Brussels, 09/06/2016 (Agence Europe) - On Thursday 9 June, the EPP group at the European Parliament adopted a declaration on the agricultural crisis. This statement contains measures for reducing milk production, revising the public intervention system and improving the position of producers in the food supply chain.
The EPP group has come up with a number of fairly ambitious suggestions ahead of the Agriculture Council on 27 June (see EUROPE 11562), which emphasise that the crisis affects the milk, pork and beef meat sectors, as well as fruit and vegetables.
The declaration was drawn up by Albert Dess from Germany, together with his EPP colleagues at the EP Agriculture Committee. First of all it calls for "new legislative measures" to tackle unfair trade practices in the food supply change and rebalance the balance of power in favour of producers (see EUROPE 11567). It is also proposing to set out a maximum 30-day deadline for payments.
Reducing milk production. The EPP group is advocating compulsory measures at an EU level to reduce milk production and increase prices. The current programme is voluntary and does not include the use of Community funds. It has therefore not been very successful in the EU.
The declaration also advocates the permanent reintroduction of support as "an immediate measure" for butter fat for use in ice cream and bakery products, with the aim of permanently replacing palm oil, which is imported from third countries and sometimes produced under environmentally questionable conditions, as acknowledged by the EPP. The support for butter was abolished in 2008 during a Common Agricultural Policy (CAP) health check. The EPP is also requesting specific aid for promoting quality products from disadvantaged and mountainous regions, for example.
More proactive intervention system. In the press release, Albert Dess defends a more flexible intervention mechanism to improve the situation on the milk and milk products market. He believes that the current intervention system is "too static". The declaration explains that the current intervention system must be made "more flexible to flexibly remove, according to market conditions, the necessary quantities of butter and skimmed milk powder in a quick and unannounced procedure, at market prices". They are also calling for a "flexible mechanism" for deciding on the possible temporary raising of intervention prices and increasing of private storage aid.
Pig meat measures. The EPP asserts that to alleviate the difficulties on the pig meat market, the Commission "should allow temporary production limits in this sector if necessary" and that the standard scheme for private storage should be reopened in due time. The Commission is also called upon to enable member states not affected by an animal disease to issue the veterinary certificates necessary for the export of pork products in case of phyto-sanitary embargos.
Beef meat. The text underlines the need to increase funds for promoting and pursuing new market outlets in non-EU countries.
Fruit and vegetables. The EPP Group considers that the proposed measures are "highly insufficient". In particular, withdrawal prices should be updated, "as current support covers only 20% of the average market price".
The group welcomes the Milk Market Observatory and creating one for the meat market. It also calls for "the extension of market surveillance instruments to other sectors, such as fruits and vegetables".
International agreements. Although the document asserts that "International trade offers our farmers considerable opportunities", it also says that "in all trade agreements a positive reciprocity should be achieved, in particular with our major trade partners, on standards in consumer protection, animal welfare and environmental protection, as well as minimum social standards" and that "geographical indications must be a priority".
Finally, the declaration of the EPP group at the European Parliament calls for swift launch of export loan guarantee instruments at an EU level, in cooperation with the European Investment Bank (EIB), which could be used to help complement the systems that have already been implemented by the member states. (Original version in French by Lionel Changeur)