Luxembourg, 27/06/2016 (Agence Europe) - Speaking in Luxembourg on Monday 27 June, European Agriculture Commissioner Phil Hogan indicated his willingness to present a fresh package of measures at the next Agriculture Council on 18 July to help the sectors still experiencing difficulties, such as the milk and dairy sector. It is expected that the Commission will bring forward further measures to stabilise milk supply to the market.
Because of the meeting in Brussels of the College of Commissioners to discuss the outcome of the referendum in which the United Kingdom voted to leave the EU, the Agriculture Council was shortened and the agenda amended. Discussion on simplifying the rules on the greening of aid was postponed until the 18 July Council at which ministers are likely to be informed about a new package of crisis measures. So then, after the September 2015 and March 2016 packages, a further package is to be expected in July 2016. The Commission stated that 60% of the September 2015 package has been used by the member states. The deadline for use is 30 June 2016.
Financial arrangements for new measures remain vague. France, Germany, Spain and other countries called on the Commission to use the unspent money in the common agricultural policy (CAP) budget. These countries, and others in the Council, are not keen on the idea of using the agricultural crisis reserve, which was created by reducing the amounts available in direct aid. Hogan said that he would try to find a solution that would not involve dipping into the reserve.
Martijn van Dam, the Dutch minister chairing his final Council, confirmed at a press conference that the current difficulties meant that additional measures were needed. The Council concluded that the market situation had not improved sufficiently since the September 2015 package and March 2016 measures, the Dutch minister said. He highlighted an imbalance between supply and demand in the milk and pig meat sectors. An additional financial package is expected to be adopted as quickly as possible and the Commission is expected to present it at the July Council, he stated. Among the measures that will be brought forward, van Dam said, it is likely that there will be measures to stabilise or reduce production in the milk sector, financial support to countries to restructure the milk and pigmeat sectors and support to help farmers cope with cash-flow problems.
Spanish, French and Italian statement on market crisis. France, Germany and Poland presented their common position agreed at the start of June on the measures to be taken to address the crisis, including making available EU funding to encourage farmers to reduce milk production and so increase prices (see EUROPE 11570). In addition, Spain, France and Italy presented a statement on Monday encouraging the Commission to enhance current measures by: - releasing EU funding to support the voluntary reduction or stabilisation of milk production, to help reduce domestic production and re-balance the market, as the statement says; - increasing current aid for the withdrawal of fruit and vegetables from the market in order to provide producers with an effective market management tool; - private storage for pig meat and specific measures for beef. Furthermore, the three countries call for the ceiling for national de minimis aid to be increased to €30,000 (from €15,000 per farm per year as at present). The Commission does not have to be notified of de minimis aid, so state aid rules do not apply.
Stéphane Le Foll, French Agriculture Minister, suggested that “some 15 countries” supported the line set out by France, Germany and Poland at their meeting in Warsaw at the start of June. “The Commission has announced that it was taking account of the need to stabilise and control production, especially of milk, and that it would bring forward proposals on how to do this at the Agriculture Council on 18 July”, he said, indicating that Commissioner Hogan had even promised that he was going announced measures “with funding to control production”.
With financial resources if necessary. At the Council, Hogan said that the Commission was working on a support package for the dairy sector, “with financial resources if necessary”, a package that he expected to be in a position to present to the Agriculture Council in July. In devising such a support package, the Commission is looking at all options available to it that will help to bring balance to the dairy market, he stated. Since there are limitations on what can be done to encourage demand, “we must inevitably focus on the supply side of the equation”, Hogan said. He said the Commission would look at all available instruments. Any new package will, in addition to addressing stabilisation and reduction of milk production, also have to be equitable in its treatment of dairy farmers throughout the EU. Continuing to increase production is simply not sustainable in the current market conditions, he stated.
The commissioner said he could see no justification for triggering private storage for pig meat. Spanish minister Isabel Garcia Tejerina acknowledged that the situation was improving on the pork market but a recent 20% increase in prices.
Italian minister Maurizio Martina, called for an increase in the de minimis aid ceiling and hoped that the July Council would finally reach a decision on fresh support. The Czech Republic called on the European Council to bring pressure to bear on the Commission to bring forward a new financial package of this sort. The Baltic States argued that current measures were not sufficient as the situation had not improved for producers. (Original version in French by Lionel Changeur)