JOINT MOTION FOR A RESOLUTION on the crisis in the dairy farming sector
16.9.2009
replacing the motions by the following groups:
ECR (B7‑0047/2009)
EFD (B7‑0051/2009)
PPE (B7‑0053/2009)
S&D (B7‑0054/2009)
ALDE (B7‑0056/2009)
Albert Deß on behalf of the PPE Group
Ricardo Cortés Lastra, Luis Manuel Capoulas Santos on behalf of the S&D Group
George Lyon on behalf of the ALDE Group
James Nicholson on behalf of the ECR Group
Giancarlo Scotta’, Rolandas Paksas on behalf of the EFD Group
European Parliament resolution on the crisis in the dairy farming sector
The European Parliament,
– having regard to Article 33 of the Treaty,
– having regard to its resolution of 25 October 2007 on rising feed and food prices[1],
– having regard to its resolution of 12 March 2008 on the CAP Health Check (Goepel report)[2],
– having regard to its resolution of 22 May 2008 on rising food prices in the EU and the developing countries[3],
– having regard to its Written Declaration of 19 February 2008 on investigating and remedying the abuse of power by large supermarkets operating in the European Union[4],
– having regard to its resolution of 26 March 2009 on food prices in Europe (Batzeli report)[5],
– having regard to Council Regulation (EC) No 72/2009 of 19 January 2009 on modifications to the Common Agricultural Policy by amending Regulations (EC) No 247/2006, (EC) No 320/2006, (EC) No 1405/2006, (EC) No 1234/2007, (EC) No 3/2008 and (EC) No 479/2008 and repealing Regulations (EEC) No 1883/78, (EEC) No 1254/89, (EEC) No 2247/89, (EEC) No 2055/93, (EC) No 1868/94, (EC) No 2596/97, (EC) No 1182/2005 and (EC) No 315/2007[6],
– having regard to the Communication from the Commission to the Council on the dairy market situation 2009 (COM(2009)0385 final),
– having regard to the proposal for a Council Regulation derogating from Regulation (EC) No 1234/2007 (‘Single CMO’ regulation) as regards the 2009 and 2010 intervention periods for butter and skimmed milk powder (COM(2009)0354 final) and to the De Castro report on this proposal (A7-0005/2009),
– having regard to Rule 115(5) of its Rules of Procedure,
A. whereas the past twelve months have witnessed a dramatic deterioration in the situation on the dairy market, with milk prices falling below 21 cents per litre, despite intervention and export subsidies, and many farmers now selling dairy products below their production cost,
B. whereas the viability of many EU dairy farmers is now seriously at risk, with many only surviving by using up their personal savings, which is clearly not sustainable, driving farmers to stage major public demonstrations across the EU,
C. whereas a consequence of the worldwide economic crisis has been a considerable decline in demand for dairy products at precisely the same time as supply has increased owing to third countries such as New Zealand, Australia, Argentina, Brazil and the US producing greater quantities,
D. whereas in the 2009 EU budgetary procedure Parliament prioritised the creation of a special EU Dairy Fund to help the sector through difficult readjustments,
E. whereas Parliament has repeatedly highlighted the difference between the prices paid by consumers for agricultural products in the supermarkets and the prices received by producers, and has urged the thorough investigation of potential market abuses,
F. whereas the Commission calculates that over the period May 2006 to May 2009 prices paid by consumers for milk and cheese increased by more than 14%, while prices obtained by producers in some Member States have decreased by 40% in one year,
1. Considers that, given the continuing critical situation on the dairy market, both far-reaching and short-term measures are necessary, and points out that the measures taken by the Commission to date are not sufficient to solve the crisis in the sector;
2. Regrets that the Commission failed to predict the severity of the current crisis and did not propose adequate measures sooner;
3. Calls on the Commission to establish as a matter of urgency which measures could bring about market stabilisation, and to undertake an in-depth evaluation with stakeholders and Member States on the future of the milk sector with a view to analysing the possibility of reinforcing management mechanisms that avoid price volatility;
4. Reaffirms its commitment to the creation of an EU Dairy Fund of EUR 600 million to aid producer organisations and cooperatives and to support farm investment, modernisation, diversification, area-based measures, marketing activities, small producers and young farmers, and recalls that Parliament has already made such a request in the 2009 budget procedure;
5. Asks the Commission to propose measures to help producers increase the added value of their products and to encourage them to produce high-quality milk-based products (cheese etc.), especially in those areas where there are few production alternatives;
6. Calls on the Commission to introduce immediate measures to stimulate demand for dairy products, and considers an extension of the scope, product range and financing of the school milk programme to be a good example of a feasible initiative; calls for closer coordination among the Commission Directorate-Generals in this regard;
7. Calls on the Commission to formulate proposals to bring supply and demand on the EU dairy market into balance;
8. Calls on the Commission to examine the possibilities for an early retirement scheme for dairy producers, for example by setting up a quota buy-back scheme, similar to the grubbing-up scheme in the wine CMO;
9. Demands, bearing in mind the European dimension of the crisis in the dairy sector, that the Commission play its role in the search for common solutions, avoiding inequalities among Member States and the distortions of the market that may be caused by State aid;
10. Supports the Commission’s intention to examine measures, such as favourable loans and mutual guarantee schemes, to help reduce price volatility in agricultural commodity markets;
11. Supports the immediate use of milk powder to feed calves, as a way of increasing demand for dairy products;
12. Recalls that clear labelling of dairy product substitutes such as cheese and other non‑animal‑fat-based products is of vital importance, and should include specification of raw materials and country of origin; insists that products branded as dairy must be dairy products;
13. Welcomes the Commission’s proposal to extend the intervention period for butter and skimmed milk powder until 28 February 2010, and considers that the intervention price must be increased, at least in the short term; acknowledges that this is an emergency measure to counteract extreme market imbalances and not a long-term solution;
14. Calls for the extension of private storage to cheese products and for adequate levels of support to be set in order for this measure to be effective, as well as for an increase in the number of third countries – such as the USA – to which EU cheese products may be exported with export refunds;
15. Calls on the Commission to examine, for the longer term and once export refunds are phased out, how the corresponding appropriations can be maintained in the dairy sector;
16. Calls on the Commission to allow agriculture export credit insurance, as practised in the USA;
17. Calls on the Commission to improve price transparency within the food supply chain, as consumer prices in many Member States remain conspicuously high despite dramatically decreased producer prices;
18. Calls on the Commission to present its communication on food prices in Europe without delay; recalls that Parliament has long been asking the Commission to investigate potential abuses of market position in the food supply chain, especially in the dairy sector, and considers that this investigation is long overdue;
19. Considers that there is a need to establish a system that monitors commodity prices with full transparency, especially the prices paid by consumers;
20. Finds it regrettable that the Council failed at its meeting of 7 September 2009 to agree on concrete measures to overcome the current crisis;
21. Insists that the Commission report regularly to Parliament on the situation on the dairy markets over the coming months;
22. Instructs its President to forward this resolution to the Council, the Commission, and the governments and parliaments of the Member States.
- [1] Texts adopted: P6_TA(2007)0480.
- [2] 2007/2195(INI).
- [3] Texts adopted: P6_TA(2008)0229.
- [4] Texts adopted: P6_TA(2008)0054.
- [5] 2008/2175(INI).
- [6] OJ L 30, 31.1.2009, p. 1.