Brussels, 07/09/2015 (Agence Europe) - Thousands of farmers and over one thousand tractors from all over the EU demonstrated in Brussels on Monday 7 September against the “catastrophic” situation being faced by milk, pigmeat, fruit and vegetable and beef producers.
At a press conference on Monday morning, Copa-Cogeca made clear the seriousness of this unprecedented situation affecting European producers in these sectors.
Milk sector. Copa-Cogeca calls for: - all the money (almost €900 million) raised by the 2014-2015 super-levy to be returned to the sector; - an increase in the intervention price; - instruments to be used to calm market volatility (futures markets and insurance schemes); - a strong export strategy and new outlets; - the removal of trade barriers; - improved promotion measures.
Pigmeat. The agricultural organisations here call for: - further negotiations with Russia to bring about the lifting of the health and plant health restrictions imposed on pigmeat since the start of 2014; - the stocks of fat and offal which are deteriorating to be used for non-food purposes (biofuels); - a fund, jointly financed by the EU and its member states, to be set up to help rebuild the sector. Copa-Cogeca has not called for the private storage of pigmeat to be re-opened and acknowledges that use of this measure, in March 2015, proved unfruitful. It is calling, too, for the lifting of health restrictions to allow new outlets in Mexico, Peru and Chile.
Copa President Albert Jan Maat stated that, in many countries, prices paid to producers are lower than production costs and farmers' incomes are less than half the average, causing many to leave the industry. “The considerable power of the distributers has also had a very harmful effect on producers, further reducing their margins. Community measures to rebalance the food chain and to address unfair trade practices are decisive”, stated Cogeca President Christian Pèes.
The European agri-food sector supports 40 million jobs, mainly in rural areas, and exports are worth over €120 billion per year. Given that the demand for food is set to rise by 60% between now and 2050, “we cannot simply wait for the next crisis. An economically viable agriculture sector has to be maintained in all the regions of Europe. The EU must take action” (our translations).
Reduction in production, says EMB. Milk producers are not asking for subsidies but for a crisis mechanism that would mean that milk production could be reduced in times of crisis, says the European Milk Board (EMB), which took part in the demonstration. “The EU milk market is flooded, prices are plummeting. In some countries they are approaching 20 cents. Unless production is reduced, the market will carry on deteriorating at a pace”, said EMB President Romuald Schaber. He argued for a “market responsibility programme” (MRP), which would include bonus payments for farmers who voluntarily cut production.
The EMB believes that national approaches have failed: “Neither the assurance of an unrealistic guaranteed minimum price in France nor the promise of 300 euros a cow in Spain can ease the situation in those countries”. The EMB argues that the measures put in place at EU level, such as, private storage, for example, “have not achieved any stabilising effect in the face of a globally flooded milk market”.
Differences of opinion have appeared between the EMB and Copa-Cogeca over the organisation of the demonstration.
Tractors on the doorsteps of the EU institutions. Eggs being thrown, horns being sounded, bangers being let off and processions of tractors on the very doorstep of the EU. Angry farmers had hoped for about 5,000 demonstrators. Local police report the number to be nearer 3,000. At the Schuman Roundabout in the heart of the European Quarter, police in riot gear stood behind barbed wire blocking the way to EU buildings.
“Solutions have to be found to the serious economic crisis currently affecting the sector. Farmers are being forced to make a loss on their production”, acknowledged Luxembourg Agriculture Minister Fernand Etgen, whose country holds the rotating six-month presidency of the Council of the EU, on his arrival (our translation). The purpose of the meeting is to work together to draw up a raft of short- and medium-term measures that can improve prospects for farmers, he added (see other article). (Lionel Changeur)