The Commission persists and signs. Brussels presented on Wednesday 22 July, its report on the situation of the dairy market. In this panel of proposed measures to stabilize the sector, the European Commission categorically excludes the end of the milk quota system, which will expire on 1er April 2015.
"Making changes to the quota system would defeat the results of the health check [of the Common Agricultural Policy (CAP)]," says the text, before emphasizing: "This issue has already been debated in negotiations, excluding the principle of a reduction of 5% quotas or a freeze on the increase in quotas. '
The health check of the CAP, negotiated during the French Presidency of the EU, provides indeed a landing "smooth", raising the level of milk quotas 1% until 2015, date of the disappearance of the system. "The lowering of quotas would be to pull the rug under the feet of producers," said Agriculture Commissioner Mariann Fischer Boel, presenting the report to the press.
And yet, it is on this issue of quotas that focus all debates. So much so that the French Minister of Agriculture, Bruno Le Maire, seems to have slightly influenced his position on the subject. In a joint statement drawn up with his German counterpart Ilse Aigner, the successor of Michel Barnier demands that the possibility be examined of "a freeze, at Community level, of the increase of 1% quotas in 2010".
They also call for increased export refunds for butter, milk powder and cheese "without disturbing the most sensitive markets in developing countries". This mechanism, reactivated since January 23 by the EU (EurActiv.fr, 16 / 01 / 2009), is to subsidize agricultural exports to sell European surpluses. They will have to look at this issue at the next meeting of EU agriculture ministers, the 7 September.
Ministers also consider that "the answers proposed by the European Commission are not up to the challenges of this sector". A statement widely shared by other actors in the dairy sector. As a whole, the measures advocated by the European Commission (see box), which remains convinced that the solution consists of a drop in milk production in Europe, cause general dissatisfaction.
Tuesday, July 20, during a debate on the dairy sector in Europe, the Agriculture Committee of the European Parliament voted 24 hours before the official presentation of the report in favor of a readjustment of milk quotas. The chairman of this committee, the Italian Paolo de Castro (S&D), indicated that the sector could soon be the subject of an own-initiative report.
Among the Commission's measures raising questions is the mechanism for intervention buying, which began on 1er March for butter and skimmed milk powder, and will be extended until 28 February 2010. While 81 900 tons of butter and 231 000 tons of milk have so far been bought, many are wondering about Brussels' ability to reinject these volumes into the market without causing a drop in prices.
On this point, the Commissioner for Agriculture wanted to be reassuring by referring to "the great experience of the Commission" for this type of operation. "We will make good sense when we resell these volumes," she said.
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