Copa-Cogeca calls for the remaining aid estimated to be worth over 85 million euros be used next January for a new scheme to prevent the market from collapsing altogether as the season will be at its peak and production volumes higher.
The move came after final figures and applications under the scheme were discussed in the EU management committee. Results from the meeting show that less than 40 million euros in aid is likely to have been approved for the scheme for the withdrawal of products from the market to distribute freely to for example charities, non-food uses, green harvesting. This compares to the 125 million euros originally allocated to the scheme.
Copa-Cogeca Secretary-General Pekka Pesonen stressed “Since 29% of EU fruit and vegetable exports are normally sent to Russia and prices have dropped by up to 50% in some cases, I seriously regret that the Commission suspended the scheme early on before producers had time to apply to it and before aid applications were checked properly. Additional targeted actions are essential to prevent prices from plummeting and incomes from declining further. Next year, from January, it is the main export season to Russia when much stronger action will be required. We therefore urge that this remaining aid of over 85 million euros be used next January for a new scheme to prevent the market from collapsing altogether as the season will be at its peak and production volumes much higher”.
In addition, since we normally export 24% of the total value of EU pigmeat exports to Russia, this sector has been suffering for months by the ban. Action must be taken to improve the situation, in particular for specific products like fat and by-products. Promotion campaigns for pig meat must also be set up and support to find new market outlets for the produce.
In the dairy sector, buyers are postponing their purchasing decisions for as long as possible due to the instability on the EU dairy market. Copa-Cogeca is also therefore seriously disappointed that the EU Commission decided to suspend suddenly at the end of September the temporary private storage aid scheme for cheese. It should still be open for countries severely affected by the ban. In view of the difficult situation, flexibility is also needed at national level to recover the milk super-levy bill from those hit by it. Finally, there is a risk that the low EU reference price for milk could drag EU milk prices down to a level well beyond production costs. The milk intervention price must consequently be updated urgently to take account of rising production costs
With European beef exports normally sent to Russia starting from November, support is also needed to find new market outlets for this produce to for example Turkey, tackle non-tariff barriers to trade and ensure that European beef starts entering the US market again after they agreed to lift the export ban.
In a letter sent to new EU Commission President Jean Claude Juncker today , Copa-Cogeca called for additional aid from outside the CAP budget to be allocated to fund these targeted measures since the dispute is of a political nature and was not farmers or agri-cooperatives fault in the first place. Copa-Cogeca stressed that sufficient resources must be allocated in the 2015 EU budget to fund this unprecedented crisis which has hit the EU farm sector hard.
