20 October 2009

2 minute read

Mariann Fischer Boel, EU Agricultural Commissioner announced a €280 million fund, which will be used to help dairy farmers cope with the impact of low prices. This money taken from the 2010 budget is to directly support dairy farmers.

The fund to be released under EU Article 186, has yet to be confirmed by the Council of Finance Ministers, who are meeting on 19 November to discuss this budgetary move.

This announcement came after a group of member states wrote to the Commissioner requesting monetary aid for the dairy sector. Mrs Fischer Boel stressed that after this, she would have only €300 million left under the incompressible budget margin for 2010.

Mrs Fischer Boel also proposed a temporary stricter application of quota management. She suggested temporarily deducting bought up quota from the national reserve so the super levy would be calculated on the basis of a lower national quantity. The difference between the levies collected in this way and the levy due to Brussels can be kept in the Member States to finance further restructuring.

The Commissioner's proposals have been widely accepted across the board, Irish Minister, Brendan Smith welcomed the agreement on the dairy fund, stressing the need for flexibility on the manner in which this fund will be administered by Member States.

Ulster Farmers' Union, Deputy President, John Thompson said: "We welcome the Commissioner’s recognition of the extent of the difficulties prevailing in the European dairy sector. While she didn’t outline exactly how the funding would be allocated, she did make it clear that the measure should benefit dairy farmers directly."

The above actions have been proposed after a massive mobilisation of dairy farmers across Europe over the past month.

Farmers protesting in Luxembourg, 19 October
^{Photo courtesy of European Milk Board}

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