Luxembourg, 11/04/2016 (Agence Europe) - At a meeting with a handful of reporters in Luxembourg on Monday 11 April, European Agriculture Commissioner Phil Hogan admitted that the situation on the milk market had not improved.
In Paris on Friday 8 April, Hogan met New Zealand's agriculture minister. New Zealand is planning to cut its milk production by 3% and Hogan hopes this will help rebalance the market.
Managing supply. The Commission has formally endorsed the implementation regulation (under Article 222 of the common organisation of the market) that allows producer organisations and associations of producer organisations, recognised professional groups and cooperatives to temporarily (for a period of six months) to voluntarily cut production, thus derogating from the competition rules. The legal text will be published on Tuesday 12 April in the EU Official Journal, but the Commissioner said 'We have to see if Article 222 will work.' Few countries have yet announced a desire to make use of it (France, Belgium and Spain) mostly due to the lack of EU budge appropriations to pay compensation to dairy farmers ageing to cut production. Phil Hogan said '85% of all milk collection/deliveries (in the EU, Ed.) will be eligible and can participate in the (Article 222, Ed.)scheme,' and 'Member States can provide financial incentives for farmers through state aid' (looser state aid rules allowing €15,000 a year without any national caps).
At the Agriculture Council, Hogan said that milk production was rising in Germany, the Netherlands and Ireland. The purchase of powdered milk in auctions will begin on 21 April ahead of a doubling of intervenient caps for powered milk and butter, explained the Commission.
Lithuania (supported notably by Slovakia, Estonia, Latvia, Bulgaria and Cyprus) asked for a new targeted EU emergency measure for dairy farmers. Ireland stressed the need to introduce the measures already decided upon. Latvia said it was sceptical about the impact of voluntarily reducing production. France said speedy action was required for the intervention measures (doubling the caps).
Meat. The Commissioner said there had been a slight rise in pork prices, but “very slight”. He said the selection of experts to sit on the European beef and pork market observatory (monitoring centre) would begin soon. Belgium asked for the voluntary production reduction to be extended to pork. France is also in favour of this.
Russian embargo. Austria raised the Russian embargo on EU pork that has been in place since January 2014), asking what the next stages were to allow a partial opening of the Russian market to European exports. Germany and France defended a European solution to this question.
Postponing deadline for requesting aid. Poland asked for a one month extension (until 15 June 2016) of the deadline for requesting aid under the Common Agricultural Policy. Hogan a said he wanted to think about it before giving an answer. Poland's request was backed by Lithuania, Germany (as long as it is optional), Slovakia, Greece, Portugal, Spain and Bulgaria. Greece recommended that refugees be given free fruit and vegetables.
Commissioner Hogan will be on an official visit to China and Japan on 16-18 April to try to open up new markets. He will be accompanied by representatives of 63 companies from the EU. (Original version in French by Lionel Changeur)