EU dairy farmers need immediate help to ease cashflow difficulties, COPA COGECA’s Mansel Raymond said in Brussels on Monday ahead of the special EU Farm Council. The near €900m of superlevy fines must be channelled back to farmers now, he said. “How? We can decide that later. But it must go back through Pillar I.”

“We also want EU direct payments to be paid early – before all validity checks are done. It’s not good enough to have to wait until all validity checks are done. It’s now September. A lot of bills haven’t been paid and producers don’t see a way of getting through the winter.”

Raymond, a UK farmer, is chairman of COPA COGECA’s working group on milk.

He warned that there must not be any attempt to forcibly cut back EU production. “Australia is increasing production by 2.5% per annum, the USA is increasing production. New Zealand has increased. If we forcibly cut production, I can guarantee you that our competitors will further increase production.”

The Russian embargo and the slowdown in China has hit prices, he said. “Demand is still increasing by about 1.5% per annum and there are new markets in south Asia. But we need export credit guarantees for these markets. They are in places vulnerable to oil price shocks or political instability.”

Raymond said that 90% of EU farmers’ milk is consumed within the community. “The point is that farmers are the weakest link in the food chain. Retailers have forced prices down to Intervention price levels. Intervention price and Aids to Private Storage must be looked at.”

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