Brussels, 22/04/2010 (Agence Europe) - In the evening of Tuesday 20 April in Strasbourg, the European Parliament called for certain tools for regulating the market to be maintained, especially those for preventing new crises affecting prices and farmers' incomes. The European Commission listened to this appeal and is planning to defend such crisis prevention measures in the framework of the proposals it will make for the post-2013 common agricultural policy (CAP) (EUROPE 10116).
Speaking on behalf of the president of the EP's agricultural committee (Paolo De Castro was unable to go to Strasbourg because of the problems affecting air travel), Stephane Le Foll (S&D, France) pointed out that the crisis had caused a fall in prices and farmers' incomes, particularly in the cereal sectors, pig and bovine rearing sectors, olive oil and milk. The agriculture committee asked the Commission to examine measures that could be taken to “help farmers and, above all, help make the agricultural market less volatile”, explained Le Foll. The first question involves measures the Commission would like to take in the milk and milk products sector. The second deals with market regulation measures to help limit this price volatility. When prices are high, farmers rub their hands together but it is consumers who take the rap (limited purchasing power). When prices are low, it is the producers who are penalised “in their incomes and in their ability to invest or prepare for the future” explained Le Foll, who said that it was necessary to “stabilise prices”. He also asked another question: “How does the Commission in the medium term, intend to plan for crises and avoid them, as well as prevent falls in prices? And by what market regulation mechanism can we limit brutal price rises and falls?”
Dacian Cioloº, the European commissioner for agriculture, pointed out that the measures taken in 2009 in the milk sector included: €400 million to finance intervention mechanisms to help stop prices falling and €300 million to help EU countries assist their farmers most affected by the crisis. Criteria for paying this aid are worked out by EU countries, which would only have to notify the Commission about them. The commissioner explained: “All member states notify the Commission about their decision to apply these measures and they decide what criteria would be used to distribute these funds. The process for paying this aid will be starting. Member states have until June to ensure that these funds are distributed”. Cioloº noted that there had been some stabilisation of prices in the sector (with some variations “within reasonable limits”). He repeated that he did not wish to wait for the deadline for the post-2013 common agricultural policy (CAP) reform “to come up with specific proposals in support of the milk sector”. The Commission will be making proposals by the end of the year, in light of the conclusions, expected in June from the high level group. The agriculture Council will debate the question next July. The Commission intends to find short, medium and long-term solutions, in an effort to avoid “as much as possible” such crisis situations being repeated in future. The European commissioner said that “we will also be drawing lessons for other agricultural sectors, which we need if we are going to intervene”.
The Commission is watching developments on the markets in other sectors very attentively and has promised to use, if necessary, available intervention mechanisms such as the “safety net”, concluded Cioloº. Speaking on behalf of the EPP, Jahr Peter from Germany made an appeal: measures, such as those of intervention, as well as export discounts, “should not disappear”. He explained that these tools should also be used in emergencies and said that measures helped ensure equal treatment between the different operators. He said that he hoped that Commission would keep its promises on the best CAP orientation being market-based., Marc Tarabella (S&D, Belgium) said that he hoped those involved in the processing industry (those located between producers and distributors) are not left out of the high-level discussion on milk because they are particularly affected by what margins of manoeuvre exist. He made a heartfelt appeal for regulation instruments to be implemented.
Speaking on behalf of the Greens/EFA Group (Germany), Martin Häusling, called for the pace in implementing current policy and implementation of clear market rules to be changed. He also added that “we're worried” by the trend towards concentration in agriculture. The CAP must also be about regional markets, explained Martin Häusling.
In order to reduce sharp falls in prices, it is necessary, according to James Nicholson (ECR, United Kingdom), to reach an agreement on a minimum safety net to protect the most vulnerable farmers. Georgios Papastamkos (EPP, Greece) wanted more than just a safety net and the creation of a “crisis management fund”, as well as greater transparency in the food supply chain.
At the end of the debate, Dacian Cioloº admitted that they needed to draw lessons from the crisis in the milk sector and called for “market regulation mechanisms in the post-2013 CAP framework”. He also explained that whilst taking into account the diversity of agriculture in Europe, the CAP had to be able to fulfil its role under the Lisbon Treaty - ensure the stability of farmers income and effective market supply. He provided assurances that the Commission would propose, as part of the post-2013 CAP, market regulation measures for intervening in situations of serious price volatility, in an effort to prevent this kind of problem arising in the future. The commissioner said that “we should leave the market to work. Public intervention is sometimes necessary but it has to be targeted”. Ciolos also believed it necessary to modify the direct aid distribution criteria (which he said must be maintained).
Finally, he acknowledged that some other sectors were experiencing difficulties, such as the fruit and vegetables sector, which sometimes suffers from sharp variations on the market, affecting quantity and prices. The commissioner asserted that “we should provide producers with the opportunity of better negotiating contracts and prices to ensure a certain stability in production on the market by way of private contracts”.
Paolo De Castro (S&D, Italy) the president of the EP's agriculture committee was keen to inform the press that, in connection with this debate, “we are calling on the Commission to take rapid action to support the European agricultural sectors which, for several months, have been experiencing serious difficulties … intervention is not only necessary for the milk sector but also for all the other sectors suffering from the crisis … farmers cannot wait for the long-term reform of the CAP before they receive appropriate EU aid”. (L.C./transl.fl)