Public Consultation

Proposal for Revision of Recognition Criteria for Seafood Producer Organisations

January 2020

Contents

1. Purpose of Consultation...................................................................................3

2. How to make a submission...............................................................................4

3. Current Recognition Criteria in Ireland.............................................................4

4. Why is there a need to review the recognition criteria in Ireland?..................5

5. Recognition criteria in other EU Member States..............................................6

6. Draft proposals on recognition criteria for discussion......................................7

7. Analysis of the proposed new minimum criteria in Ireland..............................8

Annex 1 - Analysis of the proposed new minimum criteria in Ireland......................................9

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1. Purpose of Consultation

This public consultation is seeking the views of stakeholders and other interested parties

as the Minister for Agriculture Food and the Marine begins the process of revising the

existing minimum criteria for the recognition of fisheries and aquaculture Producer

Organisations in Ireland.

There are presently 5 recognised seafood producer organisations in Ireland. Producer

organisations can play an important role in the market, improving the conditions for the

placing on the market of their members’ fishery and aquaculture products, improving

economic returns for their members, stabilising the market, avoiding and reducing as far

as possible unwanted catches, contributing to the elimination of illegal, unreported and

unregulated fishing and generally coordinating the activities of their primary producer

members. Recognised Producer Organisations can avail of financial supports for their

activities under Ireland’s European Maritime and Fisheries Fund Operational

Programme.

Regulation 1379/2013 on the Common Organisation of the Market for Fishery and

Aquaculture Products (the CMO Regulation) provides an EU legal framework for the

recognition of seafood Producer Organisations. Article 14 of the CMO Regulation

specifies mandatory criteria for recognition of fisheries and aquaculture producer

organisations. Some elements of the mandatory recognition criteria require elaboration

or indeed choices at Member State level to give them full effect. One of the mandatory

recognition criteria specified in article 14 of the CMO Regulation requires that groups

applying for recognition are sufficiently economically active, in particular as regards the

number of members or the volume of marketable production. This requires elaboration

at Member State level to say how Ireland will determine what minimum number of

members is sufficient and what volume of production is sufficient to satisfy this

requirement of the CMO Regulation.

The Minister for Agriculture Food and the Marine previously published Ireland’s criteria

for recognition of seafood producer organisations in the context of EU Regulations

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104/2000 and 2318/2001, the now repealed predecessor to the present CMO

Regulation. These national criteria were not revoked or replaced and so are the criteria

presently in operation. Given the change of EU Regulation and other developments in

the market in the intervening years, the Minister considers that it is timely to revise and

update Ireland’s recognition criteria.

2. How to make a submission

Stakeholders may make a submission by email or post to the following addresses:

By email to EMFF@agriculture.gov.ie

By post to PO Recognition Consultation

Marine Programmes Division

Department of Agriculture Food and the Marine

National Seafood Centre

Clonakilty

Co Cork

The closing date for receipt of submissions will be 5pm on Friday 21st February 2020.

3. Current Recognition Criteria in Ireland

The following are the PO recognition criteria presently in operation in Ireland. These

were previously published by the Minister for Agriculture Food and the Marine in the

context of EU Regulations 104/2000 and 2318/2001

A Group applying for recognition -

1. Must have its headquarters in the Member State in question

2. Must be sufficiently active economically in their territory

3. See Article 1 of Commission Regulation 2318/2001. Under Article 1 paragraph 1 (b) the

condition applying to Ireland is (ii) second indent, beginning "at least 30%." basically

requires the PO to dispose of 30% by weight of the total production in a major port or

market.

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4. Provide relevant evidence including proof that they have a minimum number of

producer members or cover a minimum volume of marketable production.

5. Provide sufficient evidence that they can carry out their activities properly both over

time in terms of effectiveness.

6. Have the necessary legal status under national legislation - Memorandum and Articles of

association or other such evidence.

4. Why is there a need to review the recognition criteria in Ireland?

A. EU Regulation –

The minimum criteria presently being implemented in Ireland were developed and

published in the context of EU Regulations 104/2000 and 2318/2001 that were

adopted in 2000 and 2001. This regulation has been repealed and replaced by the

existing CMO regulation that was adopted in 2013.

B. Lack of clarity of description of economic activity –

Article 14 of CMO Regulation 1379/2013 requires that groups applying for

recognition are sufficiently economically active, in particular as regards the number

of members or the volume of marketable production. This requires elaboration at

Member State level to say how Ireland will determine what minimum number of

members is sufficient and what volume of production is sufficient to satisfy this

requirement of the CMO Regulation.

C. Evolving representative structures-

Recent years have seen the evolution of new industry representative structures for

fisheries and aquaculture producers and it is anticipated that these may in time

evolve further into producer organisations. It is appropriate to ensure that Ireland’s

recognition criteria are ready to accommodate such developments.

D. Inshore Fleet

In numerical terms, Ireland’s fishing fleet is predominantly comprised of small

inshore vessels, the majority being small scale coastal fisheries1 vessels. While

existing producer organisations include some membership of these smaller vessels, it 1 vessels of an overall length of less than 12 metres and not using towed fishing gear

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is quite limited. To foster increased representation of the inshore sector in producer

organisations, it is appropriate to review Ireland’s recognition criteria to ensure that

they can appropriately accommodate these vessels.

5. Recognition criteria in other EU Member States

Examination of the recognition criteria in other EU Member States suggests that in the

majority of cases member states continue to use a variation of the criteria that were

previously used under previous CMO regulations.

In relation to criteria concerning the minimum number of fishing vessel owners

represented by a group seeking recognition as a producer organisation, several Member

States (UK, Italy and France) specify a minimum of 20% by number of the vessels

operating in the area concerned. UK also accepts applications where they applicant

group has a minimum of 200 members who are active fishermen.

In relation to criteria concerning the minimum volume of production by members in the

area of operation of the applicant group, a minimum of 15% is commonly used (France,

Italy, UK and Portugal). Where the applicant cannot meet this criteria, Italy and France

also accept applications where the applicant group account for 30% of production in a

major port or market in its area provided they account for at least 1,000 tonnes.

Many Member states do not distinguish between fisheries and aquaculture in their

recognition criteria.

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6. Draft proposals on recognition criteria for discussion

The Minister is proposing the following recognition criteria for consideration by

stakeholders:

1. There is a clear internal democratic structure in the Producer Organisation for which all

members of the Producer Organisation comply with rules and processes within that

structure.

2. Have legal personality under Irish law, are established in Ireland and have their official

headquarters in Ireland.

3. Are capable of pursuing the objectives laid down in Article 7 of the CMO Regulation

1379/2013.

4. Comply with the competition rules referred to in Chapter V of the CMO Regulation.

5. Do not abuse a dominant position on a given market.

6. Provide relevant details of their membership, governance and sources of funding

7. The Producer Organisation is sufficiently economically active in the territory of the

Member State concerned or a part thereof, in particular as regards the number of

members or the volume of marketable production; this criteria is further defined as

follows:

Fisheries Sector:

Criteria 7A

The applicant for recognition must have a minimum of 30 members who own an active

fishing vessel.

And

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Criteria 7B

(1) The applicant for recognition must dispose of at least 15% by weight of total production

in its stated area of operation (geographical Area or Landing Port(s).)

OR

(2) Where 80% of the members own vessels which are less than 12m in length, its members

annual production must be at least 1,000 tonnes, or at least €2 million in value, calculated

on the basis of the average production of the three years preceding the application for

recognition.

Aquaculture Sector

Criteria 7C

The applicant for recognition must have a minimum of 10 members who are holders of

aquaculture licences.

And

Criteria 7D

The applicant for recognition must be responsible for at least 25% of the production in a

stated geographical area for the species for which recognition is sought.

7. Analysis of the proposed new minimum criteria in Ireland

Annex 1 sets out the Minister’s reasons for proposing each element of the recognition criteria above.

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Annex 1 - Analysis of the proposed new minimum criteria in Ireland

Criteria Comment

1. There is a clear internal democratic structure in the Producer Organisation for which all members of the Producer Organisation comply with rules and processes within that structure.

This is a direct requirement of Article 14.1 (a) and Article 17 of the CMO Regulation 1379/2013.

2. Have legal personality under Irish law, are established in Ireland and have their official headquarters in Ireland.

This is a direct requirement of Article 14.1 (c) of the CMO Regulation 1379/2013.

3. Are capable of pursuing the objectives laid down in Article 7 of the CMO Regulation 1379/2013.

This is a direct requirement of Article 14.1 (d) of the CMO Regulation 1379/2013.

4. Comply with the competition rules referred to in Chapter V of the CMO Regulation.

This is a direct requirement of Article 14.1 (e) of the CMO Regulation 1379/2013.

5. Do not abuse a dominant position on a given marketThis is a direct requirement of Article 14.1 (f) of the CMO Regulation 1379/2013.

6. Provide relevant details of their membership, governance and sources of funding.

This is a direct requirement of Article 14.1 (g) of the CMO Regulation 1379/2013.

7. The Producer Organisation is sufficiently economically active in the territory of the Member State concerned or a part thereof, in particular as regards the number of members or the volume of marketable production; this criteria is further defined as follows:

This is a requirement of Article 14.1 (b) of the CMO Regulation 1379/2013. The following sections (criteria 7A, B, C, and D) are the Minister’s proposals for giving full effect to this requirement.

Fisheries Sector

Criteria 7 A

The applicant for recognition must have a minimum of 30 members who own an active fishing vessel.

AND

Criteria 7 B The applicant for recognition must dispose of at least 15% by weight of total production in its stated area of operation (geographical Area or Landing Port(s).)

OR

Where 80% of the members own vessels which are less than 12m in length, its members annual production must be at least 1,000 tonnes, or at least €2 million in value, calculated on the basis of the average production of the three years preceding the application for recognition

Article 14(1)(b) foresees assessment of an application for recognition with regard to the number of members of the applicant group. The benefits of producer organisation status should not be bestowed on too small a group of producers. A certain critical mass in terms of membership is desirable to demonstrate sufficient economic activity, but the threshold must not be set too high or this may prevent applications from smaller ports or geographical areas of operation. A minimum of 30 members is considered a reasonable requirement. Vessel owners with more than one vessel count as one member.

Article 14(1)(b) foresees assessment of an application for recognition with regard to the applicant group’s volume of marketable production. The present recognition criteria require that the applicant group disposes of 30% by weight of the production in a major port or market. The proposal is to lower this to 15% to facilitate smaller producer organisations.

As an alternative to the requirement to dispose of 15% of production in the port or other area of operation, and specifically to facilitate applications for recognition from groups which are predominantly focused on inshore fishing vessels, this alternative recognition criteria allows for the group to account for less than 15% of production in its area, provided its production is at least 1,000 tonnes or €2 million in value. This proposal can ensure sufficient critical mass while offering more flexibility to inshore groups.

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Aquaculture Sector

Criteria 7 C

The applicant for recognition must have a minimum of 10 members who are holders of aquaculture licences.

AND

Criteria 7 DThe applicant for recognition must be responsible for at least 25% of the production in a stated geographical area for the species for which recognition is sought.

Article 14(1)(b) foresees assessment of an application for recognition with regard to the number of members of the applicant group. The benefits of producer organisation status should not be bestowed on too small a group of producers. A certain critical mass in terms of membership is desirable to demonstrate sufficient economic activity, but the threshold must not be set too high or this may prevent applications from smaller ports or geographical areas of operation. A minimum of 10 members is considered a reasonable requirement for the aquaculture sector. Operators with more than one site count as one member.

Article 14(1)(b) foresees assessment of an application for recognition with regard to the applicant group’s volume of marketable production. The present recognition criteria require that the applicant group disposes of 30% by weight of the production in a major port or market. The proposal is to lower this to 25% to facilitate smaller producer organisations.

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