The high price volatility in the agricultural markets over the last couple of years has damaged producers, while the rest of the food chain is not affected or even benefits. The European Parliament today adopted a report in which it makes recommendations to stabilise farmers’ incomes.
The S&Ds support the call for the Common Agriculture Policy (CAP) to include new crisis-prevention and management tools, as well as any reforms to incorporate counter-cyclical measures and measures against unfair trade practices.
S&D spokesperson on agriculture, Paolo de Castro MEP, said:
“This text represents a good starting point, offering important insights. In the short term, it foresees interventions that may already be included as part of the Omnibus package*. In the long term, it opens a more detailed reflection on the use of counter-cyclical aid to protect farmers' incomes, with a view to ensuring initiatives complement each other to manage risk on the one hand and market crises on the other.”
MEP Nicola Caputo, the S&D spokesperson on this file, said:
“The volatility of agricultural product prices is one of the main factors behind the calamitous situation currently faced by European farmers. It creates an insecure environment for farmers and represents a threat in the long term to European food independence. The long-term aims for the CAP must therefore be to ensure fair standards of living for EU farmers, stabilise markets and guarantee viable food production.
“Protecting farmers’ incomes is more effective through a better use of risk management tools that can address price volatility and through the reinforcement of famers' bargaining positions in the food supply chain, notably by introducing standard, transparent, balanced and collectively negotiated contracts.
“Another key tool that should be used is counter-cyclical aid. The EU Commission should study ways to prevent and combat price volatility crises through counter-cyclical aid tools that can protect farmers’ incomes much more effectively.”
*Note to editors:
The Omnibus package aims to simplify the CAP and is currently under discussion. In particular, it will update the Rural Development Regulation to provide for a sector-specific Income Stabilisation Tool.
