Fischer Boel Confident CAP Reform Deal Possible by Year-End

Brdo pri Kranju, 27 May

After the plenary session of the Informal Meeting of EU Agriculture Ministers, European Agriculture Commissioner Marianne Fischer Boel has said she is confident the EU can agree on changes to its farm support scheme by the end of the year, despite differences between member states on the nature of the reforms.

Fischer Boel admitted after the meeting of EU agriculture ministers at Brdo pri Kranju on Tuesday that "there are some sensitive areas" in the talks on the changes to the Common Agriculture Policy (CAP).
"Some delegations have asked for a much greater increase in milk quotas, whereas others thought that 1% (a year) was being extremely ambitious," the Commissioner said. She added that the differences made her confident that the Commission had come up with a balanced proposal.
The gradual increase in milk quotas is one of the biggest sticking points of the Commission's proposal, unveiled last week and debated extensively at the three-day meeting in Slovenia.
Agriculture powerhouses Germany and France have voiced unhappiness with the planned increase in quotas, whereas other countries, including Britain and Italy, are calling for an even greater release of production.
French Agriculture Minister Michel Barnier, whose country will hold the EU presidency in the second half of the year, warned today that increased production could bring volatility into the dairy sector. He said safety mechanisms should accompany any release of milk production quotas.
"I'm certainly not going to be the minister who will agree to having a shift in the dairy economy of France," said Barnier, who added that talks with the Commission will continue.
However, Fischer Boel stressed that the planned abolition of milk quotas in 2015 was not a new feature, but something the EU had agreed on back in 2003.
"The reason why we're discussing this is to give predictability to farmers, to afford them a soft landing," she added.
According to her, the countries who are most in favour of releasing quotas, including Poland, Ireland, Netherlands, Italy and Denmark, have dairy industries that would like to expand to emerging markets, including in Asia.
"Increasing quotas does not mean that farmers are forced to produce - it is only a possibility to produce more if you think you can take your share of the market," she added.
The start of today's meeting at Brdo (the last Council meeting in Slovenia during the Slovenian presidency) was accompanied by a protest by a handful of farmers, who put up banners against the abolishment of milk quotas.
Slovenian Agriculture Minister Iztok Jarc, who chaired the meeting, said that presidency has promoted dialogue with various organisations on the system of milk quotas.
According to him, the main message from these organisations has not been so much "against abolishing the quota system - instead they are promoting the soft landing and are interested in what happens after quotas are abolished."
Fischer Boel also defended plans to shift more of the EU money intended for agriculture from direct subsidy payments to rural development projects. "We need more money to face new challenges," she said, pointing to climate change and sustainable farming.
Moreover, the commissioner added that "she took the opportunity to encourage member states to stick to simplification" in the agriculture sector.
"Everybody has been in favour of simplification," she said and added that she did not understand why some of the countries have been opposed to uniform fruit and vegetable standards.
According to her, the industry should be allowed to set clear uniform standards with the rest of the market, instead of scores of standards being in place across the EU.

Fischer Boel Confident CAP Reform Deal Possible by Year-End

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