Many Member States' Ministers are now under severe pressure from farmers to see more support forthcoming to assist the industry at this very difficult time. However Agriculture Commissioner Mariann Fischer-Boel is proving a difficult obstacle.
In response to the deteriorating market situation, the Commission reminded the Farm Council that support measures have already been taken, including export refunds for butter, cheese and whole and skimmed milk powder, in addition to the introduction of private storage aid for butter (which took effect already from 1 January 2009) and the intervention for butter and skimmed milk powder (as from 1 March).
Mariann Fisher Boel confirmed that she will keep the Farm Council updated on the situation on the milk market on a regular basis and declared that she was ready to examine the possibilities to extend the scope of dairy products eligible to the 'School milk scheme'. She also firmly declared that she was not ready to re-open any discussion on the 'health check' package and the future of milk quotas.
Mariann Fischer Boel stated that the EU will not reverse it's decision to raise milk quotas by 1% per annum until 2015. This followed calls from the German, Austrian, Hungarian, Slovakian and Slovenian delegations to bring forward a planned review of the dairy sector from 2010 to this year.
Fischer Boel said: "Reducing quotas in order to balance supply and demand would go completely counter to all the CAP reforms we have agreed on since 1992." There is some evidence that prices across the EU are now starting to stabilise around the intervention level in response to the market measures the Commission has implemented since January".
The events at the Farm Council highlight the difficulties the UFU is encountering in trying to secure more support for the sector. However, political momentum is building to force the Commission into introducing greater support levels and we will keep up the pressure.