The Commission's approach to the dairy sector is explained
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CTA. 2002. The Commission's approach to the dairy sector is explained. Agritrade, November 2002. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52607
Addressing the International Dairy Federation on September 25th...
Addressing the International Dairy Federation on September 25th 2002, Commissioner Fischler explained the options in the dairy sector that are currently under review: first option: to maintain the present status quo, that is to implement the decisions already taken in Agenda 2000 and to continue the quota regime after 2008 at the 2007/2008 quota and price levels; second option: to repeat the Agenda 2000 approach, i.e. continuation of quota after 2008 with an increase of 3% as well as another price decrease of 15%; third option: to introduce a two tier quota regime an 'A' quota for the internal market and a 'C' quota for export, at world market prices; fourth option: to abolish the quotas after 2008. Prices are expected to drop by 25% in this case. The Commissioner pointed out that as a result of Council decisions taken in Berlin in 1999 the Commission favours a gradual approach, since this tends to provide a smoother path for adjustment than outright quota abolition. The Berlin decision to postpone dairy sector reform means that none of the benefits of reform can materialise until after 2008. However, the Commission remains open to accelerating the timetable for the implementation of dairy sector reform if this is the option favoured by member states. Mr Fischler did, however, point out the implications of the direction of the mid-term review proposals for the dairy sector, namely that: 'in the future, farmers will receive direct support not in order to produce a specific product, such as cereals or beef, but in order to provide the level of environmental benefits and quality products that the public wants.' In discussions at the October Agricultural Council meeting Commissioner Fischler indicated that member states were divided into three groups on dairy sector reform, with some favouring lowering prices towards world market prices levels, despite the budgetary implications this would have. However he indicated that at the present time there was no indication where a consensus on the direction of change would take dairy-sector policy. Comment: Developments in the EU dairy sector will have important implications for ACP dairy and beef producers as two-thirds of EU beef is produced from the EU dairy herd and 70% of all African dairy imports originate in the EU.