Murcia, 29/04/2002 (Agence Europe) - On the eve of the informal Agriculture Council, devoted to strengthening the rural development policy, Commissioner Franz Fischler talked to a few journalists on the other topics that will be broached in the framework of the mid-term review of the Common Agricultural Policy (Cap), proposals which are expected on 18 June. He explained that he hoped that Member States, the positions of which are tending to harden (between those who want an in-depth reform of the Cap, and those who want no change), would soon agree to settle the current difficulties - like over-abundant stocks of rye, the problems of the quality of durum wheat, the low price for beef, and the problem of the massive import of cereals from Ukraine and Russia. He stipulated that in May he would present the prospects for developments on the agricultural markets (beef, cereals, milk). Fischler explained the hope that Member States reach agreement on a mid-term review at the end of the year, or the beginning of next year. Here is a summary of the main topics raised by Mr. Fischler:
Cereals: the problem of the massive import of cereals will be dealt with in the framework of the mid-term review, Mr. Fischler stated, stipulating that lack of action could increase European price fluctuations from one year to the next. The problem of rye stocks (a problem that is particularly serious in Germany), could be sorted out either by eliminating or reducing price interventions or reducing the internvention period, while increasing quality criteria. The problems with Durum wheat, he explained, originated in quality and not from the quality of deliveries. Several thousabnd tons are destined for animal feed production and it is no longer possible to conditnue spending so much for a detination that requires much lower quality. The rice sector will also be examined in the perspective of the "Everything Except Weapons" initiative measures, which will benefit the developing countries. "If we do not change the system, there will be no more rice produced in the EU", he warned.
Beef: "prices are back to normal, the only problem is that of beef", indicated Mr Fischler, for whom this was the only category that has not recovered its pre-BSE situation. He explained that he did not support the introduction of a new intervention system, but that the entire system of aid needed to be looked at again or revised.
Milk: "We must be politically consistent. Most Member States are against reform of the quota system which cannot be abolished until 2008", he said, before going on to recall that the reform decided in Agenda 2000 will not take effect until 2005 (fall in intervention price for milk). He hinted that the sector would be difficult to reform. A report will be presented in the context of mid-term review in order to encourage Member States to discuss various options concerning the future of the common market organisation for milk and dairy products, namely: - continued quotas (over and beyond 2008); - abolition of the system, but in this case a compensatory system would be needed, as imagined in Agenda 2000, but which will be difficult to set up in an enlarged Europe because of the cost involved.