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Peter dawson presentation


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Peter Dawson, from Dairy UK, presents the regulatory context of the dairy industry to the Dairy2020 project.

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Peter dawson presentation

  1. 1. The voice of the dairy industry
  2. 2. WTO• Negotiations stalled• Current offer – Limits on domestic support • Will not affect EU expenditure – Tariff cuts • Probably not materially affect EU dairy market – Abolition of export refunds • EU proposal to abolish by 2013 difficult to repudiate• Overall effect: EU market exposed to world price trends
  3. 3. CAP Reform: General• Underlying direction of policy – Removal of market support regimes – Replacement with decoupled direct payments – Payments increasingly linked to provision of public goods – Shift of funds to Rural Development – Tighter budgetary constraints
  4. 4. CAP Reform: DairyMid Term review 2003• Cuts in intervention prices• Compensatory direct payments integrated into single farm paymentHealth Check 2008• Allowing the quota regime to lapse in March 2015• Phased quota increases prior to that date
  5. 5. CAP Reform: Current Round• Evolution of existing policy – Refinement of single payment • Addition of ‘greening criteria’ • Support for areas – Specific constraints – Particular socio/economic importance • Capping • Support for small farms • Targeting at active farmers• Market measures – Retention of a safety net – Support for risk management tools• Rural Development – New themes
  6. 6. CAP Reform: Outcome• Less support for UK farmers• More complexity• Greater obligations• Quota abolition to proceed – More milk in certain regions of the EU• Dairy still exposed to global price trends
  7. 7. Dairy Package: Commission proposal• Primary objective to improve bargaining position of dairy farmers• Producer Organisations – New model for collective action by farmers – Market share exemption from competition law• Contracts – Option for member states to regulate – Content left to negotiation• Inter-Professional Organisations – Undertake variety of activities for the sector
  8. 8. Dairy Package: European Parliament• Producer Organisations – Larger exemption from competition law – Lower threshold for intervention by national competition authorities• Contracts – Mandatory requirement for Member States to regulate – Requirement for fixed annual prices – Greater prescription on content• Inter-Professional Organisations – Greater powers
  9. 9. Dairy Package: Outcome• Producer organisations could transform supply chain relationships – But face significant transitional issues• Contract regulation – Greater price predictability at expense of instability in relationships ?
  10. 10. Grocery Adjudicator• Resolve disputes under the Grocery Supply Code of Practice• Undertake investigations• Threat of reputational damage• Impact on commercial relations uncertain
  11. 11. Nutrition and Health Claims Regulation• Regulation will remain• Places significant hurdles on the industry in marketing of dairy products on basis of established science• Nutrient profiles will impose further restrictions• Dairy unable to match research resources of food processing multi-nationals
  12. 12. Food Information Regulation• Sets requirements for food labelling – Declaration of saturated fat content mandatory – Commission to review treatments of trans fats
  13. 13. Carbon Targets• Govt carbon budgets – Greenhouse gas action plan • Delivered through Dairy Roadmap – Climate Change Agreements • Much more challenging targets
  14. 14. Energy Generation• EU ETS – Full purchase of carbon allowances by energy generators beginning 2013• Electricity market reform – Carbon price support• Renewable energy support mechanisms – Renewable obligation – Renewable heat incentive – Feed-in tariffs
  15. 15. Farm Issues• Farm Environmental Regulation – Review of NVZs – Water Framework Directive – IPPC• Cloning/GM – EU may ban cloning and impose a requirement for traceability on progency – EU approach fundamentally restrictive• Animal Disease Control• Planning Regulation
  16. 16. Regulators and Regulation• EU remain dominant in agriculture and food law – Legislative process slower and less easy to influence – Review of existing regulation more difficult• Further devolution in the UK• New partnership approach by Defra