EU financial instruments debated in Milan, the opportunity of the sustainable transition

Freshfel Europe participated in the 11th Annual EU Conference on EAFRD Financial Instruments, held in Milan and organized by fi-compass, the European Commission’s DG AGRI, and the European Investment Bank (EIB). 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. It was the opportunity for Freshfel Europe to call for adjustments of EU budget and financial instruments in favour of fresh fruit and vegetables.

How to rebalance shrinking CAP budget with sustainable and healthy attributes

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. 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 channeled through the European Investment Bank (EIB).

Fresh produce with unique carbon sequestration capacity

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. Fruit and vegetables also delivers 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.

The fruit and vegetables sector is a significant driving force in climate-smart production and yet the sector only receives 3% of CAP funds. A radical budget shift is crucial. Today, 80% of EU CAP budget is destined to product of animal origin which contribute heavily (> 50%) 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 from animal to plant-based died an opportunity

A shift to a more plant diet is part of the response to mitigate high carbon emissions linked to diet primarily animal based and ultraprocesed food. Today, the consumption of natural, row and fresh fruit and vegetables consumption stands at 350 g.capita/day well below all targets: WHO (400 g), EAT Lancet Commission (500 g), national dietary guidelines from MS (500 g to 750 g) or Nordic Council (800 g). At least half of plate should be filled with fruit and vegetables!

A perfect partner towards carbon neutrality

Philippe Binard, Freshfel Europe General Delegate stated: “Would one day 50% 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”. Page 2

Huge need for a more healthy diet

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 un-balance 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).

Specificity of fruit and vegetables sector reminded

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. Philippe Binard noted: “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” . He added “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”.

It was also reminded that financial instruments need to be with clear objectives, be flexible for immediate response, provide confidence in the usage and secure equal access to prevent distortion of competition among member states. It should also fill the existing gaps, namely regarding insurance for climatic havocs to will continue to be on the rise and already today leave the fruit and vegetables sector unprovided.

A call to recognize strategic values

Freshfel Europe called on the European Commission and EIB to prioritize fruit and vegetables within EU financial instruments and recognise their strategic value in achieving climate neutrality and healthy diets goals. Freshfel Europe will 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.

For more information about EU financial instruments with fruit and vegetables, you can write here.