The European Parliament,

–   having regard to Rules 115(5) and 110(2) of its Rules of Procedure,

A. whereas the viability of a large number of livestock holdings is seriously threatened by the recent surge in cereal prices in the EU, due particularly to unforeseen extreme climate conditions and also to speculation,

B.  whereas the huge investments required in the livestock sector make it particularly vulnerable to market crises, specifically with regard to the volatility in the cereals market,

C. whereas imports from third countries have been gaining market shares in the European Union and putting further pressure on market prices for livestock products,

D. whereas European producers are competitively disadvantaged vis-à-vis third-country producers as their production costs are higher, resulting to a great extent from the need to achieve very high standards in animal health and welfare, food safety, environmental protection and labour conditions,

E.  whereas it is urgent that the EU adopts measures to stop price volatility and fight against market speculation, which has been one of the main causes of the recent increase in cereal prices,

F.  whereas competitive livestock production is inextricably linked to feed costs; whereas, in the context of increased volatility of commodity prices, decision-making becomes very complex for animal feed producers and livestock farmers,

1.  Calls on the Commission to propose, as part of the next legislative dairy package announced for the end of this year, specific and horizontal measures to address speculation and price volatility also in other sectors;

2.  Calls on the Commission to consider introducing new market management tools flexible enough to respond more quickly to critical situations within the single CMO (chapter II – section 1 emergency measures);

3.  Calls on the Commission to take the necessary steps to fight against the excesses of speculation on Community markets as well as on world markets, namely in the framework of the new Financial Instruments Directive;

4.  Calls on the Commission to guarantee an appropriate supply of cereals for animal feed; takes note of the announcement of the Commission to release 2.8 million tonnes of cereals currently stored in intervention by the end of November via a tendering process;

5.  Instructs its President to forward this resolution to the Council, the Commission and the Member States.