The public sector must promote organic food though public procurement

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1 - aisbl European Community of Consumer Co-operatives Communauté européenne des coopératives de consommateurs Euro Coop s position paper on the review of the European policy on organic agriculture 15 March 2013 Context The European Commission (EC) launched a public consultation on 15th January 2013 to review the European policy on organic agriculture. Euro Coop welcomes the opening of this public debate to collect stakeholders contributions since we are convinced that organic farming represents an important instrument to achieve a more sustainable consumption model. Since Consumer cooperatives are responsible economic and social actors, we encourage the supply of organic products and often sell these products at discounted prices. Euro Coop believes that organic farming has a significant role to play in the fight against climate change; indeed 25-32% of greenhouse gas emissions i are due to the agricultural industry and organic farming soils are able to sequester up to 30% more carbon ii than conventionally managed soils, according to the Rodale Institute. Retailers are the most frequently used channels to purchase organic products, which is why consumer co-operatives are so keen to promote and develop their own organic line of products. Our members encounter a raise in consumer demand for organic products year to year, which are sourced locally through cooperatives or from a nationwide chain. In fact, trends show that the average consumer of organic products prefers to consume local products, has an ecological concern and recycles. The EU should use all the possible instruments and encourage, in the framework of the CAP, the increase of organic production by farmers. Euro Coop would like to outline a set of recommendations for the upcoming review: The public sector must promote organic food though public procurement The EU should explore the possibility of proposing a harmonized organic certification scheme, including inspection and certification, particularly regarding food services tendered by the public sector, such as school canteens, hospitals or government facilities. So far there has been a lack of common rules on organic certification for mass catering and we believe that the adoption of minimum common rules could contribute to the introduction of more organic products into the food chain. For this, the EC could take the example from the 7 countries that are at the forefront of organic mass catering. Euro Coop aisbl Av. de Tervueren 12, bte3 B-1040 Brussels Tel : Fax: info@eurocoop.coop Working in partnership with Consumer Co-operatives Worldwide (CCW), part of the International Co-operative Alliance (ICA)

2 P a g e 2 Price as a discriminatory factor which decreases organic consumption Since they do not integrate the adverse externalities for the environment, unsustainable farming practices can yield high returns and offer low prices to the consumer. In fact, experience has shown that food overproduction often comes at the expense of biodiversity. The European Commission would have to envisage price mechanisms to tackle market failures so that unsustainable products internalise the negative externalities related to the environment. As the increase of sales in organic products show, our consumers understand that organic food meets quality, social and environmental standards. It is for this reason that they agree to pay a more expensive price. They realize that the labour intensity per unit, the lack of economics of scale and organic products need to be separated from the conventional ones when they are processed and transported. Organic farming systems are designed to prevent the use of chemicals and therefore to not kill microbes that both nourish and enhance the fertility of the soil. Indeed, the lack of pesticides attracts species such as pollinators, the ecosystem balance is preserved and the risk of pollution of groundwater is highly reduced. Animals are usually also raised with a higher welfare, including the absence of mutilations which reduces health problems and prevents the routine use of antibiotics. For these reasons, our consumers are willing to pay the right price for organic products and for products that reflect other sustainable ways of agriculture. Products which lack these features must internalise the costs of environmental damage to ensure the right balance. More information and education campaigns Our members fully support the positive effects of organic farming in developing local communities, avoiding chemicals in food and environmental health. Consumer Co operatives endeavour to educate and raise awareness to inform members, representatives, employees and all the consumers on the advantages of consuming organic products, mainly as far as environmental considerations are concerned. Indeed, our goal is to stimulate more responsible and conscious behaviour. Informed and empowered consumers are in a position of taking the best decisions. The European Union should promote the organisation of information and education campaigns to inform consumers on the advantages of organic food. Consumers need to increase their knowledge on these products and base their choices on reasons which go beyond prices. The EU has to lead consumer change towards more sustainable patterns in many fields and the consumption of organic products can be another example of this successful education. Labelling Euro Coop welcomes the introduction of the compulsory organic logo Euro Leaf for European products as from 1 July 2012, although we estimate that time is needed to assess changes in consumer behaviour. Labelling usually increases consumer confidence but we believe that further changes are needed and the EU should start considering enlarging the scope of the organic logo to the non-pre-packaged and imported organic foods in the upcoming years, in order not to confuse the European consumer.

3 P a g e 3 Import: Equivalence is the best way to encourage organic imports Euro Coop believes that the supply of organic food products is lacking, something which is also threatened by barriers to organic imported products. These barriers prevent the growth of this sector and increase the final price of the products. Euro Coop considers that a compliance system is not the best solution to encourage organic products from third countries and to promote environmentally friendly farming. This represents an administrative burden for these producers, often small farmers, taking into account that products have to go through several steps before being to enter the European market. To address the inconveniences of this system, the EU should favour an equivalence system. More transparency and harmonization The requirements for organic certification bodies (CB) should be harmonized since these apply an extra cost to the consumer. Therefore, we believe that a standard certificate should apply when a CB operates in different countries. Free of cost certification Consumer cooperatives consider that many small farmers bear the cost of this certification. An effective way to encourage European organic production would be to offer a public and free of charge certificate for small farmers, who are also those contributing to the development of rural communities. Consumer cooperatives have strong roots with these local communities and they establish arrangements with small farmers to source local food. We encourage the European Commission to allocate some funding from the CAP budget to finance these actions. Boost research in the food sector We urge the European Commission to encourage research in this sector to minimize or eventually avoid the use of chemicals in food. An organic product is a synonym of a healthy product and this is one of the reasons why consumers favour it. Some studies have shown the link between the development of allergies and the use of pesticides but also the longer lives of animals farmed organically as opposed to those raised conventionally. Coexistence has proved to be impossible between conventional, organic and GMO products. The EC has to enforce current legislation on GMs in countries which have decided to grow authorized GM crops on a commercial scale so that they prove the absence of any adverse socioeconomic implications of these GMs. Organic farmers from countries whose government gave the green light to plant GMO MON 810 maize run the risk of having their crops contaminated. Indeed, this can occur through cross-pollination between close fields of GMO and non-gmo or through the mixing of seeds. The consequences are disastrous for farmers who are not able to sell the crops as organic and lose the extra revenue. The European Commission must also address the minimum distance between adjacent fields with GMO and non GMO crops.

4 P a g e 4 Since organic farmers are subject to controls and inspections, when a farmer is disqualified from the organic market due to this contamination or any other accidental reasons, the farmer is forced to sell on the conventional market and thus loses a high source of revenues. This also damages the image of organic farming and thus consumers lose confidence in these products. Seeds Euro Coop thinks that organic farming should mainly make use of organic seeds and traditional varieties of seeds developed in specific local conditions. Considering that during the last century, 75% of genetically diverse seeds have been lost (according to FAO), Euro Coop favours seed security and the exchange of seeds among local farmers. The promotion of seeds diversification enhances food security and preserves traditional practices. The EU has to protect small scale farmers and these practices so that consumers can enjoy a large choice of food products. Meeting the challenge of 100% organic feed The EU should take note of the difficulties of supply to feed livestock, mainly monogastrics. However, there are alternatives to this lack of supply of proteins to achieve the 100% organic feed. Proteins to feed organic livestock: 1. Imposes some ethical constrains in our view taking into account that to produce 1 kilo of animal proteins, we need from 3 to 20 kilos of vegetal proteins. Considering there are 1 billion hungry people in the world, the EU and the international community have to take action within their means to prevent that more than half of the crops produced are consumed by livestock. 2. Euro Coop understands proteins are necessary for the welfare of the animals. Soya could represent a solution to the lack of proteins but there are many concerns about imported GM soya - mainly source of supply. The EU should put in place a preferential customs system for sustainable soya; that is to say, GMO free. 3. If the goal of the EU is to reduce dependence on organic products imports, it is advisable to allow some flexibility to organic livestock production rules. Meeting the 100% feed from the same farm or region proves to be unrealistic in the short run because of the different conceptions of the terms farm and region on the EU level. As a consequence, the EU should set a minimum percentage of organic feed, not to place additional burdens on European operators. Recommendations The EU should encourage research which provides alternatives to the availability of proteins for breeds, while also considering the ethical dimension. We also think that a new derogation beyond 2015 to reach 100% organic feed should be envisaged until organic feed is available in generous quantities. We encourage the European Commission to take note of these recommendations and to take the necessary measures to increase organic production in the EU while ensuring the protection and confidence of consumers.

5 P a g e 5 About Euro Coop The national organisations of consumer co-operatives in 18 European countries make up Euro Coop. Founded in 1957, Euro Coop today represents the interests of over 4,500 local and regional cooperatives owned by a total of 30 million consumers across Europe, employing more than 450,000 people and accounting for 74 billion in annual turnover. For more information, please contact: Rosa Exposito, Sustainability Policy Officer Rexposito@eurocoop.coop Tel: Fax: Euro Coop ID number in the European Commission register of interest representatives: i According to the International Panel on Climate Change ii According to the Rodale Institute