Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-01-13-Speech-2-307"
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"en.20090113.28.2-307"2
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"I shall start by describing what the situation looked like just a few years ago. We all remember that the dairy sector was very stable with very few price fluctuations, but over the last few years the situation has changed dramatically. Firstly in 2007, I remember clearly in August and September, we saw huge increases in dairy prices and then we experienced last year the same or an even worse reduction in prices, so the situation today is that prices are very close to intervention prices and in some parts of Europe even below intervention.
I can assure Members that I am extremely concerned at the quick deterioration of the European dairy market. We have support measures in place that can be activated to support the dairy sector and we have already taken action.
Contrary to the normal situation, where the private storage scheme for butter is normally activated on 1 March, we have decided to activate the scheme from 1 January, which means that the production that has taken place in December is also eligible for this scheme. Intervention buying or granting export refunds are other instruments that are available to support the dairy sector or the dairy market efficiently.
With regard to the intervention system starting in March – and therefore also covering the production that will take place in February – butter and skimmed milk powder may be purchased until the end of August. First, for fixed quantities at fixed prices, followed then by a tendering system should the situation so require.
I would also like to remind you of the situation back in 2007. I think we all remember the immediate and quick reaction that was witnessed by the European Parliament, by the Council, by Member States, that put enormous pressure on me to increase immediately – yesterday rather than tomorrow – to increase the quotas to ease the situation on consumer prices.
I would also like to speak out very clearly today to try to stamp out misunderstandings which are circulating that the increase in milk quotas is to be blamed for the very weak dairy prices that we see today. The reality is that despite the 2% quota increase that took place after April this year, the production of milk has actually fallen. That is what we see now, due to the fact that an increase in quotas is a possibility for Member States or for farmers to produce but it is certainly not an obligation. This shows clearly that dairy producers are reacting to market signals.
The relatively small changes that we have seen in the quota system can therefore in no way explain the market volatility that we are seeing. The lower demand from consumers is probably a reaction to the high prices that we saw last year as consumers then tried or wanted to step out of the high-quality high-priced dairy products. Then, of course, there is the economic climate in which we find ourselves these days. For the same reason it is important that we do not fool ourselves and think that by micro-managing the dairy market we decide for the whole sector. The conclusion must be that the quota system has not been able to deliver market stability in the market place.
Concerning the question of the Azores, the Portuguese authorities have used any opportunity to ask for increased milk quotas for the islands because of the fact that the Azores seem to be extremely competitive and seem to be benefiting from the increased production. I am quite sure that the larger quotas, and the ultimate end of the quota system, will benefit the Azores’ dairy sector. That will be the case, I think, even in spite of the fact that those beautiful islands are quite remote and milk has to be moved around between nine islands.
To conclude, I can assure Members that I will manage our dairy policy instruments in a responsible way with a view to ensuring an effective safety net for the dairy sector."@en1
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