Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-11-11-Speech-4-087"
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"en.20101111.5.4-087"2
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"Madam President, my answer will be in two parts, because the problem in the livestock sector relates primarily to the food situation and, hence, to the situation in the cereals market, and then I will also refer to the mechanisms at our disposal for the livestock sector.
The Commission is following the situation in the cereals markets and its repercussions for farmers very closely. Cereal prices increased sharply over the summer due to supply shortages, particularly in the Black Sea countries. Thus, we have seen the price of barley and oats rise to as much as EUR 200 per tonne. At present, even though prices are very volatile, they are still well below the record prices of 2008. The strength of the euro against the dollar, which makes EU exports less competitive right now, is also a disruptive factor in the European market.
Globally, despite the shortage recorded in Russia and Ukraine, the level of cereals harvested is normal, and stocks have been replenished thanks to the last two record harvests. In the European Union, average cereal production is estimated at 276 million tonnes, and if we add to that the stock from the start of the harvest, we have almost 60 million tonnes more than we are expected to use.
The grain intervention stocks, which mainly consist of barley, currently stand at 5.6 million tonnes. A 2.8 million tonne batch has just been set aside for the implementation of the 2011 programme to help the poorest citizens, and the rest will be sold on the internal market shortly. The decision has, in fact, already been taken, and the cereals will be placed on the market at the end of this month.
The pressure on the market has eased somewhat since the Commission announced this measure, which I recently announced to the Council. With regard to the situation in the cereals market, then, no emergency measure can be justified because, as I explained to you, the problem is not one of supplying the European market with cereals, since the high price of cereals on the European market is not due to a lack of market supply.
The Commission is paying very close attention to market developments in the livestock sector, and more particularly in the pigmeat and poultry production sectors. The margins in this sector are, in fact, highly dependent on the costs of foodstuffs. Prices in the poultry sector are above the long-term average and appear to be at least partially offsetting the increased food costs. The price of slaughter pig is following the seasonal downwards trend. It is very slightly below last year’s level. Production is currently well absorbed by the internal market and exports. Between June and August 2010, pigmeat exports were up by 10% and poultry exports by 21% compared with the same period last year. Consequently, despite these price issues, pigmeat and poultry producers have still been able to export for some time.
The Commission will obviously continue to monitor developments in the market and will use the means at its disposal to intervene in the market if this proves necessary and useful. Indeed, two measures are currently available for the livestock sector: export refunds and private storage.
With regard to export refunds, this measure would not be effective at present because the world price is rather high; therefore, an export subsidy cannot be justified. The relationship between the dollar and the euro means that export problems and a lack of competitiveness are possible, but this problem is not exclusive to the agricultural sector. We shall see how the rate between the dollar and the euro changes, and depending on that change, if we have surpluses in the internal market, we can then discuss private storage measures. For the moment, there are no meat surpluses in the internal market, and that is why private storage measures cannot be justified at present. However, I am willing to consider the possibility of resorting to these measures depending on how the markets evolve.
On the issue of volatility, this will be addressed in the common agricultural policy reform for 2013. It is envisaged that this reform will include proposals for as yet non-existent mechanisms to address the issue of income volatility. As for the issue of transparency in the food chain, I am currently examining it with Commissioner Tajani to see how more information in this area could help clarify the way in which added value is shared out. Those are the answers I am able to give at this stage."@en1
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