THE COMMON MARKET ORGANISATION IS BEING AMENDED BY THE CYPRUS PRESIDENCY OF THE EU - WHY THESE CHANGES ARE IMPORTANT FOR CYPRUS - Filenews 30/3
An important European initiative to strengthen the position of farmers in the market and ensure fairer conditions in the agri-food chain will be completed in the near future, with the achievement of a political agreement between the Council and the European Parliament on the amendment of the regulatory framework of the Common Market Organization, the Ministry of Agriculture, Rural Development and Environment said in a statement.
"At a particularly critical juncture, the Ministry of Agriculture, Rural Development and Environment, as the Cyprus Presidency of the Council of the EU, undertook the file for the amendment of the Common Market Organization, with several complex and open issues requiring an immediate political settlement," he says.
He adds that the amendment of the Regulation was one of the essential priorities promoted by the Cyprus Bank in the agricultural sector, responding to the strong concerns of European producers about their income and position in the value chain.
It notes that the need to speed up the legislative process was imperative so that European farmers could see tangible benefits without further delay.
"In the role of a true impartial negotiator, the Presidency held targeted bilateral technical meetings with member states and intensive negotiations with the European Parliament, seeking to reshape provisions that could create dysfunctions in the agri-food chain. At the same time, it proceeded with an extensive technical review and detailed processing of the regulations, with the aim of solving or preventing possible problems and forming a more complete, functional and applicable legislative framework," the Ministry states.
The agreement reached, he emphasizes, "in addition to the success for the Cyprus Presidency, is an essential breakthrough for strengthening the position of producers in the market".
It notes that farmers gain stronger protection through mandatory written contracts that set in advance price, quantity, payment time and terms of cooperation, limiting sudden price changes and unfair practices, while the Presidency has succeeded with targeted flexibility in allowing successful trading practices to continue to be applied, thus avoiding additional administrative burden for Producer Organisations and Cooperatives.
At the same time, he adds that "with the actions of the Presidency, the indication of origin in agricultural products is strengthened, with proportionality of rules, without additional administrative burdens, allowing producers to highlight the value and local character of their production".
"Overall, the successful conclusion of the negotiation confirms that the European Union can respond quickly and effectively to the needs of the primary sector" says the Ministry and adds that the completion of the agreement sends a clear message that the European Union can respond quickly and effectively to the needs of the primary sector, enhancing transparency in the market, the collective power of producers and the fair distribution of added value.
"The contribution of the Cyprus Presidency has been instrumental in shaping a balanced and practical regulatory framework, which boosts farmers' incomes, strengthens their position in the value chain and lays the foundations for a fairer and more resilient agri-food market in Europe."
For Cyprus, he emphasizes, but also for other Member States with small and family farms, this development is of particular importance, as it creates new possibilities to support agricultural income and strengthen the competitiveness of local products.
As mentioned, the European Union is proceeding with significant changes to the rules that regulate the operation of the agricultural product market, with the aim of strengthening the position of farmers vis-à-vis large buyers and making the distribution of profits in the agri-food chain fairer.
These changes are a direct response to the intense mobilizations of European farmers in 2024 and are expected to have a positive impact especially on countries with small farms, such as Cyprus, the Ministry notes.
"Simply put, the new European initiative aims at three main things: better prices for producers, more transparency for consumers and stronger producer organisations."
In addition, one of the most important changes is that farmers will now have the right – and in most cases the obligation – to sell their products with written contracts before delivery. This means, the Ministry states, that the price, quantity, payment time, and terms of cooperation will be known in advance.
"In this way, arbitrary price changes are reduced and the protection of producers from unfair commercial practices is strengthened."
It also notes that the new rules give more flexibility to Producer Organisations to collectively negotiate better prices for their members. This, he adds, is especially important for small producers who alone have limited bargaining power.
In addition, he says, the process of recognizing organizations is simplified, the possibility of cooperation between producers is strengthened, and funding from the European Union is increased, especially for young farmers.
"For countries like Cyprus, where small family farms predominate, this development may prove particularly significant."
In addition, the Communication states that for the first time European rules are being introduced on the use of terms such as 'fair product', 'fair trade' and 'short value chain'
"These terms can only be used when they really correspond to reality and not just as commercial slogans. This protects both producers and consumers from misleading practices," the Ministry says.
He points out that especially "short value chains", i.e. the direct or almost direct distribution of products from the producer to the consumer, can increase farmers' income and strengthen the local economy.
In addition, he emphasizes that the new rules strengthen the possibility of indicating the country or region of production on food and in this way the link between local production and consumption is strengthened and local products are promoted
This helps, he continues, consumers to know what they are buying, producers to highlight the quality of local products, and small markets, such as Cyprus, to protect their production from unfair competition.
In addition, the new rules provide that meat-related names will only be used for products that actually contain meat.
In this way, livestock farmers are protected, consumers are not confused, and the value of animal products is safeguarded.
The Ministry of Agriculture adds that the European Union increases funding for investments through producer organisations, particularly when young farmers are involved.
In some cases the aid may be up to 70% of the investment cost, while additional support is provided for countries where producer organisations are less developed.
Why these changes are important for Cyprus
As far as Cyprus is concerned, the Ministry notes that Cypriot agriculture is mainly based on small and medium-sized farms and on products with a strong local identity, such as halloumi. The new regulations can strengthen the bargaining power of producers, increase the value of local products, reduce unfair practices in the market, and support agricultural income.
"Overall, this is an important step towards a fairer and more resilient agri-food chain in Europe – with immediate benefits for both producers and consumers," the Ministry concludes.
CNA
