Local view for "http://purl.org/linkedpolitics/eu/plenary/2012-06-14-Speech-4-083-000"
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"en.20120614.8.4-083-000"2
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"Mr President, the Commission has listened carefully to the concerns that many of you have raised concerning a soft landing in a liberalised milk market. There are three main issues that should be addressed.
The first relates to a faster liberalisation of the milk sector by means of more flexibility in the quota scheme. The second concerns the territorial balance of milk production after the removal of quotas. The third concerns the current market situation with growing production and falling prices in the European Union.
On the need for more flexibility in the quotas scheme, the purpose of increasing national quotas by 1% each year and adjusting the milk fat correction factor was precisely to enable farmers to gain experience in adjusting supply to demand. This has indeed been the case, and, for the EU as a whole, milk deliveries in 2011-12 have remained below quota.
The conditions for the phasing-out of quotas were decided in 2008, with the objective of allowing sufficient time for operators to adapt. It would make little sense to change the rules now. The Commission will present a report to Parliament and the Council at the end of 2012 on the development of the market situation and the conditions for phasing out quotas.
Let me turn to the issue of the territorial balance of milk production in the Union. As you know, the Commission is committed to maintaining milk production in all areas as far as possible. In view of the expiry of milk quotas, measures to support the restructuring of the dairy sector have been included in the list of new challenges and EUR 0.7 billion have been earmarked to support the restructuring of the dairy sector. The regional effects on milk production will be analysed in a report due by the end of June 2014.
Finally, I would like to refer to the current market situation. Dairy prices have been particularly high in 2010 and 2011. However, over the past few months, the trend has reversed and prices have dropped. This is not surprising as it coincided with the seasonal peak of EU milk production while other main world suppliers increased their production as well. Prices today are lower than they were some months ago, but are still substantially above intervention levels. Against this background, it would be inappropriate to describe the current situation as a crisis. Besides, the standard safety-net mechanisms, including private storage and public intervention, are open and available to operators who have proposed butter for private storage so far.
According to the latest market information available, prices seem to have bottomed out, and some are even trending higher already. We hope that this trend is confirmed in the weeks to come. Be assured that the Commission is following the market situation carefully, and will not hesitate to take the appropriate measures should these be required, even if this does not appear to be the case at the moment."@en1
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