Free distribution of fruit and vegetables

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1 Free distribution of fruit and vegetables European Commission DG for Agriculture and Rural Development Unit C.2 Olive Oil and Horticultural Products Annual meeting with Charitable Organisations 15 July 2008

2 Outline 1. Free distribution before the reform of the F&V CMO - Council Regulation 2200/96 2. Free distribution under the new CMO for F&V Council Regulation 1234/2007 and Commission Regulation 1580/2007 2

3 1. Free distribution before the reform of the F&V CMO - Council Regulation 2200/96 and Commission Regulation 103/2004 3

4 2 types of withdrawals: Community withdrawal compensation for 16 main products (set in Annex II of R 2200/96) Possibility to finance withdrawals of other products through the operational fund of the PO (no special provisions on free distribution in this case) 4

5 Free distribution of Annex II products Sorting, packing and transport costs financed by the Community on the basis of flat rates Free distribution counted in Value of Marketed Production of the POs in order to favour this destination for withdrawals Possibility to process the products for free distribution either at the expense of the charitable organisation or with payment in kind The list of approved Charitable Organisations published every three years (OJ and EU website) 5

6 Withdrawals of Annex II products by destination (av. 2004/2005 to 2006/2007) Volume (t) Share in total Free distribution % Non food 0 0% Animal feed % Distilation % Composting and biodegradation % Total withdrawals % Note: Incomplete data for IT, BE and UK in 2006/07 - total withdrawals are estimations; no data on different destinations 6

7 Evolution of free distribution and total withdrawals of Annex II products over the last 10 years free distribution (T) /98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/ total withdrawals (T) Free distribution Total withdrawals 7

8 Share of free distribution in total withdrawals 100% 90% 80% 70% 60% 50% 40% Free distribution Withdrawals other than for free distribution 30% 20% 10% 0% 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 *Covers the products listed in Annex II of Regulation 2200/1996 8

9 Oranges Clementines Mandarins Satsumas Apples Pears Lemons Table grapes Peaches Nectarines Apricots Caulliflowers Watermelon Melons Aubergines Tomatoes Free distribution by product, average 2004/05 to 2006/07 (T) *Covers the products listed in Annex II of Regulation 2200/1996 9

10 Free distribution of apples, pears and oranges, 2004/05 to 2006/07 (T) / / / Pears Apples Oranges 10

11 Free distribution of Annex II products by destination (T) / / / / / / / / / /07 Third countries Schools Other 11

12 Share of MS in total EU withdrawals and free distribution, average 2004/05 to 2006/07 (%) 60% 50% 40% 30% 20% 10% 0% BE CY ES FR GR IT NL PT UK Total withdrawals Free distribution *Covers the products listed in Annex II of Regulation 2200/1996; **No data available on 2006/07 free distribution in IT, BE and UK 12

13 Total withdrawals and free distribution by MS, average 2004/05 to 2006/07 (T) Total withdrawals Free distribution BE CY ES FR GR IT NL PT UK *Covers the products listed in Annex II of Regulation 2200/1996; **No data available on 2006/07 free distribution in IT, BE and UK 13

14 Free distribution by MS, average 2004/05 to 2006/07 and 2006/07 (T) **UK PT **IT GR FR ES **BE Free distribution - av. 04/05 to 06/07 Free distribution /07 *Covers the products listed in Annex II of Regulation 2200/1996 **No data available on 2006/07 free distribution in IT, BE and UK 14

15 Main conclusions The objective to reduce withdrawals has been achieved The objective to decrease the share of destruction as a destination has not been achieved Free distribution still represents a minor part of withdrawals No processing of products for free distribution (possibly due to complex rules) Portugal: withdrawals mainly for free distribution 15

16 2 Free distribution under the new CMO for F&V Council Regulation 1234/2007 and Commission Regulation 1580/

17 General rules Withdrawals now under the operational programmes of the POs as part of the crisis prevention and management measures MS decide on the possible destinations, but free distribution has to be included Free distribution applies to all F&V (not just 16 products) Free distribution limited to 5% of the total volume marketed by the PO Processing of products for free distribution possible if there is no resulting distortion of competition (up to the MS no complex rules in the regulation) Free distribution counted in the Value of Marketed Production of the POs Recipients of free distribution approved by the MS Abolishment of free distribution to third countries 17

18 Support Free distribution financed at 100% by the Community (compared to 50 or 60% for other withdrawals) Maximum amounts of support for withdrawals for the 16 main products 50% higher than old Community withdrawal compensations (set in Annex X of R1580/2007) MS to set maximum amounts for other products Sorting, packing and transport costs for free distribution covered at 100% by the Community on the basis of flat-rates (currently under revision). 18

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