EU to investigate dairy sector profits

The European Commission will continue do all it can to support milk farmers and stabilise the dairy market. In its dairy market situation report 2009, published July 2009, the Commission sets out the catalogue of measures available to help alleviate the very difficult market situation.

The Commission will continue to use instruments such as intervention, private storage aid and export refunds. It will allow direct payments to farmers to be paid early and has just launched a new round of dairy promotion programmes.

Other potential measures include using levies on producers who exceed their quota to finance voluntary retirement from milk production, and the extension to farmers of the Temporary Crisis Framework for state aid. Member States also have the possibility to redistribute aid to the dairy sector under last year's Health Check agreement, while there are a number of possibilities to help milk farmers within Rural Development policy.

The Commission is continuing its examination of potential anti-competitive practices in the food supply chain, especially the dairy sector. In line with the conclusions of the June 2009 European Council, the Commission will not reverse decisions already taken on the quota system.

NFU: Press Release, 22.7.09: EU dairy report confirms direction of travel - NFU http://www.nfuonline.com/x41011.xml

EurActiv, 24.7.09: EU agrees steps to help dairy prices http://www.euractiv.com/cap/eu-agrees-steps-help-dairy-price-news-222367

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