ACTIVITY REPORT 2018-2019

of the envelopes by dedicating a compulsory be simplified, to the benefit of third countries! OVERVIEW minimum share to the basic payment (60%), Finally, the Commission could re-engage in y COMMON AGRICULTURAL POLICY POST 2020 to limit the possibilities of transfers between discussions with Ukraine, with a risk of further pillars, to make cross-compliance compatible concessions on agricultural products. y INTERNATIONAL TRADE TALKS with maize monoculture through alternative MERCOSUR: A NEW QUOTA! y MARKET practices or equivalence schemes, to widen the possibilities for eco-schemes or to dedicate The European Commission validated an y SORGHUM MARKET a compulsory share of the second pillar to risk unprecedented agreement with Mercosur on y MYCOKEY, A EUROPEAN PROJECT management and investment. 28 June 2019, in complete opacity. Although AGAINST MYCOTOXIN CONTAMINATION the Commission’s communication is silent BUDGET: DIVERGENCE BETWEEN MEMBER STATES on the issue, a zero-duty quota of 1 million PLANT PROTECTION y The last Summit of Heads of State highlighted tonnes (Mt) of maize and sorghum is included y BIOTECHNOLOGIES: the divergent views of the Member States, in the agreement, which deals a new blow to CEPM STILL MOBILISED firstly on the overall amount of the future European maize, in addition to the previous concessions. It should be reminded that these y AGRICULTURE & PROGRESS PLATFORM: Multiannual Financial Framework, and AT THE HEART OF THE EUROPEAN DEBATE secondly on the envelope allocated to the concessions really take effect when tariffs Common Agricultural Policy. For CEPM, are in force at European level, i.e. when NEW OUTLETS y farmers will not be able to meet the challenges international prices are depressed. No duties y STRONG UNION COMMUNICATION posed by the future Green Deal, including have been applied on entry into the EU since the Farm to Fork agricultural pillar, without March 2018! CEPM has denounced this new a real ambition for the budget of the concession offered to origins that are not subject future CAP. An overall increase in the European to the same production rules as in the EU. It COMMON AGRICULTURAL budget and the CAP budget are indispensable. is in all legality, with preferential conditions, Will the current health crisis in the world that European importers will be able to buy POLICY - POST 2020 be conducive to the emergence of a real GMO maize protected with neonicotinoids willingness on the part of the EU to commit and weeded with atrazine, which are all Launched in June 2018 with the European techniques already banned in Europe (except Commission’s proposal, the negotiations on more resources to this strategic sector for the sovereignty of the EU and its Member States? Mon 810 for GMOs). Political mobilization the post-2020 CAP are being prolonged. to prevent the ratification of this agreement European elections, a new Commission, Brexit, AN INEVITABLE 2-YEAR TRANSITION remains the only solution! no agreement on the multi-annual financial framework and, more recently, the Covid-19 Faced with delays in budgetary and ABATIMENTOS: TOWARDS A CHANGE OF RULES institutional discussions, two years of transition crisis: so many events that make the outcome In the context of a delegated act concerning of the negotiations uncertain. In this context, now seem inevitable. The objective announced a few months ago of a political agreement in the management of import and export quotas, two years of transition are now inevitable. the Commission has proposed an amendment CEPM remains mobilized on the priority topics trilogue by the end of 2020 seems to be in to the so-called «Abatimentos» mechanism for European maize producers with all the jeopardy, and the Commission will have to aimed at simplifying the procedure. In very institutions. define all the secondary regulations at the end concrete terms, the proposed version provides of the process. At the same time, the Member that the quotas concerned automatically REMINDER OF PRIORITIES States will also have to draw up their National benefit from a zero rate of duty from 1 April of Strategic Plans, a new tool for implementing Following the European elections, the each calendar year. Parliament introduced a novel procedure to the CAP. The transitional regulation, currently bring a compromise proposal between the Agri under discussion, could therefore apply for two The rules for accounting for the volumes will and Envi Committees to the plenary, without a years… at the very least! remain unchanged, except that the new trade vote in committee. The two committees agreed concessions granted (Ukraine and CETA in on the scope of the amendments reopened particular) will not fulfil the EU’s commitments under this procedure, with the compromise text INTERNATIONAL and will not be accounted for. This rule change incorporating the other articles voted by the Agri TRADE TALKS further contributes to the weakening of EU Committee last April. The list of open articles maize to the benefit of third country maize. is important and concerns priority subjects for The year 2019 will have been marked by UKRAINE: A REVISION OF THE FREE TRADE CEPM. It is therefore necessary to consolidate the political conclusion of the EU-Mercosur AGREEMENT? the progress made in the previous report agreement. Once again, European maize of the Agri Committee on the priority topics was affected by concessions offered to major The new Commissioner for Enlargement for the maize sector: to provide a maximum players on the international scene. Similarly, and European Neighbourhood Policy, Oliver framework for subsidiarity in the distribution the revision of the abatimentos system will Varhelyi, confirmed on 11/02, following a meeting with the Ukrainian Prime Minister, Similarly, while the maize acreage increased that the EU was carrying out preparatory work by nearly 400,000 hectares in 2019- for a revision of the free trade agreement for 2020 for a total of 8.7 Mha, this increase 2021. CEPM opposes any further concessions is partly explained as a response to specific on maize. It should be recalled that the climatic problems that have prevented the current FTA provides for a quota of 650 Kt establishment of autumn crops in a number at zero duty for the year 2021, to which is of countries. added a quota of 625 Kt at zero duty under the autonomous trade measures granted by CYCLICAL IMPROVEMENTS the EU since 2018. If a review were to take The noted improvements – an increase in place, it would have to lead the Commission to acreage and a decrease in maize imports – are terminate these autonomous trade measures. therefore cyclical, and maize acreages should It should be recalled that Ukraine exported increase again in 2020 to reach 9 Mha. sorghum (genetics and seeds) and give it 14 Mt of maize in 2019 to the EU. These increases are once again linked to the additional value. problems encountered by other crops. Several documents aimed at producers and MARKET Similarly, imports could rebound again due processors (posters, guides, etc.), some of to the difficulties encountered by straw Despite a rise in European maize acreage in which are generalist (concern all targets) and cereal crops in the western EU. Ukrainian others are more specific to a processing chain the 2019/2020 crop year, the situation of the maize should once again meet part of the European maize industry remains gloomy due (animal feed, human food, etc.). They are needs of European consumers and weigh translated into several languages. to a difficult economic context. on the prices paid to producers. In addition, This year, SORGHUM ID has carried out A DIFFICULT CROP YEAR FOR EUROPEAN PRODUCERS the main exporting countries (United States, Brazil, Argentina, Ukraine) are increasing numerous promotional actions throughout Hopes raised by the spring weather difficulties their acreage and their carryover stocks Europe to promote sorghum. At the same in the United States were quickly disappointed are expected to increase in 2020-2021, time, many articles have been published by the price correction and the production depressing world prices further. through the newsletter (which is sent to more dynamics of the main exporters. than 5,000 recipients in Europe), on the MEASURES MUST BE TAKEN website and on social networks. The increase in maize acreage continues year after year in Brazil, Argentina and In the face of the EU’s structural deficit, strong All these actions are carried out in Spain, Ukraine and, thanks to ever more efficient policy measures must be taken to aim for a France, Italy, Austria, Hungary, Romania, means of production, production records are supply/demand balance in the medium term. Bulgaria, Ukraine, Russia, Turkey and Iran. regularly beaten. Brazil produced 101 Mt EU trade policy must be consistent with the of maize, Argentina 51 Mt and Ukraine decisions taken for European producers. 35.8 Mt. Moreover, because of their Production conditions for maize in the EU are PLANT PROTECTION relatively weak domestic demand, production tightening to meet environmental expectations While the European Union continues to costs that are out of all proportion to those while at the same time an agreement with import nearly 20 million tons, the maize of European producers, and the value of Mercosur is signed providing for a duty-free industry must ensure that production is in their currencies, these producing countries quota of 1 Mt of maize. line with domestic needs, in compliance export a considerable share of their production: with exemplary sanitary quality, but under 40 Mt for Brazil, 37 Mt for Argentina and The EU must promote the competitiveness of the constraint of increasingly stringent 32 Mt for Ukraine. International and European European maize production. This requires a regulations. Today, the sector’s arsenal prices are therefore largely constrained by reform of the CAP that is also economical and of phytosanitary protection is being these countries’ exports. encourages investment by maize producers. reduced as products are re-approved, even It also requires access to new means of though new approvals remain limited due production, in particular NBTs, which allow to long and costly processes. Regulation a gain in competitiveness while meeting 1107/2009 of the European Parliament, environmental and climatic requirements. which introduced two notions for active substances: the notion of active substances «candidates for substitution», SORGHUM MARKET and the notion of substances with 3 years after the birth of the Sorghum ID exclusion criteria, brings out many association, the first results are there, the active ingredients, and limits the solutions acreages are increasing in many European for maize producers. Thus in maize, countries, the overall increase being since the ban on neonicotinoids, we around 10% per year for both grain and fodder are facing a complete dead end with sorghum. regard to the Geomyzes and Oscinia flies, Even if European imports are expected to but many other uses are also in a technical decrease in 2019-2020, with a projection These increases are both structural (longer dead-end (Birds, molehills, Skullcaps...). of 19.4 Mt imported by the end of the crop rotations, resistance to water stress, efficient The situation is particularly marked in year vs 24.1 Mt imported in 2018-2019, genetics) and cyclical, as autumn sowings sweet corn and seed maize, faced with foliar the EU will remain the world’s leading have been disrupted, many hectares are diseases (Helminthosporiose, Fusarioses). maize importer ahead of Mexico and Japan. available for spring crops. In addition, there is a general The European maize deficit is structural, in tightening of consumer safety policy. In addition, sorghum benefits from innovative particular due to Spanish and Dutch imports, Thus, on a European scale, more projects and energy outlets: pigmentation, which account for nearly 54% of European and more contaminants will be regulated, methanisation, ethanol, etc. maize imports. Furthermore, the drop in the with stricter health requirements. The volume imported in 2019-2020 is mainly The year 2019 was CEPM, the AGPM and the interprofession are due to the good straw cereal harvest and marked by the creation mobilized to identify occurrences and negotiate lower demand for maize in the cattle feed of the «star sorghum» thresholds limiting the impact on the maize manufacturing sector. concept to highlight the qualities of European sector, while preserving consumer health. In this overall context, the actions carried producers. This took place in particular via a under the leadership of the out by CEPM at the European level aim to workshop organised on 18 February 2020 in Netherlands, to ask the Commission to maintain a diversified range of pest control Mont-de-Marsan (France) on the theme carry out an analysis concerning the products, as well as access to innovative «Mycotoxins in maize: knowing and application of the GMO regulation on new products while limiting distortions of understanding their development for techniques. In this context, the Commission competition. The competitiveness of the better agronomic management». This has set up a rather exceptional procedure maize sector can only be guaranteed symposium, organized in collaboration in order to deliver an impact study in through effective and sustainable plant health with Arvalis, brought together around April 2021. To this end, it launched a protection. fifty participants, technicians from the consultation of competent and relevant maize industry and farmers. The stakeholders in early 2020, via a specific participants were able to learn about questionnaire. CEPM is one of the nearly MYCOKEY, AGAINST the conclusions of the MycoKey project 100 European organisations that were on mycotoxins in maize, the latest work asked to participate, as representative of the MYCOTOXINS CONTAMINATION by Arvalis on the subject, and to follow interests of its members and of European maize The MycoKey (Integrated and innovative key the debates of a round table bringing production. It is committed to demonstrating actions for mycotoxin management in the together various stakeholders in the industry the interest of new varietal selection food and feed chain) consortium, supported on the issues related to health protection. techniques as well as the limits of current by the European Union and led by CNR ISPA regulations and the need for a renewed in Bari (Italy), aims to reduce mycotoxin regulatory framework to allow access contamination in Europe and China, both BIOTECHNOLOGIES: to innovation through the use of these in the production and trade of the cereals CEPM MOBILISED biotechnologies in the processes of selecting most at risk: maize, wheat and barley. The crop varieties for European farmers. consortium consists of 34 partners from Continuing its actions developed in 2018, industry, research and associations (including CEPM carried on with its efforts to guarantee 11 Chinese members). access to biotechnologies for European AGRICULTURE & PROGRESS producers, in a context of legal insecurity The consortium, which ended in March linked to the decision of the European Court of PLATFORM AT THE HEART 2020, aims to develop an operational Justice on New Breeding Techniques (NBTs). IT tool - the «MycoKey App» - based on OF THE EUROPEAN DEBATE advanced technologies (probes, aerial CEPM used the Agriculture & Progress At the beginning of 2019, CEPM joined images) and new analysis methods. The platform, developed with the Beet and forces with CIBE and CEFS, faced with «MycoKey App» will provide stakeholders Sugar sectors, to promote its expectations the common challenge of a dead-end in with rapid and customized forecasts on on this subject, to enable the development terms of available tools to produce more and risk levels, production, storage and of innovation in Europe, its deployment and better and to respond to the various challenges processing solutions that are the most the limitation of distortions of competition facing producers. favorable in economic terms. Alternative and for our producers compared to the cultivation secure solutions will also be proposed for methods used in other parts of the world. The platform has thus positioned itself during contaminated shipments. the year 2019 on several key issues for the Several meetings with Members of Parliament sector in the context of the European policy Due to specific funding rules imposed by and European Commission officials have renewal and has undertaken activities at the European Commission, AGPM, the enabled us to develop our arguments several levels in this regard: French member of CEPM, has carried in this area. And the mobilization of the commitments initially planned by all agricultural stakeholders around this • Creation of a visual identity and CEPM and which are focused on the issue led the European Council, at the communication tools (Twitter, LinkedIn, dissemination of results to European initiative of a group of countries website) • Implementation of info-pack and meetings with other agricultural sectors with a view AGRICULTURE & PROGRESS PLATFORM to expanding the platform. • Documentation, positions, meetings: Within the framework of a breakfast cycle, - On 1 February 2019, first external meeting the European platform «Agriculture & with the unit of DG SANTE in charge of Progress», of which CEPM is a member NBTs; together with the European sugar beet - Elaboration of a post-electoral memorandum and sugar organisations, organised a first reflecting common positions on new breeding meeting on 23 January 2020 on the theme techniques, plant protection products, of integrated crop protection. This event EFSA’s guidance document on pesticide risk at the European Parliament with the assessment for bees, the innovation principle sponsorship of MEP Anne Sander (EPP and climate; Member) brought together various - 4-page article to promote the role of the stakeholders: MEPs, parliamentary attachés, Platform in the specialised magazine IAA - agricultural organisations... Industries Alimentaires et Agricoles, for their On this occasion, Céline Duroc and Franck special bulletin on sugar summer 2019); Laborde, who represented the European - Maize Congress 2019: official presentation of maize industry, recalled the many the Platform and participation in the debate advantages of maize, as well as the need on the current and future challenges of the for access to innovations, particularly in agricultural community; the field of genetics. It was also an y Event of the « Agriculture & Progress » - Series of meetings with Members of opportunity to underline the current technical Platform in the European Parliament under the European Parliament, Commission dead-ends encountered by producers. the patronage of MEP Anne Sander (EPP MEP) – 23 January 2020 officials and Member States’ Permanent Representations. conditions. targets unlessitcomplieswithderogatory oil willnolongerbeeligibleforEUbiofuel product oncarbon-richland.By2030,palm palm oilasahighdeforestationimpact European Commission’sclassificationof implementation. CEPM contributed to the of theenergypackageandstartits The 2018/2019periodsawtheconclusion NEW OUTLETS crisis isover. which will resume as soon as the sanitary these majoractionstodefenditspositions, The CEPM is of course still mobilized on patronage ofAnneSanderMEP(Fr,EPP). crop protectionandwasheldunderthe protection section)focusedonintegrated Parliament. Thefirstmeeting(seeplant meetings hostedbyMembersoftheEuropean topics of interest for thePlatformthrough decided todevelopaseriesofmeetingson the Agriculture&ProgressPlatform,itwas Within theframeworkofactivities European maizeheard. permanent opportunitytomakethevoiceof / InternationalAspectsofAgriculture)isa Arable Crops/EnvironmentandClimateChange (CDGs) (DirectPaymentsandGreening/CAP CEPM’s presencein5CivilDialogueGroups …  www.cepm.org All ofthesepublications canbefoundonthe increase itsaudienceandrelayactions. newsletter (CornMarket),whichenableitto quarterly Newsletterandaweeklyeconomic various tools,inparticularPressReleases,a its positions.Todoso,theorganisationuses CEPM isactivethroughouttheyearinexpressing A STRONGUNIONCOMMUNICATION… GROUPS AND EXPRESSEDINTHECIVILDIALOGUES Headquarters: 23-25avenuedeNeuilly -75116PARISTél.+33(0)147234832Fax.40 709344 website. Brussels office:Square deMeeûs21-1050BRUXELLES -Tél.+3222303868

framework, includingthedirectiveon a largerreviewpackageoftheregulatory to possibly review it by 2021, as part of the new climate package already proposes ink isnotyetdryontheRED2directive,but total decarbonisationoftransport.The in 2030 and2050 will imposea of ambitionsongreenhousegasreductions around the Green Deal. The strengthening with a new EU Commission structure bioethanol attheheartoftransportsolutions. partners tostrengthenthepositionofmaize countries. CEPMwillworkwithitsEuropean the use ofE10andE85biofuelsin their CEPM encourages its members to defend biofuels, particularlymaizebioethanol. increase these targets for first-generation Climate Law will provide an opportunity to targets fortransportandhopesthatthe compliance with existing renewable energy bioethanol. CEPMalreadyencourages should beseizedtodevelopmaize CEPM believesthattheseopportunities energy taxation. But sincethen,thecontexthaschanged y European level. in involvingcivilsocietydecision-makingat agriculture, ortheevaluationofroleCDGs the impactofBrexitnegotiationson CDG meetings on cross-cuttingissues, such as at theEUlevel.CEPMalsoparticipatesin on the other hand to be a source of proposals on issuespotentiallyharmfultomaize,and organisations (inparticularCOPACOGECA) This is useful on the one hand to alert partner

EM Congress CEPM www.cepm.org 2019

the USatknock-downprices. to protectthemarketagainstimportsfrom obligations. CEPMalsowantstheCommission do notderogatefromtheirincorporation Commission toensurethatMemberStates changing everything. CEPM has written to the bioethanol, the oil and Covid-19 crises are reduced the impact of the return of US bioethanol pricesattheendof2019has duties onUSbioethanol.Ifthetension 2019 againsttheliftingofanti-dumping production factors.CEPMfoughtinearly rules, notonlyoncarbonbutalso must allcomplywiththesameenvironmental mechanism. Indeed, the biofuels consumed reflection on a border carbon adjustment to the EU consultation on the draft imports. ThisiswhyCEPMhas responded the EUdevelopsananti-distortionpolicyon These ambitionscanonlybeachievedif Register toconductalltheseactivities. registered intheEuropeanTransparency And finally,ofcourse,CEPMis elections inMay2019. leaflet ontheoccasionofEuropean by 5 pressreleasesandanupdated These meetings were accompanied Progress» Platform. with membersofthe«Agriculture& - meetingsandeventstakenjointly not tomentionthevariousinitiatives European tradepolicyin2018-2019, future oftheCAPand3meetingson 17 meetings ontheroleofmaizein CEPM wasalsoveryactivewith innovation inagriculture. highlighting commonissuesrelatedto Congress on 26 June 2019 in Brussels Delahaye, andthe2ndEuropeanMaize May 2018hostedbyMEPAngélique monoculture where it exists, on 22 of maizeandtheinterestpreserving showing thegeostrategicimportance «CAP Reform-whatplaceformaize?» event at the European Parliament very active in 2018/2019 with an In termsofpublicevents,CEPMwas CEPM underthespotlight in Brussels

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