July 23, 2009
EU proposes measures to stabilise dairy market
The European Commission on Wednesday (Jul 22) proposed a series of measures to support milk farmers and stabilise the struggling dairy market.
The Commission said it will continue to use measures such as intervention, private storage aid and export refunds to help dairy producers. It will also allow direct payments to farmers be paid early and has launched a new round of dairy promotion programmes.
EU member states will also be able to redistribute aid to the dairy sector.
Meanwhile, the Commission is continuing an examination of potential anti-competitive practices in the food supply chain, especially in the dairy sector. However, it has refused to suspend a quota increase, a key demand by milk farmers.
EU farm ministers in November agreed to lift milk production quotas by one percent per year before scrapping them altogether in 2014-15. As a result, milk prices plummeted up to 50 percent in some EU member states.
