Consumers

The safety and quality of our food is largely unrelated to the CAP. The right way to achieve these objectives are high minimum standards that are effectively enforced, informative and reliable food labeling, and responsible choices by consumers.

Consumers nonetheless have a very sound reason to worry about the CAP: tariffs, export subsidies quotas and other measures reduce supply on the EU market. Hence, they drive up food prices. According to OECD estimates, EU agricultural policies have increased agricultural prices at farmgate by 12% in 2008. The policy-induced price increases for strongly affected commodities are 79% for poultry, 73% for sugar, 69% for sheep meat, 55% for beef, and 31% for pig meat. Overall, this corresponds to a transfer of € 36 billion from consumers to producers – in just one year.

Additional costs for consumers are even less visible. It it noteworthy that above calculation encompasses only the money that actually ends up in the hands of farmers. Higher prices of agricultural (raw) products are likely to translate into increased margins for processing, transport, and retailing. All this is also paid for by consumers.