Brussels, 03/09/2009 (Agence Europe) - Eskil Erlandsson, Sweden's Agriculture Minister, pulled out all the stops on Wednesday 2 September to convince members of the European Parliament's agriculture committee to do everything in their power to help resolve problems encountered by the dairy sector. He was unable, however, to give any details on likely measures, in the knowledge that European agriculture ministers will be discussing the matter on Monday 7 September in the light of the European Commission report (which dates back to the end of July), which does not contain any really new initiatives. It seems it will be tough going for the European Presidency in its task of managing the dairy market crisis.
“There is currently a large Council majority in support of European dairy production”, the Swedish minister said when he came to present the Swedish Presidency's top priorities. He went on: “I defend European farming and the budget available to us to make it work is enough for adopting the necessary measures to remedy the difficult situation of the dairy market”.
On the subject of these measures, he acknowledged he was not in favour of export refunds as they would have an adverse effect on the farmers of poor countries. He highlighted the proposals already on the table (extension to be decided in October by the Council for intervention aid on butter and skimmed milk powder, early payment from 16 October instead of after 1 December of up to 70% of direct payments to farmers, a study on the potentially anti-competitive practices being carried out in the food supply chain, etc). He pointed out that the marked fall in the price of milk and milk products since the end of 2007 (-39% for butter, -49% for skimmed milk powder, -18% for cheese, -31% for milk) has only led to a fall of about 2% in consumer prices for dairy products. Mr Erlandsson remained highly cautious about quotas, simply saying that they have not facilitated the work of producers.
With regard to the future of the common agricultural policy (CAP), the Swedish Presidency foresaw a debate on this theme in mid-October, devoted to rural development and the new challenges such as climate, energy and the dairy market crisis. He said he hoped this discussion would contribute to the development of Commission proposals. “I am in favour of a CAP that is turned towards the future and it is important to make this policy evolve in order to remedy the injustices done to European farmers”, he said by way of conclusion. (L.C./transl.jl)