Copa and Cogeca regreted today that EU Farm Ministers failed to agree on extra measures to be included in an EU aid package to help solve the drastic situation hitting EU agricultural markets, warning measures on the table fall far short of this.
The move came as EU Farm Ministers discussed the issue at their informal meeting in Luxembourg.
In a high level meeting with the Luxembourg Presidency, Copa President Albert Jan Maat warned “There are a few positive elements in the package like a boost in the EU promotion programmes but it falls short of our expectations”.
“EU producers have lost their main export market to Russia worth 5.5 billion euros annually and a 500 million euros aid package will not be enough to compensate for this. They are also been squeezed hard by retailers. What we need is a strong export strategy and export insurance in the EU beef, pork and milk markets that could cover some of the trading risks. Priority must also be given to re-opening pigmeat and dairy trade with Russia and revamping competition policy rules ”, he said.
“Producer prices do not even cover input costs and we are experiencing extreme volatility on agricultural markets. The package includes very few measures to help manage the market or deal with the increasing volatility and short term problems. In particular, we are disappointed that there is a lack of measures in the EU pigmeat sector and the fact that there were few discussions on difficulties facing the EU beef sector. In the dairy sector, it is good that some of the money from the huge 900 million superlevy bill charged to farmers will return to the sector but we are calling for it all to go back. With the majority of the package - 420 million euros - being allocated to member states in the form of national envelopes, farmers are paying for the aid package themselves. We nevertheless welcome the fact that farmers direct payments will be advanced to help improve their short term cash flow problems. This has to be paid out without waiting for all controls to be done. This is crucial”.
Cogeca President Christian Pees went on to underline the importance of agri-cooperatives in helping farmers to better market their produce and to get a better return for it. But he warned of the severe impact on producers of unfair and abusive practices in the food chain, saying that the EU Commission has failed to deliver on curbing these practices. It is time to put a solution in place that combines legislation with good codes of conduct (voluntary agreements) backed by an enforcement that gives credibility to the system”.
He also warned that the EU Commission proposal for member states to use national funds under the de minimis rule is nothing new.
Finally, he too underlined the need to have strong measures to deal with the market volatility and to manage the EU market. The new private storage aid scheme for cheese in the package is a positive step but he regreted that the value of the EU milk intervention prices is not up for re-assessment to take account of rising input costs. He urged EU Ministers to look at increasing the milk intervention price to stop the downward pressure on the market. This is a priority. He pointed out that the enhanced private storage aid scheme for skimmed milk powder in the package may have some positive impact but it is not the same thing and it will not be enough to put a floor in the market to stop producer prices from collapsing”.
Talks are set to continue on the issue and Copa and Cogeca will continue to fight for a good deal for European farmers and agri-cooperatives.
