login
login
Image header Agence Europe
Europe Daily Bulletin No. 9511
Contents Publication in full By article 17 / 35
GENERAL NEWS / (eu) eu/agriculture

Rise in milk prices seems inevitable

Brussels, 27/09/2007 (Agence Europe) - Under pressure from a large majority of member states, European Agriculture Commissioner Mariann Fischer Boel said, on Wednesday 26 September, that she was willing to suggest a rise in dairy quotas which, in all probability, would take effect during the next marketing period beginning April 2008.

Some 20 European agriculture ministers backed the request made by their Polish counterpart, Wojciech Mojzesowicz, in favour of a rise in dairy quotas to meet the strong demand on the world market and bring down prices somewhat. Warsaw calls for a 5% increase in its quota, while the Netherlands has recommended a temporary rise of 3%. Most of the other ministers supported the request.

Six member states expressed reluctance on this. The United Kingdom hopes to avoid any premature decision on a subject that will be discussed during the Common Agricultural Policy (CAP) “health check”. Finland and Austria set out their fears that such an increase would have an adverse effect on producers located in their disadvantaged regions. Germany and Luxembourg recommended reducing penalties imposed for exceeding authorised production volumes. Michel Barnier, French Agriculture Minister, said the rise in milk prices was “good news, long awaited” for producers. Regarding Poland's request, he said it was necessary to be aware of the fact that a situation that today justifies increased production might not last forever. “I should like to be sure” that Europe does not regret the rise in quotas “if the situation changes, as this would destabilise the market”, the French minister added, calling for an impact assessment study to be carried out before any decision is taken on a rise in quotas.

Ms Fischer Boel planned to take her time before putting a proposal forward. A report on the way in which the milk and dairy product sector works must be published at the end of the year by the Commission. The Commission will not present anything until it has analysed the situation in the light of the conclusions reached in this report. Ms Fischer Boel said the proposal to increase quotas could then be presented and adopted by the beginning of the next marketing year, in April 2008. We would point out that she has always recommended an end to the dairy quota regime, foreseen for 2015. Before then, quotas would be slightly increased to allow operators to adjust to the new situation, as the agriculture commissioner has often suggested. (lc)

Contents

THE DAY IN POLITICS
GENERAL NEWS