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EU throws final lifeline to dairy sector

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Published 20 October 2009
Tags
milk

The European Commission has proposed to allocate an extra €280 million to help dairy farmers. But the EU executive stressed that this is the very last time it will loosen the purse strings for any agricultural sector for now.

"Member states have been plucking off my last feather," Agriculture Commissioner Mariann Fischer Boel told the press after a meeting of EU farm ministers on 19 October.

She added that the Commission has now reached the limit that it "simply needs to keep" to avoid triggering a financial discipline procedure. 

"There will be no possibility for any delegation to come and ask for more money now. And I say this as I see some other sectors of agriculture facing some problems." 

The EU executive hopes the new money will calm down dairy producers and put an end to weekly protests, even though Fischer Boel said the aid represented less than a thousand euros per farmer.

The proposed funding will come from the EU 2010 budget and will be distributed among member states according to their production within the limits of their quotas. The extra assistance has so far won support from 21 of the 27 EU member states, including France and Germany. Opposition to the aid has been voiced by the UK and the Netherlands.

The Swedish EU Presidency said the 27 farm ministers also discussed Commission proposals to change the current EU regulations to give member states new opportunities for restructuring the milk sector and allow the EU executive to take extensive new measures in times of crisis. 

In particular, the operation of "quota buying-up schemes" for 2009/2010 and 2010/2011 will allow member states to buy up milk for national reserves without the imposition of an EU-level superlevy. However, if a member state decides to collect a superlevy at national level, the part corresponding to the bought-up quota can be used at national level to restructure the sector. 

The Commission proposals follow a request from member states for the EU executive to adapt market instruments or create new ones in order to be able to react effectively to increased price volatility in a swift and flexible manner (EurActiv 08/09/09).

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