Market Competition to be the Goal For Dairy Reforms14 November 2012
EU - Common Agricultural Policy (CAP) reform discussions have caused the European Dairy Association (EDA) to reinforce the ideal that competitive market forces, food security, market stability and sustainability should be the main objectives of the reforms.
As CAP reform discussions enter a critical phase the EDA has stressed the importance of EU profitability and competitiveness for european dairying.
The EDA looks at the abolition of quotas in 2015 as the next major development in the reform of the CAP:“Only after the abolition of the quota will the dairy sector be able to anticipate market developments,” says Mr Joop Kleibeuker, Secretary General of EDA.
‘As many dairy industries have already planned and invested for a post-quota EU the EDA urges that the commitments made to qouta abolishment should be maintained and met."
If other supply-managment schemes were to be introduced at this stage it is the EDA's belief that this would be to the detriment of the competitiveness of the EU milk producers.
According to EDA, the CAP reform will result in a greater market orientation, which requires the free interaction of competitive market forces, particularly within the EU single market.
"The integrity of EU competition law should therefore be protected. Proposals for suspension of competition law or irresponsible derogations or exemptions must be avoided," continues Mr Kleibeuker.
"EDA is not in favour of re-opening the Dairy Package. We believe that any proposals to change the mechanisms of the Dairy Package should be avoided, because these would result in weakening the position of the EU dairy sector and would render this sector uncompetitive in the world dairy market."
Besides the single farm payment, an adequate safety net provided through an effective intervention system is thought to be essential. This, according to Mr Kleibueker should be the focus of CAP reform.
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