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This article is taken from IEG Policy platform dated
11/05/20.
AEI Visiting Scholar and former USDA Chief Economist Joe Glauber
said he believed governments and food companies will eventually get
a handle on COVID-19 in food processing facilities through new
prevention measures. But he said: "The longer run issue, though, I
think is a recession," with expected economic declines weighing
heavily on ag producers and on the poor.
At the beginning of the week, there was talk of delaying the
EU's Farm-to-Fork Strategy because of COVID. The strategy looks at
creating a more sustainable food system and at reducing
agrochemicals and obesity. The European large trade group,
FoodDrinkEurope, said any delay was a chance to refocus ambitions
on "economic and social necessities". However, NGOs, such as Slow
Food Europe, said it was a chance to focus on stronger
environmental measures to drive sustainable transition forward.
Despite talk of delays, the European Commission's vice
president, Fran Timmermans, told agriculture MEPs last week that
the EU executive will adopt the Farm to Fork (F2F) strategy on May
20.
MEPs were actively seeking to delay new EU organic legislation
which is due to come into force in January next year in order to
allow farmers to focus on COVID challenges. "In light of the
difficulties imposed by the current COVID-19 outbreak and
considering that the sector needs legal stability, we consider that
rushing through the adoption of the delegated acts is not the most
suitable solution," German MEP Norbert Lins wrote in a letter last
week to European Agriculture Commissioner, Janusz
Wojciechowski.
Separately, the Roundtable on Sustainable Palm Oil called on the
Commission to use regulation to stop deforestation in the
commodities supply chain.
The EU is one of the world's biggest importers of the
commodities associated with deforestation, importing 80% of global
cocoa exports, 60% of coffee, 41% of beef, 30% of maize, 25% of
both palm oil and rubber, and 15% of soy.
Regulation would roll out compliance and due diligence, as well
as creating a level playing field for companies that are already
ensuring that they have deforestation-free supply chains, the RSPO
said in a new position paper.
COVID actions
In Spain, the wine sector called for financial measures to
relieve the impact on its industry. The aim of the new measures
would be to prevent thousands of winegrowers and hundreds of
wineries from having to leave their crops unharvested or to face a
possible closure of their businesses, the association OIVE
said.
In Russia, the government said it would impose fines on grain
storage companies that seek to unnecessarily raise prices during
the outbreak.
Estonia revealed it would be opening its restaurants again
whilst a food association in the UK published guidance on the safe
re-opening of food factories.