In its latest dairy market situation report, the Commission sets out the catalogue of measures available to help alleviate the difficult market situation. The Commission will continue to use instruments such as intervention, private storage aid and export refunds. It will allow direct payments to farmers to be paid early and has just launched a new round of dairy promotion programmes.
Other potential measures include using levies on producers who exceed their quota to finance voluntary retirement from milk production, and the extension to farmers of the Temporary Crisis Framework for state aid.
Member states also have the possibility to redistribute aid to the dairy sector under last year’s Health Check agreement, while there are a number of possibilities to help dairy farmers within the Rural Development policy.
The Commission is continuing its examination of potential anti-competitive practices in the food supply chain, especially the dairy sector. In line with the conclusions of the June European Council, the Commission will not reverse decisions already taken on the quota system.
“We have to do all we can to help our milk producers, who are having to deal with a dramatic fall in prices,” said Fischer Boel. “We will continue to use all the measures we possess to stabilise the market. But, as clearly stated by the European Council, we will not reverse our policy of gently phasing out quotas. Putting this into doubt would only create uncertainty and would do nothing to help the situation anyway.”
Source: European Commission
© FoodBev Media Ltd 2024