The Luxembourg presidency has said that the European Commission could take part of the funds collected by way of the 2014/2015 dairy superlevy fines and return it to the beleaguered dairy sector. The suggestion is one of a number made by the presidency in advance of the agriculture ministers’ meeting in Brussels on Monday 7 September.

In a three-page briefing document circulated among delegations this week, the presidency also suggested temporarily increasing the intervention price for dairy products, easing farmers’ short-term liquidity difficulties by anticipating direct payments from December to the autumn and considering the extension of the safety net measures for the fruit and vegetables sector and the dairy products sector beyond 30 June and 29 February 2016, respectively.

The Commission extended the safety net measures to the above dates on 7 August in response to the difficult market conditions for fruit and vegetable and dairy sector producers in the context of the ongoing Russian embargo and slowing economic growth in China.

Commission proposals not enough for Coveney

At his meeting with European Commissioner for Agriculture and Rural Development Phil Hogan in Brussels last week, Minister for Agriculture Simon Coveney welcomed the extension of those dates, but said that more extreme measures need to be looked at in next Monday’s meeting in order to restore market stability.

The measures suggested by Coveney are similar to what has been suggested by the presidency in Luxembourg, with the exception of Coveney also asking for the restoration of aid to private storage for cheese and pigmeat.

Dairy and pigmeat promotion

Like Coveney, the presidency has also asked for the use of exceptional measures to promote the consumption of dairy and pigmeat products on EU and third country markets. In addition, the presidency has exclusively asked for further reflection on issues such as the future role of the European Milk Market Observatory, transparency and fairness along the supply chain, and the speeding-up of the Commission’s work on the sharing of added-value along the supply chain. It has also said that the Commission should give priority in the implementaion of its simplification programme to those acts having the most direct impact on production.

For his part, Commissioner Hogan is expected to unveil a package of proposals to the EU’s agriculture ministers at next week’s meeting. Delegations are expected to react to this package, as well as to that submitted by the presidency.

It is understood the Commission will allow more direct payments due at the end of this year to be paid to farmer as early as 16 October.

Protest

Meanwhile, approximately 2,000 farmers are expected to arrive in Brussels on Monday 7 September for a large protest organised by COPA and COGECA in time for the Farm Council. The mix of 2,000 farmers and agri-cooperatives will meet at the Copa-Cogeca building in Brussels at 10am local time to hear a press conference, followed by the demonstration outside the Justus Lipsius building where the ministers will be meeting between 12pm and 3pm.