Support for EU food exports approved

By Anthony Fletcher

- Last updated on GMT

Related tags Eu European union

The EC has approved measures designed to promote agricultural
products outside the bloc.

"EU quality products are second to none,"​ said Mariann Fischer Boel, commissioner for agriculture and rural development.

"Increasing their visibility on markets outside the EU is a major priority. I see enormous sales potential on overseas markets, where people appreciate the history behind these high quality foodstuffs and wines.

"By investing in promotion and information campaigns for our products outside the EU, the European Union is showing its determination to take up this challenge."

Member States submitted 28 programmes to the Commission to be examined. The 10 programmes that have been accepted are from Cyprus, Germany, Greece, Italy, the Netherlands, Poland and Portugal.

They are targeted at the USA, Canada, India, Japan and China. The products covered are wine, fruit, meat, dairy products, olive oil and organic products. The EU contribution is €9.1 million (50 per cent of the total budget of the programmes).

The initiative is designed to support the growing strength of EU food exports. The industry now has a trade surplus of €4.5 billion, and exports of food and drink products amounted to €47.6 billion in 2005, according to the CIAA.

EU sales of beverages remain the leading sector of the food and drink industry. After years of uneven performance, exports of wines and spirits recorded growth rates of 5 per cent and 9 per cent respectively in 2005.

Meanwhile, the chocolate, biscuits and confectionery sector experienced a decrease in its trade surplus in 2005 (lowest surplus since 2000), due to the stagnation of its exports and a regular increase of imports.

In total, exports grew by 5.2 per cent in 2005, the highest recorded annual increase since 2000. Meanwhile, imports of food and drink products grew less than in 2004.

Among the main countries of destination, the Commonwealth of Independent States (CIS) recorded the highest growth rate for the second time (+12 per cent in 2005 and + 13 per cent in 2004). Exports to China increased by an impressive 24 per cent in 2005 to reach almost €800 million.

The results suggest that the European food industry is in a relatively strong position. There have been fears that Europe's food and drink sector has been in danger of losing its competitiveness. The Confederation of Food and Drink Industries in the EU (CIAA) has voiced the opinion in recent months that the industry needs more help from the European Commission if it is to face the increasing competition from Asia, South America and the US.

Under the newly approved scheme, the EU can fund (to a maximum of 50 per cent) measures in third countries that provide information on, or promote, agricultural products and food products. These measures can be public relations, promotional or publicity measures, in particular highlighting the advantages of EU products, especially in terms of quality, hygiene, food safety, nutrition, labelling, animal welfare or environment-friendliness.

These measures can amongst others also cover participation at events and fairs, information campaigns on the EU system of protected designations of origin (PDOs), protected geographical indications (PGIs) and traditional speciality guaranteed (TSGs) and of organic farming.

Also possible are information campaigns on the EU system of quality wines produced in specified regions (QWPSR) and studies of new markets.

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