Common agricultural policy CAP, reform: dried fodder, common organisation of the market CMO, 2004-2005 to 2007-2008

The European Parliament adopted a resolution drafted by Dominique SOUCHET (IND, France) and amended the Commission's proposal. (Please see the document dated 20/05/03.) Parliament stated that fodder production reduces the European Union's vegetable protein deficit, helps to conserve soils in areas which are highly vulnerable to erosion, reduces the need for fertilisers and has stimulated the creation and development of an industrial sector and related activities, thereby diversifying economic activities in disadvantaged areas. Owing to the positive effects that the sector has on the EU's protein balance, the environment and rural development, the sector has achieved a high degree of multifunctionality. Hence the support scheme should be made permanent, so that the sector can acquire the viability it needs. Nonetheless, certain reforms should be carried out in order to improve the energy balance of the activity. The 'contract for progress' to be signed with the competent authority of the Member State concerned, requires reduction of fossil fuel consumption per tonne of final product by 15% by 2010, on the basis of the 2000/02 reference period, without reducing the quality of the final product. The competent authority of the Member State concerned may grant derogations from this reduction to: - undertakings consuming less than 80% of average national fossil energy consumption per tonne of evaporated water; - undertakings where renewables account for more than 20% of energy consumption. Parliament specified the measures that the Commission could take in the event of disruption to the internal market. These include: - the use of safeguard clauses to step up border protection; - the introduction of a market compensatory payment (marketing loan); - aid for private storage; - any other appropriate measure. Finally, processing undertakings that apply for aid under this Regulation will be entitled to an advance payment of EUR 20.40 per tonne or EUR 27.20 per tonne if they have lodged a security of EUR 6.80 per tonne.�