Disappointment at lack of EC support for beef

“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,”​ the body, which represents the interests of farmers and their cooperatives, said.

“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.”​

It also claimed the overall compensation package, which covers beef, pork and dairy production, was “far from sufficient to have any noticeable impact”​.

Demonstration​

The group held a demonstration yesterday involving 6,000 farmers and 2,000 tractors designed to highlight the tough market facing many farmers, hit by currency fluctuations, Russia’s trade embargo and pricing issues.

It welcomed the announcement of a new private storage aid scheme for pigmeat to help take excess supplies of the market. However, it called for higher compensation and the inclusion of pig fat and lard.

“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,”​ it added.

Aid package​

Summing up Copa-Cogeca’s reaction to the EC’s measures, secretary-general Pekka Pesonen warned: “It is clear that an aid package of €500m is nowhere near enough to compensate farmers for the loss of their main export market Russia worth €5.5 billion 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.”​

Promotion budget​

The EC has pledged to increase the 2016 agri-food promotion budget in addition to the €81m already committed, with a specific part of the enlarged funding reserved for dairy and pigmeat.

The reformed promotion policy foresees higher co-financing rates (from 50% to 70-80%) and a broader list of eligible products (including generic pigmeat promotion on the internal market). The overall budget is set to gradually rise to up to €200m in 2019.

Meanwhile, the EU has worked hard to establish free trade agreements with several external markets, overcome non-tariff trade barriers and open new markets, such as China and Mexico.

Diseases​

There is also the option for support for restoring agricultural production potential damaged by natural disasters and catastrophic events. That could free up support for the pigmeat sector in case of outbreaks of diseases such as African Swine Fever, the EC said.

Even outside Rural Development Programmes, Member States could use state aids, for example aid for agri-environment-climate or animal welfare commitments, for organic farming, or for participation in quality schemes, the EC stressed.

Under certain conditions, state aids can also cover promotion, the closure of production capacity and, under strict conditions, rescue and restructuring aid for companies in severe financial difficulties, it added.