The issue of nutrition labelling reared its head last week after the EU’s politicians voted for the food on sale in the region to carry guideline daily amounts and not traffic lights.
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It’s a debate that has rumbled on for years and that generates fierce argument on both sides. There are those, predominantly consumer groups but also companies like UK retailer Sainsbury’s, who believe traffic lights make it easier for shoppers to choose healthier food.
However, there are those largely in the food industry, who favour GDAs, arguing that traffic-light labels are too simplistic and demonise certain foods with a red light.
Supporters of traffic lights attacked politicians in the European Parliament for voting in favour of GDAs. UK consumer group The Children’s Food Campaign labelled the vote “another setback in the fight against childhood obesity” and claimed the food industry had spent EUR1bn (US$1.24bn) lobbying politicians to vote against traffic lights.
The food industry, however, was broadly pleased with the vote, praising MEPs for their “measured approach” on labelling regulation and for the backing they gave to GDAs.
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By GlobalDataNevertheless, for all the significance of last Wednesday’s vote (which also included decisions on, for instance, labelling on country of origin), we will have to wait a while before we get a definitive decision on nutrition labelling. This remains draft legislation and will go before member states before a likely return to the European Parliament for a second reading.
This process looks set to take a year and, as such, the UK’s Food Standards Agency (FSA), which in March put forward plans for a flexible system that could involve traffic lights was coy about what the vote could mean for its own plans for the UK.
However, with MEPs currently opposing the use of traffic lights being allowed to run in parallel at a national level, the FSA’s plans have been called into question.
The EU also shone its spotlight on the region’s dairy industry last week, with the publication of a long-awaited report on the sector.
The report has proposed boosting the power of dairy producers, which have become vulnerable amid severe volatility in dairy prices. Last year, dairy farmers protested across Europe against lost income, forcing the European Commission to release emergency subsidies.
The report recommended that milk producers and processors work together through formal contracts in future, covering prices and delivery volumes; it suggests these could become mandatory through EU or national laws. It also proposed EU rules insisting dairy producers have the right to negotiate contracts through producer organisations.
With the EU dairy sector moving towards the removal of quotas in 2015, the report raises some key issues about the relationship between farmers and processors. However, dairy processors are wary of the threat of regulation that they believe could have a negative impact on the sector.
Jim Begg, director general of Dairy UK, said much of the report’s recommendations were designed to “address issues in other member states”. Begg said: “It is absolutely vital that the Commission doesn’t impose retrograde measures on the UK that could actually harm our dairy industry or distort the market. We have some of the most sophisticated and advanced contractual relationships in Europe and it would be quite wrong to jeopardise the growing spirit of co-operation and dialogue throughout the supply chain.”
Meanwhile, that dairy supply chain in Europe is set to see further consolidation in the wake of the agreement earlier this month between French firms Sodiaal and Entremont Alliance.
In France, dairy co-ops Glac and Eurial have agreed to merge, a deal that could create the country’s second-largest co-op. In Austria, dairy processors Tirol Milch and Berglandmilch are planning to join forces.
As we argued last week, deals like this are inevitable with EU dairy quotas set to end in five years. Dairy firms are looking for increased scale to give them a better chance of operating in what will be a deregulated market.
With consolidation taking place or on the cards in France, Austria and Germany, will we see similar moves in the UK?
