PHIL HOGAN GAI EXCLUSIVE: GLOBAL AGINVESTING

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PHIL HOGAN GAI EXCLUSIVE: GLOBAL AGINVESTING
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

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PHIL HOGAN GAI EXCLUSIVE: GLOBAL AGINVESTING
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
PHIL HOGAN GAI EXCLUSIVE: GLOBAL AGINVESTING
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

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PHIL HOGAN GAI EXCLUSIVE: GLOBAL AGINVESTING
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.

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