Opening Statement by Paul Dillon, Assistant Secretary General, Department of Agriculture, Food and the Marine, to Oireachtas Joint Committee on Agriculture, Food and the Marine.

4 November, 2014

Organic Legislation: EU Commission Proposal.

COM(2014)180 Proposal for a Regulation of the European Parliament and of the Council on organic production and labelling of organic products, amending Regulation (EU) No XXX/XXX of the European Parliament and of the Council [Official controls Regulation] and repealing Council Regulation (EC) No 834/2007

Introduction

I would like to thank the Committee for the invitation to address it today on the matter of the EU Commission legislative proposals on organic farming currently being discussed at EU Council in Brussels.

Brief background of EU organic legislation.

The first EU legislation on organic farming was adopted in 1991. Council Regulation (EEC) No 2092/91 provided a legal definition of organic farming through production rules, defined control and labelling requirements and introduceda regime for importing organic products.

This legislation was substantially revised with the adoption of Council Regulation No(EC) 834/2007in June 2007 and the Commission implementing Regulation 889/2008 which defined the detailed technical rules of organic production. The Regulation linked the organic control system to the Official Food and Feed Controls provided in Regulation (EC) No 882/2004[1] and made obligatory the accreditation of private Certifying Bodies.

Organic Aquaculture was added to the list of organic products in 2010.

When adopting Council Regulation (EC) No 834/2007 the EU Council identified a series of issues, regarding, in particular, the scope of the legislation, the prohibition of the use of GMOs and the functioning of the internal market and control system. The Commission was required to submit a report on these issues to the European Parliament and the Council, after having reviewed the experience gained from the application of Regulation 834/2007. This report was submitted to Council and Parliament in 2012.

The Council, under the Irish Presidency, adopted conclusions on the report at its meeting on Agriculture and Fisheries of 13-14May 2013[2]on the basis of the Commission report. Among others, it called to develop the organic farming sector at an ambitious level by reviewing the current legal framework, with a view to improving its usability while providing for a period of stability and certainty, and aiming at further clarification and simplification and addressing the current outstanding issues requiring further development.

In 2013 the EU Commission initiated an Impact Assessment of the organic sector which included a wide ranging consultation process. The Commission concluded in the Impact Assessment that the current regulations are not sufficiently fit-for-purpose to provide for the sector to develop. They chose to radically overhaul the current regulations with the objective of removing obstacles to the sustainable development of the sector, further strengthening the Single Market by guaranteeing fair competition for producers, protecting the integrity of organic products and improving consumer confidence in the production system.

Three possible legislative policy options were identified:

  1. The improved status quo option notably includes clarifications in the scope of the legislation, simplifications in the labelling rules and addresses some gaps in the legislation.
  2. The market-driven option aims at providing the conditions to respond dynamically to further market developments thanks to a more product-oriented scheme with flexible production rules.
  3. The principle-driven option aims at re-focussing organic farming on its principles. Production rules are strengthened; the control system is fully risk-based; import rules are overhauled.

The preferred option is the principle-drivenmodel which entailed a complete overhaul of the existing regulation and culminated in the Regulatory proposal currently under discussion & the subject of our meeting here today.

The proposal must also be aligned to the TFEU (Lisbon Treaty) which requires the agreement of the co-legislators - Council and Parliament - to the allocation of delegated powers to the Commission.

The EU Commission introduced the Proposal to Council in early 2014 under the Greekand Italian Presidencies. The proposal completed its First Reading on 15th October.

The EU Parliament as co-legislator will begin discussions on the proposal in January.

The discussions are difficult, with many contentious issues arising and progress is slow. While there are many elements in this proposal that are welcomed - every Member State, without exception, has issues of concern.Some key issues have emerged for which we share concerns. These include issues of a political and technical nature – among them are:

  • The TFEU (Lisbon Treaty) Alignment exercise: the transfer of decision making powers to the Commission via delegated Acts.
  • The Scope of the Proposal – what organic products are included in the regulation and just as importantly what is left out.
  • The transfer of organic controls to the new Official Controls Regulation (currently under discussion at EU Council).
  • Introduction of a risk-based control regime and the removal of the requirement of an annual inspection by the Control Bodies.
  • Harmonization of residue sampling, analysis and action - Establishing a minimum threshold for pesticide residues (MRL) above which the product cannot be sold as organic & introduce the possibility for Member States to pay compensation
  • Mixed Holdings: The removal of the current flexibility where a farm can produce organic and non organic in the same holding.
  • Severe restriction in thereduction of the conversion period.
  • Retailers: The proposal to include within the control regime all retailers who sell organic products.
  • Exclude the possibility to label in-conversion products as organic
  • Removal or severe restriction on flexibility to allow Member States to provide, under very exceptional circumstance, for the introduction of non-organic breeding stock, seeds and propagation material onto organic farms.
  • Import regime: expansion of the import regime to organic imports fully in compliance with the EU organic standards.

The Commission are holding firm but the Italian Presidency are preparing a compromise text.

We welcome any questions the Committee may have for us.

1

[1]Regulation (EC) No 882/2004 of the European Parliament and of the Council of 29 April 2004 on official controls performed to ensure the verification of compliance with feed and food law, animal health and animal welfare rules (OJ L 165, 30.4.2004, p. 1–141)

[2]8906/13 AGRILEG 56 – Organic Farming: Application of the regulatory framework and development of the sector