Market Challenges and... Max Schulman, Copa-Cogeca

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1 Market Challenges and... Max Schulman, Copa-Cogeca

2 Summary Who are Copa and Cogeca Agricultural Sector and fertilisers Revision of the EU fertilisers regulation What should / could be done

3 I. Who are Copa and Cogeca? Copa European farmers Bringing together 60 EU farmers organisations Cogeca European agri-cooperatives Bringing together 35 EU agricultural cooperative organisations

4 Cereals sector and fertilizer Cereals sector needs fertilisers: - Secure the need of nutrition for the crops feed the world - To full fill the quality requirements set by the food and feed sector - Main user of fertilizers, mineral and organic origin mainly mineral - Main trend today More with the Same! - Using more organic fertlizers and soil improvers environmental benefit

5 Pressure points on the Ag. Sector - Price pressure on fertilizers in general high compared to the price of end products - Environmental pressure through legislation and the public opinion - Industrial pressure quality and yield - Consumer pressure clean, secure and safe

6 Volatility in the cereal prices Low profitability since 2009

7 Revision of the Fertilisers regulation Main points of the revision - Why changing the Fertilisers Regulation? - To eliminate existing trade barriers - Reduce administrative burden For economic operators, Member States and Commission - Facilitate the placing on the market of New innovative products deriving from ex. Waste as long as they are safe - Harmonise information obligations so that farmers can better compare products between MS - Address safety concerns - All fertilisers sub-categories will be covered Full Harmonisation - Raw manure Outside the scope

8 Development of Fertiliser and soil improver prices (index 2010 = 100) Ireland Germany France Netherlands Finland

9 Revision of the Fertilisers regulation Main points of the revision - Improve the functioning of the internal market for fertilising materials - Focus on safety avoid as far as possible disruptive effects - Allow innovation in the sector more choice for the farmers - Avoid cumulative costs to avoid double controls, fees,.. - Be proportionate Adapt the requirements to the level of potential risks - Simplified EU procedure for all products - National regulatory frameworks Withdrawn

10 Ammonium Nitrate (N26% in sacks), price per 100 kg nutritive substance (Euro Stat) Belgium Czech Republic Greece Ireland Lithuania Netherlands Portugal Slovenia Finland Sweden

11 What should / could be done to improve the farmers situation - EU Antidumping measures on Ammonium Nitrate should be terminated soonest - More transparency in the EU Fertilisers market Copa Cogeca will create a monitoring system - Invest in better recycling of manure N and P separation so that material can be more effectively transported technology available today - Better cooperation between livestock farms and arable farms best practices to be shared

12 What should / could be done to improve the farmers situation - Farming community could also invest in better distribution systems and stock management - Should EU farmers invest in its own manufacturing plant This is the situation in Canada - Price risk management tools to be developed for the fertilisers sector - Create a better market information system AMIS is working on it but too slowly - Improve competition in the market EU MS level

13 What should / could be done to improve the farmers situation - Keep the Commission informed on our situation Dg. Agri, Dg. Competition, Dg. Trade Put pressure on our Commissioner - Work closer with the Fertilisers sector Fertilizers Europe, IFA, manufacturers at Member State level, so that they understand our situation better. - Change our buying habits shorten the chain where it is possible. - Work with the banking sector on new tools for fertiliser financing - New crop varieties that uses better the Fertilisers applied

14 Thank you! Copa-Cogeca The voice of European farmers and their cooperatives 14