Fischler outlines dairy-sector reform to farmers
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CTA. 2003. Fischler outlines dairy-sector reform to farmers. Agritrade, September 2003. CTA, Wageningen, The Netherlands.
Permanent link to this item: http://hdl.handle.net/10568/52642
Speaking to Welsh farmers, Agriculture Commissioner Franz...
Speaking to Welsh farmers, Agriculture Commissioner Franz Fischler claimed that dairy-sector reforms would provide a stable perspective by prolonging the quota system until the 2014/15 campaign. He pointed out that price cuts would be greatest for butter and skimmed milk powder where surpluses are greatest and the market is declining, and that this would bring the sector more in tune with market realities. The current round of reforms are designed to bring the dairy regime under the single farm payment scheme by 2008, although member states may introduce reforms earlier if they so wish. Speaking later in the month to Irish farmers, Commissioner Fischler explicitly justified the price cuts introduced for butter and milk powder by arguing that 'too much money is spent on buying butter into intervention each year, and if there isn't the market for it then we shouldn't produce it'. He pointed out that Ireland as the lowest cost producer in Europe was well placed to 'diversify into fresh and value-added dairy products for which the market is growing' He argued that the compensation offered along with the price cuts will give Irish farmers 'the chance to adapt to current market realities'. Comment: It should be noted that the objective of the price cuts is not to reduce production (since milk production is controlled by the quota regime) rather the aim is to allow markets to be cleared more easily by expanding domestic demand for butter and milk powder and allowing exports to be increased without breaching WTO limits on export refunds. This is likely to increase EU dairy exports and reverse the recent declines in the EU's share of the global dairy market.