(CCP: ME 04/7)|
COMMITTEE ON COMMODITY PROBLEMS
Rome, 11-13 April 2005
REPORT OF THE 20th SESSION OF THE INTERGOVERNMENTAL GROUP ON MEAT AND DAIRY PRODUCTS
B. IMPACT OF IMPORT SURGES: COUNTRY CASE STUDIES
ANNEX - LIST OF DOCUMENTS
1. The 20th Session of the Intergovernmental Group on Meat and Dairy Products was held on 17-20 June 2004 in Winnipeg, Canada. The meeting was attended by 39 delegates from 28 Member Nations and one Member Organization, and 28 observers. In addition, the following international organizations participated in the Session: the Common Fund for Commodities (CFC), the International Dairy Federation (IDF), the International Meat Secretariat (IMS), and the International Livestock Research Institute (ILRI). The list of participants will be circulated as document CCP: ME 04/Inf.4.
2. Mr. Barry Todd, Deputy Minister of the Manitoba Ministry of Agriculture, Food, and Rural Initiatives, welcomed delegates on behalf of Ms. Rosanne Wowchuk, the Minister, and Deputy Premier of the Government of the Province of Manitoba. Dr. Alexander Sarris, Director of the Commodity and Trade Division, welcomed participants on behalf of Jacques Diouf, the Director-General.
3. The Session was opened by Mr. Richard Tudor Price, the chairperson of the 19th Session. He was elected again as Chairperson. Mr. Mohamed Abdalla A. Ahmed (Sudan) and Mr Juan Alcides Santaella Gutiérrez (Colombia) were elected First and Second Vice-Chairpersons, respectively.
4.It was agreed that the Secretariat draft the report after the meeting and distribute it to the delegates for their review before being finalized in collaboration with the Chairperson.
5. Two symposia, a workshop and a field trip were held in conjunction with the meeting: (i) Meeting International Standards Affecting the Livestock Sector—the Challenge for Developing Countries, (ii) International Investment in Dairy Processing and (iii) a workshop on school milk. These activities were unique in that over one hundred experts participated, many from the private sector and industry associations. The Session and its activities followed the 15th World Meat Congress and arrangements were made to allow delegates to attend at a reduced rate.
6. The Group expressed appreciation to the Canadian government for hosting the meetings and providing financial assistance to facilitate participation of nine delegates from developing countries. The Group noted the financial contributions provided by the Canadian dairy and pork industries which allowed discussions to continue over lunch.
7. The Secretariat provided updated information on market prospects for meat and dairy products, on the basis of the latest issue of Food Outlook (June 2004) and CCP: ME 04/CRS 1.
8. The Group agreed with the Secretariat’s analysis that the increased incidence of animal disease outbreaks, combined with heightened use of trade measures, had an adverse impact on global meat markets. Delegates were informed about the increased volatility of meat prices in the above context. They also noted that dairy product prices were rising in a market characterised by slowing production and growing demand.
9. Several delegates reported on recent market developments in their countries. In addition, representatives from observer groups, supported by numerous developed and developing country delegates, highlighted the recent distorting effect of restrictive and prolonged sanitary bans. The Group took particular note of the Canada/US BSE experience which demonstrated the difficulties of re-establishing market access in importing countries. The group emphasised the importance of the early detection of animal diseases, and early lifting of unnecessary trade restrictions that limit access to international meat markets and cause prolonged market disruptions. Some delegates stressed it was not just a BSE issue, but a general problem. It was suggested by several delegates that more dialogue and collective action needs to be undertaken so that developing and developed countries can work together to identify and address problems of animal disease outbreaks.
10. The Group reviewed the results of the FAO study which assessed the impact of import surges on the domestic poultry and dairy industries in Tanzania and Senegal. The study assessed the issue from the perspectives of the various stakeholders in Tanzania and Senegal and evaluated the impact of these surges and discussed response mechanisms, covering both WTO-related instruments and other policy measures.
11. The Group acknowledged that import surges are caused by a variety of factors, not solely linked to unfair trading practices, and agreed that measuring the impact of these surges is very difficult. In particular, it was noted that proper analysis requires good data, supported by collaboration with national governments. It was also noted that more in-depth analysis is needed on identifying the inter-market linkages among different types of markets.
12. The Group was informed that even if all forms of “unfair” trade practices were eliminated through multiateral trade negotiations, import surges and similar shocks would not likely disappear. It was recognised that both national and multilateral initiatives need to be put in place. Delegates noted the importance of developing effective trade surveillance systems, with capacity to investigate the effects of import surges, and the institutional capability to use WTO trade remedy measures. The Group supported initatives aimed at: (i) curbing export subsidies and (ii) identifying WTO compatible safeguard measures.
13. The study was welcomed by the Group which cited appreciation for the importance of the issue and the balanced nature of the analysis. Further research on the degree of rural-urban-market integration was recommended, as well as on the linkages between export subsidies and import surges. The African delegates highlighted the need for further studies reviewing the impact of imports on the competitiveness of local industries and rural livelihoods, juxtaposed against consumer interests.
14. The Group reviewed an exploratory study, prepared in response to a request of the 19th Session which proposed a framework for examining the provision of livestock services. Delegates were invited to report their recent experiences with the privatisation of services, and to comment on the Secretariat’s proposed work plan on this topic, which included a questionnaire, and proposal for case studies. The linkage of the issue to those of animal disease problems and rising standards in international trade was noted.
15. The Group recognised that livestock service privatisation in many developing countries since the early 1990s was often not accompanied by the necessary measures to support the change in service provision. Some delegates noted that veterinarians often lacked equipment and had special difficulties in servicing remote areas. Some countries reported that privatisation was not successful. The provision of other services, such as market information, research and extension was also noted as important to examine in further studies. Numerous country delegates expressed their interest in collaborating in further analysis, data collection, and possible country case studies. The representative from ILRI indicated that they have conducted research on the design of public-private alliances needed to develop and effectively provide services. He expressed interest in collaborating with FAO and interested delegates on this issue.
16. The Group assessed policy changes over the period 2002-2004 with a view to monitoring the progress made in achieving the objectives of the Guidelines (CCP: ME 04/4). While dairy products are not covered by the guidelines, an assessment of recent dairy policy trends was included in the assessment for the first time.
17. For dairy, the Group was informed that low prices during 2002 had led to some countries to increase domestic protection and some others to raise export subsidies. Adjustment to the dairy regimes of new member countries to the European Union led to many policy changes in the countries concerned. While support to the dairy sector in some countries has remained high, several instances were cited whereby governments reduced their direct sectoral involvement. In a number of countries, growth in government funded social feeding programmes provided important markets for domestic milk production.
18. Domestic meat markets were characterised by increased protection with the imposition of trade restricting measures over the period. Delegates noted that animal disease outbreaks resulted in export supply variability over the period which, combined with relatively low meat prices until mid-2003, led to a proliferation of import bans and stricter sanitary border measures. The Group expressed concern that international meat trade flows in meat products continue to be disrupted by this on-going situation.
19. In response to a request by the observer from the International Dairy Federation (IDF) to clarify the purpose and role of the guidelines, the Secretariat reviewed their history and objectives. The Group was asked directly whether the guidelines are still relevant in the context of activities undertaken by other policy and standard setting bodies. Many delegates confirmed that this information is not available from other sources and provides a balanced assessment of policy developments with a scope that is unique to this Group. They stressed their support for the Secretariat continuing to report policy developments. The Group recommended that the guidelines be extended to cover the dairy sector.
20. The Group strongly endorsed the recommendations in the Guideline paper that countries should:
21. The Group took note of the status of the three projects on meat and dairy products that are in various stages of development. Delegates recognised that project implementation delays are caused by the difficulties in finding regionally qualified project executing agencies (PEAs). They were informed that three new project proposals have been reviewed and rejected since the 19th Session.
22. The group endorsed two new project concepts, one entitled “Strengthening Meat Hygiene and Quality Control in the Sudan and Ethiopia”, and the other “Improved Livelihoods of Small Scale Dairy Producers in South Asia”. Some delegates supported the Secretariat’s statement that the Horn of Africa project proposal would need to be re-designed prior to submission to the CFC. Meanwhile, many delegates recognised this topic as of key importance to their industries and expressed their interest in participating in this or other projects with a similar focus.
23. The delegates were informed by the observer from the CFC that some new dairy proposals originating from the Caribbean will soon be submitted to the Secretariat for its review.
24. The Group acknowledged the usefulness of organising technical symposia/workshops to provide greater opportunities for experts and delegates to meet and discuss issues of importance to livestock and dairy markets. The format and content of the technical meetings were appreciated by the Group and it was recommended that they be featured at future sessions of the IGGs. Furthermore, delegates recognised that attendance and composition of the delegates are enhanced when Sessions are held outside of FAO headquarters.
25. The Group reviewed the two technical symposia. It supported the publication of the proceedings. In reviewing the symposium on “Meeting International Standards: The Challenge for Developing Countries”, the Group noted that its own terms of reference highlights the importance of identifying problems affecting international trade (and markets) and drawing these to the attention of the competent bodies.
26. The Group noted the recommendations of expert panel which included a strong recommendation that developing countries need to move to implement basic Codex rules, using risk assessment tools, with assistance provided by developed countries. In particular, it was acknowledged that official guidelines are needed on animal traceability, good agricultural livestock and product standards.
27. The Group noted that OECD is working towards analyzing the impact of standards for developing country markets. In the context of global interest and action on the topic, delegates emphasized the important role of the Secretariat in communicating information and engaging the Group in a dialogue on these issues of concern to both developed and developing countries. It was recognised that the FAO has a role to play in analyzing the social/economic impact of changing livestock and product standards.
28. The Group was provided with a range of perspectives in the symposium on “International Investment in Dairy Processing”, including those of large companies which are making such investments and developing countries where investments had been made. The symposium concluded that factors influencing international investment included access to markets, locating in areas of growing demand and sourcing low priced milk. It also noted that, in some instances, large international companies did not necessarily perform better than national ones – despite having greater resources at their disposal. At the same time, it was recognised that the retail chain had become highly concentrated and that some dairy companies seek to grow in size in order to have a more effective bargaining position. As a consequence, the expansion of international investment in dairy processing was expected to continue. The Group was informed that FAO was cooperating with the Chinese government in presenting a conference on international investment in China’s dairy sector, to be held in March 2005.
29. The “school milk workshop” provided the opportunity for delegates to be informed of major trends in school milk, make short presentations on the situation in their own countries and participate in discussion. Much new, not previously published, material was presented by delegates.
30. Groups expressed appreciation for reports provided by the International Meat Secretariat (IMS), the International Dairy Federation (IDF), the International Livestock Research Institute (ILRI), and the Common Fund for Commodities (CFC). The Group was informed by the observer from the CFC that a commodity round table will be held in Kuala Lumpur in November 2004, followed in 2005 by a CFC round table in Africa. The Secretariat was thanked by the observer from the International Meat Secretariat for participation in the industry sessions of the World Meat Congress and indicated that the next World Meat Congress will be held in Brisbane, Australia in 2006. The Group was informed that a regional IMS meeting will be held in Italy in 2005 with FAO providing support on the organisation of some technical sessions.
31. The Group was informed about the results of the Eighth Session of the Sub-Group on Hides and Skins, which was held in Rome in December 2003. This report was consequently adopted by the Group. It was indicated the next session of this Sub-Group might be held concurrently with the 21st Session of this Group.
32. The date and place of the next Session will be determined by the Director-General in consultation with the Chairperson taking into account the availability of resources and the schedule of other meetings.
33.The Group agreed that the Secretariat would draft the Report of the Session and would distribute the draft to participants for comments which should be returned to the Secretariat for finalization by mid-July.
|CCP: ME 04/1||Provisional Agenda, Agenda Notes and Timetable|
|CCP: ME 04/2||Impact of Import Surges: Country Case Studies|
|CCP: ME 04/3||The Provision of Services to the Livestock Sector|
|CCP: ME 04/4||Follow-up to the Guidelines for International Cooperation in the Livestock and Meat Sector|
|CCP: ME 04/4-Supp.1||Guidelines for International Cooperation in the Livestock and Meat Sector|
|CCP: ME 04/5||Developments Regarding the Common Fund for Commodities (CFC)|
|CCP: ME 04/5-Supp.1||Development Strategy for Meat|
|CCP: ME 04/6||Report of the Sub-Group on Hides and Skins (8th Session)|
|CCP: ME 04/CRS 1||Short-term Outlook for Meat and Dairy Markets|
|CCP: ME 04/CRS 2||Evaluation and Review of Symposia Discussion: Proposed Follow-up|
|CCP: ME 04/INF.1||Information Note|
|CCP: ME 04/INF.2||Proposed Timetable and List of Documents|
|CCP: ME 04/INF.3||EC Competence and Voting Rights|
|CCP: ME 04/INF.4||List of Delegates and Observers|
|CCP: ME 04/7||Report of the 20th Session of the Intergovernmental Group on Meat and Dairy Products|