Who is afraid of POs with small-scale production?

Unapol to the Regions: “Recognition is necessary as required by European legislation”

In the next few weeks the text amending Ministerial Decree no. will be discussed at the State-Regions Conference. 617, which from 2018 establishes the requirements for the recognition of Producer Organizations (POs) in the olive oil and table olives sector, in compliance with EU Regulation no. 1308/2013 and subsequent amendments.

Over the years, the relevant legislation has changed, as have the financial instruments made available by the EU through the Operational Programmes. Consequently, it became necessary to review the Decree to adapt it to the new reality. The document currently under discussion takes up almost entirely the observations of the Supply Chain, already discussed and approved by the Regions, except one.

On 2 December 2021, with EU Regulation 2117/2021, the EU Parliament and Council introduced an amendment to the art. 154 of EU Regulation 1308/13 concerning the recognition parameters, establishing that “These provisions do not prevent the recognition of producer organizations dedicated to small-scale production”. However, this rule has never been implemented by the Decree, although UNAPOL has been calling for it since January 2022.
The problem linked to small POs was also addressed in economic terms in the application of the linear cut in the allocation of resources of the OCM Oil 2024 Operational Program (OP). UNAPOL and Confagricoltura have proposed, without success, a proportional cut to turnover brackets, on the IRPEF model, which would have guaranteed a decent budget for small POs

All the players in the supply chain apparently declare themselves in favor, but no one takes a firm position. There are those who want to think better, those who want to open new institutional tables and those who want to relegate small POs to a marginal and “without portfolio” role. This inertia risks closing existing POs and blocking new requests.

We now ask ourselves what the danger is that OPs with small-scale production can represent for the Italian olive growing system and what interest there is in excluding them from the system, despite the obligation dictated by EU legislation.

These POs represent a bulwark for biodiversity, a tool for valorising rural and regional production, PDO and PGI, and the only form of organized assistance that can combat the abandonment of olive groves in marginal areas. They operate in mountainous or disadvantaged areas, where marketing is oriented towards packaged products only, since the production and morphology of the territory do not allow the concentration of large quantities of loose product, which would also have an “out of market” price.

Despite their commitment, reaching significant volumes is extremely difficult. UNAPOL, which has always supported POs of any affiliation and size that are committed to the growth of the olive sector, therefore asks the regional councilors to express their support for the recognition of POs with small-scale production in compliance with EU legislation.

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