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Most EU states back Franco-German milk price plan

Wednesday, 9 September 2009


BRUSSELS, Sept 8 (AFP): A majority of EU member nations threw their weight yesterday behind a proposal from France and Germany to help European farmers hit by falling milk prices.
At a meeting of European Union agriculture ministers in Brussels, 16 of the 27 countries voiced support for new European measures to accompany the gradual phasing out of milk quotas by 2014-2015.
France and Germany's proposal includes the setting of a minimum price for milk at the national level between producers and industry.
The 16 also underlined, in a text distributed at the meeting, that current measures would not be enough to help stricken dairy farmers across the bloc.
The countries were Austria, Belgium, Bulgaria, Estonia, Finland, France, Germany, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Portugal, Romania, Slovakia and Slovenia.
However a big minority of EU nations insist the milk sector should be liberalised.
European farmers have stepped up protests in recent months over the drop in dairy prices, pouring litres of milk onto streets in front of government offices and using cows to block roads.
As the ministers met, around 800 Belgian farmers demonstrated in the European quarter of the capital to demand EU action, distributing milk to officials and holding up traffic.
In November, the ministers agreed to lift milk production quotas by one percent per year before scrapping them altogether in 2014-2015.
The European Commission, the EU's executive arm, has agreed to introduce very targeted aid to the sector but has refused to go back on its decision to scrap the quota system.
Dairy product prices have collapsed due to low demand caused by the financial and economic crisis. Since 2007, milk prices have in some countries halved.
Farmers in France, Germany and other European countries are demanding support through financial aid or by limiting supplies.