Dairy farmers face bankruptcy

BRUSSELS - Agriculture commissioner Mariann Fischer Boel said on Monday (19 January) that the current situation in the dairy market was such that many farmers may soon face bankruptcy.

Ms Fischer Boel was speaking at a European agricultural ministers meeting in Brussels to discuss the milk situation, amongst other farming issues.

At a European Parliament committee meeting on Tuesday, Irish MEP Mairead McGuinness also referred to the current turbulence in the dairy farming sector, where milk prices have plunged to dramatic lows, a development analysts had failed to predict.

"Like the financial markets we don't seem to be seeing the old cycles," Ms McGuinness said. Only last year, milk prices reached record highs.

In response, the European Commission is set to propose new measures whereby unspent money in the agriculture budget can be channelled towards dairy farmers.

Last week, NGOs reacted angrily to a commission decision to restart export refunds for certain dairy products in another bid to help the struggling sector. They argue such measures have dire consequence for farming communities in developing countries.

Heath Check adopted

Agriculture ministers also formally adopted the 'Health Check' at Monday's council meeting. The reform package, originally launched by the commission in 2007, aims to simplify the CAP and make it more market-oriented in the lead up to 2013, when the current financial cycle will end.

"Do not underestimate the debate that is going to take place on the future of the CAP [post 2013]," Mr Barnier told MEPs at the agriculture committee meeting on Tuesday.

Lisbon vital for CAP survival

Speaking to MEPs on Tuesday, Mr Barnier said ratification of the Lisbon Treaty is crucial to ensure the continuation of an effective Common Agricultural Policy.

"The first victims [of non-ratification] will be the EU's agriculture and regional policies," Mr. Barnier said. "I don't know of any strong European policy that could work with weak institutions. We need the tool-box of the Treaty of Lisbon."

Mr Barnier was responding to comments made by Irish MEP Mairead McGuinness, who earlier in the debate welcomed an Irish delegation of farmers to the committee room.

"It is good that they are here today so they can see the complexity of the situation and see that Europe is a compromise," she said.

Many farmers voted against the treaty in last June's referendum in Ireland, arguing that the EU was sacrificing farming interests in WTO negotiations in exchange for greater industry access in developing countries.