Brussels, 17/02/2014 (Agence Europe) - As is often the case on this highly sensitive issue, the member states of the EU were divided over the measures to be implemented in the milk and dairy products sector, with reduction quotas to end next year. Some countries called for the political agreement of 2008 on milk to be reopened in order to review the level of the superlevies (fines in the event of producers exceeding their quotas) and of fat coefficients. These requests are a thinly veiled way of changing the gradual increase in quotas decided on in 2008 for the period up to 2015.
Bulgaria, Poland, Finland and France stressed the problem of the volatility in prices and margins in the dairy sector.
Reopening Pandora's box. According to the Greek Presidency, 11 member states, including the Netherlands, Austria, Ireland, Luxembourg, Denmark and Sweden, took position in favour of a “soft landing” when quotas expire in 2015: 1) either by getting rid of the superlevy before this date; 2) or by reducing the fat coefficient. European Commissioner for Agriculture Dacian Ciolos stood firm. Unless there is consensus within the Council to return to the political agreement which was “delicately reached” in 2008, “the Commission will not be proposing derogations from it in one way or another”, said Ciolos. “The market parameters are fine today”, he said.
Differences of opinion on the need for additional measures. Denmark, Germany, Sweden and the United Kingdom said that no new measures should be introduced over and above the safety net currently in place for the dairy sector. Other countries, such as France, Italy, Spain, Slovakia, Croatia and Lithuania, on the other hand, felt that the measures provided for by the dairy package were insufficient. Tools are needed, these countries argue, to anticipate crises and act quickly in the event of one. These countries also supported the idea (put forward by the European Commission) of creating a dairy markets observatory.
Ciolos takes the view that questions have to be asked about the actions to be carried out “or not” in the event of a serious crises at farm level (exceptional measures “to be taken in order to keep the agricultural production tools profitable in normal market situations if they end up pushed out due to a serious crisis”. A further reflection to be carried out will focus on increased responsibility for companies in the dairy sector (producers and processors).
Least-favoured regions. Cyprus, Malta, Portugal, Austria, Finland and Slovenia said that transitional measures were needed for the least-favoured regions. Some countries, such as Austria and Poland, proposed subsidies for the transportation of milk in such regions.
The milk dossier will be dealt with at Special Committee on Agriculture (SCA) level before the publication, in June, of the Commission's report on the impact of the milk package and how capable the sector will be be of reacting to extreme market volatility situations. This subject will also need to be discussed with the European Parliament. (LC/transl.fl)