The dust has now settled following the European Commission’s July decision to support the EU agricultural sector with a new package of measures totalling €500 million.
Market turbulence has been severe in recent years in a number of production sectors, exacerbated by elements such as the Russian import ban, the slowdown in growth in China, and the global slump in commodity prices. In response, the commission has succeeded in freeing up €1.5 billion of new resources to assist the European agri-food sector in this challenging time. In an era of massively competing budgetary demands, this must be viewed as a hugely significant achievement.
It reflects the severity of the current price crisis affecting many EU farmers, and likewise reflects the unwavering commitment of the commission to supporting those farms. As someone who grew up on a small mixed farm in Ireland, I understand very well how hard farmers work, and how much they are affected by fluctuations in price.
A new solidarity package of incentives and supports will help to restore the European agri-food sector to good health
The commission’s previous interventions have already had a positive impact in the pig meat sector, contributing to the steady recovery in prices which we can now see. I am hopeful that this latest set of measures may have a similar decisive effect for farmers in other hard-hit sectors.
The new CAP is more market-orientated than before, but some agri-food markets – notably the dairy market – remain out of balance. This is why a new package was required.
This €500 million in EU funding can be matched by EU member states to the value of €350 million, potentially providing a total of €850 million in public support for hard-pressed farmers throughout the union.
It is imperative that member states draw down this funding in a speedy, simple and transparent way. This will provide the farming community with the support and certainty it needs – there is no reason to delay and I hope we see action as soon as possible.
The commission’s solidarity packages have provided a strong measure of assistance to farmers during this volatile time – but we cannot rely on such packages being available in the future.
Instead, we must take strong action on a number of fronts to make the European agri-food sector more resilient to price fluctuations and market challenges.
I have begun this work by making the CAP simpler and fairer for farmers. I have also set up an Agrimarkets Taskforce to analyse whether we need new laws to support the position of farmers in the food chain.
In the coming 12 months, I will present a number of further proposals on how we can make our agri-food sector stronger and more sustainable for the future. I look forward to hearing from Malta’s farmers as to which direction they would like to see things moving.
Our ultimate goal is to see much needed recovery of the prices paid to farmers at the farm gate, so that they may make a decent living from their work and continue to provide safe, high-quality food for citizens.
Phil Hogan is EU Agriculture Commissioner.
Solidarity packages have provided a strong measure of assistance to farmers. Photo: Chris Sant Fournier.