Commissioner vows to improve functioning of Europe’s dairy sector

A LEGISLATIVE package to improve the functioning of the dairy sector is to be introduced by European Agriculture and Rural Development Commissioner, Dacian Ciolos, by the year end.

He told a conference on the future of milk in Brussels that he intends to present the package without waiting for the talks on the future of the Common Agricultural Policy after 2013.

Addressing more than 400 delegates, Mr Ciolos said the crisis in dairy last year was very tough.

“Slowly, we put the situation right thanks to the market measures we used like intervention and private storage, and we must not forget the importance of direct payments in supporting farm income,” he said.

Stressing that the quotas are not a solution for the future of the dairy sector after 2015, he said new mechanisms that suit the new conditions and policy ambitions are needed.

Mr Ciolos called for a sustainable orientation toward the market, with tools to fight against extreme prices volatility, but not against natural evolution of markets.

Speaking later, he reiterated the need to put forward initiatives to improve the functioning of the dairy sector.

“I will take into account the recommendations of the High Level Group on milk in June.

“We will then have a discussion on the recommendations in the Agriculture Council in July.

“Nothing is excluded for the moment. However, it will not be budgetary measures but regulatory measures.”

EU farm leader Padraig Walshe called for urgent action to ensure dairy farmers have a future.

“EU farmers’ income is less than 50% of average earnings and EU dairy farmers’ revenue has dropped by more than 20% over the last 10 years. They are being squeezed by low farm prices and high production costs.”