For Copa and Cogeca, the European Commission’s
new aid package is far from adequate
COPA-COGECA press release
The new aid package proposed by the European Commission on September 7 is note has far from unanimous support, given how the measures considered are unsuitable to both the current challenges and structural malfunctions facing dairy markets.
Through separate protests, the Jeunes Agriculteurs union, the European Milk Board and the Copa-Cogeca have objected to the paralysis of European agriculture, especially livestock farming, but to no avail. The European Commission’s proposals are inappropriate for the European agriculture, which needs quite a lot more, especially in tackling the consequences of the Russian embargo and price volatility.
Although it recognizes the value of strengthening the EU’s promotion programs and the Commission’s determination to find new markets, Copa-Cogeca denounces, in its latest press release we are publishing below1, the inadequacy of the measures adopted. These measures will not help to manage markets or confront the growing volatility or any short-term problem. momagri also deplores such lack of strategic scope. In its most recent press release, our think tank writes that “In the absence of a strategic course, the CAP is adrift!”2.
In this context, is it not time for the European Parliament to spare no effort in convincing the European Commission to commit to a thorough reform of the CAP?
momagri Editorial Board
Copa and Cogeca warn new EU Commission aid package far from sufficient to improve drastic EU situation hitting agriculture markets caused mainly by Russian crisis.
Reacting to the new aid package proposed by the EU Commission today to help alleviate the
drastic situation hitting EU farmers, Copa and Cogeca warned it is far from sufficient to have
any noticeable impact.
Copa-Cogeca Secretary-General Pekka Pesonen warned “We held a mass demonstration of over 6000 farmers and 2000 tractors today to show the EU Commission that farmers are suffering enormously from the severe situation hitting the EU agriculture market, especially in the EU pigmeat, dairy, fruit and vegetable and beef sectors. It is clear that an aid package
of 500 million euros is nowhere enough to compensate farmers for the loss of their main
export market Russia worth 5.5 billion euros annually. EU farmers are paying the price for
international politics. Prices are below production costs in many countries and farmers’ incomes half the average level, forcing some to close down. There are a few positive elements in the package but it falls short of our expectations. It includes very few measures
to help manage the market or deal with the increasing volatility and short term problems.
We welcome the fact that EU promotion schemes have been boosted and the Commission
will speed up work to find new markets but this takes time The Commission knows there is
a huge crisis in the sector but is refusing to treat it”.
In particular, in the milk sector, Copa and Cogeca are pleased that some of the money from
the huge 900 million superlevy bill charged to farmers will return to the sector but we are
disappointed that not all will go back to it. It is good to see an improvement private storage
aid for skimmed milk powder but we are disappointed that the value of the milk intervention
prices is not up for re-assessment. We welcome the fact that farmers direct payments will be
advanced to help improve their short term cash flow problems. This has to be paid out without waiting for all controls to be done. This is crucial. We are disappointed that there is no talk about export credit insurance. The EU milk package must also continue beyond 2020.
And the Commission needs to look with the sector at ways to deal with the increasing
In the pigmeat sector, we are welcome a new private storage aid scheme for pigmeat introduced to help take excess supplies of the market but we need to learn from the previous scheme in April/May and have higher compensation. Pig fat and lard must also be included.
We welcome the fact that EU promotion programmes have been boosted and the Commission will step up work on finding new markets but the package lacks export insurance that could cover some of the trading risks.
In the beef sector, we are very disappointed that the Commission is claiming that the market is good when clearly is not and did not take any target measures like opening private storage aid. Incomes are very low in the sector. We insist on the need to have a beef market observatory to monitor data and step up exports and have guarantee funds to cover the risk
with new markets.
1 The full presse release is available from