On Monday 14 March 2016, Minister of Agriculture, Viticulture and Consumer Protection, Fernand Etgen, participated in the 'Agriculture and Fisheries' Council, chaired by Dutch Minister of Agriculture, Martijn van Dam, in Brussels.

The Council was primarily focused on the situation of the market and support measures, as well as on financial instruments in the agricultural sector. Upon the Commission's request, Member States proposed both short- and long-term initiatives to address the current crisis in the sector.

The majority of the Council rejected the notion of returning to a quota system, highlighting the importance of solidarity and the internal market in developing a solution. Action at the EU level was called for to reflect the wide reach of the crisis and it was stated that the issue should not be left to farmers to resolve.

The Presidency concluded that a broad agreement exists on a package of measures with a range of solutions in order to overcome the crisis through causal multifunctional solutions. Luxembourg expressed interest in potentially increasing the cap of the 'de minimis' aid paid by Member States to farmers, in order to enable States to quickly provide support to farmers in a secure legal framework. The increase in 'de minimis' would implement both new measures of State aid and greater support flexibility.

A significant majority of Member States expressed a willingness to consider a voluntary system of milk production reduction, which could then be supported by additional state aid. The Commission however has not unblocked funds for this purpose. However, Member States are granted greater flexibility in state aid in return.

A new private storage scheme is due to be implemented regarding pigmeat by the end of 2016, with arrangements currently in the design phase. Efforts have also been planned for promotion in the domestic and export markets in third countries. The Commissioner emphasised that efforts will be made to launch new markets in third countries, with the position of producers highlighted in concerns for reinforcing the food supply chain. It was stated that all operators need to take a united front in enforcing these steps.

The Council announced that it will be closely monitoring the situation in order to continue discussions at the next Council expected to take place in Luxembourg in June 2016.

Minister Etgen stated that he understood the impatience experienced by Luxembourg's farmers and expressed his belief that the package of measures would allow for various options to provide relief to the country's businesses. The package will be finalised by the authorities concerned in order to be applicable as soon as possible.

 

Photo by MAVPC (L-R: Luxembourg Minister of Agriculture, Viticulture and Consumer Protection, Fernand Etgen ; European Commissioner for Agriculture and Rural Development, Phil Hogan)