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WWF opposes continuation of olive oil subsidies

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Published 19 June 2001 - Updated 29 January 2010
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CAP reform
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WWF and Birdlife International demanded end to the EU's unsustainable farm subsidies for olive oil production

The Council will consider a Commission proposal to postpone the reform of the present subsidy system until 2003. Ministers from southern European olive-growing countries will try to postpone reform for another five years.

The Council is also expected to reach a political agreement concerning CAP simplification. The draft regulation would introduce a simplified system for granting aid to small farmers.

 

Positions: 
WWF and Birdlife International claim that EU subsidies for olive farmers are ruining southern Europe. According to the WWF, such subsidies are responsible for many of the negative environmental impacts associated with the intensification and expansion of the olive sector. EU subsidies encourage intensified production because farmers are paid according to how much olive oil they produce. Conservation groups would like to see the end of payments for intensive olive production.

 

Next steps: 
TSE regulation, the protection of pigs and CAP simplification are also expected to top the Council's agenda.

 

Background: 
Conservation organisations WWF and Birdlife International demanded an end to the EU's unsustainable farm subsidies for olive oil production on Monday 18 June. Both organisations argue that such farming subsidies drive the intensification and expansion of olive farming. They are disappointed with the Commission's proposal to extend subsidies for another two years, which is being discussed by the Agriculture Council on 19 and 20 June.

 

Most of the EU's CAP budget for olives, amounting to 2.3 billion euro, is spent on production subsidies. Italy, Spain, Portugal and Greece produce 80 per cent of the world's olive oil. In 1999 Agriculture Ministers agreed on the need for reform of the olive sector and established an interim subsidy regime intended to run until November 2001.

In December 2000, the Commission adopted a proposal to extend the existing aid scheme for the olive oil sector by two years. The Commission proposal was tabled at the last Agriculture Ministers meeting.

 

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