The financial dimension of quality standards
MetadataShow full item record
CTA. 2003. The financial dimension of quality standards. Agritrade, June 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52511
In addressing EU agriculture ministers on the importance of...
In addressing EU agriculture ministers on the importance of quality standards within a reformed CAP, Commissioner Fischler noted that 'these quality marks often entail higher costs or lower yields' and that these higher costs 'have not always been adequately compensated by the market'. Against this background Commissioner Fischler argued that 'producers who are willing to sign up to such quality rules should continue to benefit from public funding'. On this basis support for quality products forms an integral part of the CAP. Four forms of assistance are envisaged: a scheme to help farmers introduce the new and exacting standards; a scheme to promote animal welfare, with those who farm better than the normal good husbandry standard receiving permanent aid to compensate for the costs and income foregone; a five-year scheme to support farmers' participation in certification programmes; a scheme for advertising of quality labelled products by producer groups. The Commissioner argued that efforts to improve quality would no doubt affect production costs and WTO members should recognise this and allow support to be extended in order to compensate for these higher costs or lower revenues. Comment: In a context in which the market does not always adequately reward higher quality, EU farmers are to be assisted in meeting these quality standards, whereas ACP suppliers will have to carry all these costs on their own account and will receive no such assistance. This is likely to greatly reduce the attractiveness of supplying the EU market, particularly in a context where the prices of basic commodities are falling.