Dodds urges EU action to offset impact of Russian #dairy ban

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DUP MEP Diane Dodds has urged the European Commission to investigate potential mechanisms that could alleviate the negative impact of the Russian import ban on dairy markets.

Commenting after highlighting the local consequences of the ban and the importance of Northern Ireland as an indicator for wider developments to come, Mrs Dodds said: “The results of this week’s New Zealand Global Dairy Trade – which saw a reduction in overall trade of some 6 per cent – has reinforced the very real need for the European Commission to act quickly to stabilise dairy markets.

“While there was cause to welcome last week’s announcement around Private Storage Aid as a first step, I would repeat the call that it doesn’t go far enough in dealing with the extremely negative fallout of the import ban from Russia. This week I made it abundantly clear at the EU Agriculture Committee to the Commission that farmers right across the EU cannot withstand the sharp declines in milk prices that we are currently experiencing. I also used this opportunity to highlight that Northern Ireland, given our reliance on exporting product, remains an early indicator of what is likely to happen across Europe.

“While many have criticised the use of export refunds, the reality is that they are one of the most effective measures for getting product moving and encouraging new markets to buy EU dairy produce. In this light, I have written to the Commissioner to encourage him to put together a range of tools that could ultimately help. I also have real concerns surrounding the prices set for intervention stocks, which are outdated and do not take into account the increased production costs and fall well short of the cost of production. If this situation continues to hit hard for a prolonged period of time, the Commissioner must also consider funding outside of the CAP expenditure given the limited budget. I believe now is the time to have these discussions. It is imperative that we build confidence in the market and stabilise prices.

“Although the import ban from Russia has compounded the situation in creating a general oversupply, we must also recognise the increases in global production. Hence why we must not shy away from the fact that milk quota will be removed in 2015. I would strongly argue that the Commission must reassess the ‘soft landing’ mechanism, and look at ways to phase in additional production in a sustainable manner. Turning on the taps and overproducing will only add to the volatility in the market place.”

Source: Farming Life

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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