Links with upstream sectors

Transcription

1 Agriculture Committee Links with upstream sectors DG AGRI Workshop on Socioeconomic Issues Session 1: Lags, gaps & inconsistencies concerning jobs & growth in agricultural & rural areas Tiffanie Stéphani 9 June 2017, Brussels

2 The upstream sectors About jobs in the EU

3 Going into the details

4 Outline 1 Fertilizers & crop nutrition 2 Agricultural Machineries 3 Plant protection products

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6 The fertilizer industry in Europe

7 Fertilizer production by Nutrient (2015)

8 Mineral fertilizers: 80% of market of plantnutrition (in value)

9 EU Total Consumption for Agriculture Use

10 EU 27 farm input costs Mineral fertilizers: a cost for farmers Source: Eurostat 2016

11 and also a return on investment! Overall return per unit spent on nitrogen in the UK Source: Pete Berry from ADAS UK ltd

12 Mineral fertilizers: an integral part of sustainable farming

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14 4,500 manufacturers in the EU A (small) number of large multinational companies (tractors) In Spain, for instance, 70% of c.1,000 manufacturers have an annual production volume of less than 10 units! Implements & specialized equipment: a (large) number of (predominantly) SMEs

15 Great variety: 450 different machine types Ranging from tractors & combine harvesters to plant protection equipment and precision seed drills

16 26 bn turnover Direct employment (Mi) Indirect employment (Mi)

17 Innovativeness + competitive advantage EU is technology leader & world s largest producer of farm equipment (31% of global production) BUT: Europe s share is declining! 2nd highest-ranking European industry in terms of innovativeness + competitive advantage BUT: regulatory compliance costs are rising sharply & eating into R&D budgets! Source: European Commission, 2013 Competitiveness Report

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19 Key numbers & messages from the Crop Protection Sector The crop protection Industry estimates a 22.6% increase in costs expected until 2019 R&D value represents 5.6% of agrochemical sales In terms of jobs ECPA members (Corporate and SMEs) provide a total of 26,000 jobs in Europe

20 A very challenging regulatory framework From , it took 10 years and 189 million EUR from discovery to development of a pesticide and putting it on the market. For the period , this rose to 11 years and 215 million EUR to bring one active ingredient on the market

21 An essential role to play in food security According to an OECD-FAO report, globally, 40% of all crops are lost due to pests and diseases, these losses would double without crop protection products

22 ECPA s view on role within CAP ECPA believes that Europe should remain the worldwide leader in agricultural production and is committed to help providing European farmers with solutions and tools to protect their crops from pests and diseases. Pesticides help farmers achieve higher yields by protecting their crops from harmful pests and diseases while also contributing to safeguarding the quality of the crop, thus increasing and safeguarding farm incomes. Furthermore, pesticides also help farmers in their quest to meet the very high food safety standards that farmers must adhere to by protecting their crops from harmful metabolites such as mycotoxins. The primary role of the CAP is to produce high quality, safe and affordable food for 500 million EU citizens in a sustainable and resource efficient way. ECPA is proud to be play a key role in this process.

23 Germany the yield of sugar beets will drop by almost 50% L O W E R Y I E L D S 2 3

24 A common vision for unlocking the potential of agriculture & the food industry in the EU

25 Concluding remarks: Upstream Consistently support industrial R&D in the most promising and desirable areas Ensuring compliance costs of product-specific EU regulation remain proportionate Providing adapted lead time for industry to implement costly EU regulatory changes Contribute to reducing pressures on the environment and mitigating climate change

26 Concluding remarks: Downstream Consider impact of EU regulation targeted at the upstream sectors on the end user as well (cost/benefit) Systematically assess environmental & societal benefits rendered by targeted crop nutrition, modern farm machinery and crop protection in agricultural production processes (GHG emissions ) Support investment capacity of end-users (farmers) to ensure appropriate access to and uptake of desirable innovations created by the upstream sectors through the CAP after 2020

27 Overall conclusion Committed to a dynamic & competitive farming sector in Europe A modernized CAP must maintain agricultural productivity growth & foster environmental performance Improve competitiveness of European industry Maximize the industry s contribution towards competitive, sustainable, smart farming Consistent & predictable rules needed Considering impacts of EU rules on both upstream (manufacturers) & downstream (farmers, contractors, farming practices )

28 Thank you Fertilizers Fertilizers Europe