BRUSSELS, Belgium, September 8 (Reuters) — The European Commission announced a 500 million euro ($557 million) package of measures on Monday (September 7) to provide relief for farmers stung by slumping prices, triggered partly by the loss of exports to Russia due to EU sanctions against the country.
The crisis has triggered a wave of protests which culminated on Monday with nearly 5,000 farmers and more than 1,000 tractors arriving in Brussels, where an emergency meeting of the EU’s Agriculture Council was being held.
“500 million euros. It’s real money, which is supposed to help farmers to produce (in) a sustainable manner food for us, who love food,” European Commission Vice-President Jyrki Katainen told a news briefing.
The package was discussed by the EU’s Agriculture Council, which consists of farm ministers from member states, on Monday. Some details have not yet been finalized.
The European Commission – the EU executive – said it was seeking to help farmers with cash-flow difficulties, stabilize markets and improve the functioning of the supply chain.
The plan allows member states to advance some payments to farmers and the Commission said it was working closely with the European Investment Bank to design financial instruments where repayments were linked to commodity prices.
French Agricultural Minister Stephane Le Foll said further work was needed to support farmers.
“It’s not over yet, I said it in my introduction. We’re lacking clarity in the proposals. We don’t really have clear definitions on the package. What is the storage policy exactly? We don’t know either. So we have told the Commission, the Council members and presidency of the Council that on these points, no decisions were able to be taken today and that work remains to be done,” he told reporters.
Milk prices paid to EU farmers are down 20 percent from last year at 30 euro cents a liter on average. In the Baltic States, which has been worst hit by Russian sanctions, prices are even lower at around 20 euro cents.
