Presentatie die Herman Versteijlen, directeur Agrarische Markten, DG Landbouw, Europese Commissie, gaf op de publieksbijeenkomst over landbouw op 6 februari 2014 in Wageningen.

1. Competitiveness
and
Sustainability of
EU agriculture
Herman VERSTEIJLEN
Director Agricultural Markets
European Commission
Wageningen - Publiekbijeenkomst Europese Commissie
06.02.2014

2. Key drivers for EU food security:
1.Enhanced competitiveness
2.Improved sustainability
2

3. EU competitiveness - Milk
3

4. Increasing demand:
The main driver in
the dairy outlook
4

5. EU exports of dairy products (in milk equivalent) in % of EU Milk production
12%
10.6%
10.2%
10.1%
10.7%
10.7%
10.7%
10.8%
10.8%
11.0%
11.1%
11%
10.3%
10%
9.5%
9.0%
9%
8%
7.7%
7%
6%
2 009
2 010
2 011
2012e
2013f
2014f
2015f
2016f
2017f
2018f
2019f
2020f
2021f
2022f
Source : DG AGRI Medium Term Outlook, Eurostat (Comext)
5

6. EU competitiveness - Wheat
350
EU-15
EU-25
EU-25
EU-27
325
300
275
250
US SRW Wheat
225
EU Wheat
Rouen
200
175
e
n
o
t
/
R
U
E
150
125
100
75
EU cereal
support price
50
25
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
6

7. EU competitiveness - Maize
325
EU-15
EU-25
EU-25
EU-27
300
275
250
225
EU Maize
Bourdeaux
200
175
e
n
o
t
/
R
U
E
150
125
100
75
EU cereal
support price
50
US 3YC Maize
25
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
7

8. EU competitiveness - Sugar
8

9. The path of CAP expenditure 1980-2020 (in current prices)
70
EU-10
EU-12
EU-15
EU-25
EU-27
EU-28
60
50
-n
s
e
c
i
r
p
t
u
40
R
U
E
o
l
b
n
i
30
20
10
0
8
9
1
8
9
1
2
8
9
1
3
8
9
1
4
8
9
1
5
8
9
1
6
8
9
1
7
8
9
1
8
9
1
8
9
1
0
9
1
9
1
2
9
1
3
9
1
4
9
1
5
9
1
6
9
1
7
9
1
8
9
1
9
1
0
2
1
0
2
0
2
3
0
2
4
0
2
5
0
2
6
0
2
7
0
2
8
0
2
9
0
2
1
0
2
1
0
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
6
1
0
2
7
1
0
2
8
1
0
2
9
1
0
2
0
2
0
Export refunds
Other market support
Market-related expenditure
Decoupled direct aids
Direct aids
Rural development
Source: DG Agriculture and Rural Development
9
Coupled direct aids
2013 = Budget (in commitments); 2014-2020 = in commitments
2014 = after transfers from P1 to P2 (before flexibility and capping)

10. ALTERNATIVE VIEWS ON EXPENDITURE
CAP expenditure 2009
(euro)
CAP expenditure in 2009
(%)
41% of EU
budget
0.5% of
EU GNI
Source: European Commission - DG Agriculture and Rural Development
10

11. 1. Enhanced competitiveness
2. Improved sustainability
11

12. New focus of direct payments
Decreasing share of CAP expenditure in EU
Budget (37,8% for the years 2014-2020);
Direct payments to farmers in exchange for
public services & specific objectives, e.g.:
Payments for green services
Payments to young farmers
Payments to areas with natural constraints
12

13. Cumulative
environmental benefits
The new greening architecture of the CAP
m
Far ry
iso
Adv tem
Sys
ean
rop ion
Eu
vat
nno rship
I
tne
Par
al
ltur
ic u
Agr earch
Res
Rural
development
Greening
Cross compliance
Agricultural area
(eligible for direct payments)
13
Implementation
mechanism
Voluntary
with compensation
for cost incurred
and income forgone
Mandatory
with financial
support
(decoupled “green”
payment per hectare)
Regulatory
(Statutory
Management
Requirements and
Good Agricultural
Environmental
Conditions)

14. Standard of living of farmers compared to the standard
of living of employees in the whole economy*
* Standard of living of farmers as a share of the standard of living of persons employed full-time in the whole
economy (calculated on the basis of entrepreneurial income/salary in EUR/hour worked)
14

15. Development of agricultural income in the EU-28
(average 2003-07=100)
15

16. Conclusions
The new CAP contributes to EU food security by:
• Keeping EU agriculture competitive at world level
• Supporting public services: sustainability, greening
However, agricultural incomes are low as compared to the rest of the
Economy.
Thank you for your attention !