The package of measures, presented to the European parliament, follows up the commission’s report from July and looks at short-term measures and actions to secure the longer-term future of the dairy sector.
The commission has already started the process of allowing member states to pay temporary aid of up to €15,000 to farmers. It also proposes that the dairy sector should be covered by an emergency clause that already exists for other farm sectors, to allow a quicker response to future market disturbances.
Changes to the operation of quota buying-up schemes by member states will make sure that bought-up quota that’s kept in the national reserve should no longer count as part of the national quota when it comes to deciding whether or not ‘super levy’ is due. If super levy is then collected, the part corresponding to the bought-up quota can be used for restructuring.
With a view to the longer-term, the commission will establish a working group of experts from the member states and the commission. This will look at, among other things, contractual relations between farmers and the dairy industry, the results of the report into the workings of the food chain in the dairy sector (published before the end of the year), and the possibility of a dairy futures market.
“This package builds on the numerous actions we’ve already taken, and which seem to be working well,” said Fischer Boel. “We’re beginning to see light at the end of the tunnel for our dairy farmers. That’s why I’m more determined than ever not to go ‘back to the future’ in ways that would hurt our dairy sector in the long-term and leave farmers without any sense of predictability. Making a U-turn on decisions taken in the Health Check isn’t an option, and is something the European Council asked us explicitly not to do.
“I’m convinced that today’s ideas will provide real help to our milk farmers. We also need to do some thinking about steps for the medium- and longer-term. Here, we already have constructive ideas put forward by France and Germany.”
The commission suggests the establishment of a working group of experts from the commission and member states. This would look in detail into a number of issues, including:
The most recent data shows that prices are starting to improve. In one month, butter prices have risen 4% in France, 8% in Germany and even more in the UK. Skimmed milk prices have risen by 2-3% on average in the EU. Cheese prices have climbed 5-7% since the export rules were amended in August. The average EU milk price rose by almost 2% in August and intervention buying has almost ceased.
The commission expects to spend an extra €600m on market measures this year. 70% of direct payments may be paid earlier than usual this year in October. Under the Health Check and the Economic Recovery Package, an extra €4.2bn is available to address ‘new challenges’, including dairy restructuring. This comes on top of what is already available in Rural Development policy. The commission has also reinforced the School Milk Programme and promotional measures for dairy products.
Mariann Fischer Boel recently announced in her blog that she “wouldn’t seek a second term as commissioner”.
“Still, for the next couple of months my job will be in Brussels,” she said. “It is still not clear how long this commission will be in office, but I can guarantee you one thing: I will be working as hard as ever until the end of the term.”
Read the full blog entry here.
Source: EU
© FoodBev Media Ltd 2024