Brussels, 14/06/2016 (Agence Europe) - At the meeting of member state experts in Brussels on Monday 13 June, the European Commission took stock of the situation on the agricultural markets without revealing, at this stage, if or when a new package of measures would be presented.
European Agriculture Commissioner Phil Hogan indicated at the end of May that he was not considering any new measures to mitigate the impact of the crisis before July. The Agriculture Council of 27 June, then, will have to be content with reviewing the agricultural market situation, imply Commission sources.
Too late for the crisis reserve? Monday's discussions at the Special Committee on Agriculture (SCA) meeting shed no light on a possible timetable for the adoption of fresh measures. Furthermore, the Commission representative stated that it was too late to call for the agricultural crisis reserve to be used, causing a degree of astonishment among the delegations which favour this financing option. The Commission indicated that new measures would have to be financed out of the 2017 budget (which begins in October 2016 for agricultural spending). The Commission, however, will not bring forward its draft budget for 2017 before the end of June.
The Commission also revealed that only 56% (€256 million in 15 countries) of the September 2015 targeted aid package had been used by the member states, which is hardly an argument in favour of the release of fresh funding. The member states have until the end of June to spend this money and Hogan left the door open to the possible use of unused money for new initiatives. At this stage, however, there is nothing to suggest that this option is under consideration.
Joint statement by the French, German and Polish agriculture ministers. The French, German and Polish delegations repeated their joint demands ahead of the Agriculture Council of 27 June, including the release of EU funding to provide an incentive to farmers to reduce milk production and so raise prices (details in EUROPE 11570). The joint statement from the three countries received the support of a number of delegations in the SCA, including those of Spain and the Czech Republic. In addition, Belgium, Italy, Luxembourg and Finland stressed, too, that EU funding was needed to compensate farmers who voluntarily reduce milk production.
Milk. The Commission stated that production of cow's milk was 6% higher in the first quarter of 2016 than in the first three months of 2015. Production, then, was far from stabilising and prices are continuing to drop (currently 26.6 cents per kilo on average in the EU). The Commission notes some encouraging signs, however, such as an increase in exports (up 10% from January to March).
Pigmeat. Pork production is stable, prices have begun to rise from the start of May and exports, too, are doing well (up 21% in value in the first quarter of this year). The Commission view is that this is not the right time to trigger the aid system for the private storage of pigmeat.
Fruit and vegetables. Apple and pear prices remain low, as a result of significant stocks, while peach and nectarine prices are higher than in 2015. Tomato prices remain weak. Some delegations called for an increase in the quantities eligible for aid (and/or an increase in withdrawal prices) but the regulation extending support measures from 1 July 2016 to the end of June 2017 was published in the Official Journal of the EU dated 11 June (see EUROPE 11570).
The Commission said, lastly, that the first meeting of the European meat market (beef and pork) observatory would take place on 15 July 2016. (Original version in French by Lionel Changeur)