Collapse in dairy prices on the EU market
ORAL QUESTION H-1016/08
for Question Time at the part-session in January 2009
pursuant to Rule 109 of the Rules of Procedure
by Paulo Casaca
to the Commission
According to a Commission working document dated 21 November 2008 on monitoring price trends, annexed to the communication on food prices in Europe (p. 9), between October 2007 and October 2008 the price of butter on the EU market fell by 30%, while that of powdered milk decreased by 40%. Both prices thus appear to be descending unstoppably towards the intervention levels.
Does the Commission believe that the content of its proposal drawn up a year ago on raising the milk quotas, as approved by Parliament and the Council, should be maintained unchanged in the face of these market trends?
Does the Commission believe that the limits existing under the current rules as regards intervention for powdered milk and butter are likely to be sufficient to prevent disastrous consequences for farmers' incomes, as in a region like the Azores where farmers' activity is totally dependent on the market in dairy products such as those mentioned?