A debate on the market situation

In accordance with the agenda of the meeting, the Ministers held another debate on the situation on the agricultural markets, with special consideration given to the impacts of the war in Ukraine. Under this item of the agenda, the Croatian delegation also submitted its motion concerning the need to introduce crisis management tools in order to support EU farmers in the short, medium- and long-term.

Mr. Mykola Solskyi, the Ukrainian Minister for Agrarian Policy and Food, also took part in the discussion. He expressed his gratitude for the support provided to date to the Ukrainian economy, including in the form of trade liberalisation, and called for its continuation.

Mr. Robert Telus, Minister of Agriculture and Rural Development, stressed that Poland did not have to be convinced that the support for Ukraine was a priority. He said, however, that the costs of this support had to be incurred by all the Member States rather than only those that border on Ukraine or are situated close to the border with Ukraine.

“The horizontal impacts need to be analysed and action should be taken in the spirit of true European solidarity,” the Polish Minister of Agriculture added.

The head of the Ministry of Agriculture recalled that Poland repeatedly warned against the actions of Russia which was keen to destabilise the agricultural markets. The Minister stressed that it was necessary to have tools which would make it possible to cope with such situations.

“The solidarity lanes, which are accompanied by such solutions as the EU Regulation of 2 May 2023 introducing exceptional preventive measures, are exactly such a tool, also for the future,” the Minister added.

Poland’s expectations

Mr. Robert Telus, Minister of Agriculture and Rural Development, stressed that a positive decision on the second support package was very important for Poland. He informed that these resources were very much needed and that farmers were waiting for them, although the amount of EUR 100 million for the frontline states did not cover the losses incurred by farmers.

The head of the Polish delegation pointed out that at the EU level Poland demonstrated many times its solidarity in the situations where Member States affected by different types of crises needed support. Minister Robert Telus informed that he expected a similar approach on the part of other states.

The head of the Ministry of Agriculture pointed out alarming signals about increased frozen soft fruit stocks in Poland, resulting from growing imports from Ukraine. He also informed about the problem of the current prices of poultry and eggs for consumption which only covered the production costs.

Minister Robert Telus also addressed the need to ensure stabilising measures, supporting the diagnosis presented by Croatia with respect to challenges and the remedial measures which had been taken. He informed that first of all Poland upheld its proposal for the European Commission to extend the effect of the Regulation on so-called preventive measures, i.e. a ban on imports of specific agricultural products to the frontline EU Member States.

“This measures should be in effect after 5 June 2023, until the end of this year,” the Minister of Agriculture and Rural Development appealed.

The head of the Polish delegation stressed that it was also important for the European Commission to monitor the imports of other, sensitive products which might disturb the balance on the EU market, even at the regional scale.

Minister Robert Telus informed that we supported a debate on improving instruments to be applied in crisis situations. The Minister believed that a review of the multiannual financial framework was a good opportunity for such a discussion.

“As part of a review of the multiannual financial framework, the establishment of an additional reserve needs to be discussed. Additional resources are necessary, since they can help us cope with challenges, not only those resulting from the war in Ukraine, but also e.g. with adverse weather events,” the Polish Minister of Agriculture specified.

Packaging and packaging waste

The Ministers of Agriculture discussed a proposal for a Regulation on packaging and packaging waste in terms of food safety and food waste.

Minister Robert Telus stressed that the technological, economic and social development made it necessary to revise the packaging regulations in effect. He said that work should be launched on a regulation which would cover the whole lifecycle of packaging and unify the UE regulations in effect.

In Poland’s opinion, the direction of actions proposed by the Commission, which aim at a limitation of the production of packaging, was a correct one.

“However, the actions undertaken should be preceded by an in-depth analysis and new targets should primarily be realistic, measurable and feasible in technical terms,” Minister Telus stressed.

The head of the Polish delegation also pointed out a global problem which was food waste and losses. He stressed that the use of appropriate packaging might help reduce the quantities of the waste generated and the food discarded. In his view, support should be provided to modern packaging from freshness extending materials and innovative packaging, e.g. the one that informs whether a product is still suitable for consumption.

“The safety of food products needs to be ensured in the case where packaging is reused or recycled packaging is used,” the Polish Minister of Agriculture added.

In the opinion of the head of the Ministry of Agriculture, the ambitious targets of a higher minimum content of recycled materials as laid down in the proposal should be made more realistic. This is dictated by the concern about the availability and costs of recycled plastic used to produce packaging, especially packaging intended to come into contact with food.

Adverse climate conditions in Southern Europe

On behalf of several Member States, the Portuguese delegation presented information on the impacts of the recent adverse climate conditions in Southern Europe. It called on the Commission to consent to the use of instruments available under the Common Agricultural Policy in order to address the situation.

Minister Robert Telus supported the motion of the affected Member States and also referred to the weather conditions in Poland which might also lead to losses caused by drought.

The head of the Polish delegation supported the proposed measures, especially those involving an increase in the level of advance payment rates to at least 70% in the case of direct payments, and to at least 85% for payments under Pillar II.

“We believe that an increase in the level of advance payment rates in 2023 is justified, primarily in light of a surge in production costs and the threat of a loss of financial liquidity due to disturbances on the cereals market caused by the Russian aggression against Ukraine,” the Polish Minister of Agriculture added.

Minister Robert Telus stressed that the making of advance payments should be allowed despite uncompleted on-the-spot inspections.

“The provisions in effect are very harmful for a substantial part of farmers who are excluded from advance payments in relation to inspections carried out on the spot. They will receive their first payments only after inspections are completed,” the head of the Ministry of Agriculture stressed.

Free trade with Australia

The Presidency presented information on progress in the negotiations on the free trade agreement between the EU and Australia, regarding the issue of access to the market for agricultural products.

Poland’s representative informed that Poland supported the inclusion in the agreement with Australia being negotiated of provisions which would really improve access to the Australian market and contain obligations for the agricultural production in Australia to comply with high standards of sustainable development. However, he upheld a general reservation that the present EU tariff offer should be treated as the final and conditional one, not only in the dairy sector, but also in the other sectors of agriculture.

Meetings on the sidelines of the AGRIFISH Council

The participation of Minister Robert Telus in the AGRIFISH Council was an opportunity for holding bilateral meetings: with the EU Commissioner for Agriculture, the Secretary General of COPA-COGECA, the newly appointed Minister of Agriculture of Slovakia, the Minister of Agriculture of Germany and the Minister of Agriculture of Ukraine. The talks concerned the current situation on the cereals market, the necessary EC measures in the form of financial support and trade mechanisms for the frontline states, and also the further cooperation of these states in this scope, both at the political level and that of agricultural organisations.

Minister Robert Telus also stressed the need to work out long-term mechanisms to support Ukraine in its exports of agricultural products and appropriate infrastructural investments.