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‘Follow the money’
        Jack Thurston
    Co-founder, farmsubsidy.org

 The CAP and the Budget Review
     Prague, 11 December 2008
If Europeans knew how the
EU spends €55 billion a year
     on farm subsidies...

What would they think?
Our method

Freedom of
information         Vigorous debate
     +          =         +
Investigative        Better policy
  reporting
Data obtained - timeline

             May 2006      May 2007      August 2008


 Value of
             €33 billion   €55 billion   €66 billion
payments

Number of
                n/a        8.2 million   12.1 million
payments

Number of
             0.9 million   2.6 million   6.5 million
recipients


Countries        8             18            21
CAP payments
      Czech Republic, 2007


  Total       Number of   Number of
amount €      payments    recipients




615 million     47 264      23 337
In the Czech Republic
the biggest 10 per cent of
farms get 76 per cent of
    the money (2007)
Top 10% of recipients
                                  Next 10% of recipients
      Belgium
Czech Republic
     Denmark
     Germany
          Spain
       Greece
        France
        Ireland
           Italy
      Hungary
  Netherlands
       Austria
        Poland
      Portugal
      Slovenia
      Slovakia
        Finland
       Sweden
            UK
                   0         20           40        60     80   100

                       Percentage of all direct payments (2006)
Top 10 recipients SAPS, 2007

           Recipient name         Amount Kor.   Amount €

AGRO - MERÍN, A.S.                88 867 708      3 127 315

VOJENSKÉ LESY A STATKY CR, S.P.   59 091 118      2 079 456
ZEMEDELSKÉ DRUŽSTVO DOLNÍ
                                  44 129 176
ÚJEZD                                             1 552 935
ZD MORINA                         39 833 202      1 401 757
ZD KRÁSNÁ HORA NAD VLTAVOU
                                  38 179 494
A.S.                                              1 343 562

ROSTENICE, A.S.                   37 664 868      1 325 453
ZEMEDELSKO-OBCHODNÍ               35 845 093
DRUŽSTVO ŽICHLÍNEK                                1 261 413
ÚNEŠOVSKÝ STATEK, A.S.            35 672 403      1 255 336
HORYMAS, SPOL. S R.O.             34 831 633      1 225 749
AGRODRUŽSTVO JEVIŠOVICE           32 393 009      1 139 932
6 | | BUSINESS                                                                                                                                                                                             Business & Media |
                                                                                                                                                                                                                                                21.05.06




                                                                                                            CASH COWS


     WHAT IT COSTS THE TAXPAYER TO DESTABILISE DAIRY MARKETS
     British export subsidies, by                                                                                                                                                               Export subsidy granted, by company, 2004 and 2005
     destination country, 2004 and 2005


                                                                                                                                                                                                      Fayrefield
                                                                                                                                                                                                        Foods*                        £22,149,818



                                                                                                                                                                                                   Philpot Dairy
                                                                                                                                                                                                       Products                    £21,957,002



                                                                                                                    SAUDI                                                                                 Dale
                                                                                                                   ARABIA                                                                                Farm*                   £19,391,504
                                                                                                                  £2,147,003

                                                                                                                                  INDIA
                                                                                                                               £1,244,914                                                                Nestle
                                                                                                                                                                                                            UK                  £7,442,672
                                                                                                                                                                              JA N
                                                                                                                                                                               APAN
                                                                                                                         UAE          BANGLADESH                            £1,24 273
                                                                                                                                                                            £ 44,2
                                                                  ALGERIA                                             £6,016,605       £3,479,499
                                                                 £9,413,948
                                                                                                                                                                                                    TMC Dairies
                                                                   EGYP
                                                                     YPT                                                                                                                                  (NI)                 £6,421,069
                    MEXICO                                       £3,03 340
                                                                   ,031,340
                   £7,714,200
                                                                                                                                                                   PH IPPINE
                                                                                                                                                                   PHILIP NES
                                                            JAMAICA
                                                            JA AICA                                                                                                 £1,7 ,901
                                                                                                                                                                      ,708,9
                                                           £2,296,9 7
                                                           £2 296,987                                                     OMA
                                                                                                                          OMAN                                                                        Hoogwegt
                                                                                                                        £4,660,97
                                                                                                                          ,660,973                                                                 International               £6,016,872

                                                                                                  SUDAN                              THAILA D
                                                                                                                                      HAILAND
                                                                        IVORY COAST
                                                                        IVO                     £3,906,970                          £6 06,805
                                                                                                                                    £6,706,80
                                                      VENEZUELA           £5,722,515
                                                                             722,515                                                                                                            Lakeland Dairies
                                                      £2,274,752                                                                                                                                           (NI)               £4,863,754
                                                                                 NIGERIA
                                                                               £11,782,308                                          IND
                                                                                                                                    INDONESIA
                                                                                                                                          ESIA
                                                                                                                                     £2,94 8
                                                                                                                                     £2,947,118
                                                                                                                                                                                                Eilers & Wheeler
                                                                                                                                                                                                           Sales         £4,009,257



                                                                                                                                                                                                       Meadow
                                                                                                                                                                                                         Foods           £3,335,750



                                                                              KEY                                                                                                                   F Uhrenholt
                                                                                                                                                                                                          Dairy          £3,084,188
                                                                                                                                                                                                                                      *includes subsidiaries
                                                                                    £1 to £4m              £4 to £7m               £7m+
                                                                                                                                                                                                                   £0m    5      10        15        20



 GRAPHIC: CATH LEVETT                                                                             PHOTOGRAPH: ALAMY                                                                                                                   SOURCE: FARMSUBSIDY.COM




Who’s creaming off EU subsidies?
Exports of cheap European dairy products are crushing the livelihoods of developing world farmers, writes Heather Stewart


B
          ritish-based exporters, including    known as the EU ‘butter mountain’                                                                  cow is one of the most reliable ways of        on behalf of the EU, said Britain would
          Nestle and Dairy Crest, have         (‘wine lakes’ were another manifestation                                   Peter Mandelson         lifting yourself out of poverty,’ says         like to see them abolished.
          claimed £126m of taxpayers’          of the same problem). But after a barrage                                  agreed to Europe        Thurston, who is trying to compile a              ‘We would prefer that export refunds
          money over the past two years for    of criticism of this very visible waste,                                   giving up export        Europe-wide directory of how Cap               disappeared as soon as possible; but as
sending surplus butter and milk powder to      Brussels switched its attention – and its                                  subsidies by            subsidies are spent.                           long as they are there, British farmers are
poor countries such as Nigeria and             cash – towards exporting the products.                                     2013. Critics say          Sheila Page of the Overseas Develop-        entitled to claim them just like all EU
Bangladesh, according to a new report             Since the EU price is so much higher                                    this is no help to      ment Institute says small-scale farmers        farmers,’ he said. He added that the gap
obtained exclusively by The Observer.          than the world average, farmers are                                        farmers driven          in Bangladesh or Indonesia would prob-         between the fixed EU price and the
   Export support for British dairy prod-      given a refund for each kilogram of but-                                   out of business.        ably not be the beneficiaries if the subsi-    world price had narrowed in recent
ucts is only a tiny part of the complex        ter or skimmed-milk powder they                                                                    dies were removed; but more efficient          years, and argued that the amount spent
€43bn web of farm subsidies that               export, so that they can sell at something                                                         exporters, such as Argentina and Aus-          on export refunds had been ‘withering
stretches across the European Union.           closer to the market price and avoid          major destinations for exports are sur-              tralia, could win such markets in fair         away’.
But by anatomising this one subsidy in         making a huge loss on the transaction.        prising. British firms were handed                   (unsubsidised) competition.                       Britain’s small-scale dairy farmers,
detail, the figures provide a startling pic-   This year the subsidies are €109 (£73) for    £11.8m over the two-year period for                     ‘If they weren’t getting it from the EU,    many of whom have been driven out of
ture of how the Common Agricultural            every 100kg of butter exported.               sending milk products to Nigeria, for                they would be getting it from some-            business recently, see little of the benefits
LaTribune
Jeudi 3 novembre 2005 - 1,20   *               LE QUOTIDIEN ÉCONOMIQUE ET FINANCIER                                                             www.latribune.fr




                                       Agriculture : à qui profite
Renault chute
sur un marché
                                       la PAC en France
                                       I « La Tribune » publie l’étude
français en baisse                     d’un groupe de recherche
                                       qui lève une partie du voile
L es immatriculations modèles
                         de l’ex-
   Régie ont baissé de 11,7 % en
octobre. La plupart des                sur ce que touchent 24 gros
plongent. Le gâteau automobile
français s’est replié de 5,8 %.
                                       bénéficiaires de la politique
                               P. 14   agricole commune européenne.
                                       I Mais la France refuse
   ÉCONOMIE                            toujours de révéler leur nom
EMPLOI. Le Cerc veut                   en s’abritant derrière
réformer l’indemnisation
du chômage.             P. 4
                                       la protection des données
                                       privées.
    ENTREPRISES                        I Pourtant, sous la pression
CLUB MED.    Retour à                  des ONG et avec la bénédiction
l’équilibre en 2005.           P. 18   de Bruxelles, plusieurs pays
RENSEIGNEMENTS. France                 européens ont livré des listes
Télécom compte rester                  nominatives.
leader du marché.     P. 22


                                                 P. 2 ET 3 ET ÉDITORIAL P. 43
    FINANCE
RÉASSURANCE. Swiss Re
affaibli par les cyclones.
                               P. 24
                                                                 32.000 SUPPRESSIONS D’EMPLOIS D’ICI À 2008

    MARCHÉS                                                      Purge sociale chez Deutsche Telekom
EURONEXT. Activité
historique en octobre.         P. 27                             D eutsche Telekom, premier
                                                                   opérateur européen de télé-
                                                                                                 sur 111.000 à temps plein qui, à
                                                                                                 la fin 2004, représentaient près de
                                                                                                                                      patron, Kai-Uwe Ricke, n’a ja-
                                                                                                                                      mais exclu que des mesures de ra-
EU Budget Transparency (at last!)




30 Sept 2008: Pillar 2 + non-CAP
     30 April 2009: Pillar 1
Farmsubsidy.org 2.0
    (March 2009)
         More interactivity
           More mapping
           More analysis
 Faster and more powerful searching
Some analysis:

Two insights
Insight 1

    A flat rate for
   direct payments
 would mostly benefit
new member states
Direct payments, € per hectare, 2013
          Elláda
          Malta
     Nederland
 Belgique/België
  kypros/Kibris
      Danmark
   Deutschland
         Ireland
   Luxembourg
         France
           Italia
       Slovenija
        Sverige
Česká republika
  Suomi/Finland
United Kingdom
     Österreich
  Magyarország
      Slovensko
         España
         Polska
       Portugal
        Bulgaria
        Lietuva
           Eesti
       Romania
         Latvija




                    0       100    200    300    400     500   600
Direct payments, € per hectare, 2013
          Elláda
          Malta
     Nederland
 Belgique/België
  kypros/Kibris
      Danmark
   Deutschland
         Ireland
   Luxembourg
         France
           Italia
       Slovenija
        Sverige
Česká republika
  Suomi/Finland
United Kingdom



                                                A flat payment at
     Österreich
  Magyarország
      Slovensko
         España



                                            at €229 per hectare
         Polska
       Portugal
        Bulgaria
        Lietuva
           Eesti
       Romania
         Latvija




                    0       100    200    300     400    500   600
Subsidy cut per hectare / €
          Elláda                                          366
          Malta                                          359
     Nederland                                     211
 Belgique/België                                   209
  kypros/Kibris                              133
      Danmark                              128
   Deutschland                           110
         Ireland                    82
   Luxembourg                  58
         France               54
           Italia        39
       Slovenija        32
        Sverige       22
Česká republika      14
  Suomi/Finland      14
United Kingdom      7
Subsidy gain per hectare / €
      Latvija                              149
    Romania                          110
        Eesti                       108
     Lietuva                        99
     Bulgaria                  78
    Portugal                   69           € 229 - flat rate
      Polska              49
      España              45
   Slovensko             34
Magyarország        10
  Österreich    1

                0              100               200    300    400
Insight 1.1
 A flat rate for direct
payments would mostly
benefit new member
 states but presents
political challenges
Insight 2

New member states get a
 better deal from rural
development than from
  direct payments
2013
                             600
Direct Payments / € per ha



                             500

                             400

                             300

                             200

                             100

                               0
                                   0        100           200           300
                                       Rural Development / € per ha
2013
                             600
                                       EU-15                Czech Republic
Direct Payments / € per ha



                             500

                             400

                             300
                                                   O
                             200
                                                                    EU-12
                             100

                               0
                                   0            100           200           300
                                           Rural Development / € per ha
€72                        2013
                             600
                                       EU-15                   Czech Rep
Direct Payments / € per ha



                             500

                             400

                             300
                                                       O                     €229
                             200
                                                                    EU-12
                             100

                               0
                                   0                 100      200           300
                                           Rural Development / € per ha
Three core
questions
Entitlements
      v.
 Targeting
Incentive payments
         v.
 Regulation & law
Common policy
        v.
National/regional
    diversity
CAP is...

“little more than an instrument for
 Ministers of Agriculture to get for
their farmers in Brussels and in the
 name of Europe what they would
 not get at their national Cabinet
              tables.”

Lord Dahrendorf, former European
         Commissioner.
Thank you for your attention
       jack@farmsubsidy.org

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Jack Thurston talk at EU budget and CAP conference: Prague, 11 December 2008

  • 1. ‘Follow the money’ Jack Thurston Co-founder, farmsubsidy.org The CAP and the Budget Review Prague, 11 December 2008
  • 2. If Europeans knew how the EU spends €55 billion a year on farm subsidies... What would they think?
  • 3. Our method Freedom of information Vigorous debate + = + Investigative Better policy reporting
  • 4.
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  • 7. Data obtained - timeline May 2006 May 2007 August 2008 Value of €33 billion €55 billion €66 billion payments Number of n/a 8.2 million 12.1 million payments Number of 0.9 million 2.6 million 6.5 million recipients Countries 8 18 21
  • 8. CAP payments Czech Republic, 2007 Total Number of Number of amount € payments recipients 615 million 47 264 23 337
  • 9. In the Czech Republic the biggest 10 per cent of farms get 76 per cent of the money (2007)
  • 10. Top 10% of recipients Next 10% of recipients Belgium Czech Republic Denmark Germany Spain Greece France Ireland Italy Hungary Netherlands Austria Poland Portugal Slovenia Slovakia Finland Sweden UK 0 20 40 60 80 100 Percentage of all direct payments (2006)
  • 11. Top 10 recipients SAPS, 2007 Recipient name Amount Kor. Amount € AGRO - MERÍN, A.S. 88 867 708 3 127 315 VOJENSKÉ LESY A STATKY CR, S.P. 59 091 118 2 079 456 ZEMEDELSKÉ DRUŽSTVO DOLNÍ 44 129 176 ÚJEZD 1 552 935 ZD MORINA 39 833 202 1 401 757 ZD KRÁSNÁ HORA NAD VLTAVOU 38 179 494 A.S. 1 343 562 ROSTENICE, A.S. 37 664 868 1 325 453 ZEMEDELSKO-OBCHODNÍ 35 845 093 DRUŽSTVO ŽICHLÍNEK 1 261 413 ÚNEŠOVSKÝ STATEK, A.S. 35 672 403 1 255 336 HORYMAS, SPOL. S R.O. 34 831 633 1 225 749 AGRODRUŽSTVO JEVIŠOVICE 32 393 009 1 139 932
  • 12.
  • 13. 6 | | BUSINESS Business & Media | 21.05.06 CASH COWS WHAT IT COSTS THE TAXPAYER TO DESTABILISE DAIRY MARKETS British export subsidies, by Export subsidy granted, by company, 2004 and 2005 destination country, 2004 and 2005 Fayrefield Foods* £22,149,818 Philpot Dairy Products £21,957,002 SAUDI Dale ARABIA Farm* £19,391,504 £2,147,003 INDIA £1,244,914 Nestle UK £7,442,672 JA N APAN UAE BANGLADESH £1,24 273 £ 44,2 ALGERIA £6,016,605 £3,479,499 £9,413,948 TMC Dairies EGYP YPT (NI) £6,421,069 MEXICO £3,03 340 ,031,340 £7,714,200 PH IPPINE PHILIP NES JAMAICA JA AICA £1,7 ,901 ,708,9 £2,296,9 7 £2 296,987 OMA OMAN Hoogwegt £4,660,97 ,660,973 International £6,016,872 SUDAN THAILA D HAILAND IVORY COAST IVO £3,906,970 £6 06,805 £6,706,80 VENEZUELA £5,722,515 722,515 Lakeland Dairies £2,274,752 (NI) £4,863,754 NIGERIA £11,782,308 IND INDONESIA ESIA £2,94 8 £2,947,118 Eilers & Wheeler Sales £4,009,257 Meadow Foods £3,335,750 KEY F Uhrenholt Dairy £3,084,188 *includes subsidiaries £1 to £4m £4 to £7m £7m+ £0m 5 10 15 20 GRAPHIC: CATH LEVETT PHOTOGRAPH: ALAMY SOURCE: FARMSUBSIDY.COM Who’s creaming off EU subsidies? Exports of cheap European dairy products are crushing the livelihoods of developing world farmers, writes Heather Stewart B ritish-based exporters, including known as the EU ‘butter mountain’ cow is one of the most reliable ways of on behalf of the EU, said Britain would Nestle and Dairy Crest, have (‘wine lakes’ were another manifestation Peter Mandelson lifting yourself out of poverty,’ says like to see them abolished. claimed £126m of taxpayers’ of the same problem). But after a barrage agreed to Europe Thurston, who is trying to compile a ‘We would prefer that export refunds money over the past two years for of criticism of this very visible waste, giving up export Europe-wide directory of how Cap disappeared as soon as possible; but as sending surplus butter and milk powder to Brussels switched its attention – and its subsidies by subsidies are spent. long as they are there, British farmers are poor countries such as Nigeria and cash – towards exporting the products. 2013. Critics say Sheila Page of the Overseas Develop- entitled to claim them just like all EU Bangladesh, according to a new report Since the EU price is so much higher this is no help to ment Institute says small-scale farmers farmers,’ he said. He added that the gap obtained exclusively by The Observer. than the world average, farmers are farmers driven in Bangladesh or Indonesia would prob- between the fixed EU price and the Export support for British dairy prod- given a refund for each kilogram of but- out of business. ably not be the beneficiaries if the subsi- world price had narrowed in recent ucts is only a tiny part of the complex ter or skimmed-milk powder they dies were removed; but more efficient years, and argued that the amount spent €43bn web of farm subsidies that export, so that they can sell at something exporters, such as Argentina and Aus- on export refunds had been ‘withering stretches across the European Union. closer to the market price and avoid major destinations for exports are sur- tralia, could win such markets in fair away’. But by anatomising this one subsidy in making a huge loss on the transaction. prising. British firms were handed (unsubsidised) competition. Britain’s small-scale dairy farmers, detail, the figures provide a startling pic- This year the subsidies are €109 (£73) for £11.8m over the two-year period for ‘If they weren’t getting it from the EU, many of whom have been driven out of ture of how the Common Agricultural every 100kg of butter exported. sending milk products to Nigeria, for they would be getting it from some- business recently, see little of the benefits
  • 14. LaTribune Jeudi 3 novembre 2005 - 1,20 * LE QUOTIDIEN ÉCONOMIQUE ET FINANCIER www.latribune.fr Agriculture : à qui profite Renault chute sur un marché la PAC en France I « La Tribune » publie l’étude français en baisse d’un groupe de recherche qui lève une partie du voile L es immatriculations modèles de l’ex- Régie ont baissé de 11,7 % en octobre. La plupart des sur ce que touchent 24 gros plongent. Le gâteau automobile français s’est replié de 5,8 %. bénéficiaires de la politique P. 14 agricole commune européenne. I Mais la France refuse ÉCONOMIE toujours de révéler leur nom EMPLOI. Le Cerc veut en s’abritant derrière réformer l’indemnisation du chômage. P. 4 la protection des données privées. ENTREPRISES I Pourtant, sous la pression CLUB MED. Retour à des ONG et avec la bénédiction l’équilibre en 2005. P. 18 de Bruxelles, plusieurs pays RENSEIGNEMENTS. France européens ont livré des listes Télécom compte rester nominatives. leader du marché. P. 22 P. 2 ET 3 ET ÉDITORIAL P. 43 FINANCE RÉASSURANCE. Swiss Re affaibli par les cyclones. P. 24 32.000 SUPPRESSIONS D’EMPLOIS D’ICI À 2008 MARCHÉS Purge sociale chez Deutsche Telekom EURONEXT. Activité historique en octobre. P. 27 D eutsche Telekom, premier opérateur européen de télé- sur 111.000 à temps plein qui, à la fin 2004, représentaient près de patron, Kai-Uwe Ricke, n’a ja- mais exclu que des mesures de ra-
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. EU Budget Transparency (at last!) 30 Sept 2008: Pillar 2 + non-CAP 30 April 2009: Pillar 1
  • 23. Farmsubsidy.org 2.0 (March 2009) More interactivity More mapping More analysis Faster and more powerful searching
  • 25. Insight 1 A flat rate for direct payments would mostly benefit new member states
  • 26. Direct payments, € per hectare, 2013 Elláda Malta Nederland Belgique/België kypros/Kibris Danmark Deutschland Ireland Luxembourg France Italia Slovenija Sverige Česká republika Suomi/Finland United Kingdom Österreich Magyarország Slovensko España Polska Portugal Bulgaria Lietuva Eesti Romania Latvija 0 100 200 300 400 500 600
  • 27. Direct payments, € per hectare, 2013 Elláda Malta Nederland Belgique/België kypros/Kibris Danmark Deutschland Ireland Luxembourg France Italia Slovenija Sverige Česká republika Suomi/Finland United Kingdom A flat payment at Österreich Magyarország Slovensko España at €229 per hectare Polska Portugal Bulgaria Lietuva Eesti Romania Latvija 0 100 200 300 400 500 600
  • 28. Subsidy cut per hectare / € Elláda 366 Malta 359 Nederland 211 Belgique/België 209 kypros/Kibris 133 Danmark 128 Deutschland 110 Ireland 82 Luxembourg 58 France 54 Italia 39 Slovenija 32 Sverige 22 Česká republika 14 Suomi/Finland 14 United Kingdom 7
  • 29. Subsidy gain per hectare / € Latvija 149 Romania 110 Eesti 108 Lietuva 99 Bulgaria 78 Portugal 69 € 229 - flat rate Polska 49 España 45 Slovensko 34 Magyarország 10 Österreich 1 0 100 200 300 400
  • 30. Insight 1.1 A flat rate for direct payments would mostly benefit new member states but presents political challenges
  • 31. Insight 2 New member states get a better deal from rural development than from direct payments
  • 32. 2013 600 Direct Payments / € per ha 500 400 300 200 100 0 0 100 200 300 Rural Development / € per ha
  • 33. 2013 600 EU-15 Czech Republic Direct Payments / € per ha 500 400 300 O 200 EU-12 100 0 0 100 200 300 Rural Development / € per ha
  • 34. €72 2013 600 EU-15 Czech Rep Direct Payments / € per ha 500 400 300 O €229 200 EU-12 100 0 0 100 200 300 Rural Development / € per ha
  • 36. Entitlements v. Targeting
  • 37. Incentive payments v. Regulation & law
  • 38. Common policy v. National/regional diversity
  • 39. CAP is... “little more than an instrument for Ministers of Agriculture to get for their farmers in Brussels and in the name of Europe what they would not get at their national Cabinet tables.” Lord Dahrendorf, former European Commissioner.
  • 40. Thank you for your attention jack@farmsubsidy.org