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103rd Seminar, April 23-25, 2007, Barcelona, Spain >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/9389
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| Title: | Peeling tomato paste subsidies |
| Authors: | Bunte, Frank H.J. |
| Issue Date: | 2007 |
| Series/Report no.: | 103rd EAAE Seminar 'Adding Value to the Agro-Food Supply Chain in the Future Euromediterranean Space' |
| Abstract: | The Common Market Organisation (CMO) for fruit and vegetable products is
currently evaluated by the European Commission. The evaluation may lead to a
reform of the CMO. One of the elements under debate is the production subsidy for
processing tomatoes. The processing tomato sector is one of most heavily subsidized
sectors in primary production of fruit and vegetables. The current production subsidy
equals approximately 50% of producer turnover. This paper evaluates two possible
reforms of the processing tomato supply chain: (1) an abolishment of the production
subsidy and (2) a replacement of the production subsidy by area payments
(decoupling). The evaluation focuses on the impact the reform may have on
production and trade patterns of fruits and vegetables in Europe. On the basis of a
simulation model, the paper argues that in the first scenario production will shift in
the Mediterranean from processing tomatoes and extensive crop production in general
towards fruit and fruit vegetables. The abolishment of the production subsidy will
lead to a production shift in the direction in which Mediterranean countries have a
comparative advantage. In the second scenario, Mediterranean production will remain
stuck in extensive crop production: processing tomatoes, extensive vegetables and
arable crops. In the first scenario, Mediterranean countries will crowd out North
European fruit production. As a result, North European production shifts towards
vegetable production. In the second scenario, the impact on North Europe is
negligible. |
| URI: | http://purl.umn.edu/9389 |
| Institution/Association: | European Association of Agricultural Economists>103rd Seminar, April 23-25, 2007, Barcelona, Spain |
| Total Pages: | 17 |
| Language: | English |
| Collections: | 103rd Seminar, April 23-25, 2007, Barcelona, Spain
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