EU Farm Crisis Package

The EU Commission has unveiled a set of measures designed to help manage the ‘crisis’ in the dairy, pigmeat and fruit & vegetable sectors.  The following are included;

• The ceiling on the tonnages of skimmed milk powder (SMP) and butter that can be taken into intervention will be doubled.  Although this might help provide a floor in the market in the short term, any product put into intervention has, of course, got to reappear on markets at some point – possibly delaying any recovery in prices 
• Countries will be able to voluntarily adopt supply controls on milk production.  This would have to be done through co-ops or producer organisations and would be for an initial period of 6 months.  It would be the responsibility of Members States to compensate farmers for the reduction.  It is therefore highly unlikely to be introduced in the UK (or, indeed Ireland).
• The rules on State Aid will be amended so that Member States can provide extra assistance for farmers.  Again, this would need to come out of national funds so little chance of any effect at UK level.
• Private storage aid for pigmeat may well be re-opened.  The Commission will also look to continue the measures introduced last year to help the fruit and vegetable sector cope with the Russian import ban.
• A ‘Meat Market Observatory’ covering beef and pigmeat would be set up alongside the Dairy Observatory.  This is designed to provide clear and unbiased market information for the sector. 
• Additional promotional funds for dairy and pigmeat will be made available.
• The EU Commission will press the European Investment Bank (EIB) to come up with appropriate financial products to help the farming and food sectors cope with volatility and invest for the future.