EU to re-activate subsidies for dairy products to help exporters

THE European Union is to re-activate subsidies for a series of dairy products to help struggling exporters compete better on the depressed world market.

Under the intervention system, a commodity is “bought in” to stores, either private or public, until prices rise again to a level attractive enough for it to be sold into local EU markets.

Farm Commissioner Mariann Fischer Boel said the subsidies, suspended since 2007, would be reinstated for butter, cheese and skimmed milk powder via a series of tenders and trade bids.

She made the announcement in Berlin, where Green Week, the world’s largest agricultural fair will open today and continue until January 25.

Some 1,600 exhibitors from more than 50 countries will take part in this year’s event, which Russian premier Vladimir Putin is due to visit.

Last year, Russian trade delegates at the fair bought farming equipment to the tune of 330 million.

As many as 400,000 visitors are expected to view more than 100,000 culinary specialities from around the world.

In light of the economic climate, this year’s Green Week will be monitored as an indicator for investment and spending trends in the coming months.

Ilse Aigner, German Federal Minister of Food, Agriculture and Consumer Protection, said ensuring the food security of a growing world population in the face of limited natural resources is one of the key challenges of the future facing mankind.

“We must therefore continue to upgrade rural areas in order to preserve the resources for food cultivation,” she said.

Ms Aigner said the agri-food sector must meet further challenges such as the impact of climate change and increasing water scarcity in the southern hemisphere especially.

In light of the population growth and the fight against poverty, the challenge now is to raise the supply of agricultural products by increasing productivity.

“We must ensure the conservation of our natural bases of life in the process by good farming practice and utilisation geared to sustainability,” she said.