The proposals made by the European Commission for future development of the CAP show an attitude that is dangerously divorced from reality, casting doubt on systems – of intervention and direct aid – designed to help grain producers and oil and protein seed farmers cope more efficiently with market fluctuations.
As grain markets have moved into a period of extreme volatility, there is a greater need than ever before for efficient public stocks and effective safety nets for farmers so that grain production can remain an attractive prospect during periods when prices are down. These two tools are still, simultaneously, the best way of preventing market tension or of containing it in the event of poor harvests.
It is difficult indeed to see the reasons for the arguments presented by the European Commission given that the U.S. Congress has recently adopted a Farm Bill maintaining the current subsidy mechanisms. It can be recalled here that the lower the markets, the greater the subsidies and the greater the competitive advantage for the Americans whose market is already boosted by the low dollar in relation to the currencies of countries competing.
ORAMA is therefore calling on the European Agriculture Council to adopt decisions which are more in line with the interests of the European Union than the proposals made by the Commission. Pascal HURBAULT - tél : 01 44 31 16 25