Brussels, 01/04/2015 (Agence Europe) - The EU and its member states must use all available tools to avoid disruptions on the milk market, seize the opportunity to build a more confident dairy sector and take the global lead, said chair of the European Parliament agriculture committee Czeslaw Adam Siekierski (EPP, Poland) and the rapporteur on prospects for the EU dairy sector, James Nicholson (ECR, UK) on the occasion of the ending of milk quotas.
Siekierski said that the “elimination of milk quotas raises concerns but also expectations. We know that milk quotas did not save the market from significant fluctuations in prices and incomes, from disruptions or even from the 2008/2009 crisis. And we were all aware since 2003 that milk quotas will end in 2015. Now we should make the most of the liberalisation of the dairy market but at the same time we must remain vigilant and ready to step in if there are any disruptions”.
He argued that, in the post milk quotas era, it is essential to further strengthen the position of dairy farmers in the milk supply chain so as to achieve “stable and just cooperation and exchange between farmers, processors and retailers”. He argued that greater focus must be put on new export markets and that diversification is needed. Among the tools available to help farmers, he mentioned new financial and insurance instruments, which should be introduced more widely, and rural development funding to help more small farmers producing milk in challenging conditions e.g. in mountainous areas.
In May the agriculture committee will adopt Nicholson's own initiative report recommending a number of measures, such as strengthening contractual relations and improving the operation of the Milk Market Observatory (see EUROPE 11264 for the draft report). (Lionel Changeur)