1. Competitiveness in the Chocolate, Biscuit and Confectionery Industries in Europe David Zimmer Secretary General CAOBISCO

2. CAOBISCO IN FIGURES Over 1800 companies More than 257,000 direct employees more than 44,2 billion Euros annual turnover a production of 11 million tonnes of products 3,2 billion Euros of exports (10% of the total value of EU food exports) Import value of 1 billion Euros Use 30% of the European production of sugar 35% skimmed milk powder 50% of the world production of cocoa beans

3. Caobisco members come from Austria Belgium Denmark Finland France Germany Ireland Italy Portugal Spain Sweden The Netherlands United Kingdom Norway Switzerland Greece Malta Hungary Poland Slovenia Czech Republic Slovenia

4. Situation today With enlargement and globalisation, the confectionery market is growing fast. However, the competitiveness of EU confectionery producers is shrinking and the industry is squeezed between an unachieved liberalisation of European agricultural markets and the emergence of new competitors on the international market

6. Why is competitivity shrinking? The price of all main raw materials used by Caobisco industries have risen –Tight stocks –Political instability and problems of production for cocoa –Unreliable weather –Unachieved reforms of agricultural sectors (sugar)

7. Why is our competitiveness in the EU reducing? Reduced availability of raw materials –Quota systems –Ambitious biofuels targets –Markets regulated by a few big producers (sugar) –Strong demand from fast growing economies like China or India

8. Why is our competitiveness in the EU reducing? Other factors: –Oil and energy prices –Slow demography in Europe –Packaging prices –Constraining EU regulations

9. Consequences Major companies delocalise ex-EU or intra-EU The sector is experiencing job losses SMEs stop exporting Prices to the consumer are higher

10. Recommendations to enforce competitiveness at EU level EU policies should support the food industry by creating better access to raw materials at competitive prices: –Introduction of an alternative to export refunds, e.g. easy access to IPR –Eradication of production quotas and guarantee of commodity supplies at competitive prices for the food industry While WTO negotiations do not come to a conclusion, bilateral trade agreements should be negotiated with the idea of obtaining maximum liberalisation Better and simplified (food) legislation is needed

11. Recommendations to enforce competitiveness at EU level Need to give access to SMEs and bring SMEs into contact with other players in tomorrow's food economy (innovation, health issues, etc.) Statistics and monitoring: need for better data at EU level. Legislation needs to be harmonised within the EU as well as worldwide, to avoid standards that will weaken competitiveness Policy coherence respecting the vital role of our sectors in the EU economy