EC considering aid for embargo-hit dairy farmers in Finland, Baltics

14-Oct-2014 - Last updated on 15-Oct-2014 at 14:22 GMT

The European Commission (EC) is considering financial aid for dairy farmers in Member States hit hard by the Russian embargo, such as Finland and the Baltic states.

Earlier this week, following a meeting in Luxembourg to discuss the impact of the Russian embargo, Dacian Ciolos, EC Agriculture Commissioner, said targeted financial support could be provided for dairy farmers in Finland and the three Baltic nations, Latvia, Lithuania, and Estonia.

In terms of dairy, Finland and the Baltics were among the hardest hit by the August 7 one-year Russian sanction, which prohibited the import of beef, pork, fruit, poultry, cheese, and milk from the European Union (EU), the United States, Australia, Canada, and Norway.

EU dairy exports to Russia in 2013, according to EC data, totalled €2.3bn (US$2.9bn), but accounted for just 1.4% of cows' milk production across the region's 28 Member States.

The share is, however, much higher in Finland (22%), Lithuania (14%), Estonia (8%), and Latvia (5%).

Fresh from the meeting in Luxembourg, where the impact of the Russian embargo on all agricultural products was discussed, Ciolos said the EC had discussed "how certain instruments might or might not be needed" to offset the impact of the trade block.

"We looked at whether or not targeted financial support might be necessary in some cases, particularly for those countries most affected and those that depend on exports to Russia, such as the Baltic states and Finland," he said.

"In the three Baltic states, based on the data we have so far, producers are very affected. There might be a possibility to come forward with a proposal. Generally, we see today a lot of solidarity and support from the Member States, which I appreciate."

Private storage aid

The EC introduced private storage aid (PSA) was provided for butter, skimmed milk powder (SMP), and cheese in late August to "alleviate" the impact of the Russian embargo on European Union (EU) food imports.

PSA for cheese, introduced under "exceptional measures", was less than three weeks later closed after "a disproportionate surge in interest" from Italy.

Between its launch on September 5 and September 28, 100,803 tonnes of cheese was offered into the EU-backed PSA scheme by EU Member States.

Of this, Italy accounted for 84,120 tonnes, despite the fact it exported just 7,207 tonnes of cheese to Russia in 2013.

PSA for butter and SMP remains open.

As of October 8, 14,029 tonnes of butter from Belgium, Germany, Ireland, Lithuania, the Netherlands, Poland, and the UK was offered into PSA.

In the same time, 7,600 tonnes of SMP from Germany, Ireland, Spain, and Lithuania entered the scheme.