Emergency powers to help European dairy producers in current and future market crises have been proposed by the European Commission, which claims that dairy prices are finally climbing.
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Speaking at the European Parliament in Strasbourg today (17 September), EU agriculture commissioner Mariann Fischer Boel noted: “The average EU milk price rose by almost 2% in August.”
However, more action was needed, Fischer Boel conceded.
Brussels would “in the coming weeks” change EU state aid rules to allow member states to offer EUR15,000 in emergency temporary subsidies.
Moreover, reforms could help the EU better manage future price crises, without abandoning plans to scrap quotas from 2015, she said.
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By GlobalDataFischer Boel proposed allowing the Commission to immediately temporarily stimulate demand and restrict supplies, if necessary.
She also proposed allowing member states to buy up excess dairy without suffering financial penalties.
In addition, Fischer Boel said dairy producers should be encouraged to enter into long-term supply contracts with producers.
