22 September 1995

Direct support is path for future

SEPARATING farm support from production incentives is the right way forward, according to Jacques Vonthron, head of CAP issues in the commissions budget directorate.

"We have chosen the right path in moving away from price support and towards direct income support and we must be consistent in following this path in the future," he told the conference.

He said the cereal sector had shown the most impressive adaptation of supply and demand, with production decreasing almost 10% as a result of set-aside and the price gap between the EU and the world level narrowing. Internal demand had grown and stocks had declined, he added.

But dairying remained a problem area with 25% over-production and was next on the hit list for reform. &#42