EU told to ease up

EU AGRICULTURE commissioner Mariann Fischer Boel has been told to ease off on dairy markets, after a prolonged spell of intervention and export refund cuts.

In a letter to the commissioner, secretary general of EU farmers’ group COPA, Franz-Josef Feiter, complains that the recent succession of cuts has prevented traders from making the most of strong global markets.

“We need a period of stability during the summer to ensure the EU milk sector’s competitive position is not undermined and the transition towards the second step of intervention price cuts (on July 1) is as smooth as possible,” he says.

COPA also rejects the notion that prices need to fall so that dairy farmers are not over-compensated by the dairy premium.

“Compensation was set at less than 60% because it was recognised that milk product prices in the market should not decline to the new intervention levels.”

And since the dairy premium is now part of the single farm payment, it should be seen as payment for achieving cross-compliance standards, not compensation for price cuts.

“It is essential that, when the next cut in intervention supports takes place in July, the commission does not take undue moves to weaken markets deliberately as is being rumoured,” adds the letter.

But it appears to have had little impact. Three days after the letter was sent, Brussels market managers imposed another 42% drop in casein aid to 75/t (£51).