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Managing food supply: strategies to control the level and nature of production

Managing food supply: strategies to control the level and nature of production Common Agricultural Policy (CAP). Starter. What do you know about the European Union ? Get into teams for a quick quiz!. 1. What does the EU flag look like?. 2. How many countries are members of the EU?. 28.

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Managing food supply: strategies to control the level and nature of production

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  1. Managing food supply: strategies to control the level and nature of production Common Agricultural Policy (CAP)

  2. Starter What do you know about the European Union? Get into teams for a quick quiz!

  3. 1. What does the EU flag look like?

  4. 2. How many countries are members of the EU? 28

  5. 3. Name 10 member states! Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany , Greece, Hungary, Ireland, ItalyLatvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom

  6. 4. Which country was the most recent to join? a) Croatia b) Romania c) Latvia

  7. 5. What is the EU’s 2014 budget? €142.6 billion

  8. The European Union • A trading bloc • Emerged since WW2 • Aims: • to ensure peace in the union • to encourage trading between member states • to ensure certain standards of living for the people of member states

  9. Learning objectives • To understand the aims of the CAP. • To find out how the EU manages food production using subsidies, tariffs, intervention, pricingand quotas as part of the CAP.

  10. Farming in the EU Governments try to protect farmers from wildly fluctuating food prices. They attempt to ensure food security as fluctuations that are too great could put farmers out of business, reducing national food supply. In the 1950s a strategy was designed to control food supply and increase food security by maximising production. This policy was known as the CAP. During WW2 much of Europe suffered severe food shortages and famine was a problem in parts of central Europe

  11. What is the CAP? It was introduced in 1962 after the signing of the Treaty of Rome (1957) by the original six members of the EEC (Italy, France, West Germany, Belgium, the Netherlands and Luxembourg). The CAP is awesome! The CAP, more like CRAP!

  12. Aims of the CAP To increase productivity within its member states To ensure fair living standards for the agricultural community To stabilise markets within and between member states To ensure availability of food To provide food at reasonable prices To maintain employment in agricultural areas From Treaty of Rome, article 39

  13. The CAP has three basic principles Create a single market for the free movement of goods. To encourage purchase of products from within the EU, rather than outside it. Financing of the CAP comes from the EU.

  14. Activity: How did the CAP achieve its aims? Study pages 222-223 in your textbook. • Describe the four economic mechanisms through which the CAP operates: • Import tariffs • Quotas • Intervention prices • Subsidies

  15. Economic mechanisms summary Import tariffs • Setting tariffs (import taxes) on certain imported foods. • Raised prices of imported foods relative to EU products. • Cheaper foreign foods became artificially expensive and European shoppers were encouraged to buy EU produced foods. • E.g. certain rice types have tariffs, not basmati rice – food fraud! Quotas • A quota is a limit or a fixed amount. • To protect member state farmers from cheap foreign competition. • Quotas were used to reduce production of a particular good, or from a particular area (non-EU countries). • E.g. bananas from Ecuador, Guatemala and Honduras – discrimination in favour of former higher cost European colonies.

  16. Economic mechanisms summary Intervention prices Guaranteed prices for commodities. If the internal market price falls below the intervention level, the EU would buy up any surplus produce from its farmers to ensure their incomes were protected. Subsidies A subsidy is a grant or benefit. These were paid to farmers growing particular crops to encourage and ensure home grown supplies. Based on the amount of land under production (not yield). Provided a guaranteed income.

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