Máire Hoctor (Tipperary North, Fianna Fail)
Link to this: Individually | In context

Question 112: To ask the Minister for Agriculture, Fisheries and Food the outcome of the January 2010 Council of Agriculture Ministers meeting regarding the functioning of the European food supply chain; and if he will make a statement on the matter. [3696/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Ministers had a first discussion of a communication from the Commission that had been presented by Commissioner Fischer Boel at the December Agriculture Council meeting. That communication outlined a number of proposals to make the European food supply chain more transparent while promoting sustainable and market-based relationships. These proposals covered the promotion of sustainable and market-based relationships, mechanisms for increased transparency to encourage competition and improve resilience to price volatility and measures to increase the integration and competitiveness of the European food supply chain.

To guide the discussion, the Spanish Presidency prepared a series of questions for Ministers focusing on the areas of transparency and balance along the food chain, self-regulation, food price monitoring, territorial supply constraints and future initiatives at EU level.

In regard to market transparency and the balance within the food supply chain, the main concern was the need to achieve a greater balance along the chain between producers, processors and retailers. Solutions proposed included greater monitoring of prices and the establishment of codes of good practice. I supported the call for greater price transparency. I also took the opportunity to inform my Ministerial colleagues of the steps already taken by the Irish Government to implement a national Code of Practice for doing business in the Grocery Goods sector with a view to ensuring a fair trading relationship between retailers and their suppliers.

As regards self-regulation, there were differing views between Ministers on the extent to which new EU regulatory frameworks were required. A number of Member States took the view that contractual relations and other arrangements to regulate the supply chain were a matter for private operators while others believed that a regulatory framework or guidelines at EU level would be beneficial. My own view, which I conveyed to Ministers, is that there is a need to monitor and audit unfair contractual practices with a view to ensuring compliance with competition law.

Ministers were agreed on the usefulness of price observatories although I pointed out that fluctuating currency conversion rates can complicate the picture, and this should be taken into account in whatever systems are put in place at EU level.

Ministers also made a series of suggestions concerning other possible measures to address the situation. These ranged from proposals to increase research and development, provide new economic incentives and investment opportunities to suggestions to review the operation of State aids and to strengthen the operation of producer groups.

For my part, I emphasised the need for careful and sensitive use of market management measures to help to maintain balance on the market when appropriate and the use of such mechanisms to assist in the provision of fair returns to producers. I said that the new CAP must also address increased market volatility and we needed effective mechanisms to manage this. I also said there was a need to look critically at EU competition law in so far as it can serve to militate against consolidation at producer level to achieve the scale necessary for optimum efficiency and international competitiveness.

The discussion at the most recent Council was a first discussion only of the dossier. Over the coming months, the report will be examined in greater detail by the Agriculture Council and the preparatory bodies.