Brussels, 23/01/2012 (Agence Europe) - In EU27 farm talks in Brussels on Monday 23 January 2012, many countries recommended the continuation of the EU sugar beet quota system in the EU and most of the farm ministers pointed out that the common agricultural policy (CAP) needed a policy of safety nets (aid and private storage) and crisis-management systems.
The European Commission is suggesting that sugar quotas be scrapped on 30 September 2015. Most EU member states want them to continue beyond 2015, many of them (like France and Slovakia) calling for them to continue until 2020 or beyond. Only Estonia, the United Kingdom, Sweden and Ireland backed the idea of phasing them out by 2015. The Netherlands said that 2015 would be too soon to scrap quotas and asked the Commission to change its plans and keep sugar quotas in order to take advantage of the mushrooming demand for sugar around the world. Italy, France, Spain, Cyprus and others said they opposed the idea of liberalising vineyard planting rights and welcomed the Commission's creation of a high-level group (see related article). Slovenia suggested that honey be included in the list of food products for schools.
The regulation unveiled by the Commission in October 2011 on the single market organisation suggests rationalising and simplifying public aid, private storage and emergency and/or exceptional measures, along with facilitating cooperation through farmers' organisations and cooperatives. It suggests scrapping some aid, such as for skimmed milk, hops and silkworms.
Safety net and crisis management
The Danish Presidency asked delegations what exceptional measures would respond to disturbances and crises on the markets and how they would work. Most of the farm ministers said that nearly all the current measures should remain in place (intervention and private storage) in the form of a safety net. Only the Netherlands and the UK called for an end to export subsidies.
Many countries asked the Commission to introduce effective, pro-active measures to respond to crises. Luxembourg welcomed the fact that the Commission was suggesting that measures to cope with a slump in demand due to consumer fears about health and safety should apply to all farm products in the future. France asked the Commission to go further to ensure that special measures can deal with all types of crisis and asked to be allowed to use promotion campaigns and other non-farm techniques. France also called for supply management systems for wine and sugar.
Slovenia recommended keeping a permanent crisis-management system in place, like a price adjustment mechanism that would react to market conditions, along with a promotion campaign to revitalise the sector. Finland said that the EU should consider cases of a shortage of a farm product, like the current sugar shortages, while Greece said that the CAP should focus on crisis-management systems. Cyprus called for the potato sector to be covered by the crisis-management measures.
Many countries criticised the Commission's idea of setting aside a fund to cover agricultural crises that was separate from the main budget.
The other question asked by the Danish Presidency was about the suggested measures to make the food supply chain more competitive and effective. Most delegations backed the idea of measures to boost farmers' negotiating powers vis-à-vis big industry; and recognising farmer organisations and cooperatives in all sectors.
France said that there was a problem with encouraging farmer organisations, namely the ban on being in a dominant position in a market, pointing out that it was abuse of a dominant position rather than a dominant position per se that was bad from consumers and led to economic inefficiency.
Italy called for the existing fruit and vegetable system to continue. (LC/transl.fl)