This is a subscriber-only article
Commisioner Hogan noted that "a number of member states have requested access to the possibility to enable voluntary agreements of producer organisations, interbranch organisations and cooperatives in relation to production and supply management".
This means that in any given country, dairy farmers and processors could, through their representative organisations, agree to cut milk supply in an attempt to push prices up, which is normally banned under EU competition law.
"I am prepared to propose the application of such rules, whereby the Commission, in a situation of severe imbalance in the market, would decide to permit on a temporary basis such voluntary agreements for the dairy sector," Hogan added, quoting article 222 of the EU legislation on common market organisation, which allows such temporary measures.
The countries cited in his speech were led by France, who is proposing to pay its dairy farmers 10c for every litre of milk they cut this year compared to their production last year.
Opposition from Coveney
Speaking ahead of the meeting, Agriculture Minister Simon Coveney criticised the proposal, stressing that supply controls “are not the appropriate response”. He insisted that any such schemes should be funded nationally by those countries choosing to implement them, adding that Ireland would not be availing of them.
Hogan said the conditions for article 222 measures had been met and the Commission would communicate the modalities to implement them "very shortly".
He also announced the doubling of the volumes of skimmed milk powder and butter allowed into intervention schemes to 218,000t and 100,000t respectively this year. This was a key Irish demand.
Finally, Hogan said the Commission and the European Investment Bank would "examine the feasibility" of a scheme to support exports with access to credit, and work with member states wishing to adjust their Rural Development Programmes to address the current income crisis.
SHARING OPTIONS: