Menu

EC sticks with cuts in support prices

- 29 September 1998
>More in


29 September 1998

EC sticks with cuts in support prices


THE European Commission (EC) remains committed to cutting support prices for agricultural products, as outlined in the Agenda 2000 proposals.

The EC said its report on prospects for meat, cereals and dairy markets until 2005 supported the case for changing the common agricultural policy (CAP).

Dr Franz Fischler, farm commissioner, would not change his proposals for cutting guaranteed prices for beef, cereals and dairy products by 30, 20 and 15% respectively.

Given the current global financial malaise as well as the depressed state of agriculture at the present time, there had been speculation that the EC might take a softer line on agricultural reform.

But the report said the outlook for agricultural markets over the next decade was “fairly positive”. It said: “There is a broad consensus that the medium term outlook for agricultural products will be characterised by strong growth in demand that will generate a sustained expansion in trade.”

Beef output is seen as dropping before rising again after 2000. The report forecasts a slight decrease in milk production and an increase in yields per cow.

The dairy cow herd is predicted to drop from 21.7 million in 1997 to 18.6m in 2005.

See more