The Agriculture and Fisheries Council began their two-day meeting in Luxembourg at 10 am this morning under the presidency of Horst Seehofer, Germany's federal minister for food, agriculture and consumer protection.

The meeting is of specific interest to processors as it could sets in motion policies that will affect the way they source and buy supplies for their products.

In the case of eco-labelling, an eventual harmonisation of policy will make it easier for them to determine whether their source is following acceptable practices. In relation to fruits and vegetables, their sourcing from other EU member states would be affected as prices might rise in some key suppliers once export subsidies are removed.

The eco-labelling debate has been going since June 2005, when the European Commission adopted a communication outlining an EU common approach to a system for fisheries products.

The communication addresses eco-labelling as a means of integrating environmental protection concerns into the fisheries sector, and outlined three possible options for using market-based measures.

Since its adoption, the Commission Communication has been the subject of a broad debate at the European Economic and Social Committee, the European Parliament, industry and consumer groups.

At its meeting this week, agriculture and fisheries ministers from member states will discuss the three options and possibly propose a way forward

The first option involves retaining the status-quo and leaving current labelling schemes to develop freely. The second option would result in the creation of a single EU eco-labelling scheme.

The third would involve the establishment of EU minimum requirements for voluntary eco-labelling schemes. The Commission believes that the last option would be the most appropriate for the EU.

The debate on reforming the fruit and vegetables sector will focus on a series of reform proposals made by the Commission in January this year.

The Commission wants to reform the Common Market Organisation for fruit and vegetables to bring the sector into closer line with the EU's Common Agricultural Policy.

The proposals aim to reduce income fluctuations resulting from crises, increase consumption, improve environmental protection and, where possible, simplify the rules to reduce the administrative burden.

The reforms would encourage more growers to join producer organisations, offer them a wider range of tools for crisis management and integrate the sector into the single payment scheme, according to the Commission.

The Commission also calls for higher EU funding for organic production and the abolishion of export subsidies.

The Council will also have a policy debate on the Commission proposal on the basis on a questionnaire from the German presidency. The two questions put by the presidency relate to aid for fruit and vegetable processors and crisis management.