Brussels, 01/09/2015 (Agence Europe) - In light of the “critical” situation on agricultural markets (as a result of the Russian embargo and also falling demand in China, the summer drought and the fall in prices in certain sectors), the Luxembourg Presidency has suggested that EU agriculture ministers discuss possible additional measures to address “this worrying market situation” in the short and medium term when they meet in Brussels next week, according to the Presidency document ahead of the Council meeting on Monday 7 September devoted to the crisis in the livestock sector.
The Presidency is aware that the impact of the crisis varies from one member state to another and believes that political drive is necessary at national and EU levels to help European farmers react to the current challenge. “Potential solutions should be workable, take due account of national specificities and be in line with the market orientation at the core of the reformed common agricultural policy”, it states. It adds that budgetary constraints must also be borne in mind.
Using some of the super levy money? “In this respect one could reflect about having at least part of the funds collected by way of the 2014/15 milk super levy (€700 million in total from fines for exceeding milk quotas) returned to the sector to ease its situation”, the Presidency postulates.
Short-term measures. Among the measures put forward by the Presidency are: - easing farmers' short-term liquidity difficulties bringing forward (to September or October) direct payments from December and exploiting all the flexibility available to do so; - providing financing under the Juncker Plan to aid the modernisation of agriculture and energy efficiency; - enhancing promotion measures both externally (such measures should, in particular, address sanitary and phytosanitary-related restrictions as well as other non-tariff barriers, notably for pig meat, in third countries like Russia, Belarus and Japan, and others with which the EU has FTAs, including recently concluded ones such as with Vietnam, or other agreements e.g. Mexico) and internally (a political agreement on the proposal on the aid scheme for the supply of fruit, vegetable and milk in educational establishments should be reached rapidly and provide for an adequate budget, suggests the Luxembourg Presidency); - temporarily increasing the intervention price for dairy products; - giving consideration to extending the safety net measures for fruit and vegetables and dairy products beyond 30 June and 29 February 2016, respectively.
Medium term. The Presidency suggests consideration of other measures: - the future role of the European Milk Market Observatory, speeding up work on transparency and fairness along the supply chain and simplification measures giving priority in the implementation of its simplification programme to those acts having the most direct impact on production costs.
The Presidency will ask the European Commission to update ministers on the situation on EU agricultural markets and to outline a realistic package of measures on 7 September. (Lionel Changeur)