At present, market support is focused on milk powder, butter and exported cheeses, although EU Agriculture and Rural Development Commissioner, Dacian Ciolo?, has said further measures will follow if needed.
A full analysis of the short and medium term impact of the Russian ban on all major EU agri-food sectors, together with an overview of the policy options to aid in stabilising the market will be presented to all Member States and the European Parliament in the next few days.
The Commission will provide Private Storage Aid for butter and SMP to cover the daily costs of storing these products for 3-7 months.
A draft implementing Act will be presented to the Committee next week for a formal vote. In addition, it is expected that exceptional measures will be requested to extend the PSA scheme to cheese, given its importance in the value of EU exports to Russia (worth close to €1 billion in 2013).
At present, market rules under the CAP do not cover cheese except for those with PDO or PGI designations. (Source: Dairy Co)
NFU Response to EU Commission announcement:
Rob Harrison, NFU dairy board chairman, said: “Today’s announcement of emergency measures for the dairy industry by the European Commission is welcomed by the NFU.
EU dairy wholesale prices have decreased due to excess supply and limited trading since the Russian trade ban and it is important that action is taken to protect the EU and UK markets.
These measures should help to stabilise the situation and prevent an excessive oversupply of dairy commodities across member states.
This will help the market to continue in a more normalised manner, before product is released for sale in a controlled way.
We will continue to monitor the situation closely, working with Defra and industry partners to minimise the effect on NFU members across the dairy sector.
We will continue to lobby to ensure that any measures are relevant and effective for UK dairy farmers.
NFU response on Russian export ban:
“Some of our members’ do send great tasting, quality produce to Russia and we will continue to monitor this situation very closely.
“Last year total food and drink exports from the UK to Russia, including alcohol, equated to just £115 million; including £17m of frozen fish, £5.7m of cheese and £5.3m of coffee.
“We have long said that we must have long-term commitments from retailers, ones which can take into account agricultural volatility – or in this case political volatility – so we are not in a position which sparks sudden and opportunistic short-term moves which threaten our ability to produce food in this country.”