Market support measures which are being sought to support agricultural sectors affected by COVID-19 market disruption look unlikely to be delivered anytime soon.

There have been calls for the European Commission to introduce aid to private storage for dairy products, such as skim milk powder (SMP), butter and cheese, and to a lesser extent beef, as prices collapse following the shutdown of the food service sector.

Several MEPs called on European Commissioner for Agriculture Janusz Wojciechowski to roll out market support measures provided for under the CAP during a remote meeting of the Parliament’s agriculture committee.

Budget

However, while the commissioner said he was aware of the expectation from national governments, industry stakeholders and farm organisations that the Commission would intervene in the market, he stressed the budget was not available to do so.

The Commission has introduced flexibilities for member states to reallocate unspent funds in their rural development funds

The EU is at the end of its seven-year budget period and Wojciechowski said there were no more available funds for market interventions.

Instead, the Commission has introduced flexibilities for member states to reallocate unspent funds in their rural development funds to farmers affected by the fallout of coronavirus. Wojciehowski said for now this would be the main vehicle to help farmers in immediate crisis.

Future

The Polish commissioner said addressing the crisis remained the priority but added there was a need to consider its implications for the future of the agri-food sector.

Two takeaways for the commissioner were a need to shorten the distance from farm to fork and the dangers of overly specialised farms.