Farmers welcome detailed rules on EU package

Copa & Cogeca welcome the fact that detailed rules governing the 500 million € July package designed to help improve the difficult situation facing EU agricultural producers, especially dairy farmers, were finalised in an EU Committee in Brussels today.

Copa & Cogeca Secretary-General Pekka Pesonen said “EU milk producers in particular are suffering severe cash flow problems due to the critical market situation, with milk prices 40% less than they were 2 years ago. It is important that the schemes put in place are workable and that money is paid to farmers as quickly as possible. Dairy farmers are also desperately looking for for milk price increases as dairy commodity prices are improving. French producers were demonstrating about this in France this week too”.

The EU pork market remains meanwhile in a fragile state. The EU beef market is difficult, also enhanced by the continued pressure on the dairy sector. A quick reaction should be taken in case the beef market situation further deteriorates.

The July package includes national envelopes for Member States worth 350 million euros to give targeted aid to EU milk and livestock farmers. “It is good that the package was finalized today so that Member States can get on with implementing it. Another positive element in the rescue package is the fact that 70% of the direct payments to farmers will be advanced as this will help alleviate their short term cash flow problems”, Pesonen added. Copa & Cogeca sent a letter to the EU Commission this week outlining our demands in detail. We have also sent a letter to EU Farm Commissioner Phil Hogan thanking him for his initiative to boost EU withdrawal prices for fruit and vegetables in simplification of the EU fruit and vegetables regime but call for the orange and tomato prices to be raised and the list of eligible products to be expanded.

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