The Commission presents its report on the application of Council Regulation (EC) No 3/2008 on information provision and promotion measures for agricultural products on the internal market and in third countries. It recalls that two reports have already been presented, in 2004 and 2006. This report covers the operation of the promotion scheme between 2006 and the first half of 2010. It deals mainly with improvements in management and impact assessment as well as with simplification aspects (the two distinct regulations targeting, respectively, third countries and internal markets were merged into one). It focuses on all Commission Decisions adopted since the last report and analyses the data available with regard to the promotion of agricultural products.

Co-financed promotion programmes : during the period covered by this report, all Member States took part in promotion efforts, showing a broad interest in the scheme. In all, 430 programme proposals, with a total budget of EUR 505.6m, were received by the Commission departments after a first selection by the national authorities. 183 of them were accepted for Community co-financing totalling EUR 248.6 million. Of these, 134 concerned the internal market and 49 targeted third country markets. Almost all products listed in Annex 1 to Regulation (EC) No 501/2008 benefited from these promotion efforts. Dairy products were the greatest beneficiaries in terms of accepted programmes (36), followed by quality products (PDO, PGI, organic and outermost regions: 32), fruit and vegetables, fresh and processed (30), meat products, including poultry (23), wines and spirits (20), olive oil (8), etc. The main reasons for rejection during the reference period were: the actions were not described in enough detail to give the Commission departments a clear picture of the programme; the budget was not sufficiently detailed to allow the programme’s value for money to be assessed, as required by Council Regulation (EC) No 3/2008. The reasons for proposing the programme were not given; elements proving that the implementing body had been well chosen were lacking. In more recent years, another significant ground for rejection was the absence of SMART objectives, or of methods to be used for programme evaluation and impact assessment.

Promotion activities managed directly by DG AGRI : the report describes directly managed activities with some emphasis on the high level missions or promotional events, notably to India and China, which were organised as follows from 2007 to 2010. It also discusses the promotion campaign for organic food and farming, and other expenditure under direct management. A detailed description of all activities under direct management by DG AGRI is given in the Commission Staff Working Document accompanying the report.

The report states that the period 2006-2010 featured several amendments to the scheme of EU co-financed programmes for the promotion of agricultural products. It makes the following points:

the promotion scheme was improved in the light of the last report’s recommendations: the two Council regulations were merged into one (now Council Regulation (EC) No 3/2008 of the Council) and the two Commission regulations were also merged into one (Commission Regulation (EC) No 501/2008). , of the Commission); the selection procedure for the new programmes at Commission level was improved through the adoption of guidelines and the introduction of quantitative evaluation methods (evaluation grid) and reference costs for the various actions included in the programmes. The paper notes that robust guidelines for preparing promotion programmes have been drawn up and adopted. DG AGRI’s internal audit report of May 2009 noted that the systems in place comply with applicable rules and procedures in a satisfactory manner and that since 2005, there has been a constant increase of the quality of the selection procedure’. The guidelines already adopted and updated will certainly help in this respect; improvements were made to the impact assessment of programmes during and at the end of their implementation. Since 2008, an assessment of the impact of the programmes is made when the programmes come to an end and is included in the final reports examined by the programme managers. This assessment makes use of indicators such as the budget execution rate or the conformity of the implemented programme with the proposed one. The measures included in the programmes are increasingly successful. Up to now the reports were often drafted by the proposing organisations themselves. From 2010 on, the evaluations will be made by independent assessment bodies. A good indicator of the quality of the promotion tools developed during the implementation of the promotion programmes, and of their positive impact, is the fact that, after many programmes are completed, a request is introduced by the proposing organisation to be allowed to produce additional quantities of these tools for further use at their own cost; the management of the programmes was consequently improved. The implementation rate (expenditure/appropriations) of the sector increased significantly, to almost 100 %. The trend in the implementation rate has to be underlined: sound management of the promotion sector helped put a stop to the under-consumption that was one of the main features of the sector up to 2006; during the report period, the promotion scheme was also used to counter crisis consequences in two cases: avian influenza (2007) and the crisis in the dairy sector (2008). Many other improvements were initiated by the Commission departments during the reporting period, in line with the Court of Auditors’ recommendations.

Recent audits by the Court of Auditors and DG Agriculture and Rural Development’s internal audit unit have confirmed these improvements. Nevertheless, other improvements still have to be made:

The quality of the programmes sent to the Commission departments needs to be further improved; the selection, monitoring and audit of programmes by the Member States’ competent authorities also has to be further improved. Greater attention needs to be paid to the tender procedures applied for the choice of the implementing bodies. In this context both Articles 9(2)(e) and 12(2) stress the technical and financial capacities these bodies have to possess in order to ensure that the promotion actions are implemented as efficiently as possible; the procedure currently in place to approve co-financed programmes is rather cumbersome. Programmes are evaluated twice: at the level of the Member State and then at EU level. The whole selection procedure takes seven months. Nevertheless, more than 50 % of the programmes received are refused.

The current information and promotion policy will be reviewed in parallel with the discussion on the CAP reform after 2013. The promotion instruments should provide EU producers with an effective tool whilst attempting at the same time to reduce the administrative burden.

COM(2010)0692
EUR-Lex

The Commission presents a Staff Working Document accompanying its report on the application of Council Regulation (EC) No 3/2008 on information provision and promotion measures for agricultural products on the internal market and in third countries. This consists of two Annexes.

The first Annex contains the changes introduced to the promotion regime since the Report 2006, in addition to those already discussed in the report. The second Annex contains a description of the promotion activities managed directly by DG AGRI. These include high level missions, promotion campaign for organic food and farming, and other expenses under direct management.

SEC(2010)1434
EUR-Lex

SP(2008)0411

PURPOSE: Corrigendu m to Council Regulation (EC) No 3/2008 of 17 December 2007 on information provision and promotion measures for agricultural products on the internal market and in third countries (Regulation initially published in the Official Journal of the European Union L 3 of 5 January 2008).

The purpose of the Regulation is to establish a legal framework for the promotion of agricultural products in the Community and in third countries.

The corrigendum relates to the replacement of correlation tables referred to in Article 19 of the Regulation.

Regulation 2008/3
OJ L 003 05.01.2008, p. 0001
Corrigendum to final act 32008R0003R(01)
OJ L 040 11.02.2009, p. 0058

Results of vote in Parliament

The European Parliament adopted a legislative proposal based on the report drafted by Bogdan GOLIK (PES, PL) by 549 votes for, 26 votes against and 16 abstentions. Conforming to the position taken by its competent committee, Parliament made some amendments, in the framework of the consultation procedure, to the proposal for a Council regulation on information provision and promotion measures for agricultural products on the internal market and in third countries.

The main amendments were as follows:

- Parliament stated that criteria should be set for selecting themes, markets and potential export opportunities concerned by the Community programmes, particularly with regard to those carried out in third countries;

- information and promotion measures should include and reflect in the best possible way the attributes of the European production model - the richness, variety and tradition of the Community's agri-foodstuffs culture;

- the Commission should promote collaboration with the Member States on measures that it launches on its own initiative, thereby increasing Community added value;

- it would be appropriate to devise and include in the programmes information and support measures for the professional organisations taking part in them;

- in view of the rapid process of internationalisation to which the Community agri-foodstuffs industry is subject, MEPs stated that it would be appropriate to provide for flexible application of the promotion and information instruments, and to make the legislative amendments needed in the light of the experience acquired since 1999;

- bearing in mind that, especially in third countries, the promotional measures introduced should foster access to European products for consumers, and also bearing in mind that the organisations cofinance a substantial percentage of the programmes, the participating proposing organisations should be able to present their products at commercial events, such as trade and other fairs, in order to show the richness, quality and variety of the Community products available;

- information and promotion measures for fruit and vegetable products should be strengthened;

- the need to emphasise the numerous advantages of regional and local products for the environment and the labour market should be one of the criteria to be considered for measures to be implemented in the internal market;

- the Commission (and not the Member States) shall define the specifications setting the conditions and evaluation criteria for information and promotion measures;

- priority shall be given only to the programmes carried out on third country markets and within these measures particularly to programmes that are proposed by several Member States or providing for measures in several Member States;

- the Community's financial participation in the programmes selected shall not exceed 60% of the actual cost of these programmes (50% in the proposal). However, in the case of programmes related to organic farming and programmes dealing with measures taken as a result of crisis situations, the level of the Community’s financial participation to such programmes shall not exceed 70%. Proposing organisations shall participate in the funding of the programmes they propose to a level of at least 10% of the actual costs of the programmes (instead of 20% in the proposal);

- the rules shall in particular provide for the possibility for proposing organisations to submit their programme at least twice a year and for the Member States to submit the programme proposals to the Commission on the same terms.

- the report stated that provisions should be made for a proper distinction between the implementing measures related to technical issues of acceptance of projects submitted by proposing organisations and issues related to strategic approach with regard to market outlet studies and export opportunities. In the first case, the management procedure should be used, whereas, in the second case, since the choice of export strategy maintains certain aspects of political importance, the regulatory procedure should be applied;

- before 31 December 2010, the Commission shall submit to the European Parliament and the Council a report on the application of the Regulation, together with any appropriate proposals.

Parliament also underlined that the inclusion of the promotion measure in the framework of the single CMO regulation (see CNS/2006/0269 ) would be in line with the simplification process and would lead to the transparency of all the market instruments available for the operators, market management mechanisms and promotion possibilities.

T6-0605/2007

Debate in Parliament

A6-0461/2007

A6-0461/2007

The Committee on Agriculture and Rural Development adopted the report by Bogdan GOLIK (PES, PL) amending, under the consultation procedure, the proposal for a Council regulation on information provision and promotion measures for agricultural products on the internal market and in third countries.

The main amendments adopted by the committee are as follows:

- the committee stated that criteria should be set for selecting themes, markets and potential export opportunities concerned by the Community programmes, particularly with regard to those carried out in third countries;

- information and promotion measures should include and reflect in the best possible way the attributes of the European production model - the richness, variety and tradition of the Community's agri-foodstuffs culture;

- the Commission should promote collaboration with the Member States on measures that it launches on its own initiative, thereby increasing Community added value;

- it would be appropriate to devise and include in the programmes information and support measures for the professional organisations taking part in them;

- in view of the rapid process of internationalisation to which the Community agri-foodstuffs industry is subject, MEPs stated that it would be appropriate to provide for flexible application of the promotion and information instruments, and to make the legislative amendments needed in the light of the experience acquired since 1999;

- bearing in mind that, especially in third countries, the promotional measures introduced should foster access to European products for consumers, and also bearing in mind that the organisations cofinance a substantial percentage of the programmes, the participating proposing organisations should be able to present their products at commercial events, such as trade and other fairs, in order to show the richness, quality and variety of the Community products available;

- information and promotion measures for fruit and vegetable products should be strengthened;

- there is a need to emphasise the numerous advantages of regional and local products for the environment and the labour market;

- the Commission (and not the Member States) shall define the specifications setting the conditions and evaluation criteria for information and promotion measures;

- priority shall be given only to the programmes carried out on third country markets and within these measures particularly to programmes that are proposed by several Member States or providing for measures in several Member States;

- the Community's financial participation in the programmes selected shall not exceed 60% of the actual cost of these programmes (50% in the proposal). However, in the case of programmes related to organic farming and programmes dealing with measures taken as a result of crisis situations, the level of the Community’s financial participation to such programmes shall not exceed 70%. Proposing organisations shall participate in the funding of the programmes they propose to a level of at least 10% of the actual costs of the programmes (instead of 20% in the proposal);

- the report stated that provisions should be made for a proper distinction between the implementing measures related to technical issues of acceptance of projects submitted by proposing organisations and issues related to strategic approach with regard to market outlet studies and export opportunities. In the first case, the management procedure should be used, whereas, in the second case, since the choice of export strategy maintains certain aspects of political importance, the regulatory procedure should be applied;

- before 31 December 2010, the Commission shall submit to the European Parliament and the Council a report on the application of this Regulation, together with any appropriate proposals.

MEPs also underlined that the inclusion of the promotion measure in the framework of the single CMO regulation (see CNS/2006/0269 ) would be in line with the simplification process and would lead to the transparency of all the market instruments available for the operators, market management mechanisms and promotion possibilities.

PE396.407

PE390.711

PURPOSE: to develop information provision and promotion measures for agricultural products on the internal market and in third countries.

PROPOSED ACT: Council Regulation.

CONTENT: in acc ordance with Council Regulation (EC) No 2826/2000 on information and promotion measures for agricultural products on the internal market and Council Regulation (EC) No 2702/1999 on measures to provide information on, and to promote, agricultural products in third countries, the Community may implement information and promotional measures on the internal market and on third country markets for certain agricultural products. The results so far have been very encouraging. This policy has been useful to supplement and reinforce the schemes run by Member States since 2000 by boosting product image in the eyes of consumers in the EU and in third countries, in particular as regards the quality, nutritional value and safety of foodstuffs and the methods of production.

In the light of the experience gained in recent years and with a view to simplification, a single legal framework should be adopted for the promotion of agricultural products on the internal market and on third country markets, whilst maintaining the specific features of measures that differ according to where they are carried out. With this aim, the proposal is to recast the two Regulations (EC) Nos 2702/1999 and 2826/2000 into a single regulation.

Information and promotion measures for agricultural products and their method of production as well as for food products based on agricultural products carried out on the internal market or on third country markets may be financed, fully or in part, by the EU budget subject to the conditions laid down in this

Regulation.

The above-mentioned measures shall comprise:

public relations work, promotion and advertising, which in particular draws attention to intrinsic features and advantages of EU products, notably the quality and safety of food, specific production methods, nutritional and health value, labelling, high animal welfare standards and respect for the environment; information campaigns, in particular on the EU system of protected designations of origin (PDOs), protected geographical indications (PGIs) and traditional speciality guaranteed (TSGs) and of organic farming, and other EU schemes for quality standards and labelling of agricultural products and foodstuffs, as well as on the graphic symbols laid down in applicable EU legislation; information measures on the EU system for quality wines produced in specified regions (quality wines psr), wines with geographical indication and spirit drinks with geographical indication or reserved traditional indication; impact assessment of the information and promotion measures implemented.

COM(2007)0268
EUR-Lex

PURPOSE: to develop information provision and promotion measures for agricultural products on the internal market and in third countries.

PROPOSED ACT: Council Regulation.

CONTENT: in acc ordance with Council Regulation (EC) No 2826/2000 on information and promotion measures for agricultural products on the internal market and Council Regulation (EC) No 2702/1999 on measures to provide information on, and to promote, agricultural products in third countries, the Community may implement information and promotional measures on the internal market and on third country markets for certain agricultural products. The results so far have been very encouraging. This policy has been useful to supplement and reinforce the schemes run by Member States since 2000 by boosting product image in the eyes of consumers in the EU and in third countries, in particular as regards the quality, nutritional value and safety of foodstuffs and the methods of production.

In the light of the experience gained in recent years and with a view to simplification, a single legal framework should be adopted for the promotion of agricultural products on the internal market and on third country markets, whilst maintaining the specific features of measures that differ according to where they are carried out. With this aim, the proposal is to recast the two Regulations (EC) Nos 2702/1999 and 2826/2000 into a single regulation.

Information and promotion measures for agricultural products and their method of production as well as for food products based on agricultural products carried out on the internal market or on third country markets may be financed, fully or in part, by the EU budget subject to the conditions laid down in this

Regulation.

The above-mentioned measures shall comprise:

public relations work, promotion and advertising, which in particular draws attention to intrinsic features and advantages of EU products, notably the quality and safety of food, specific production methods, nutritional and health value, labelling, high animal welfare standards and respect for the environment; information campaigns, in particular on the EU system of protected designations of origin (PDOs), protected geographical indications (PGIs) and traditional speciality guaranteed (TSGs) and of organic farming, and other EU schemes for quality standards and labelling of agricultural products and foodstuffs, as well as on the graphic symbols laid down in applicable EU legislation; information measures on the EU system for quality wines produced in specified regions (quality wines psr), wines with geographical indication and spirit drinks with geographical indication or reserved traditional indication; impact assessment of the information and promotion measures implemented.

COM(2007)0268
EUR-Lex