Brussels, 15/07/2016 (Agence Europe) - EU agriculture ministers will gather in Brussels on Monday 18 July and, according to our information, European Agriculture Commissioner Phil Hogan is expected to announce an aid package likely to be of the order of €500 million to support farmers taking the brunt of the crisis.
As announced (EUROPE 11594), the aid package, which will focus primarily on the milk and diary sector, is expected to comprise two parts: - 1) some of the €500 million will be used, by means of a call for tender, to provide support to individual farmers who agree to reduce milk production; the Commission, it is being suggested, would like this scheme to run for three months, the member states, however, would like a longer duration (six months, for example); according to Commission estimates, milk production will have to be cut by 2 million tonnes if there is to be a positive impact on the market (i.e. a rise in prices); - 2) a larger sum than previously made available will be provided to the member states in the form of national allocations and they will be able to use this funding for other measures (liquidity assistance) and sectors (such as the pig meat, beef and fruit and vegetables sector), with the proviso of closer supervision than for the September 2015 envelope (€420 million in targeted aid). There will also be the option of adding national co-funding. This second part of the aid plan will be finalised in September, because of provisions that have to be detailed on flexibility in using the funding and on conditions to be met for its use.
Intervention and private storage. France, Germany and Poland asked for the private storage system to be adapted to the market situation, with, for example, a temporary increase in the level of support for skimmed milk powder and butter. The Commission is not thought to be keen, at this stage, to open a debate on the private storage and public intervention schemes. It has already twice this year increase the ceiling for public intervention for powdered milk (EUROPE 11580).
Pig meat. The Commission feels that this is not the right time to re-open aid for the private storage of pig meat, even though it is amenable to the possibility of doing so, if necessary.
Early payments. As requested by Sweden and Finland in particular, the Commission is prepared to increase the percentage of aid that can be paid early from 15 October.
No green light for rise in de minimis aid. Italy, Spain and France, in particular, called for the ceiling on de minimis aid to be doubled (from €15,000 per farm over three years to €30,000). The Commission, however, cannot support this request.
Fruit and vegetables. The Commission is planning to increase withdrawal prices for fruit and vegetables.
Meat market. The new meat market (beef and pork) observatory held its first meeting, attended by Commissioner Hogan, on Friday 15 July. It will operate on the same model as the milk market observatory and will, thus, be able to provide a wide range of information on the pork and beef (including veal) markets. The aim is to help all market players adjust and adapt to market trends. (Original version in French by Lionel Changeur)