FoodDrinkEurope Notes Role for Food Industry in “Feeding” EU Recovery

Introducing the 2012 Congress, FoodDrinkEurope President, Mr. Jesús Serafín Pérez commented: “As the largest manufacturing industry in the EU, the food and drink industry is inevitably facing challenging times. In today’s economic circumstances, the challenges are huge and we must make an extra effort to remain competitive.

18 Oct 2012 --- The food and drink industry is Europe’s largest industry, generating €956.2 billion in turnover. As a major pillar of the EU economy, the food and drink industry plays a vital part in ‘feeding the recovery’ and achieving smart, sustainable and inclusive growth in line with the EU’s 2020 Strategy. In 2011 alone, Europe’s food and drink industry registered a positive trade balance of over €13bn, up by more than a third against 2010. In addition, the industry boasted a 16% increase in exports in 2011, with exports to China rising by 466%; to Turkey by 261%; to Singapore by 184% and to Russia by 110% over the last decade (2001-2010).

Introducing the 2012 Congress, FoodDrinkEurope President, Mr. Jesús Serafín Pérez commented: “As the largest manufacturing industry in the EU, the food and drink industry is inevitably facing challenging times. In today’s economic circumstances, the challenges are huge and we must make an extra effort to remain competitive.

That is why we chose ‘Feeding the Recovery’ as the theme for our 30th anniversary Congress. Europe is renowned globally for its food and drink products. But in order to remain competitive we must make the right choices, invest in the right areas and understand consumer trends. Industry, regulators and civil society must work together to create the right conditions for our sector to flourish.”
 
Applauding the industry for its contributions to the economic recovery, Director General of DG Enterprise and Special Envoy for SMEs, Mr. Daniel Calleja Crespo acknowledged: “I would like to congratulate you on your work, contribution, and significant efforts in a moment of difficulty and crisis. The food and drink industry is at the origin of European recovery and thus your topic ‘Feeding the Recovery’ is very well chosen. I want to express our willingness to continue our very close cooperation with an organisation that is extremely important to promoting growth and jobs and ensuring the competitiveness of the industry and that delivers at the end of the day products which are safe and of the highest quality for our citizens”.

Paola Testori Coggi, Director General of DG Sanco, said ''Europe's food and drink industry is an economic force in Europe, still achieving positive growth despite the economic conditions. DG Sanco has worked hard to put in place a regulatory regime for Europe that is reliable, predictable and stable, in order to create a level playing field for Europe's industry, creating clarity and rewards for genuine innovation".

To further mark the occasion, FoodDrinkEurope launched a new Manifesto at the Congress, marking the commitment of Europe’s food and drink industry to continue to operate as a catalyst for growth in the European economy. Commenting on this initiative, FoodDrinkEurope Director General Ms. Mella Frewen stated: “On the occasion of FoodDrinKEurope’s 30th anniversary, this new Manifesto is a clear demonstration that Europe’s food and drink industry intends to remain firmly embedded in Europe's social, cultural and economic fabric.”

Europe’s food and drink industry needs to focus on innovation and boosting its competitive advantage while ensuring that science remains at the heart of business and regulation, according to panel of experts at the FoodDrinkEurope Congress 2012.

Moderated by broadcaster David Eades, the first session of the biennial event, entitled “Driving Sustainable Economic Recovery” focused on the current challenges and global trends affecting Europe’s food and drink sector, looking at the needs of the industry and possibilities to stimulate exports and drive the competitiveness of Europe’s leading manufacturing sector, especially for SMEs.

Minister Counsellor on Food and Agriculture for the U.S. Mission to the EU Maurice House said: In an era of globalisation, Europe is in danger of becoming a food museum. Europe’s food industry clearly needs standards based on science and not on culture alone because the latter are not standards, simply preferences. This is particularly true in a world where Europe will no longer be the sole global standard setter.

WTO Deputy Director General Rufus Yerxa, added: the fundamentals are there for Europe to maintain a strong market share and remain competitive worldwide. However, to do that, it must adjust its trade relations so they are not focused on protecting its least efficient sectors. Moreover, Europe needs to find more areas of consensus with its partners rather than pursuing trade disputes.

Frans Egberts (Managing Director, Henri van de Bilt Vleeswaren) stated that: The industry needs to be more transparent and open so that it can build trust with consumers. If Europe is to export more, it will have to focus on high quality products since emerging economies can provide lower quality products for themselves.

Wayne Jones (Head, Agro-Food Trade and Market Division, OECD) stressed that with a growing world population and incomes rising in emerging countries, we are on the brink of great growth opportunities for our food and drink industries. Europe’s export growth has a tremendous track record but Europe lacks optimism. Yet in the medium to long term, Europe’s competitive and comparative advantage is still huge: an easy place to do business, a high level of competitiveness, leadership in technology and infrastructure, and a highly productive workforce.

Andrew Morgan, President Europe Diageo Plc. and representative of the European Spirits Organisation – CEPS said: the business environment is quite tough, with major differences among countries; however, opportunities are still there, in Europe as in the rest of the world. Our brands and products remain iconic, and Europe will remain a priority as it is the base of our heritage and a key market. What we need from our regulators is that they agree on a proper and comprehensive growth stimulus plan, recognising that indirect taxation is a huge hurdle.

Wolfgang Heer (Südzucker) discussed the needs of SMEs at the EU and national level in terms of access to finance, export opportunities and how can the Europe’s policy-makers help. Heer explained that SMEs are among Europe’s key economic drivers, and we need to encourage and boost their growth. We also need to ensure that consumers have a wide range of choice, but a choice that is based on science. Heer also focused on the reform of the CAP, stating that farmers should have the opportunity to produce high quality raw materials. The new rules being floated on greening, for example – which would reduce output – are a mistake and should be reconsidered.