Commenting on the discussions in Brussels on the proposals by the European Parliament for the retention of supply management measures for the dairy sector as part of the debate on the future of the CAP, Jim Begg said: “The EU should build policy for the dairy sector around confidence in the ability of the industry to be competitive in the world market. Nobody doubts the enormous opportunities for growth that the European dairy industry is being presented with. This will provide a strong foundation for the future.
“The EU must continue the evolution of CAP dairy sector policy towards greater market orientation. The industry has been building its plans for the future based on this expectation.
“Practical and achievable solutions to price volatility include the operation of an effective safety net, which should be cost-neutral to the EU budget; the development of futures instruments and greater investment in value-added products by the industry.
“In a world of growth opportunities, seeking to address price volatility by reducing productive capacity is self-defeating. It is also unworkable in the current budget context. The European dairy market is now an extension of the world market. Supply management could only work if Europe sheltered the industry behind a raft of subsidies. The budget is no longer there for that.
“Policymakers should work with the industry to find the right balance between private and public sector instruments to address volatility. Together, I’m sure a solution can be found without reverting to the methods of yesterday.”
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