Fischer-Boel digs deeper for dairy farmers
The EU commission, rather than member states, will decide how the money is allocated.
A payout according to quota held rather than actual production is expected, because establishing production across 27 members states would take several months.
In Ireland, it would average out at between €650 and €700 per dairy farmer.
“I’ll empty my pocket, and I have €280 million for the farmers,” said agriculture commissioner Fischer-Boel.
She had previously refused to look for more EU money for dairy farmers.
Complaining that the farm ministers “have been plucking off my last feather”, she said that this would be the last time. “There will be no possibility for any delegation to come and ask for more money now. And I say this as I see some other sectors of agriculture facing some problems.”
Ministers from 21 of the 27 member states, including France and Germany, called for the aid, which will be drawn from the EU’s 2010 budget. Therefore, the Council of Finance Ministers on November 19 is likely to agree to pay it — although Britain seems likely to oppose it, with Farming Minister Jim Fitzpatrick saying they would not support anything that takes them backwards to a regime of heavy market support for inefficient dairy producers at the expense of taxpayers and consumers.
IFA president Padraig Walshe said the direct financial support for dairy farm families was welcome, and must be got out to farmers immediately. But all sectors, including tillage, beef and pigmeat, need commission assistance at this time, he added.
The president of the Irish Creamery Milk Suppliers Association, Jackie Cahill, said his members would not refuse any money, but the aid showed that the European Commission was out of touch with the reality on the ground.
Ireland East MEP Mairead McGuinness warned that the money for dairying leaves little room for manoeuvre should there be problems in other sectors of agriculture in 2010.
She predicted a trend of national measures, like the €15,000 which member states can provide to dairy farmers without breaking state aid rules, but warned this would erode the CAP, leaving poorer member states at a disadvantage.
She said the best news was that the slight market recovery, taking the butter price 18pc above the intervention price.
Ministers accepted this week that the decision to abolish milk quotas should not be changed. They agreed in principle to a new quota buy-back arrangement, but Agriculture Minister Brendan Smith made it clear that this was not a practical choice for Ireland, and insisted it remain optional rather than compulsory, as some had argued.
Ministers agreed to enable the commission to take urgent measures whenever internal dairy market prices move significantly.
