PHIL HOGAN GAI EXCLUSIVE: GLOBAL AGINVESTING
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Volume 4, Issue 4 GAI GAZETTE GAI EXCLUSIVE: PHIL HOGAN European Commissioner for Agriculture and Rural Development By Michelle Pelletier Marshall As European Commissioner for Agriculture and Rural Development, Phil Hogan manages the Common Agricultural Policy (CAP) Appointed EU Commissioner in 2014, Hogan has sought to simplify and modernize the CAP, while working to develop new export 1. Brexit became a reality last year. With the value of UK trade which governs food production and rural markets for EU agri-food products. with the EU estimated at development in the 28 countries of the 600 billion euros annually European Union (EU). Most recently in September, Hogan was instrumental in ending the quota system for (US$702 billion), what impact For the past three years, Hogan, a native of sugar in the EU – which had been in place for do you expect this member Ireland and a former manager of his family’s 50 years – giving producers the opportunity state departure to have on farm, has been an outspoken advocate for a to adjust their production to real commercial the agri-food sector in the strong and well-funded CAP which continues opportunities, most notably in exploring EU? In particular, what will be to deliver for Europe's farmers and society new export markets. In July, Hogan signed the consequence in Ireland at large. off on a free trade agreement with Japan where a 20 percent drop in that represents the most significant and far exports was anticipated? Hogan’s work in politics began in Ireland reaching deal ever concluded by the EU in at a young age, and in 1985 at 25 years old agri-food trade, creating improved global he became the country’s youngest council access to nearly all agricultural and food As we are still in the negotiating phase, it is not chairman. Since being elected to national products from Europe. possible to say with any certainty how the EU-UK office in 1989, he has served in several key trading relationship will look post-Brexit. I am on government positions, including Minister This year, Hogan addressed the Irish the record as saying that the best option for all of the State at the Department of Finance; Farmers’ Association in Dublin, the Food parties – short of the UK reversing its decision Chairman of the Fine Gael Parliamentary and Drink Federation in London, and the to leave the EU - would be for the UK to remain Group; and Minister for the Environment, European Environmental Bureau, among full members of the single market and customs Community and Local Government. many others. GAI Gazette caught up with him union. This would allow both sides to maintain a smooth and open trade and business relationship, at his Brussels office. including between Ireland and the UK. A brand of 17
GAI GAZETTE Volume 4, Issue 4 development operational groups, as well as at the management of natural resources and climate 2. Digital Innovation Hubs we are setting up. These action, and a balanced territorial development September’s launch initiatives are important to ensure our agri-food in the 28 EU countries. The CAP provides a set of of the €20 million sector makes the most of the opportunities digital instruments such as cross-compliance, greening Ireland AgTech Fund (IAF) by technologies have to offer. practices and the rural development policy for Finistere Ventures and the encouraging sustainable agricultural practices Ireland Strategic Investment and the sustainable development of rural areas. 3. In addition, EU countries must reserve at least Fund highlighted the potential Sustainable 30 percent of the budget of each national rural of the agtech market in the agriculture is central development programme for voluntary, targeted EU. With the recent increase to your leadership, with measures that are beneficial for the environment in agtech investment activity, goals to achieve the zero and climate. start-ups, and accelerators hunger target, prioritize in the region, and Global climate action, and create AgInvesting’s launch of the AgTech Nexus event in Dublin this December, what sustainable food production systems and resilient agricultural practices. What 4. Much attention is given to presenting the EU as a global leader implications do you see are the main steps the EU and standard-setter in for future technological is undertaking in these shaping international trade developments in endeavors through its CAP and its rules of “harnessing European ag? to improve the ecological globalization.” What are the performance of the EU? top three ways you see the EU making moves towards this in I definitely share this optimism. New technologies the agri-food sector? have the potential to make agriculture more sustainable, in every sense of the word. That The CAP is at heart of the EU's commitment is why we are making use of funding under to meet the United Nations 2030 Agenda and Horizon 2020 and the CAP to invest strongly contribute to the sustainable development The EU is a key player on international agricultural in research and innovation for agriculture and goals such as "end hunger, achieve food markets: we are the world's largest agricultural we should continue to do so in the coming security and improved nutrition, and promote exporter thanks in part to past CAP reforms years. We not only finance large scale European sustainable agriculture". The CAP has a long that increased the market-orientation and innovation projects, but also stimulate innovation history of addressing sustainability issues, and competitiveness of EU producers. The freedom to in a bottom-up approach. I encourage you to our policy objectives for the period 2014-2020 respond to consumer demands – within a legal take a look at the results coming out of rural include a viable food production, sustainable framework that guarantees key standards - has “The EU is a key player on international agricul- tural markets: we are the world's largest agricul- tural exporter…” A publication of 18
Volume 4, Issue 4 GAI GAZETTE “To achieve greater export opportunities for our high-quality EU food and drink products, in 2016 and 2017 I have been undertaking a "diplomatic offensive" to help unlock new markets.” helped make sustainably produced, safe, high- 5. 6. quality food the EU's calling card on international agri-food markets. An EU agri-markets Building trade task force was relations with non- EU trade policy supports EU farmers and food recently established. What EU states throughout the producers to profit from these opportunities. This is the mission of the group, world has been a priority means not only negotiating trade agreements, and what are some successes during your administration. but also promoting and selling EU farm products worldwide. We also work on resolving trade thus far? Expanded relations with obstacles to real market access – such as Mexico, Colombia, and Japan sanitary and phytosanitary barriers. have prevailed from this. The Agricultural Markets Task force was an What countries will the EU At the same time, we recognise that specific independent expert group set up in 2016 to look focus on next? And, does this agricultural sectors in the EU cannot withstand into how EU agricultural policy can improve include encouraging foreign full trade liberalisation and unfettered competition the position of European farmers in food supply with imports. The sensitivity of certain products chains, as the CAP has become more market investment in European ag? needs to be reflected in our trade negotiations, orientated over the last decades. The food chain If so, what key opportunities making sure that sufficient safeguards for these experts produced several recommendations for exist for investors? sectors are provided. political or legal action, published at the end of their deliberations in November 2016, focusing We also continue to advocate open, rules-based mainly on risk management issues and the and fair trade. The EU remains, by far, the world relationship between farmers and businesses We will continue an ambitious programme largest importer of agricultural products from downstream from farmers in the food supply of trade negotiations with important third Least Developed Countries (LDCs) - €3.4 billion chain. Based on these recommendations, the country partners. Just to name a few examples: worth agri-food imports in 2016. Furthermore, European Commission has launched a public The finalization of the trade agreement with over the past 25 years, the CAP has undergone consultation on how to improve the food supply Japan is top of the agenda as is concluding several reforms which have increased its market chain. Some other recommendations have been negotiations with Mercosur and Mexico. We also orientation by minimising market-intervention taken up by EU legislators to update rules on the may start negotiations with Australia and New measures with production and trade distorting simplification of the CAP. Zealand soon. effects. We make sure that our impact on the growth of agricultural sectors in developing countries remains marginal, or wherever possible, beneficial. A brand of 19
GAI GAZETTE Volume 4, Issue 4 To achieve greater export opportunities for our At the same time, it is very important for us to The EU agricultural and food sector can be a high-quality EU food and drink products, in 2016 retain our leading role in international bodies very attractive opportunity for foreign investors and 2017 I have been undertaking a "diplomatic such as the World Trade Organisation (WTO), who are interested in producing high standard offensive" to help unlock new markets. I have working towards a further levelling of trading and innovative products to satisfy the interest of visited Mexico, Colombia, China, Japan, Vietnam, conditions; to influence global agriculture policy EU consumers in sustainably produced, healthy Hong Kong, Indonesia, Saudi Arabia and Iran – and take a leading role in global initiatives - for and nutritious food. In this context, I also want to each time bringing with me a trade delegation example in the context of the UN, the G 20 mention that we are in a process of reaching out of EU food companies. I am confident that these and the G-7; as well as to foster relationships to EU farmers and agri-businesses promoting missions will lead to great new opportunities for with developing countries that assist them in responsible private sector investment in our producers in the coming years, creating vital, advancing their agriculture and rural potential. developing countries, especially in Africa. high-quality jobs in our rural areas. “The EU agricultural and food sector can be a very attractive opportunity for foreign investors that are interested in producing high standard and innovative products…” BIOGRAPHY Phil Hogan has served as EU Commissioner for Agriculture and Rural Development since November 2014. From 1989 until he became Commissioner, he represented the Carlow/Kilkenny constituency in Dáil Éireann, the Irish Parliament. Between 2011 and 2014, he served as Irish Minister for the Environment and Local Government, and before that occupied various senior posts at local, national and European level. These included President of the Council of EU Environment Ministers (2013), Chairman of the European People's Party of Environment Ministers (2012-14), National Director of Elections for the Fine Gael party (2010-11), Fine Gael Director of Organisation (2002-07), Chairman of Kilkenny County Council (1985 and 1998), Chairman of the Fine Gael Parliamentary Group (1995-2001), and Minister of State at the Irish Department of Finance (1994-95). Before his entry into politics, Hogan established and subsequently directed an insurance and real estate business. He grew up on a farm in rural Kilkenny, in south-east Ireland and managed the family farm between 1981-1983. He is a graduate of University College Cork, with a B.A. in Economics and Geography. A publication of To have articles like this and other timely AgInvesting and AgTech news sent directly to your inbox, 20 visit www.globalaginvesting.com/join/ © 2017, HighQuest Partners. All rights reserved.
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