The Common Agricultural Policy and Organic Farming: An Institutional 149 Perspective on Continuity and Change
1999 CAP reform. This appears in the explanatory statement to the Commission proposals. The problems the CAP needs to address thus have to do with the competitiveness of European agriculture, the lack of responsiveness to market developments, broader societal expectations directed towards the CAP and issues related to rural development. Additionally, both the lack of responsiveness of agricultural production to market developments and concerns related to rural development is linked to CAP objectives of environmental protection, food quality, food safety and animal welfare concerns (Commission 2003, p.3). A central cause of current problems is the preferred support mechanisms of the CAP that are conceived as establishing an incentive system, which has negative effects on the protection of the environment and, in general, counteract moves towards more sustainable agricultural production (Commission 2003, p.5).
While the solutions proposed are still conceived in terms of preparing the CAP for the forthcoming enlargement to the east, it is also envisaged they will strengthen the position of the EU in the context of the forthcoming negotiations in the WTO (Commission 2003, p.5). The preferred and familiar solution of decoupling agricultural support from yields and enhanced direct support to farmers is conceived to address problems regarding the competitiveness of European agriculture, the lack of responsiveness to market developments, and rural development. However, the enhancement of direct support to farmers is conditional on agricultural production methods satisfying certain requirements in terms of protection of the environment, food safety, food quality and animal welfare and, in cases where these conditional requirements are breached, sanctions will be enforced (Commission 2003, p.3, 10). While the 2003 CAP reform, in the main, seems to represent a continuation of the already institutionalised problems and solutions, concerns with food safety, food quality and animal welfare is reinforced (possibly at the expense of environmental concerns) by being linked to both market developments and rural development and by being connected with legal sanctions.
150 The Formation of a Policy Field: Organic Farming Within the CAP (1993-200.5)
reform into the rural development policy which, among other things, officially acknowledges organic farming as a production method producing quality food products (Commission 2003, p.68).
To be sure, organic farming is but one among a wide series of problems and solutions in the context of the rural development policy. However - and concurrently with the elaboration, adoption and implementation of the 1999 and the 2003 CAP reforms - the formation of a policy field within the CAP seems to take place around the issue of organic farming.
Conflicts Over Boundaries and Policy Entrepreneurship Within the Commission (mid- 1990s)
When organic farming was first articulated as a Community concern in the context of the emerging EC environmental policy in the mid-1970s it was, among other things, linked to a rising level of attention given to food quality among consumers. Likewise, in the period from 1978 to 1985 organic farming was among people involved in alternative agriculture and - towards the end of the period - also within the CAP linked to consumer demands for high quality food products: this came with the significant qualification that the Commission and the Council both issued calls for research into the relationship between production methods and food quality. During the subsequent period from 1986 to 1992, the link between consumer demands for quality food products and organic farming was voiced within the EP, however, within the Conlmission and the Commission Services there was still some uncertainty as to the existence of such a link. By the end of the period, the conception that organic food products are not of superior quality vis-8-vis conventional agricultural produce was endorsed by a Council Regulation. In summary, and in various contexts, organic farming was articulated as an available response to consumer concerns with food quality, however, at no point has this conception become widely accepted.
In 1994, however, the DG for Information published a report dealing with the theme of organic farming in the EU in the series 'Green Europe', which is aimed at a broader public and which was noted by Agra Europe (10.2.1995). The report was executed by people within the DG for Agriculture against the background that '[tlhe conditions for wider recognition and development of organic farming have been fostered in recent years by the development and adjustment of the common agricultural policy, and more generally by new ideas about the future of the countryside, and by emerging political awareness of environmental issues' (Commission 1994, p.1). Two main problems are identified in the report. One problem is concerned with 'less competitive agricultural areas' in the Community and another with the nature of conventional agricultural products. On the one hand, certain agricultural areas are seen to be facing problems of rural exodus, inefficient farm structures and
The Common Agricultural Policy and Organic Farming: An Institutional 15 1 Perspective on Continuity and Change
natural handicaps such as less fertile soil, lack of water or mountainous areas disfavouring industrialised agricultural production. On the other hand, conventional agricultural products are seen as increasingly uniform and produced by methods involving intensive use of agri-chemicals and fertilisers.
Such production methods and products have come to constitute a problem as consumers have redefined their conception of food quality. The notion of quality attached to conventional production and products have been concerned with 'standardisation and homogeneity': increasingly, however, consumers are turning away from this notion of quality and instead link quality to more 'natural' agricultural products (Commission 1994, p. 1).
The problems relating to less competitive agricultural areas and the nature of conventional agricultural products may both be characterised as normatively instituted. The first in the sense that it is based on a coupling between, on the one hand, an actual but also predicted further rural exodus and inefficiency of farm structures and, on the other hand, an ideal conception holding that the CAP should contribute to the maintenance of the countryside especially in regard to the protection of less competitive agricultural areas. The second problem is normatively instituted in the sense that it is based on a coupling between, on the one hand, an actual but also predicted further uniformity of conventional agricultural produce and, on the other hand, an ideal conception holding that the CAP should contribute to the fulfilment of rising consumer expectations of the availability of quality food products. Moreover, the sources of the problems identified are simple, structural and thematic in nature (rural exodus, inefficient farm structures, natural handicaps/ intensive farming, and consumers' expectations of food quality).
However, rather than attributing blame for the problems identified, in particular, blaming the CAP, the recently reformed CAP is articulated as the forum where solutions should be pursued. Although it is not the only possible solution and its potential is modest in terms of its predicted share of the total agricultural markets by the year 2000 (2.5%), organic farming is seen as addressing both of the problems identified. Conversion to organic production methods is thus conceived as containing the potential to absorb surplus labour since it is labour intensive. Further, it is seen as supplying viable and profitable production methods, particularly in agricultural areas that are otherwise characterised by inefficient farming structures and natural handicaps, because of its low input production methods and the ability of organic produce to command higher prices. Additionally, organic produce is free from artificial chemical residues, contributes to the diversification of agricultural food products, and uses production methods favourable to the protection and conservation of the environment. Finally, through the eyes of the DG for Agriculture, consumers perceive organic food products as natural products, that is, high quality products (Commission 1994, pp. 1-3,24-25).
In 1996, an EU financed conference on organic farming was convened in a cooperation between the DG for Agriculture and the European Training and
152 The Formation of a Policy Field: Organic Farming Within the CAP (1993-2005)
Development Centre for Farming and Rural Life (CEPFAR), which has, among others, COPA and COGECA (General Committee for Agricultural Cooperation in the European Union) included in its membership (CEPFAR 1996). At this conference, organic farming was similarly identified by the DG for Agriculture as a response to two broader societal developments. That is, organic farming was articulated as a response to, on the one hand, a growing societal concern for the protection of the countryside and the environment and, on the other hand, a consumer demand for quality food products (DG for Agriculture 1996, p.5). The DG for Agriculture had already in 1994 pointed to problems within organic farming relating to the inefficient marketing of organic produce vis-i-vis consumer expectations of the presentation and continuous supply of such products (Commission 1994, pp.24-25). A marked feature of the 1996 conference was, however, that organic farming was articulated as being faced by a number of problems in its further development within the CAP. Hence, organic farming was seen to be facing problems that related to the forthcoming expansion of the EU regulation on the area including: the development of an EU logo for organic food products, the use of GMO's (Genetically Modified Organism) in organic food production and the carrying of the EU regulation into an international context, that is, the development and setting up of uniform international standards for organic production (DG for Agriculture 1996, p.11).
In summary, apart from confirming the by now institutionalised links between, on the one hand, organic farming and, on the other hand, CAP objectives regarding the protection of the environment and the maintenance of the countryside (rural exodus, less competitive rural areas), organic farming was from the beginning of the current period articulated as a potential and partial solution to problems within agriculture relating to the quality of conventional food products. This differs from expressions of uncertainty on the relationship between organic farming and food quality both during the previous period within the Commission and the Commission Services and, during the period up to 1985, within the Commission, the Commission Services and the Council.
Likewise, it is in conflict with the conception that organic food products were not to be considered of superior quality vis-8-vis conventional food products as authorised by a Council Regulation towards the end of the period running from
1986 to 1992.
Regarding the exercise of policy entrepreneurship, the DG for Agriculture contributed to the translation of some of the conceptions that was institutionalised during current period. That is, the DG for Agriculture contributed to the translation of the conceptions, first, that intensive agricultural production is the source of problems related to food quality and, second, that organic farming constitutes a potential and partial solution to such problems.
Third, the DG for Agriculture contributed to the translation of a number of problems facing organic farming in relation to its further development and identified the CAP as the forum where such problems should be resolved. While such conceptions have largely been articulated as alternatives to institutionalised
The Common Agricultural Policy and Organic Farming: An Institutional 153 Perspective on Continuity and Change
concerns within the CAP in previous periods, it is unclear in which context problems facing organic farming are made available for translation. It was indicated in a speech by the president of IFOAM held at the 1996 conference (IFOAM 1996), however, that concerns with the boundaries of organic farming vis-a-vis other agricultural production methods are made available by people representing organised interests within organic farming (see below). Finally, the DG for Agriculture - together with CEPFAR - also exercises policy entrepreneurship through the establishment of a forum for communication in the form of a conference on organic farming in the EU.
The BSE Crisis (1996 onwards)
In 1996, concerns with BSE (Bovine Spongiform Encephalopathy) was turned into an EU-wide crisis after research had shown that the consumption of meat from BSE infected livestock can be fatal for humans and the Commission adopted a ban on the exports of beef from the UK, where the outbreak of BSE was particularly severe and received a great deal of attention (Grant 1997, pp. 123- 124; Roederer-Rynning 2003, p. 123). It has been argued that the:
consequences of the BSE crisis included the diversion of the attention of EU decision- makers from other pressing problems; new tensions between member states, making consensus formation more difficult; new budgetary problems that are difficult to resolve, given internal and external constraints; a severe structural surplus problem in a key product sector; and an undermining of public confidence in modem systems of farming (Grant 1997, p. 129).
If by the latter is meant 'modernised and industrialised' agricultural production opposed to farming methods 'closer to natural processes', the damage made by the BSE crisis on public confidence in modern food production seems to be a conducive condition for the institutionalisation of organic farming as a solution to food safety and quality problems from 1996 onwards.
So far, the common EU regulation aimed at the organic farming sector had not covered organic livestock production although a deadline had been set up for the Commission to elaborate a proposal to extend EU regulations to also apply to this part of the sector 'within a suitable period' (Council 1991). In July 1996, the Commission adopted a proposal for a Council Regulation on the matter (Commission 1996), which was elaborated under the jurisdiction of the DG for Agriculture in association with the DG for the Environment, the DG for Industry and the DG for Consumer and Health Policy. Although the Commission has argued that the proposal was delayed due to the complexity of the matter (Agra Europe 26.1 1.1993) and a Council Regulation was not adopted until mid-1999 (Council 1999). the proposal was timely as it appeared in the context of the 'BSE crisis' peaking in 1996 and again in late 2000learly 2001.
154 The Formation ofa Policy Field: Organic Farming Within the CAP (1 993-2005)
Organic farming is thus articulated as a potential and partial response to widespread concerns with the livestock disease BSE and food safety concerns in the mid-1990s. The 'BSE scare' in the UK is as early as in 1990 seen as forming the basis of rising consumer and supermarket demands, particularly for organic beef (Agra Europe 24.8.1990). Later, throughout 1996, the market for organic produce in the UK - not only on organic meat production - was seen as expanding against a background of an increasingly severe BSE crisis (Financial Times 6.7.1996, 19.7.1996, 20.7.1996). It was also around this time BSE became a problem to be dealt with in the context of the CAP which, among other things, formed the basis of the articulation and institutionalisation of organic farming as a solution to food safety problems. For instance, the Commission proposal for a Council Regulation of organic livestock production in mid-1996 was articulated as a response to problems with environmental depletion and animal welfare. It had been argued that the free movement of organic meat production within the EU must be ensured, that such production had a 'huge market potential' and was 'matching perfectly the aims of the CAP reforms of 1992' (Agra Europe 2.8.1996, 16.5.1997). In addition, however, the proposal was also timely since '[tlhe quest to improve consumer information and confidence is an issue, the Conmission observes, that has become highly important since the BSE crisis erupted' (Agra Europe 2.8.1996). Likewise, within the EP, the introduction of a common regulation of organic livestock production was conceived to be - among other things - a response to the BSE crisis and a means of promoting food safety. This appears through an EP report elaborated by the EP Committee on AgricultureI6 and subsequently adopted by the EP. The report, which contains 100 EP amendments to a regulation proposed by Commission, thus argues in the explanatory statement that the amendments suggested 'are, in late 1996, particularly significant for the European Parliament's political role in the context of the current BSE crisis' (European Parliament 1997, p.58; original emphasis). Moreover:
[tlhis crisis calls for a thorough reworking of the quality control systems for food products, in particular livestock products and the regulations on organic livestock farming which remain very diverse depending on the Member State, and for a new consumer protection policy in the European Union and consumer guarantees in the Union's external markets (European Parliament 1997, p.58).
The rapporteur in charge of the drawing up the EP report (Christine Barthet- Mayer) for the EP Committee on Agriculture also argued in Agra Europe (16.5.1997) that this regulatory framework had become particularly relevant in
l 6 The full title of this EP Committee is now the Committee on Agriculture and Rural Development
but it is essentially carrying on the responsibilities related to the CAP that were previously carried by EP Committee on Agriculture, Fisheries, and Food.
The Common Agrict~ltural Policy and Orgarlic Farming: An Instittrtional 155 Perspective on Continuity and Change
the context of the BSE crisis. Furthermore, an attached opinion to the EP report by the EP Committee on the Environment begins by stating that:
[i]n the meat sector consumers, much more than in the past, are interested not only in the cost but also the quality of the products and, in particular, the production methods used.
This interest on the part of European consumers has increased over the last few years, especially after the hormone scandal and the events surrounding BSE, which caused a great deal of concern among the general public (European Parliament 1997; Attached opinion by the EP Committee on the Environment, p.62).
Finally, that organic farming within the EP is broadly conceived to be an available and acceptable, albeit partial, response to the BSE crisis appears at two EP debates in 1997 and 1999. Eight out of twenty, and three out of nine speeches by MEPs in 1997 and 1999 respectively thus referred to the BSE crisis when arguing in favour of the expansion of the EU regulation of the organic farming sector (European Parliament 1997a, 1999).
The second peak in the BSE crisis in late 2000learly 2001, among other things, formed the background for a replacement of the German Minister for Agriculture, and a Cabinet reshuffle, but also the articulation of a turn in German agricultural policy in favour of organic farming (see below). On a Community level, the Commissioner for Agriculture (Franz Fischler), for instance, launched a Conlmission '7-point plan' in early 2001 as a reaction to the BSE crisis and its impact on the market for veal and beef (Commission (2001a). The first point of this plan bore the heading: 'Boosting organic farming' and stated that 'the BSE crisis demonstrates the need for a return to farming methods that are more in tune with the environment' (Commission 2001a). In fact, at the time, the Commissioner for Agriculture argued that '[alvoiding the beef mountains looming on Europe's horizon is in the interests of consumers, taxpayers and farmers alike. Immediate action to curb beef production by boosting less intensive and organic production is the only way forward' (Commission 200 1 a).
In all, it appears that within the Commission and the EP organic farming is, among other things, conceived of as a response to food safety issues and, in particular, to the BSE crisis that first peaked in 1996. Additionally, although the Council did not immediately link the adoption of a Council regulation on organic livestock production in mid-1 999 to the BSE crisis, the Council did link organic farming to consumer concerns with food safety (Council 1 9 9 9 ~ ) . Finally, whereas the BSE crisis peaking in 1996 is conducive to the articulation of a link between food safety issues and organic farming, this link was carried on beyond this point in time being reinforced in late 2000learly 2001 by a renewed attention given to the outbreak of BSE.