De:                                                  Laura Nocentini

Envoyé:                                         mercredi 16 avril 2014 18:39

À:                                                    'Michele Anselme'

Objet:                                             RE: EU COMMISSION DG AGRI: EVALUATION OF THE AGRICULTURAL POLICIES FOR COTTON IN THE EU

 

Madame Anselme,

 

Je vous remercie d’avoir pris le temps d’une réponse écrite à nos questions. Nous allons regarder votre document de près dans les jours à venir et reviendrons vers vous si besoin.

 

Cordialement,

 

Laura Nocentini

 

De : Michele Anselme [mailto:michele.anselme@eurocoton.org]
Envoyé : samedi 12 avril 2014 08:57
À : Laura Nocentini
Cc : e.deniel@oreade-breche.fr; Andreas.Kolodziejak@ec.europa.eu; Nikos KARAGIORGOS; siarkos.a@gmail.com; adon@stiafilco.com; AEDA; dimas; HACOT Benoît
Objet : RE: EU COMMISSION DG AGRI: EVALUATION OF THE AGRICULTURAL POLICIES FOR COTTON IN THE EU
Importance : Haute

 

Dear Madam Nocentini,

 

As requested, please find hereafter Eurocoton comment on issues raised in the frame of the evaluation study on new EU CAP support scheme for cotton commissioned by DG AGRI to OREADE-BRECHE. Please note that Eurocoton consulted the EU Cotton Ginners and Exporters Associations in Greece and Spain which are directly concerned in Eurocoton membership by the subject under investigation, and more particularly with EU experts on cotton delegated in the “Industry Group” of DG AGRI Advisory Group on Cotton, on behalf of Eurocoton. Please consider however that so far only the Spanish Cotton Ginning Industry provided detailed input and that Eurocoton is still waiting for comments from the Greek cotton ginners and exporters Association’s side. Thus, additional comments, if any of a new nature, might follow on top of the present ones.

 

*     EU quality of cotton is much higher than the international quality standard for cotton

The cotton produced in the EU has always been considered of good quality by the European textile manufacturers who require cotton of the highest quality to be able to compete internationally, although there is always room for improvement. Since 2006, the new EU scheme has aimed at improving quality further by means of specific additional incentives, initially regulated by art. 69 of Regulation ( EC) No 1782/ 2003 and from 2010, by direct aid under art. 68 of Regulation (EC ) No 73 / 2009. In Spain, this aid benefits to more than 95 % of its production of cotton which is controlled at 100%.
In the last few years, it has to be pointed out that an always larger percentage of cotton cultivation both in Spain and in Greece was developed under integrated production programs with favorable effects on the environment and on the productivity of cotton cultivation. Everybody in the EU cotton sector agreed that additional efforts should again be made to this direction.

 

The price paid for cotton is built annually on the basis of the international price of the product (the highest is the international price, the lowest will be the EU aid, and conversely). On the other hand, when the prices of cotton are at high level compared with other competitive crops like wheat or corn, the period is positive for the EU cotton farmers, as their main purpose is to maintain a strategic level of cultivation of cotton in the European Union.

As for innovation, it is noteworthy that cotton farming method is highly intensive/mechanized as a result of constant modernization: selected seeds , specific agricultural machinery, modern high capacity ginning , etc. In recent years, remarkable innovations have been introduced as cultivating long fiber, testing organic farming and the biological control of major pests of the crop. The latter two techniques are still under Research and Development, so much remains experimental before being used more widely.

The added value of cotton in the EU is derived from the following aspects :
--the intrinsic quality: dry cotton, no impurities, fiber characteristics, etc.
--the environmental quality: cotton with no plastic residues, limited use of agrochemicals and other inputs, etc.
--the social aspects: quality cotton in the EU provide long-term job security directly to an increasing highly skilled workforce in the capital intensive ginning industry sector and indirectly to a large number of allied activities and services sectors;
--or other aspects such as the fact that there are no use of genetically modified cotton varieties.

The challenge facing the sector is exactly to highlight the value added, to ensure commercially the constant specialization of this product in order to get higher price in the future and finally for the marketing of the product, to know exactly which criteria value properly the product to get market recognition in the EU.

EU cotton producers have to take advantage of their proximity to serve properly and just in time highly developed and innovative yarns and fabrics manufacturers requiring cotton of the highest quality: quality cotton produced in Europe should be valued as an additional competitive advantage for textile manufacturing in the EU in comparison with third countries’ cotton.
Although the EU cotton sector has improved, the sector, most  particularly in Spain, complaints that it has not yet been able to position itself in perspective in relation to the EU, and in particular to the Spanish textile manufacturers.

*     Issues for European cotton and cotton textiles in EU

Everyone understands that European farmers in cotton cannot compete with low-cost countries such as China, India, Pakistan on the one hand and the United States of America on the other who grant huge aids to the domestic production of cotton. Another detrimental factor is the strong EURO against the US dollar; everywhere in the world, cotton is quoted in dollars, thus EU cotton ginners earn less and less EURO for their cotton.

If we want the cotton industry to be sustainable, aid must remain linked to production. The reformed cotton scheme adopted in June 2008 has maintained 65% of the aid “decoupled” (i.e. no longer linked to the production) and 35% linked to cotton production in the form of area payments. Beside, production of cotton in the EU is subject to rather strict environmental constraints that will even be increased as from 2015 (compliance to green farming). Environmental rules are very demanding (increased costs), and of course much more demanding than in the majority of third countries where cotton fibres are sourced. In fact, EU cotton quality is very close to what is considered as organic cotton (biological cotton) in the international arena.

The competitive advantages of EU cotton should thus be promoted in the EU market, notably by an EU quality cotton origin labeling all along the production chain (from fibre up to the garment) that could help to reward the efforts of the sector and justify a slightly higher price in the EU supply chain.

In Spain, the cotton sector claims for the establishment of an integrated organization from farming, ginning, spinning up to weaving (Inter-branch organisation) which missions could be:
--to define common quality standard for the fibre, convenient delivery conditions, etc.
--to ensure research and innovation to the benefit of all the cotton pipeline,

--to promote the quality of the fibre produced in the EU

 

*     Issues for EU agricultural policy regarding cotton production

 

The successive reforms of the CAP undertaken in recent years have led to a simplification of payments and their homogenization. However, these developments have taken into account the specificity of certain EU sectors, such as cotton. Indeed, this crop is protected by the Protocols of Accession of Greece, Spain and Portugal to the European Community and it relies on a crop-specific payment. This regime is designed to encourage a competitive, sustainable and market-driven cotton sector, while safeguarding the legal commitments of supporting “the production of cotton in regions of the Community where it is important for the agricultural economy”.

 

The EU cotton, with only two countries with significant production, can rely on a specific Advisory Group given its great specificity. The annual meetings of this group provide for the producers, ginning industry and trade in cotton fibre a very direct means of communication with the European Commission, which is needed and highly valued by the sector.

 

In addition, the quality of the cotton fibre produced in the EU is acknowledged by the operators. This is why, in the context of the EU quality policy, the European Commission should seize the opportunity of developing a quality brand of sustainable EU cotton so as to enhance the value of this product. This should be developed in particular in consultation with the key stakeholders during the meetings of the Advisory Group.

 

The inclusion of cotton in a wider and horizontal advisory group or with other crops (Arable crops) will significantly harm the interests of this community sector. In such an advisory group, the specificities of the crop will be diluted and thereby its importance for the regions in which it is produced. Therefore, the sector request that in the context of the setting up of the civil dialogue groups a specific group for the cotton sector is maintained.” Extract of a recent letter (dd. 20 January 2014) send by the Chairman, Jesus Valencia (COPA-COGECA) and Vice-Chairman, Nikos Karagiorgos (EUROCOTON), of the AG on Cotton to the Director General of DG AGRI, which is self-explanatory on the present situation of the sector with respect to the EU policy regarding cotton production.

 

*     Should the branding of EU production be improved?

Yes, everything mentioned above has stressed the significant importance of an improvement of EU cotton branding. This is one of the main challenges facing the sector at Community level, to assert the specificities of EU cotton compared to cotton from third countries.

 

*     What would be the consequences should EU cotton production disappear?

 

The cotton sector is of considerable socio-economic importance in the two main producing Member States: about 90% of the EU total output is grown in Greece, the balance being mainly grown in Spain, Bulgaria producing  only a small quantity of cotton and Portugal being no longer cotton grower. The sector provides direct employment for some 150.000 families in the primary sector in the EU and for about 100.000 individuals in the secondary sector (cotton textile, starting from the ginning sector), without taking in account jobs indirectly depending of the sector in services sector, as figures are not available. Internationally, the EU is a minor player, contributing for about 1% of the World total production of cotton. This implies also that the impact of EU production on the evolution of world market prices have been negligible. This is further strengthenend by the fact that the EU does not use export subsidies for this sector and offers duty free access on cotton imports from outside the EU.

Most particularly, the impact assessment of the disappearance of the cotton sector in Spain, could be detailed as follows. The Spanish cotton is developed mainly in Andalusia , particularly in areas close to rivers (in the Guadalquivir Valley and, to a lesser extent, in the valleys of the Genil and Guadalete, on the coast of Cadiz and in the countryside of Sevilla). In all these areas, cotton is characterized as a strategic culture from both an economic and social perspective for the following reasons :

-- Services to support the work of growing, harvesting , transportation, ginning , etc. The workforce generates by cotton crop itself and in the downstream chain is by far superior to other crops’ alternatives, most particularly in the corn and irrigated sunflower sectors. The strategic nature of this issue is dramatic if one considers the already very high levels of unemployment in Spain, and particularly in Andalucía.
--Largely developed in highly saline soils areas where there are just not enough profitable alternative crops.

The EU cotton aid scheme is therefore much needed for the following reasons :

-- The international price (including in the years with high prices) is still insufficient to allow cotton cultivation without assistance of the EU. Cotton is also subject to a huge price volatility.
-- With the disappearance of cotton production in the EU, should the EU no longer support it, the EU ginning industry would no longer be allowed to provide a good quality of cotton fibres required by the EU cotton spinning to be able to compete internationally. EU cotton ginning would have no other alternative to total import dependence. However such a scenario is at very short view, as it would prove very rapidly to be no longer a viable industry as it could not compete in normal conditions of competition with imported ginned cotton (fibres) from low- cost and subsidized third countries.

 

 

Please do not hesitate to ask for additional information if it is needed. For your convenience, I’ am also putting in copy of this E-mail Eurocoton experts either in Greece or in Spain, on top of Eurocoton President (last one) for his own proper information.

 

With best regards,

 

 

Michèle ANSELME

Secretary General

EUROCOTON

24, rue Montoyer - Bte 13

B-1000  Brussels

Tel : 32-2-230 32 39

Fax : 32-2-230 36 22

E-mail: michele.anselme@eurocoton.org

EC Register Number / EUROCOTON - European Federation of Cotton and Allied Textiles Industries  84723161705-62

 

 

 





De : Laura Nocentini [mailto:l.nocentini@oreade-breche.fr]
Envoyé : mardi 1 avril 2014 17:58
À : 'Michele Anselme'
Cc : e.deniel@oreade-breche.fr; 'Thierry CLEMENT'
Objet : Evaluation des soutien de la PAC au seteur coton : troisième proposition d'entretien

Bonjour Madame Anselme,

Je me permets de vous contacter encore une fois au sujet de l’évaluation des soutiens au secteur du coton sur la période 2006-2013, que nous conduisons pour la Commission Européenne. Nous avons déjà largement analysé les effets de ces soutiens, mais je pense qu’il serait toujours intéressant que nous puissions nous entretenir avec votre structure, par téléphone ou par écrit, sur ces effets et les enjeux pour le secteur dans le contexte actuel.

Je suis donc à votre disposition pour convenir d’une date de rendez-vous dans les semaines qui viennent.

Salutations cordiales,

Laura Nocentini

Oréade-Brèche

64 chemin del Prat

31320 Auzeville Tolosan

FRANCE

tél : 00 33 5 61 73 61 97

fax : 00 33 5 61 73 62 90

www.oreade-breche.fr

De : Laura Nocentini [mailto:l.nocentini@oreade-breche.fr]
Envoyé : lundi 23 décembre 2013 16:57
À : 'Michele Anselme'
Cc : 'e.deniel@oreade-breche.fr'
Objet : RE: Evaluation des soutien de la PAC au seteur coton : réunion de contact

Bonjour Madame,

Le lancement de l’évaluation a bien eu lieu le 11 novembre dernier. Nous venons de terminer l’élaboration de la méthode d’évaluation. Celle-ci prévoit en outre deux études de cas, au cours desquelles, nous rencontrons l’ensemble des opérateurs (autorités en charge du dispositif, représentants du secteur agricole, agriculteurs, égreneurs et leurs représentants, industries aval, etc.). Les régions de focus de ces études de cas sont l’Andalucia et la Thessalie.

Je pense qu’il serait intéressant que nous puissions également vous rencontrer afin de discuter les thèmes de l’évaluation, les données disponibles à l’échelle de l’UE et bénéficier de votre analyse du secteur et du rôle des instruments de soutien.

Je devrais être à Bruxelles le 14 janvier pour une nouvelle réunion à la Commission. Seriez-vous disponible le 13 après midi, le 14 après midi ou le 15 au matin, pour un rendez-vous ?

Dans l’attente de votre réponse, meilleurs vœux.

Laura Nocentini

Oréade-Brèche

64 chemin del Prat

31320 Auzeville Tolosan

FRANCE

tél : 00 33 5 61 73 61 97

fax : 00 33 5 61 73 62 90

www.oreade-breche.fr

De : Michele Anselme [mailto:michele.anselme@eurocoton.org]
Envoyé : mardi 5 novembre 2013 17:14
À : Laura Nocentini
Cc : e.deniel@oreade-breche.fr
Objet : RE: Evaluation des soutien de la PAC au seteur coton : réunion de contact

Chère Madame,

 

Je vous remercie pour votre message. Je ne serai malheureusement pas à Bruxelles en début de semaine prochaine pour vous recevoir, vous m’en voyez désolée.

Je transfère toutefois les TDR de l’évaluation des instruments de soutien de la PAC au secteur du coton aux membres d’Eurocoton concernés, les responsables des Associations Grecques et espagnoles des industries d’égrenage de coton, afin qu’ils me fassent connaître leurs commentaires/suggestions éventuelles, et vous ferai rapport si nécessaire.

 

Bien à vous,

 

 

Michèle ANSELME

Secretary General

EUROCOTON

24, rue Montoyer - Bte 13

B-1000  Brussels

Tel : 32-2-230 32 39

Fax : 32-2-230 36 22

E-mail: michele.anselme@eurocoton.org

EC Register Number / EUROCOTON - European Federation of Cotton and Allied Textiles Industries  84723161705-62

 

 

 

De : Laura Nocentini [mailto:l.nocentini@oreade-breche.fr]
Envoyé : mardi 5 novembre 2013 15:42
À : michele.anselme@eurocoton.org
Cc : e.deniel@oreade-breche.fr
Objet : Evaluation des soutien de la PAC au seteur coton : réunion de contact

 

Madame Anselme,

 

Oréade-Brèche est chargé par la DG Agri de l’évaluation des instruments de soutien de la PAC au secteur du coton. Vous trouverez pour information les TDR de cette évaluation en pj. Le lancement de l’étude aura lieu lundi 11 novembre à Bruxelles. J’aurais souhaité profiter de mon passage à Bruxelles pour vous rencontrer afin de vous présenter l’objet de l’évaluation et les premiers choix méthodologiques qui ont été fait et discuter sur les thèmes de l’évaluation, les données disponibles à l’échelle de l’UE.

 

Est-il donc possible de vous rencontrer le 11 après midi (ou le 12 dans la matinée), pour une réunion de une heure environ ?

 

Dans l’attente de votre réponse, meilleures salutations.

 

Laura Nocentini

 

Oréade-Brèche

64 chemin del Prat

31320 Auzeville Tolosan

FRANCE

tél : 00 33 5 61 73 61 97

fax : 00 33 5 61 73 62 90

www.oreade-breche.fr