Copa-Cogeca has welcomed EU Farm Ministers talks on the future of the dairy sector and outlined key ways to improve the drastic situation.
New figures from Eurostat confirm that farm incomes tumbled by as much as 23% in Finland and 19% in Lithuania this year mainly as a result of the Russian crisis. “The crisis situation shows targeted action is vital in the short term for countries worst hit by the Russian export ban” Albert Jan Maat said on Copa-Cogecas’ behalf in a meeting with the Italian Presidency.
There is also downward pressure on the market across Europe.”Price levels for public intervention stores do not cover production costs. They must be increased to reflect market realities. Private storage aid should still be open for cheese for countries severely affected by the ban to take pressure off the market. We need to look at ways to address the extreme volatility on the dairy market and encourage the development of futures markets. Export support is also vital”, he said.
In addition, action is urgently needed in the fruit and vegetables, pigmeat and beef sectors.
Commissioner Hogan’s plans to extend EU fruit and vegetable support until next June 2015 is a positive step. A rapid decision is crucial to ensure continuity with the current scheme which expires on December 31. But since 29% of EU fruit and vegetable exports are normally sent to Russia, prices have dropped by up to 50% in some cases and several Member states have already used their maximum allocation. Therefore, unusual quantities are exported to other Member states creating an indirect price collapse The proposed quantities allocated to the Member States need to take into account the production, re-exportation and export data. We urge the Commission to reinstate the 3000 tonne quota per Member state from 01.01.2015 as the EU did not propose to prolong it.
Copa-Cogeca also actively supports Belgium, Denmark, Ireland, France, Hungary, Poland and Romania calls to open private storage for pigmeat. The market has been suffering for months and prices are at an all time low, yet no action has been taken. Pork producers and cooperatives feel like they have been left out in the cold.
“With the loss of our most import export market for these products, we urgently need support to find new market outlets for the produce like in the emerging economies and remove sanitary barriers and other unnecessary obstacles to trade. Promotion campaigns must also be set up”, Mr Maat added.
He went out on to underline the need for simplification of the Common Agricultural Policy (CAP), especially the complicated greening measures, which are strangling farmers and cooperatives, and preventing innovatation. “Farmers and cooperatives still do not know yet all the new rules and need greater clarity on them before Christmas. They must be given some flexibility and be shown tolerance when implementing the new measures in the first years of reform and not be penalized when they have not been properly informed”, he said.
