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The European Commission has published a communication outlining its strategic vision for the agriculture and food sector, aimed at ensuring sustainability, competitiveness and resilience by 2040.

This initiative is particularly pertinent for food and beverage manufacturers, as it addresses critical challenges and opportunities within the sector amid a rapidly evolving global landscape.

Key objectives for 2040

The Commission's vision centres on creating an agri-food system that is attractive, competitive, sustainable and fair for current and future generations.

The following objectives are pivotal:

1. Economic viability

• The Commission aims to establish a predictable agri-food sector where farmers can thrive, ensuring incomes are sufficient to attract younger generations into agriculture. Currently, overall agricultural income per worker is around 60% of average wages in the broader economy, highlighting the need for improved economic conditions.

  
  

• Emphasis will be placed on leveraging entrepreneurial potential and diversifying income sources through innovative business models and support for young farmers.

2. Resilience against global challenges

• The agri-food sector must bolster its resilience against geopolitical tensions, climate change and market fluctuations. The ongoing conflict in Ukraine and its impacts on food security underscore the need for a diversified trade strategy.

  
  

• The Commission plans to reduce dependencies on imports for critical inputs like fertilisers and animal feed, which currently pose vulnerabilities to the EU’s food sovereignty.

3. Environmental sustainability

• The vision calls for practices that align with the EU’s climate objectives, aiming for climate neutrality by 2050 while preserving biodiversity and natural resources.

  
  

• Stakeholders across the food chain are encouraged to contribute to environmental goals by adopting sustainable practices, such as regenerative agriculture and agroecological methods.

4. Fair working conditions

• The Commission highlights the importance of fostering fair working conditions and vibrant rural communities. With 25% of the EU population living in rural areas, revitalising these communities is essential for maintaining agricultural productivity.

  
  

• Addressing demographic challenges, including an ageing workforce and the need for generational renewal, is critical for the sector's long-term viability.

Addressing food waste

A significant aspect of the Commission's communication is its commitment to reducing food waste across the supply chain.

Key strategies include:

Reduction targets: The EU aims to achieve a 30% reduction in food waste per capita by 2030, with specific targets in processing and manufacturing sectors. This aligns with the EU’s Sustainable Development Goal target 12.3, which seeks to halve global food waste by the same year.

Promoting sustainable practices: The initiative encourages manufacturers to adopt practices that minimise waste at all stages of production and distribution. This includes improving inventory management and optimising supply chain logistics to reduce surplus and spoilage.

Support for innovation: The Commission plans to invest in research and innovation to develop new technologies and practices that can help reduce food waste. This includes digital solutions and data-driven approaches that streamline operations and improve decision-making.

Economic implications for F&B

The economic landscape for food and beverage manufacturers is poised for transformation.

The Commission's vision highlights several key economic implications:

Market competitiveness: The EU’s agri-food sector generated over €900 billion in added value in 2022, employing around 30 million people. By enhancing competitiveness and resilience, the Commission aims to ensure that the sector remains a global leader in food production.

Investment in sustainability: The Commission recognises the need for significant investment in sustainable practices. It will explore innovative financing mechanisms, including public-private partnerships, to support the transition to a more sustainable agri-food system.

Consumer expectations: As consumer awareness of sustainability grows, manufacturers will need to adapt to changing preferences. The Commission's emphasis on transparency and sustainability will require food and beverage companies to provide clear information about their practices and products.

Policy framework and implementation

To realise this vision, the Commission outlines a comprehensive policy framework that includes:

Simplification of regulations: The Commission aims to streamline regulatory requirements to reduce bureaucratic burdens on farmers and food manufacturers. This effort is expected to enhance competitiveness and innovation within the sector.

Enhanced dialogue: A new European Board on Agriculture and Food will facilitate dialogue among stakeholders, ensuring that policies are developed collaboratively and reflect the needs of the sector.

Monitoring and reporting: The Commission will implement a robust monitoring system to track progress towards the outlined objectives, providing regular updates to stakeholders across the agri-food value chain.

Research and innovation: The Commission emphasises the importance of putting research, innovation, knowledge and skills at the heart of Europe’s agri-food economy. This includes fostering digitalisation and supporting the transition to sustainable practices through advanced technologies.

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