Brussels, 25/05/2009 (Agence Europe) - How can the crisis affecting European milk producers and those making milk products be diffused? As hundreds of those employed in the sector demonstrated their despair in front of the Council building in Brussels on Monday 25 May, the question was debated by European agriculture ministers.
France, Germany and Austria presented a six point plan to help professionals from the sector: - the emphasis should continue to be placed on public intervention measures until the end of August. A reduction in the buying-in price between successive sales by tender should be avoided. Such reductions in fact cause a downward spiral in prices. If necessary, public intervention measures must be extended beyond 31 August; - the export refunds tool must be used in compliance with the provisions of the sector and while ensuring that any risks of dumping and distortions of the market are avoided, particularly in the developing countries. It is important to be able to grant higher aid for cheeses; - the scheme for aid for skimmed milk powder intended for animal feed must be reactivated; - aid for school milk consumption must be increased and simplified; - there must be greater compliance with the rules concerning protection of the designations and names of milk and of dairy products so as to avoid deceiving consumers and distorting competition; - the Commission report on developments in the market and conditions on the gradual elimination of milk quotas must be produced as quickly as possible. This report is expected to include appropriate proposals to allow for, if needs be, “new governance” in the milk sector, particularly by way of structural adaptations in milk product market management.
The French minister of agriculture, Michel Barnier declared: “There is some kind of need to maintain the tools we have, including the tools for controlling production or quotas we have today”. Quotas are expected to end at the end of March 2015 and Mr Barnier is not completely resolved to get rid of the milk quotas “without finding another system for controlling production”, he declared. The minister considered that the rise in quotas (1% annually) decided on by the EU is affecting the fall in prices. Marian Fischer Boel, the European commissioner for agriculture, on the other hand, believes that the rise in quotas is not the cause of the current crisis. By the end of the afternoon, she is expected to announce a few measures to help producers. There will possibly be the early payment of direct aid for 2008-09 (normally paid between December 2009 and June 2010). (L.C.)