Brussels, 26/08/2015 (Agence Europe) - Speaking in Brussels on Wednesday 26 August, European Agriculture Commissioner Phil Hogan hinted that short-term measures, as well as some for the medium and long terms, might be discussed (or even agreed) at the Agriculture Council on 7 September that is to be devoted to the situation on the agricultural markets.
It is very difficult to say at this stage what new measures might be taken. The Commission has already made clear its willingness to extend the safety nets for milk and fruit and vegetables (see EUROPE 11373). Hogan is less keen, for example, on increasing the intervention price in the dairy sector and continuing with private storage aid in the pigmeat sector.
EU agriculture ministers will meet in Brussels on 7 September, against a backdrop of farmers' demonstrations, to try to agree measures to address the difficult situation that the milk and dairy and pigmeat sectors, in particular, are facing.
Hogan said announcements will be made on 7 September, indicating that there existed short-term measures, and others in the medium and long terms, to address the problems. He stated that current common agricultural policy (CAP) rules provide the member states with a degree of flexibility. Countries are able to take local action and there are support and rural development programmes, he added.
Dairy and pigmeat sectors in difficulty. The commissioner said that, over the last number of weeks, he had been closely following the agricultural markets in the EU and the difficulties confronting farmers. He readily acknowledged that difficulties existed, especially in the dairy and pigmeat sectors. He has met a number of European agriculture ministers (including those of Latvia and Lithuania) in preparation for 7 September's Council meeting. He is due to meet the Austrian and Irish ministers this week, and the Luxembourg, Spanish and French ministers next week. He hopes soon to be able to speak with the German minister and has already had talks with the British minister.
“There are limits to what the European Commission can do”, he recognised. He said there should not be any deviation from decisions taken previously (for example, a market-led common agricultural policy) while at the same time seeking a solution to current difficulties.
Dairy prospects. Responding to press questions, Hogan made it clear that milk quotas have gone and will not return. He accepted that a certain price volatility has existed, following the ending of quotas at the end of March this year. “But the prospects are excellent since, in the Far East, people are consuming more and more dairy products”, he stated. He remains optimistic about the future, despite the short-term volatility.
When asked by a journalist if he thought the sector was in crisis, Hogan replied that EU agriculture ministers had not been able to agree on what is meant by a sector “in crisis”. The current average price is 30 cents per litre: “That's a reasonable price, but some countries have prices far lower than this. I'm thinking principally about the newer member states and the Baltic States. Belgium, too, has seen a price fall. Every country is affected in one way or another by overproduction internationally”, Hogan said. “The challenges we are facing remind me of 2008 or 2009”, a period when the sector was confronted by a major crisis, he stated.
The countries in greatest difficulty are the Baltic States and some of the newer member states, these being the ones hardest hit by the Russian ban on the import of agri-food products from the EU. The professional organisations in the Baltic States asked the Commission on Wednesday for compensation for their market losses (following the Russian embargo that has been extended by a year).
Intervention price. Hogan confirmed that the Commission was going to extend public intervention in the dairy sector from 1 October 2015 to 29 February 2016. Private storage (butter and skimmed milk powder) will also be extended until 29 February 2016. The reference price in 21 cents per litre of milk and the safety net measure has been triggered in a number of countries, the commissioner pointed out. He indicated, however, that the joint legislators had decided in 2013 to pursue the current policy (a market-oriented CAP). He started that he was ruling nothing out but would be very reluctant to pass new agreements that might harm the market orientation of the CAP. Intervention, he argued, could interfere with the search for new outlets for products. Spain, in particular, but also other countries (including France), are calling for a rise in the intervention price.
New outlets. Hogan indicated that the EU would have new outlets, too, in Vietnam (following successful negotiations on an EU-Vietnam free-trade agreement). On Wednesday, he met a Mexican ambassador in anticipation of a free-trade agreement to come into effect in 2016. And the EU is hoping to reach agreement with Japan on dairy products and pigmeat. The commissioner said he hoped that talks with Japan would be completed by the start of next year.
Farmers' negotiating power. Hogan also referred to the structural measures that could be taken to ease the pressure by the big supermarket chains on farmers. Trials have been carried out in the United Kingdom and Spain, and reforms are planned in Lithuania. These will bring greater fairness in the food chain, he opined.
Drought in Poland. The commissioner said he would examine the requests made by Poland, which is experiencing a severe drought. Some 90% of crops have been affected, according to certain sources. Hogan pointed out that instruments existed (emergency measures) to assist the farmers affected and “this issue will be discussed on 7 September”, he said (our translation throughout). The Polish minister has proposed an insurance system backed by EU guarantees.
The European Parliament's agriculture committee will meet in Strasbourg on 8 September, the day after the Agriculture Council. (Lionel Changeur)