Brussels, 19/12/2012 (Agence Europe) - As has often been the case, the countries of the EU stood divided, on Wednesday 19 December, over the future of milk production quotas, which are due to be removed at the end of 2015.
At the Council, Ireland, the Netherlands, Luxembourg, Denmark, Austria and Latvia spoke in favour of raising dairy quotas at the end of the period to avoid superlevies (fines in the event of exceeding production quotas).
Eight countries (Spain, France, Poland, Finland, Portugal, Slovenia, Slovakia and Belgium), with slight differences over the solutions they would prefer, voiced concerns at the consequences to the sector of the end of dairy quotas. Poland called for milk quotas to be kept in place. Finland and Portugal called for a debate on removing milk quotas, similar to the debate on planting rights in the wine-producing sector. France called for a reflection on a mechanism to take over from quotas, and which could be used in the event of surpluses. Spain was very much singing from the same song sheet as France, stating that it predicted a crisis when quotas expire and stressed the need for market measures as a safety net.
The European Commission presented its report on dairy, which concludes that “the soft landing in the dairy sector is on track”. This in favour of the development of dairy production compared to quotas and the downward trend in quota prices. Dacian Ciolos, the European Agriculture Commissioner, said that for a small number of member states (6 to be precise), production has outstripped quotas and the farmers in question have to pay a superlevy. The medium and long-term prospects are favourable for the dairy sector through demographic growth and through 'Western-style” food being sought after in the emerging countries. However, the Commission acknowledges that market fluctuations are the “main challenge” faced by the sector. It is in this view that the Commission this summer launched a call for tenders for a prospective study by independent experts on the future of the sector, particularly once quotas have gone. The Commission hopes to arrange a conference towards the end of summer 2013 to discuss this issue of milk quotas. “All of this will feed into our reflection with a view to the revision clause of June 2014 which I introduced to the dairy package, which has now to be effectively implemented”, Ciolos said. (LC/transl.fl)