The EU today (9 October) said that it would implement two changes to the rules governing the dairy sector in a bid to stabilise the market.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
As announced last month by agriculture commissioner Mariann Fischer Boel, the dairy sector will, in future, be covered by a “disturbance clause” to allow a quicker response to changes in market conditions.
Additionally, Brussels said that national quotas for the next two years will be increased. Member states will be able to store dairy goods in the national reserves without such purchases counting as part of a national quota when determining superlevies.
If a superlevy is then collected, the part corresponding to the bought-up quota can be used by member states for restructuring the sector.
These proposals will be discussed by EU agriculture ministers on 19 October.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataLater this month, the Commission will formally adopt changes to state aid rules to allow member states to pay farmers up to EUR15,000 (US$22,118) each in national aid before the end of 2010.
“These proposals show once again our commitment to helping dairy farmers out of the difficult market situation,” Fischer Boel insisted.
“The wide range of measures we have already taken are having a positive effect and today’s proposals will help in the longer-term. Next week also sees the first meeting of the High Level Group on the long-term future of the dairy sector. And on the 19th, ministers should vote on our plans to extend the intervention period.”
Speaking to just-food, a spokesperson for the European Milk Board, which represents the interests of EU dairy farmers, insisted that the moves failed to offer enough assistance to the struggling sector.
“We are beginning to see some encouraging first steps, but at present the support measures offered by the EU do not go far enough. The future of European dairy farming is still on the scales.”
For months, European farmers have organised a series of demonstrations in an attempt to force Brussels to take action to help dairy producers. The spokesperson insisted that these protests are likely to continue.
In Switzerland and Austria, farmers yesterday lit “fires of protestation” in an attempt to highlight their struggle.
