It says adapting EU CAP budget and new financial instruments is vital to protect interests of F&V producers
Freshfel Europe used its participation in the recent 11th Annual EU Conference on EAFRD Financial Instruments to call for adjustments of EU budget and financial instruments in favour of fresh fruit and vegetables.
The event, entitled “Financing the transition to resilient EU agri-food systems and sustainable farming” brought together policymakers, financial institutions, and agri-food stakeholders to explore innovative financial tools supporting the green and digital transition of European agriculture.
Representing the European fruit and vegetables (F&V) sector at Milan conference on EU financial instruments, Freshfel Europe highlighted the pivotal role of fresh produce in achieving a sustainable, low-carbon, and healthy European food system.
It said the event was a timely opportunity to remind EU policy and decision makers to rebalance shrinking Common Agricultural Policy (CAP) budget and facilitate access for the fresh produce sector to tailored new financial instruments channelled through the European Investment Bank ( EIB).
“Fresh fruit and vegetables are at the cornerstone of a sustainable food system. With their lowest emissions and environmental footprint within agriculture, the sector has also a unique carbon sequestration capacity contributing directly to the EU’s carbon neutrality goals,” Freshfel said.
“Fruit and vegetables also deliver undisputed health benefits, forming the foundation of sustainable diets that can help curb the rise of obesity and non-communicable diseases (NCDs) in Europe. These essential health and environmental assets position the fresh produce sector as the perfect partners to address societal concerns.”
Freshfel pointed out that despite being a significant driving force in climate-smart production, the fruit and vegetables sector only receives 3 per cent of CAP funds. It called for a “radical budget shift”, noting “today, 80 per cent of EU CAP budget is destined to product of animal origin which contribute heavily (> 50 per cent) to agriculture carbon emissions. Those inefficiencies were already flagged by the European Court of Auditor in 2021, but not much was done since then to effectively reverse this situation”.
A shift to a more plant diet is part of the response to mitigate high carbon emissions linked to diet primarily animal based and ultra-processed food, Freshfel said. Today, the consumption of natural, row and fresh fruit and vegetables consumption stands at 350g per capita per day – well below WHO targets – whereas least half of plate should be filled with fruit and vegetables.
Philippe Binard, Freshfel Europe general delegate commented: “Would one day 50 per cent the EU CAP budget be supporting supply chain delivering to consumers healthy, tasty and quality fresh fruit and vegetables?
“This is not a provocative stance but a necessary reflection based on a reality and an uncomfortable truth for many! The fruit and vegetables sector stands at the core of the solution and needs to be better positioned as the perfect partner for the desired transition to carbon neutrality.
“Better aligning EU policies and budget with the objectives to shift towards a more plant diet is not anymore an option but should be an obligation for policy makers”.
Today, there is a huge discrepancy between production level and the corresponding needs of consumption according to dietary guidelines. EU policies and budget should be instrumental to reconcile that significant unbalance which lead ultra processed food to dominate diets of the Europeans. This has significant collateral consequences on climate and on health care due to uncontrolled obesity rise and proliferation on non- communicable diseases (NCD), Freshfel said.
The EAFRD conference was the opportunity to remind that CAP budget and other financial instruments need to be fit for the needs and well adapted to respond to the fresh fruit and vegetables realities.
Binard continued: “The sector has specific business challenges ranging from generation shift to growing climate havocs, new pests and diseases, geopolitical market , R&I and adaptation of production methods to fully deliver on the most sustainable production and supply chain.
“Budget and financial instruments should be adapted and reflect the specificity of an intricate resh produce business model. Unlike other concentrated agri-food model in grains, meat or dairy, the fruit and vegetables sector is operating with a vibrant composition of many small holders with a great diversity of products with specific needs influenced by the seasonality, by production with shorter or longer cycle, indoor or outdoor production, tight margins impacting investment, and supply chain collaboration”.
Freshfel also reminded delegates that financial instruments need to have clear objectives, be flexible for immediate response, provide confidence in the usage and secure equal access to prevent distortion of competition among member states. They should also fill the existing gaps, namely regarding insurance for climatic events, which will continue to increase and already today leave the fruit and vegetables sector unprovided for.
Freshfel Europe called on the European Commission and EIB to prioritise fruit and vegetables within EU financial instruments and recognise their strategic value in achieving climate neutrality and healthy diets goals. Freshfel Europe said it would continue its pledge for a better support of the fresh produce sector given its essential role for the society, for the planet and for the economy.
“Long term strategy and consistency of the tool with a positive discrimination for sector is best for enhancing the shift towards more sustainable supply chain. It is not anymore an option, it is an obligation for policy makers. Investing in fruit and vegetables is investing in Europe’s health, planet, and future competitiveness”, it said.