Milk Prices: Public Aid to be Prolonged Until February 2010

To halt the fall in the prices of milk and other dairy products, MEPs backed a Commission plan to prolong public aid to buy up butter and milk powder until February 2010. Under current rules, this aid should have ceased on 31 August.

3 Sep 2009 --- Aid for private storage of butter and skimmed milk powder should be prolonged to help farmers through the current crisis. Agriculture Committee MEPs gave their go ahead on Wednesday to an EU Commission proposal to prolong intervention periods for the butter and milk powder market until February next year.

A report by Paolo De Castro (S&D, IT), backing a Commission proposals to ease the effects of the current dairy market crisis, was unanimously approved in committee, with an oral amendment calling on the Commission to extend  measures foreseen for the private storage of butter to include cheese.
 
MEPs also tabled an oral question to the Commission on the same issue, to be debated during next plenary session in Strasbourg.
 
To halt the fall in the prices of milk and other dairy products, MEPs backed a Commission plan to prolong public aid to buy up butter and milk powder until February 2010. Under current rules, this aid should have ceased on 31 August.
 
MEPs amended the proposal to extend private storage measures to the cheese market, which is also in difficulty.
 
The committee also agreed that the Commission should be authorised to prolong the  2010/11 intervention period if the market situation does not improve.
 
The Commission will be asked to brief Parliament's next plenary session on dairy market developments and the outcome of the 7 September Agriculture Council meeting to discuss possible interventions. Tabling an oral question will enable MEPs to air the issue in plenary and press the Commission and Council to counter the crisis.

On Tuesday, the Agriculture Committee debated the milk price crisis with Commissioner Fischer-Boel and called for immediate help for dairy farmers as well as long-run restructuring of the dairy sector.