EU Support to Promotion of Agricultural Products

Today and TomorrowVlassios Sfyroeras

European Commission

Promotion of Agricultural ProductsBrussels 1st April 2011

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THE SITUATION TODAY

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What?• The co-financing of Information and

promotion programmes for :– agricultural products and their method of

production– food products based on agricultural products

Where?• on the internal market• on third country markets

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Goals

achieve market development boost product image in the eyes of

consumers• supplement and reinforce Member States

schemes (multiplier effect on national and private initiatives)

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Council Regulation 3/2008

Implementation rules laid down by Commission Regulation 501/2008

Legal Basis

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Some statistics: 2000-2010

• Internal market: Quality Meat • 29 programmes accepted (1 multi products)• Total budget: +/- 64,8 million €• EU contribution: +/- 32,4 million €

• Third countries: Beef and pig• 19 programmes accepted (10 multi products)• Total budget: +/- 42,4 million €• EU contribution: +/- 21,1 million €

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Programmes distribution per productsAdopted programmes 2000-2010

0%

5%

10%

15%

20%

25%

FRESH F&V

DAIRY

PDOPGITSG

Mult

i pro

duct

s

ORGANIC

WIN

ES

MEAT

OLIVE

HORTIC

PROC. F&V

ULTRAP

POULTRY

SPIRIT

EGGS

Seed

oils

Q. POULT

RY

HONEY

FLAX

% number

% cofinancing budget

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Programmes distribution per Member States

Adopted programmes 2000-2010

0%

5%

10%

15%

20%

25%

IT MultiMS

FR GR ES DE NL PT PL AT GB BE CY DK FI SE IE LT HU SI SK BG LV CZ LU MT EE

% number% cofinancing budget

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Internal market promotional programmes 2007-2010 – type of action used

1%8%

9%11%

32%

33%41%

44%46%

53%58%

59%

70%83%

83%87%

90%

Cinema commercialsRoadshows

Promotional dress-up

Thematic dinnersDVD-CD rom/movies

Radio campaignPrizes/games

Newsletters/press releases

Seminars/conferencesTV campaign

In-store promotion/POS promotionFairs/exhibitions/public events

Magazines/NewspapersPrint adevrtising

Information guides/brochures

Cooperation with influencers/contact with professionalsWebsite

% of programmes

10

Third countries promotional programmes 2007-2010 – type of action used

3%

6%

6%

16%

19%

21%

27%

30%

31%

62%

73%

75%

76%

77%

92%

92%

94%

Promotional dress-up

Roadshows

Cinema commercials

Radio campaign

Prizes/Games

Thematic dinners

Newsletters/Press releases

DVD-CD/movies

TV campaign

In-store promotion/POS promotion

Website

Seminars/conferences

Magazines/newspapers

Print advertising

Cooperation with influencers/Contacts with professionals

Fairs/exhibitiions/public events

Information guides/brochures

% of programmes

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Essential elements of a good proposal 1

• Proposing associations have to be representative for the sector

• Detailed market analyses

• Practical knowledge of the markets, especially in Third Countries programmes

• Highly detailed description of budget and actions

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Essential elements of a good proposal 2

• Coherent set of actions, linked to the objectives• Measurable objectives, with a clearly defined

starting point for the measurements• Precisely defined method of evaluation of the

programme• Synergy/complementarity of the programme with

other initiatives in the sector, public or private

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www.DISCOVERTHEORIGIN.co.uk A real « Multicountry » programme

Good example of a real multicountry proposal because:

• actions common for all 3 MS, for all 5 types of products

• real partnership sharing unique message of quality, authenticity, know-how

• real EU dimension of programme

• mutual benefit for the EU Quality Systems and for the product themselves

• simplified management

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FUTURE POLICY

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Importance

• Globalisation – opening of markets creates opportunities and challenges

• Market orientation of the CAP: less public intervention on the markets (eg. Export refunds)

• EU is net exporter of food and foodstuffs

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Objectives

• Raise consumer awareness on the quality of EU agricultural products

• Increase sales on the global markets

• Assist SME’s in their sales on third markets

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New EU Strategy

• Distinction of the markets:

(1) Local and regional markets

(2) Internal market

(3) External market

• EU added value

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Local and regional markets

• Developing new marketing strategies like for instance:

- direct sales

- creation of farmers markets in cities

- short distance selling

- direct contact between farmers and consumers• Tool: Rural Development

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Internal Market

• Information campaigns on- CAP in general- Production standards (environment, food safety, animal welfare, water, climate) and quality- Nutrition Value- Fight against obesity

• Slogans:“Taste of Europe”, “Taste of Tradition”, “Taste of Quality”, “Know How”, “Quality of Life”

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External Market

• Technical assistance: market analysis; analysis of consumer habits

• Targeting interesting markets (FTA markets, Japan, China, Russia, US)

• Information

• Promotion

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Open Questions• Product coverage of the new policy

- status quo?- one strategy for all products?- one policy for all products

• Use of private brands• Development of information and promotion tools

(e.g.. Basket approach)• Set up of multi country programmes• Money

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Implementation

• Either: direct management (eventually via an agency)

• Or: shared management between Commission and Member States

• Simplification of procedures

• Assistance (guidelines, workshops, exchange of best practices)

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Next Steps

• Green Book on promotion and information before summer 2011

• Communication on promotion and information before summer 2012

• Legislative Proposal before end of 2012

• First operational projects: 2014/2015

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And until then?

• Improving the functioning of the current framework by:- streamlining procedures- giving more systematic assistance (templates, workshops, exchange of best practices)- encouraging multi country programmes

• Result: reducing the refusal rate

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More information

• http://ec.europa.eu/agriculture/prom

Thank you for your attention