EU releases 500 million euros to support agriculture in crisis – The Point

The European Commission is again the hand in the pocket to try to support the dairy market depressed for months and beyond the agricultural sector in crisis, by releasing a series of measures to help 500 million euros. Since the end of milk quotas in the spring of 2015, milk prices in the EU have plunged, leaving EU producers unable to cover their costs

A previous series of measurements. – a first allocation of EUR 500 million already announced in September and supplemented by additional measures in March – had not had the desired effect or on production, too abundant nor on prices, forcing producers and States members to claim, a hue and cry, a new intervention from Brussels.

This time, “the ultimate goal is to observe a recovery in prices paid to farmers, they really need to they can continue to live from their work, “said the European Commissioner for Agriculture Phil Hogan, said in a statement. The estimated budget in 2017 will be amended to reflect these new measures. The new package is based on two pillars, the details have yet to be finalized “in the coming weeks,” said the Commission.

Stéphane Le Foll satisfied

on the one hand, with a budget of 150 million euros, the EU will financially compensate producers individually (and not through cooperatives or interbranch organizations), for each liter of milk not produced. The objective of the Commission is how to reduce the production of 1.4 million tonnes (between 11 and 14 cents per liter of milk not produced, according to experts). According to the latest figures from Eurostat, the EU produced just under 148 million tonnes of milk in 2014. The measure will remain effective until the budget is not exhausted, according to a source close to the Commission. The necessary legislation should be finalized by mid-September. “This is the first time since the end of milk quotas, which raises the question of when market disequilibrium the control of production,” noted with satisfaction Stéphane Le Foll, French Minister of Agriculture and supporter for nearly a year of an intervention of this type.

on the other hand, the EU releases new funds for aid to 350 million euros, but will be linked to commitments on the part of farmers not to increase production. Germany will receive around 58 million euros, followed by France, with just under 50 million. The UK is allocated a little over 30 million.

The aid may be supplemented by the States

Member States which have the control of their national envelope, identify measures to balance the agricultural markets. Besides milk, those of pig meat and fruit and vegetables affected by the Russian embargo, imposed in retaliation for EU sanctions related to the crisis in Ukraine remains very fragile. Aid may be supplemented by the States up to 100%, said the Commission, giving the chance to double them.

Brussels matched these new ads to non-financial measures, such as extending until February 2017 intervention measures introduced for milk powder, or the possibility for Member States to pay in advance, from mid-October until 70% of the aid received under the common agricultural policy (CAP).

Finally, for fruit and vegetables, the Commission decided to update and increase the withdrawal prices paid to farmers to divert production to sale commercial. The main European farmers’ union Copa-Cogeca, said he was satisfied ads, even if he expects “how all farmers have access to the program under the same conditions.”