Brussels, 03/03/2009 (Agence Europe) - EU Agriculture Ministers are to hold a policy debate on the difficulties currently being experienced by milk and dairy producers in Brussels on Monday 23 March. It is expected they will decide on ways to improve the situation. The Czech Presidency has agreed to include this issue on the agenda of the next Agriculture Council, at the request principally of Germany, supported by other delegations at the Special Agricultural Committee (SAC) meeting on Monday 2 March.
The German representative to the SAC said that the agreement on the Common Agricultural Policy (CAP) health check should not be put in doubt, but he felt that a policy debate had to be held at ministerial level, to restore confidence in the sector, where the situation has deteriorated considerably over the last few months. The same could be said for the “survival of farms”. Germany said that the price of milk had fallen to 20 cents per litre. Germany also called for the vote on adjusting the fat content of milk (reduction from 0.18 to 0.09), scheduled for the management committee on Thursday 5 March, to be delayed until after the Council discussions. The effect of this proposal, part of the compromise on the CAP health check reached on 20 November 2008, is to slightly increase (by 1%) the milk quotas of some countries (Belgium, Luxembourg). Germany has long protested against increased milk quotas. The agreement on the CAP health check provides for a 1% increase in quotas in 2009, 1% in 2010, 1% in 2011, 1% in 2012 and 1% in 2013 (before quotas disappear).
The European Commission refused to delay the management committee vote on fat content.
At the SAC, Ireland said that the crisis is such that the selling price is lower than production costs. The Irish delegation suggested increasing certain export refunds. The Commission, however, said that it had already granted such aid (see EUROPE 9809) and things must not be overdone with this type of market measure, otherwise the EU could be accused of dumping. Other delegations, including Hungary's, highlighted the difficulties of the dairy sector. (L.C./transl.rt)