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Europe Daily Bulletin No. 11101
SECTORAL POLICIES / (ae) agriculture

Tough talks over future of milk sector

Luxembourg, 16/06/2014 (Agence Europe) - As we were going to press in the late afternoon of Monday 16 June, the Greek Presidency had not let up in its efforts to convince the European agriculture ministers to approve conclusions on the highly sensitive subject of the future of the milk and dairy sector.

The task at hand for the Greek Presidency is a tough one: it has to lead the Council towards a consensus on a text of conclusions against a backdrop of clashes between two camps. Around ten countries are calling for the fat coefficient in milk to be reduced (which would be tantamount to increasing production quotas). This camp is made up of countries which have exceeded their quotas and do not wish to pay a super-levy (fines in the event of exceeding dairy quotas). In the other camp, ten or eleven countries oppose a reduction of the fat content coefficient. Dacian Ciolos, European Commissioner for Agriculture, is reported to be prepared to make a proposal if he receives a signal to do so from the Council, despite its division over the subject. Setting the fat content is the job of the Commission in an implementing act, but it has to be voted on by the management committee.

The Greek Presidency has tabled a draft text combining two themes: fat content and the sector's future when milk quotas come to an end. The countries calling most vociferously for the fat content to be reduced (Germany, Denmark and the Netherlands) will not hear of tools to manage crises. Austria and Poland, in particular, have demands regarding both of these scenarios (fat content coefficient and crisis management tools).

The countries which wish only to strengthen the market management tools include France, Italy, Hungary, Slovenia and Slovakia. The United Kingdom and Sweden want neither to reduce the fat content, nor to adopt any new market measures. (LC)

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