Brussels, 13/07/2009 (Agence Europe) - On Monday 13 July, a majority of the ministers of agriculture of the member states of the European Union supported the proposal to extend beyond 31 August the intervention period for butter and skimmed milk powder, to help milk producers (EUROPE 9938). Several countries requested that additional measures be considered to overcome the crisis (these included France, Germany and Spain), whilst a handful of others (United Kingdom, Denmark) spoke out against any kind of public intervention. Italy announced that it would vote against this regulation, as it takes the view that the money earmarked to prolong the intervention would be better served elsewhere, such as creating a kind of fund to help struggling dairy producers to leave the profession (with the constitution of a reserve of quotas).
As the (consultative) opinion of the European Parliament is required on this text, the regulation cannot be adopted before the end of the period of intervention (31 August). As it enjoys the support of a majority of delegations of the Council on this issue, the European Commission has announced that its management committee would adopt an emergency measure to ensure that intervention can continue uninterrupted. The regulation extending the intervention would have to be adopted in October, at the earliest.
"As far as market measures are concerned, we have already deployed almost all of our tools available under the current safety net", said Mariann Fischer Boel, European Agriculture Commissioner. She nonetheless acknowledged that this had not prevented production prices from falling, but stressed that it had helped to stabilise prices (which remain relatively low, even so).
In proposing to extend the intervention period, the Commission wishes to send out a signal to the market and farmers that "we will not allow EU prices to decrease below the safety net support levels applying during the normal intervention period", said Ms Fischer Boel. In the medium and longer terms, demand should increase and prices return to normal, the Commissioner predicted. This is why extending the intervention period is a "temporary derogation", she stressed.
Ms Fischer Boel confirmed that on 22 July, the Commission would adopt the report (commissioned by the European Council) on the analysis of the market and possible ways of stabilising the milk and dairy product markets. On this text, France and Germany are waiting for concrete proposals (EUROPE 9935 on the Franco-German letter on the subject). As a result, the Swedish Presidency has decided to bring forward the date of the next Agriculture Council to 7 September (instead of 28/29 September).
Under "any other business", Lithuania asked the European Commission to increase export refunds for certain cheeses (Edam, Gouda, Tilsit, etc). This country voiced its protest at the fact that refunds for these products have not been increased since they were reintroduced in January 2009. Lithuania's request was supported by 16 other Member States of the EU. The Commission responded by acknowledging that refund levels have not been corrected since their reintroduction in January, but stressed that "our strategy" on this matter must remain both "prudent and operative". According to the Commission, the EU is close to the limits laid down by the WTO and the commercial flow is showing signs of stability. The Commission will continue to keep a very close eye on the cheese market and react accordingly, "if necessary". (L.C./transl.fl)