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Innovation, market management measures and eco-friendly
farming ideals must be central tenets in the new Common Agricultural
Policy, according to the Irish Co-operative Organisation Society
(ICOS).
Addressing a special session of the EU committee on agriculture
and rural development in Brussels, ICOS
European affairs executive Conor Mulvihill said the new CAP
needs to promote the position of farmer-owned co-ops across
Europe.
"Co-operative businesses across Europe have always given
numerous benefits to their members, the industry and rural
communities in general," said Mr Mulvihill. "They are an economically
and socially sustainable business model, where the producer,
processor and the marketer are vertically integrated with
each other, helping rebalance what is at present a patently
unbalanced food chain.
"Co-operatives bring viable incomes to farmer members, with
an emphasis on proper business planning in a globalising world.
The co-operative model also offers members a level of protection
from the volatility that has become a feature of agricultural
markets."
Mr Mulvihill noted that co-operatives remain the most effective,
socially responsible and sustainable form of producer organisation.
He also warned that the current CAP communication is not addressing
this.
The ICOS noted that competitiveness and productivity are
going to be key requirements if Irish and European co-operative
industries are to create opportunities from the challenge
of being involved in feeding nine billion people by 2050.
Innovation in farming will be at the forefront of this process.
To this end, the ICOS has welcomed the separate €5.1 billion
fund dedicated to agricultural research.
Mr Mulvihill welcomed market supports such as public intervention,
private storage and export refunds being retained in the CAP
proposals. However, he said it was critical that a floor is
retained by CAP to protect co-op members during economic catastrophes
such as the 2008 price collapse in dairy markets. Thus, he
welcomed the proposed separate €3.9bn fund for market crises.
Meanwhile, the ICOS has welcomed the initiative to set aside
2% of the new CAP for young farmers. In Ireland, figures show
only 7% of the farming population is under 35.
Best practice also has to be a priority, the group said.
The new CAP should look into funding training for young co-operative
farmer members in skills such as good governance and finance.
Meanwhile, the commission has indicated a shift towards a
flat-rate regional system from 2014, with a transition period
running up to 2019. The ICOS is calling for analysis to be
carried out to clarify the exact impact on farmers, extra
flexibility for each member state and a longer transition
period to implement the regime.
Mr Mulvihill said - "While the environmental responsibilities
and challenges faced by co-operatives must be acknowledged,
‘greening’ elements of the current draft will both
create distortions in the single market and will reduce our
competitive-ness in the world market.
"A sustainability-linked direct payment should not only take
into account environmental concerns, but also the contribution
to social cohesion in rural areas that the co-operative model
provides.
"ICOS is convinced that current measures will add a significant
extra layer of cross compliance and that this will impact
Irish competitiveness globally. This has to be avoided at
all costs."
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