MOTION FOR A RESOLUTION on the crisis in the EU livestock sector
3.11.2010
pursuant to Rule 115(5) of the Rules of Procedure
Nikolaos Chountis, Bairbre de Brún, Kyriacos Triantaphyllides, Patrick Le Hyaric, João Ferreira, Alfreds Rubiks on behalf of the GUE/NGL Group
B7‑0607/2010
European Parliament resolution on the crisis in the EU livestock sector
The European Parliament,
- having regard to Rule 115(5) of its Rules of Procedure,
A. whereas in the past few weeks global cereal markets have experienced a sudden surge in international wheat prices that is raising important questions about the stability of markets, the accuracy of production forecasts and ultimately the overall supply and demand prospects,
B. whereas wheat prices are 60% to 80% higher than at the beginning of the season in July, whereas, however, prices are still one-third below their peaks in 2008, and whereas in the same period the price of maize increased by about 40%,
C. whereas the financial markets have anticipated and speculated on a fall in cereal production in the Russian Federation, where drought has affected crops and led to the subsequent decision of the government of the country to ban wheat exports until next year's harvest,
D. whereas a large number of livestock holdings are seriously threatened by the recent surge in cereal prices in the European Union, especially small and medium farms,
E. whereas the rising cost of compound feed is driving up production costs for the livestock sector,
F. whereas the ban on wheat exports imposed by the Russian Federation may not be sufficient to guarantee sufficient feed supplies for animal production in the second half of the year, whereas, in that case, given the tightness of world export supplies, a meat production shortfall in the Russian Federation would likely push international meat prices further up in the coming months,
G. whereas world demand for food is rising faster than supply, not least because rising incomes in emerging economies such as India and China, combined with growing populations, are driving up demand, especially for meat and dairy products, and therefore also for feed,
H. whereas international meat prices strengthened in the first half of 2010, notably those of meats obtained in long production cycles, such as beef and sheepmeat, and whereas, on the basis of the 2008 peak of the recent soaring food prices episode, they will continue to rise, as will poultry and pigmeat, given the current escalation of feed costs,
I. whereas the FAO's latest forecast indicates a 2010 global wheat production figure of about 650 million tonnes, 5% lower than last year but still the third highest crop on record, and whereas reduced outputs in Russia, Kazakhstan and Ukraine will be partially compensated by satisfactory harvests in other countries and the resulting draw-down in stocks will lead to a small decline still well above the low level in the 2007-2008 food crisis period,
1. Believes measures and new tools are needed to increase cereal production and reduce price instability since EU cereal production will fall in 2010-2011 and, given that cereal stocks are already low, there could be a new hike in cereal and feed prices in 2011, which would have a devastating impact on EU livestock farmers and on food;
2. Calls on the Commission, as a matter of urgency, to propose measures in order to stop the increase in feed costs and stabilise prices of feed on the internal market;
3. Urges the Commission to authorise advance direct payments to livestock farmers, as they may face serious cash-flow problems as a result of increased feed prices and reduced finances;
4. Notes that cereal price increases cause disturbances in all livestock sectors, especially the pigmeat sector, and this at a time when these sectors must cope with the global economic crisis, limited access to financing, and ever more stringent standards in food security, environment and animal welfare;
5. Notes that the CAP reform is unable to reduce the impact of price instability on the agricultural base and to guarantee a fair income to producers; notes that EU grain prices have plummeted by 45% over the past two years, while production costs rose sharply by 63% over the period 2004 to 2009 and that this would have a devastating impact on EU grain producers and livestock farmers;
6. Strongly believes that food is not a common merchandise; commodity futures have become an integral part of food markets and they perform an important role for many market participants; believes that agricultural production should be primarily oriented on food and should not be used for financial speculation and profits;
7. Is worried by the increased level of speculation with food, as observed on the financial markets; calls for the introduction of mechanisms to combat speculation in the financial markets with agricultural commodities and financial instruments based on those commodities;
8. Underlines the fact that high oil prices, strong demand for crops from the biofuel sector, falling stockpiles of food and lower cereal production are also contributing factors for soaring food prices; calls on the Commission to examine concrete measures for a reduction in price volatility in agricultural commodity markets in the context of the CAP reform after 2013;
9. Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States.