Farmers must learn to compete in marketplace.

(From Irish Independent)

WHAT came out of the negotiations last week in Luxembourg was possibly the most radical reform of the Common Agriculture Policy (CAP) in its history to date. This reform has not only made the CAP more secure in the long term within the developing EU framework, but it has also made the policy substantially more secure in the context of theworld trade negotiations (WTO).

Maintaining and securing the CAP was one of my fundamental objectives when weentered the reform negotiations almost one year ago.

EU taxpayers have a right to determine that the huge budgetary resources they place in the CAP deliver the type of policy and outputs which suits their needs. That is to say, theyhave a right to demand a policy which supports the production of high quality food in anenvironmentally friendly manner and respecting the highest animal health and welfarestandards. I want to focus on the dairy sector. Firstly some facts. The Commissionproposed a 10pc intervention support price reduction. The outcome, which I secured, has the reduction cut back to 4pc in respect of which producers of milk will be compensated to the tune of 80pc by means of a direct payment.

Not only this, but I ensured that this compensation will be paid directly to active milk producers. A key point is that the milk quota system, which has served Irish milk producers so well, has now been extended to 2014/15. In the absence of a deal, this system would have automatically expired in 2008.

What disappoints me most about the recent debate is the almost uncritical acceptance ofintervention as an acceptable outlet for Irish dairy products. Intervention is not a market. It was never designed as such. Unfortunately, in recent years, the Irish dairy sector hasrelied to a greater degree on intervention than any other Member State. At present thereis almost 200,000 tonnes of butter in intervention stores in the EU of which almost 70,000is Irish. The situation on milk powder is ...