Europe: Copa Cogeca welcomes emergency package but calls for more help

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Europe: Copa Cogeca welcomes emergency package but calls for more help
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The European cooperation for agricultural farmers and cooperatives Copa Cogeca has welcomed the emergency measures put in place to help support the fruit and vegetable sector during the Russian ban.

Copa Cogeca secretary general Pekka Pesonen said the August 18 announcement that €125 million (US$167 million) allocated to support the industry would prevent 'the sector collapsing altogether'.

"Prices for these perishable products have been hit hard by the crisis, falling by up to 90% in some cases. Prices for other products targeted by the ban are also coming under intense pressure," he said in a release.

"We therefore welcome the swift action from the European Commission after the initiative was discussed by member states last Thursday (August 14) in the Management Committee.

The release adds that the measures for produce - including tomatoes, carrots, white cabbage, peppers, cauliflowers, cucumbers, gherkins, mushrooms, apples, pears, red fruit, table grapes and kiwifruit – will go some way to easing the crisis, but Copa Cogeca is calling for more to be done.

As a clarification, red fruit includes strawberries, raspberries, blackcurrants, blackberries, white and red currants, and gooseberries

For example, the organization would like to see extraordinary market measures such as accelerating the date of payment for direct payments, speeding up promotion campaigns to stimulate new demand, and hastening some free trade agreements with non-EU countries to open markets.

EU PRODUCTION AND EXPORTS OF CERTAIN FRUITS AND VEGETABLES TO RUSSIA IN 2013Other measures to help support farmers and agri-cooperatives will be discussed with member state experts and officials from the European Parliament in Brussels on Friday, according to the release.

Copa Cogeca also says it is calculating the extent of the damage caused by the Russian embargo, explaining that the repercussions will be felt 'well beyond one year'.

"Estimates show costs to be much bigger than the €400 million (US$533 million) foreseen in the CAP crisis fund. This situation is not our fault yet it is our sector that is being hit the most," Pesonen adds.

"The support must consequently not be financed out of the CAP budget only but also from other funds. In view of the size of the crisis, monitoring the profit margins in the food chain will also be of huge importance to reduce speculation.

"The Commission must also ensure measures are coordinated between member states and ensure the extra national funds are released to deal with the crisis."

Readers can click here for an annex associated with the EU's support measures, which shows the maximum financial support per kilogram in relation to certain fruits and vegetables.

For more stories related to the Russian embargo, click here.

www.freshfruitportal.com

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