December 14, 2006

 

EU farmers oppose plan to drop corn from intervention system

 

 

Europe's largest farm lobby Copa-Cogeca expressed fierce opposition to the European Commission's proposal to exclude corn from the European Union intervention system starting Nov 1, 2007.

 

Officials from the organisation hold that the Commission should be discussing the intervention system during a "health check" of the EU agricultural programme and not seeking immediate elimination of the programme.

 

"Abolishing a market management tool for a cereal species as (of) next year is inconsistent," according to an official statement by the groups' presidents Messrs Rudolf Schwarzbock and Donal Cashman.

 

Already for the 2006 crop year, the EU raised the quality level needed for corn to be offered into intervention, which is expected to reduce the amount submitted.

 

The EU ran into problems over the past two crop years when large quantities of corn was submitted into intervention, mostly from new members such as Hungary.

 

EU officials have pointed out that the EU intervention system wasn't set up for landlocked countries like Hungary, where high transport costs out of the region make the intervention system with a set price much more attractive then paying to move grain out.

 

As of Dec 3, there was 6.4 million tonnes of grain listed in intervention, not including quantities earmarked for export or resale on the domestic market. Of this amount, corn comprised 4.3 million tonnes.

 

Stores of Hungarian grain total 4.3 million tonnes, with Germany accounting for 2.0 million tonnes.

 

"We rely on the EU. Council to reject the proposal as it stands," the presidents said. "It should not be forgotten that the market management instruments are and will continue to be essential for a secure food supply of consumers, for the income of European producers and for the stability of markets."

 

The proposal has yet to be officially approved by the Commission to be sent to the EU Council.