Conservative and Unionist MEP Jim Nicholson, Agriculture Coordinator in the European Parliament for the European Conservatives and Reformists Group, has said after last weeks debate in the European Parliament on the crisis facing the dairy sector that Member States and the European Commission must remain focussed on helping dairy farmers and creating the circumstances where they can be profitable again.

In a statement Mr Nicholson said,

"Last week I gave a cautious welcome to a series of measures adopted by MEPs to address the crisis in the dairy sector when the Parliament backed proposals from the European Commission to extend the intervention periods for butter, milk and cheese.

"MEPs also backed a resolution from the Agriculture committee which called for further short term market intervention and increased transparency in the supply chain to address concerns about the difference between the prices paid to farmers and those charged to consumers. It also included measures to help producers to market and add value to their products.

"This package of measures will help the sector to get through the crisis in the short term but it is vitally important that much more action is taken in the long term to ensure that the future of the industry is secured.

"In terms of the Commission's response I think we should welcome the Agriculture Commissioner's proposal to bring the dairy industry under the sphere of Article 186 of the Single Common Market Organisation therefore allowing the European Commission to take temporary steps, quickly to help dairy farmers during a period of market disturbance." ENDS

Notes to editors:

Result of the vote on the Resolution on the crisis in the Dairy Sector

The joint resolution from the EPP, ECR, S&D, ALDE and EFD groups was voted through unchanged and contained the following main points:-
Criticising the Commission for not predicting the severity of the crisis
Highlighted that short term measures need to be taken, but also that the long term measures also need to be reassessed.
Reaffirmed the creation of an EU Dairy Fund of €600 Million to aid producer organisations and co-operatives and to support farm investment
Asked the Commission to propose measures to help producers add value to their products
Calls on the Commission to stimulate demand for dairy products and to expand its school milk programme
Calls on the Commission to examine the possibility of an early retirement scheme for dairy producers
Reiterated the need for common European solutions to the crisis in the Dairy sector
Supports the Commission intention to examine measures such as favourable loans and mutual guarantee schemes to reduce volatility
Supports the immediate use of milk powder to feed calves
Recalls that a clear labelling of dairy product substitutes such as cheese and other non animal fat based products is of vital importance and called for country of origin labelling
Welcomes the Commissions proposal to extend intervention period for butter and skimmed milk powder until 28 February 2010
However reaffirms that intervention is only a short term measure and not a long term solution
Calls for private storage for cheese products
Calls on the Commission to improve price transparency within the food chain
Calls for the Commission to establish a system that monitors commodity prices with full transparency and particularly the prices paid by consumers.