Speaking at a press conference following the first day of the EU Agricultural and Fisheries Council meeting on 27 June, the current president of the council, Martijn Van Dam, said Commissioner Hogan has confirmed that a new financial aid package for the agricultural sector will be unveiled in July.

Van Dam said that in spite of the financial aid package announced at the emergency council meeting in September 2015, the market situation continues to be worrisome.

“Although some of the price developments are heading in a positive direction slowly, we had to conclude that most of the farm incomes are still negatively affected by the ongoing market situation, especially our dairy, pigmeat and fruit and vegetable sectors,” Van Dam said.

He said the Council has asked the Commission to table a proposal that would couple support measures to a reduction in milk supply.

Most member states said they were willing to use part of the reserve fund if necessary

“We have asked for financial support measures for member states to restructure the dairy and pigmeat sector, or to structurally reduce supply, giving flexibility to member states to target aid to either sectors and to add specific conditions, such as limiting support for businesses that face liquidity problems.”

Meanwhile, dairy farmers protested by spraying milk on the street outside the building.

As far as financing this new package is concerned, Van Dam said the council has asked the Commission to look at the existing budget first and then possibly the crisis reserve fund.

Van Dam said: “Most member states said they were willing to use part of the reserve fund if necessary.”

Comment from Creed

Commenting on the announcement of a new aid package, Minister for Agriculture Michael Creed said he was calling for “maximum flexibility” for member states, including Ireland, to be factored into the package currently being considered by the Commission.

The key word here is flexibility and it would be important not to attach conditionality or complications to such targeted aid

“I have asked the Commissioner to consider the deployment of a further targeted aid package, similar to that provided last September. This gave considerable flexibility to member states to adopt responses suited to their national circumstances, and I believe such a measure could play a further important role in 2016,” the minister said.

“The key word here is flexibility and it would be important not to attach conditionality or complications to such targeted aid.”

Creed noted the need for any package to acknowledge the changing currency situation following the decision of the British people to leave the EU and the unique trading relationship Ireland has with the UK.

70% advance payment

The minister also asked for a repeat of last year’s bringing forward of the delivery date for direct payments.

“Last year, member states were able to pay an advance of 70%, and I have again asked the Commission to consider raising this percentage further in 2016,” he said.

The minister also asked the Commission to progress work on the removal of customs tariffs and anti-dumping duties on the importation of fertilisers.

Finally, as regards the pigmeat sector, Creed emphasised the need to continue efforts to re-open the Russian market, and to continue to monitor the situation with a view to taking further action if necessary.

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