Brussels, 23/02/2011 (Agence Europe) - Spain is continuing to ask the European Commission to activate aid for the private storage of olive oil, but so far without success. European Agriculture Commissioner Dacian Cioloº said on Monday 21 February after the Agriculture Council that such a move would not be justified. “At present, the conditions have not been met. We cannot speak about a price crisis on the olive oil market when, even though it has fallen, the price is still higher than the reference price provided in the European regulation, which would justify intervention”, the commissioner stated.
He noted that in 2009, when the Commission triggered this private storage instrument for olive oil, market prices were lower than the reference price, “which is not the case today”.
At the present moment, the problem lies above all in the relationship between the negotiating power of producers and that of major retailers, not market disruption, the commissioner argued. He went on: “We are keeping a watchful eye on market developments. And if such an aid measure (for private storage) is justified, then we will not hesitate to take it. But it has to be in line with the provisions of the regulation and be of value on the market”.
Spanish Secretary of State for Rural Affairs and Fisheries Josep Puxeu said that the agriculture commissioner's department was happy to consider the request “if we can argue it”. At a forthcoming EU management committee meeting, Spain plans to present a document outlining a “possible solution”, containing information on the market disruption observed in some member states. Spanish Agriculture Ministry of Rosa Aguilar has been in contact with France, Portugal, Greece and Italy, producer countries which share common interests, to try to drum up support for Spain's request. (L.C./transl.rt)