A Mission for a Competitive, Resilient, and Sustainable Europe

Ahead of the installment of the new European Commission, FoodDrinkEurope has written the below open letter to President Ursula von der Leyen.

Dear President von der Leyen,

As you embark on your second term as President of the European Commission, we find ourselves at a pivotal moment for Europe. In the face of significant geopolitical challenges, your leadership will be essential in guiding our continent toward a resilient and prosperous future. Your Political Guidelines presented to the European Parliament in July 2024 articulate a vision for a Union that is “faster and simpler, more focused and more united, more supportive of people and companies.” FoodDrinkEurope is eager to collaborate with you and your team to realise these objectives, particularly in areas such as security, sustainable prosperity and competitiveness, democracy, social fairness, and leading in the world and delivering in Europe.

The food and drink industry is a cornerstone of Europe’s economic landscape and cultural identity. As the largest manufacturing sector in Europe, it generates €230 billion in value and supports 4.6 million jobs. Importantly, 70% of produce from Europe’s farms is transformed into tasty, safe and nutritious products by nearly 300,000 enterprises, 99% of which are SMEs. The significance of this sector extends beyond economic contributions; it plays a crucial role in ensuring food security and fostering social cohesion within our communities.

A Collective Commitment to Sustainable Transition

The food and drink industry is already collaborating with policymakers and stakeholders across the agri-food chain to foster more sustainable and resilient food systems. We have outlined our ambitions in our Action Project for Sustainable and Resilient Food Systems, featuring 15 core commitments that drive change, from sustainable packaging to climate action and improved nutrition.

Your Mission Letter to the Commissioner-designate for Agriculture and Food underscores the importance of addressing interconnected issues such as climate change, environmental degradation, and food security while supporting the competitiveness of Europe's food supply chain. The food and drink industry is eager to engage in shaping a forward-looking Vision for Agriculture and Food.

Investing in Our Future

To maintain the excellence of our industry, substantial investments are essential. Your Mission Letter emphasises the need to “work closely with Member States, farmers, and industry to foster investment and innovation.” These investments will empower Europe to achieve its sustainability goals while enhancing the resilience of our food supply chain.

In this context, we strongly urge you to champion a comprehensive EU Food Investment and Resilience Plan. This plan should draw from your Political Guidelines and insights from landmark reports by Profs. Letta, Draghi, Niinistö as well as from the Strategic Dialogue on the Future of Agriculture (in which FoodDrinkEurope took part), which emphasize the necessity for a renewed focus on sustainable competitiveness, particularly within our food value chain, ensuring that transformation enhances rather than undermines the sector's vitality.

A Call to Action

To effectively realise this vision, we believe action can be taken in the following five areas, aligned with the priorities outlined in your Mission Letters:

1. Investment: The food and drink sector currently faces substantial financing gaps that impede the adoption and scaling of sustainable and innovative practices. Given the challenging financial landscape many food and drink companies are navigating, it is essential that discussions around funding extend beyond the Common Agricultural Policy (CAP). A comprehensive approach is needed to create a supportive financial environment for the entire food supply chain, ensuring that the costs and responsibility for the sustainability transition does not rest solely on producers (food and drink companies included).
2. Innovation: Your Mission Letter emphasises the critical role of promoting cutting-edge science and innovative technologies. While regions like North America and Asia have successfully embraced agile approaches that facilitate quicker adaptation to market demands, Europe encounters regulatory hurdles that can stifle innovation and hinder the development, market entry, and scaling of new food products and processes. To preserve our competitiveness, it is crucial to accelerate these advancements within Europe. This can be achieved by establishing public-private partnerships, enhancing risk assessments through capacity building, and enabling companies to better leverage digitalisation opportunities.
3. Boost Trade and Secure Supply: An ambitious EU trade agenda and market access strategy are needed to boost global competitiveness and sustainable growth in food and drink. Granting access to international markets will ensure EU food and drink products continue to be enjoyed by consumers around the world. Equally, stable access to global supplies is vital to guarantee the resilience of a range of EU food and drink industry sectors, including in times of crisis. Policymakers should protect the (agri-)food and drink sector from becoming collateral damage in unrelated trade disputes by advocating for targeted trade policies prioritising economic stability and food security. By fostering an open and fair trading environment, we can enhance our resilience and sustain our contributions to the European economy.
4. Build Better Regulation: Your focus on reducing administrative burdens is crucial. Simplifying and harmonising regulations, conducting gap analyses of new laws, and streamlining existing legislation will help our businesses thrive and secure a better foothold in the global marketplace. We need to take concrete steps to map out all requirements faced by agri-food operators to identify opportunities for reducing administrative, reporting and regulatory burdens, including those created by unjust fragmentation of the Single Market.
5. Improve Governance: Recognising the strategic importance of our sector is key for effective crisis preparedness. The food and drink processing and manufacturing industry must be explicitly recognised as critical to society by all EU Member States. Moreover, your commitment to ensuring that “all voices are heard” in policy formulation is vital. FoodDrinkEurope should be a key player in the proposed European Board on Agriculture and Food.

Conclusion

Madame President, Europe’s food and drink industry has been a remarkable success story for the EU over the decades, often operating in the background while providing a lifeline of over 1.5 billion meals to European citizens every day. However, its resilience and global competitiveness are now under increasing pressure. Investing in this vital sector is essential for ensuring continued food security and stability within European societies. By prioritising support across the entire value chain, Europe can effectively navigate the challenges that lie ahead. We wish you every success in your endeavours as you lead the Commission through these critical times.

Over the course of this week, FoodDrinkEurope colleagues will send additional open letters to relevant Commissioners-designate with our recommendations.