°104/2000 ► Time scope : ► Geographical scope : EU-27 ► Methodology : 3 phases ► Structuring : October-December 2007 ► Observing : January-April 2008 ► Analysing-Judging : May-June 2008 ► Methodology : 4 themes ► Income of producers ► Market development and balance ► Consumer aspects and quality ► Coherence with CFP

5th November 2008 European Parliament – POs and CMO Page 5 Introduction : methodology approach ► Core of the evaluation work : replies to of the 7 evaluation questions : ► Effects of CMO on stability of markets ► Effects of CMO on competitiveness of the sector ► Effects of CMO on employment ► Effects of CMO on producers’ income ► Effects of CMO on product quality ► Effects of CMO on consumers’ knowledge about fishery products ► Effects of CMO on development of sustainable fisheries

5th November 2008 European Parliament – POs and CMO Page 6 Contents ► Introduction : context, methodology approach ► Effectiveness of the measures concerning POs ► Effectiveness of the measures concerning the trade with third countries ► Contribution of the instruments of the CMO to the competitiveness of the industry ► Contribution of the instruments of the CMO to the employment in the fisheries sector ► General conclusion : which prospects for a CMO in line with the stakes and the globalisation of the markets ?

5th November 2008 European Parliament – POs and CMO Page 7 Effectiveness of the measures concerning POs ► Data on POs : 2 main sources : ► Mail survey to all POs ► Response rate : 39% ► 100 interviews in 10 MS : ► POs ► National authorities ► Professional organisations ► Experts (Research institutes, NGOs, …)

5th November 2008 European Parliament – POs and CMO Page 8 Effectiveness of the measures concerning POs ► POs’ main features : origin and role ► Origin : ► Ex-nihilo creation ► Recognition of a pre-existing organisation ► Merger ► Motivations of PO’s constitution ► Strengthening of marketing capacities ► Strengthening of possibilities of collective action ► Need to regulate the supply to adapt it to the demand ► Need to concentrate the supply ► Reasons of membership for producers ► Scope for benefiting from a marketing strategy or product valorization actions ► Strengthening of political action possibilities ► Access to better adapted fishing quotas ► Scope for access to withdrawals and carry-overs

5th November 2008 European Parliament – POs and CMO Page 9 Effectiveness of the measures concerning POs ► POs’ main features : POs’ development

5th November 2008 European Parliament – POs and CMO Page 10 Effectiveness of the measures concerning POs ► POs’ main features : POs’ development ► Evolution of recognition withdrawals

5th November 2008 European Parliament – POs and CMO Page 11 Effectiveness of the measures concerning POs ► POs’ main features : recognition, representativeness and concentration of POs Condition 1 PO members’ number of vessels > 20% of total number of vessels in the area Condition 2 PO’s production > 15% of area’s total production Condition 3 PO’s production > 30% of total production an a major port or market in the area ► Production criteria more used than vessel criterion : ► Criterion 1 : 19% of POs ► Criterion 2 : 43% of POs ► Criterion 3 : 38% of POs ► Conditions 2 and 3 cumulated in several MS ► 1 of the 3 following conditions to be fulfilled

5th November 2008 European Parliament – POs and CMO Page 12 Effectiveness of the measures concerning POs ► POs’ main features : recognition, representativeness and concentration of POs ► Representativeness level : ► Very important for relevance and effectiveness of measures taken ► 70% on average ► Varies according to MS and regions ► Concentration ► 53% of POs in 3 MS

5th November 2008 European Parliament – POs and CMO Page 13 Effectiveness of the measures concerning POs ► POs’ main features : structuration level in MS ► On average 57% of EU fishermen are members of a PO ► Structuration level varies according to MS, activity and species ► 3 groups of MS : ► Strongly organized countries (75% to 90% of fishermen are members of a PO) : BE, DK, NL, PT, SE, UK. ► Average countries (between 35% and 75%) : DE, ES, FR, … ► New MS, in early stage of structuration (less than 35%) : LV, PL, … ► Activity : ► Example of Spain : ► Frozen fish producers : 80%  POs ► Fresh fish producers : 35%  POs ► Species : structuration level depends on location of fishing grounds, type of fishing, …

5th November 2008 European Parliament – POs and CMO Page 14 Effectiveness of the measures concerning POs ► POs’ main features : operational programmes (OPs) ► OPs = one of the main points of the 2000 review ► Obligation of PO’s : draw up every year an OP comprising : ► the marketing strategy, ► a catch plan, ► anticipatory measures to adjust the supply of species difficult to market, ► a system of internal penalties ► OPs’ target = giving more responsibility to POs in the planning of production and marketing of fishery products ► Content and quality of OPs : extremely variable = from a very basic and purely administrative document to a real strategic document with a reflection on market and management of resources ► Effectiveness of OPs : weak (a few local results on quality management and regulation of catches), but educational interest which could lead to medium-term results

5th November 2008 European Parliament – POs and CMO Page 15 Effectiveness of the measures concerning POs ► Assessment of the extension of rules ► CMO regulation : if a PO is considered to be representative of production and marketing in one or more landing places, the MS may require non- member producers who market products within the same area to comply with rules of the PO. ► Extension of rules : rarely used (in only 6 MS). ► Grounds for underutilization : lack of clarity of the measure and complexity of the procedure ► No need of the measure for POs representing 100% of landings in their area ► Noticeable effects for POs using the measure, especially in addition to internal rules of limitation of daily catches

5th November 2008 European Parliament – POs and CMO Page 16 Effectiveness of the measures concerning POs ► Assessment of use of CMO measures and FIFG aid concerning quality ► Assessment of plans to improve quality (PIQ) ► PIQs give access to specific recognition and specific financial aid ► PIQs must include : ► Improvement in the quality of products onboard or in farm ► Optimal maintenance of quality along the marketing ► Description of the planned measures (including preparatory studies, training and investments) ► Very weak success of the measure : only 5 plans submitted, 4 recognitions granted ► Grounds for underutilization of the measure : ► Measure little known to POs ► PIQs demanding a lot of administrative work, costly and insufficiently subsidized ► FIFG aids easier to obtain  Improvement of product quality : much more achieved with FIFG aids than with CMO tools

5th November 2008 European Parliament – POs and CMO Page 17 Effectiveness of the measures concerning POs ► Effectiveness of the measures adopted by interbranch organisations and POs’ associations ► Interbranch organisations (IOs) ► Target of the measure : recognition of interbranch organisations aimed at improving structuration of production, transparency of the market and organisation of the sector ► Very limited success of the measure : ► Only 4 organisations recognized ► No impact of IO recognition on power and capacity of IOs to structure the sector ► IO recognition = rather a recognition a posteriori, a sort of label granted by EC to existing organisations ► Measure not motivating enough for the creation of new IOs ► Measure not offering an adequate framework (in particular transnational) to the organisation needs of the sector

5th November 2008 European Parliament – POs and CMO Page 18 Effectiveness of the measures concerning POs ► Effectiveness of the measures adopted by interbranch organisations and POs’ associations ► POs’ associations at transnational level ► Only 1 association recognized (Association of Danish and German POs producing North Sea shrimp) ► Positive effects : ► Concentration of supply  strengthening of producers’ weight vs. buyers  positive effect on prices and producers’ income Price of Noth Sea shrimp (crangon crangon) on the Dutch market(€/kg)

5th November 2008 European Parliament – POs and CMO Page 19 Contents ► Introduction : context, methodology approach ► Effectiveness of the measures concerning POs ► Effectiveness of the measures concerning the trade with third countries ► Contribution of the instruments of the CMO to the competitiveness of the industry ► Contribution of the instruments of the CMO to the employment in the fisheries sector ► General conclusion : which prospects for a CMO in line with the stakes and the globalisation of the markets ?

5th November 2008 European Parliament – POs and CMO Page 20 Effectiveness of the measures concerning the trade with third countries ► Measures : ► Suspensions of common customs tariff duties ► Autonomous tariff quotas ► Noticeable and positive effects on supply of EU processing industry ► CMO trade measures have allowed EU processors who cannot find volumes and/or prices adapted to their needs in EU to work competitively and to maintain their activity ► Strong financial impact (e.g. : economies on Alaska pollack imports = 60 M€) ► Positive effects on competitiveness and employment ► Access to low price raw materials  impact on margins  maintenance of profitability of processing companies  saving of associated jobs

5th November 2008 European Parliament – POs and CMO Page 21 Contents ► Introduction : context, methodology approach ► Effectiveness of the measures concerning POs ► Effectiveness of the measures concerning the trade with third countries ► Contribution of the instruments of the CMO to the competitiveness of the industry ► Contribution of the instruments of the CMO to the employment in the fisheries sector ► General conclusion : which prospects for a CMO in line with the stakes and the globalisation of the markets ?

5th November 2008 European Parliament – POs and CMO Page 22 Contribution of the CMO instruments to the competitiveness of the industry ► Measures : ► Strengthening of POs and IOs and obligation to define the marketing strategies in the OPs ► Trade regime ► Only the measures of trade with third countries have had a direct effect, but only for the processing industry ► They have assured EU processors of supplies adapted to their needs in terms of volumes and prices to work competitively and to maintain their activity ► They have had a net effect on economic performance of companies impact through the economy on raw materials ► The application of these measures has not disturbed the EU production, which is in strong deficit on these markets (self-sufficiency rate of EU : 40% in 2006)

5th November 2008 European Parliament – POs and CMO Page 23 Contents ► Introduction : context, methodology approach ► Effectiveness of the measures concerning POs ► Effectiveness of the measures concerning the trade with third countries ► Contribution of the instruments of the CMO to the competitiveness of the industry ► Contribution of the instruments of the CMO to the employment in the fisheries sector ► General conclusion : which prospects for a CMO in line with the stakes and the globalisation of the markets ?

5th November 2008 European Parliament – POs and CMO Page 24 Contribution of the CMO instruments to the employment in the fisheries sector ► Measures : ► None of the CMO measures is aimed at direct intervention in favour of employment ► Main tools concerned : ► Stucturation of POs and IOs ► Trade regime ► CMO has no effect on fisheries employment, much more dependent on CFP, TACs, oil price and lack of appeal of fisheries jobs ► Effects of CMOs on employment usually linked to volume direct aid to producers and first processors. CMO fishery : small level of financial aid to intervention (10 M€/year)

5th November 2008 European Parliament – POs and CMO Page 25 Contribution of the CMO instruments to the employment in the fisheries sector EAGFF expenses for CMOs in 2005

5th November 2008 European Parliament – POs and CMO Page 26 Contribution of the CMO instruments to the employment in the fisheries sector ► Professional structuration and concentration of supply : no effects on employment, except in some rare local cases ► Only the measures of trade with third countries have a direct effect, but only for the processing industry ► trade regime measures = effective tools to guarantee to processors an adequate supply with imported raw materials (whitefish, tuna, …)  contribution to maintenance of companies and safeguarding of jobs ► but CMO has not allowed to prevent relocation of canning companies in third countries with low labour cost

5th November 2008 European Parliament – POs and CMO Page 27 Contents ► Introduction : context, methodology approach ► Effectiveness of the measures concerning POs ► Effectiveness of the measures concerning the trade with third countries ► Contribution of the instruments of the CMO to the competitiveness of the industry ► Contribution of the instruments of the CMO to the employment in the fisheries sector ► General conclusion : which prospects for a CMO in line with the stakes and the globalisation of the markets ?

5th November 2008 European Parliament – POs and CMO Page 28 General conclusion ► CMO = a complex tool box, used in very various ways in EU ► CMO = a logic of action and sets of measures inherited from agricultural policies, but without the financial means of agricultural CMOs ► CMO = a not very interventionist and relatively efficient CMO (structuration and concentration of offer), which has assets for a transition towards a system in line with today’s stakes ► CMO = very limited effects on competitiveness, income and employment ► CMO = POs central actors in the system of market organisation and stabilization ► PO tool = main element of capitalization of CMO  With some adaptations and clarifications of their missions and with strengthened and more durable means POs can be relevant and potentially effective supports for the implementation of most CFP policies