Commissioner Boel opened by saying that in light of the current food crisis, CAP reform was very urgent. On the issue of food security, she said it must be viewed from a broader perspective. She stressed that the package on the table is forward thinking and will help farmers to respond to market signals.
She said "in a nutshell" the CAP proposal is an attempt to respond to market pressures, even in economically difficult times. It is trying to make sure that farmers are not forced to "step out of farming" and they are better placed to respond to market value. She re-iterated that "the best cure for high prices is high prices" as it forces farmers to increase production.
She said that she had "no intention of monitoring prices, this is not the task of the commission." Keeping prices low for consumers does not work, we saw this in Argentina as it reduces farmers incentive to keep production high. "I am not a super liberalist" but watching prices is bad for farmers and consumers, she said.
Mrs Fischer Boel was keen to stress that she would prolong the 0% set aside saying that, although an official decision may not come until November, she wanted farmers to be able to plan their next harvest and therefore needed to know now. This was welcomed by the president of the committee.
She said that an increase in production of milk of 18% is predicted over the next year. Article 68 (providing a ’soft landing’ when milk quotas go by phasing them out with an increase over the next 5 years) of the new agreement needs to be World Trade Organisation (WTO) compatible. She said that the increase in milk quotas over the next 5 year period is not an obligation but a possibility to produce.
She also talked about the need for an increase in Biomass, biodiversity and biodiesel, and an improvement in water management.
On the issue of biotechnology she deferred to the European Food Safety Authority (EFSA) report and said that we must rely on science, not emotion.
On tobacco she said that the 2004 agreement with all the tobacco growers was, as far as she was concerned, good enough for now and considered it a "dead issue".
As she drew the session to a close she commended the SAPS (Single Area Payment Scheme), saying it was a simple, workable goal that will continue until 2013 and we will have to think long and hard about what to do afterwards.
For more information
Speech by Mrs Fischer Boel 03 June 2008
EPHA related articles
Ahead of the 2008 reform of the CAP: How healthy is the current CAP?
