Enterprise and Industry
Promoting competitiveness in European food manufacturing
Benjamin VallinDG Enterprise and IndustryUnit F5: Food & Healthcare industries, Biotechnology
Warmińsko-Mazurskie Voivodeship, Brussels, 21/03/2014
Enterprise and Industry
Outline
• Policy context – for an industrial Renaissance
• The EU food manufacturing sector
• High Level Forum for a Better Functioning Food Supply Chain
Enterprise and Industry
Accelerating growth is top priority
EU Manufacturing output Source: Eurostat
EU GDP growthSource: Eurostat
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
70
75
80
85
90
95
100
105
110
115
Manufacturing output growth Manufacturing output (2010 = 100)
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
60
70
80
90
100
110
120
GDP growth GDP (2005=100)
Enterprise and Industry
Industry is a key driver for recovery
Leading in innovation
Share of manufacturing on value added and privateR&D expenditure
Source: Industrial Competitiveness Report (2013)
Leading EU´s exports
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Industry Others
• Share of manufacturing on EU-27 Exports
• Source: Eurostat
Enterprise and Industry
For a European industrial Renaissance
• Key elements:• Political support needed at the highest level • Commission key priorities for industrial policy• actions already undertaken• limited number of new actions• Objective: Mobilizing actors across the economy
to deliver industrial change• Target: 20% share of GDP from industry by
2020
5
Enterprise and Industry
Main challenges hampering growth• Weak internal demand
• Non-conducive business environment
• Low innovation and investment
• High energy prices
• Raw materials, qualified labour and capital
• Access to basic inputs difficult
Enterprise and Industry
Priorities for industrial renaissance
1. Mainstream industrial competitiveness
2. Use financial resources (COSME, ESIF, H2020)
3. Provide more business-friendly environment
4. Ease access to production inputs
5. Maximise potential of EU's internal market
6. Internationalise
7. Facilitate mobility via education and training
Enterprise and Industry
Outline
• Policy context – for an industrial Renaissance
• The EU food manufacturing sector
• High Level Forum for a Better Functioning Food Supply Chain
Enterprise and Industry
Food and beverages in the EU
• Huge market • Over 500 million consumers
• 15% household expenses (21% with catering)
• Major role in EU economy
• 17 million companies and agric. holdings
• 6% of EU GDP
• No. 1 EU manufacturing sector
• in value added and turnover (EUR 1 trillion)
• in employment (4.2 million)
• EU = No. 1 on global agri-food markets
• 19% of total agri-food export flows
• Share is decreasing9
Enterprise and Industry
Food manufacturing is resilient
2000 2002 2004 2006 2008 2010 2012 201490
95
100
105
110
115
120
Manufacturing Manufacture of food products • Source: own calculation based on Eurostat• 2000 = 100
Enterprise and Industry
Small and medium-sized companies:
52% of value added
0-910-1920-4950-249250+
65% of jobs
• Source: Eurostat
Number of personsemployed:
Enterprise and Industry
Food manufacturing in agri-food trade
• Source: Eurostat COMEXT / DG Agriculture
Enterprise and Industry
Main traded agricultural products and foodstuffs
• Source: Eurostat COMEXT / DG Agriculture
Spirits8%
Ice cream, choc., confectionneries
4%
Preparations of cereals, starch, milk
7%
Wine8%
Enterprise and Industry
Outline
• Policy context – for an industrial Renaissance
• The EU food manufacturing sector
• High Level Forum for a Better Functioning Food Supply Chain
Enterprise and Industry
Food-related policy issues • Infor-
mation
• Origin labelling• Nutrition & health
labelling
• Inno-vatio
n
• Novel foods• Animal cloning
• Resource efficiency
• Single marke
t
• Supply
• CAP reform• Financial markets
• Trade
• Trade agreements
• Regulatory dialogues
• Missions for growth
• Promotion
• Food safety• Minimum pricing• Food taxes
15
Enterprise and Industry
High Level Forum for a better functioning food supply chain
• Commission
• Ministers
• Farmers
• Manu-facture
rs• Traders
• NGOs
Enterprise and Industry
Timeline
• 2009
• High Level Group on Competitiveness recommendations• Commission Communication
• 2010
• High Level Forum for a Better Functioning Food Supply Chain• Roadmap
• 2012
• Report on roadmap implementation• Recommendations for further action
• 2013
• Mandate extended until end-2014• Renewed membership
• 2014
• Final report
Enterprise and Industry
Priorities
• Fitness check & the regulatory fitness programme
• Sustainable food
• Price monitoring
• New/upcoming challenges (food taxes…)
• Expo Milano 2015
• Business-to-business trading practices18
Enterprise and Industry
Thank you for your attention!
http://ec.europa.eu/enterprise/sectors/food
