Milk reforms No

2 October 1998




Milk reforms No

UK PLANS for more radical reforms of milk support policy were firmly rejected this week by France and Germany.

In a letter to the farm council president, Austrias Wilhelm Molterer, the two countries farm ministers slated the UKs call for the abolition of quotas from 2006, a 30% cut in dairy support prices and the replacement of intervention support with private storage aids.

The UK suggestion, supported by Sweden, Denmark and Italy, was tabled at the one-day farm council meeting in Brussels on Monday as a contribution to the on-going debate on Agenda 2000.

But French farm minister Louis le Pensec and Germanys Jochen Borchert said the approach was unacceptable, and defended the EUs quota regime for restoring balance in the dairy market, retaining farmers in more difficult regions and limiting production of beef. The effect of price cuts was also uncertain.

Following the meeting, EU farm commissioner Franz Fischler – who in his reform package is seeking a 15% price cut and 2% quota increase, coupled with partial compensation – said at this stage of negotiations all parties were welcome to express their views.


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