Brussels, 26/05/2016 (Agence Europe) - During the plenary session debate in Brussels on Thursday 26 May, MEPs in their majority criticised the ineffectiveness and lack of ambition of the measures so far adopted to address the crisis affecting milk producers in particular.
Numerous MEPs from various political groups (including the EPP, S&D and Greens) called for a compulsory EU measure to reduce the milk volumes produced and increase prices which remain at dramatically low levels. Some MEPs, such as Franz Obermayr (EFDD, Austria), some members of the GUE/NGL Group and a few Eurosceptics, even called for milk quotas, abolished since 1 April 2015, to be re-introduced.
Farmers have to accept their responsibilities, Hogan says. For European Agriculture Commissioner Phil Hogan, the current crisis in the milk sector “has nothing to do with the abolition of milk quotas”. The crisis, in his view, is due to the increase in production in several regions of the world, a reduction in the Chinese demand and the effects of the Russian embargo on the import of agricultural products from the EU. Farmers must, he said, assume their responsibilities and try to make sure there is a balance between supply and demand on the market. The Article 222 measure, in force since 13 April of this year, encourages farmers voluntarily to reduce the quantities of milk produced. However, it is not being used, partly because there is no Community funding to compensate those farmers who agree to cut production. Hogan could only ask member states to activate the measures provided for in Article 222.
Responding in particular to José Blanco Lopez (S&D, Spain), who attacked the Commission for doing nothing to mitigate the crisis, Hogan stated that 23 measures had been adopted since September 2005. He pointed out that several EU countries and regions had yet to use up the funding provided in the September package (€420 million in targeted aid). He also made it clear to Michel Dantin (EPP, France) that it would be difficult to talk about new funding when some member states had still not spent the money released last September. “Let's be realistic when talking about fresh money!” Hogan told MEPs, reminding them of the substantial funding needed by the EU to deal with the refugee crisis.
Lastly, he said that he would be prepared to consider turning to the crisis reserve and expressed his view that the milk market observatory is currently playing an effective role in providing reliable information.
Effects of measures beginning to be felt, Dutch Presidency says. Speaking on behalf of the Dutch Presidency, Hans Hoogeveen stated that the Presidency would take account of the MEPs' remarks at the next meeting of the Agriculture Council on 27 June. “The situation in the sector is serious and additional measures are needed”, he said. Contrary to what many MEPs had said, he did not believe that the Commission and the Council had sat on their hands: “Numerous measures have been adopted, in September and in March”. He expressed the view that “we are beginning to feel the effect of these measures and the situation would be even worse of these measures had not been put in place”. Hoogeveen, Dutch Deputy Agriculture minister, argued for European solutions, underlining, at the same time, that account had to be taken of national circumstances - there is no one size fits all. “The Council does not want to return to a quota system”, he said. He agreed with Jan Huitema (ALDE, Netherlands) that the position of farmers on the supply chain had to be improved: farmers have to be paid fair prices. Hoogeveen stressed, too, that the Agriculture Council on 27 June would discuss the initial findings of the agricultural markets task force which was set up at the start of the year and which is due to make recommendations, for example, on strengthening the role of farmers in the food supply chain. The Council will also take stock of initiatives taken by farmers in their own countries voluntarily to reduce production, he said.
Speaking for the EPP Group, Albert Dess (Germany) again criticised the current public intervention system and said that a system was needed that would allow intervention “before prices fall”. He argued for a compulsory system to reduce milk production. “The measures taken so far have proved ineffective and sometimes even counter-productive”, stated Paolo De Castro (S&D, Italy). He cited a 7% rise in milk production in the first three months of 2016. The agreed measures, which ultimately leave it up to the member states (voluntary reduction in milk production), could have an unwanted effect, he said. They run the risk of progressive repatriation of the common agricultural policy (CAP). He called for emergency Community measures and effective crisis management tools. James Nicholson (ECR, UK) expressed his pessimism and criticised the increase in milk production. Countries are even encouraging farmers to produce more, he stated.
Maria Lidia Senra Rodriguez (GUER/NGL, Spain) said the crisis was due, not to the producers, but to the Community institutions. She demanded a compulsory measure to reduce milk production. Speaking on behalf of the Greens/EFA, Maria Heubuch (Germany) said the measures taken hitherto had only made things worse. “We're going round in circles”, she regretted. Reducing milk production must be made compulsory, she suggested.
Sofia Ribeiro (EPP, Portugal) drew attention to the crisis in the Azores, where 60% of milk producers are facing bankruptcy. She called for Article 349 of the Treaty (emergency measures for the outermost regions) to be triggered to address overproduction, give farmers decent prices and boost consumption across the EU. (Original version in French by Lionel Changeur)