Amsterdam/Brussels, Oct 2 - When European Union agriculture ministers meet on Monday to tackle a crisis in the dairy sector, they will assess proposals for short term market intervention as well as regulation for the long term.
The Oct. 5 meeting, called at France's request, is unlikely to result in any new agreements but will be a chance to discuss all proposals in more detail and establish some concrete dates for decisions, an EU Council spokeswoman said on Thursday.
Aiming to counter a slide in dairy prices that prompted a delivery boycott by milk farmers in recent weeks, France has put forward proposals along with Germany that include temporary measures like an increase in export refunds for butter and cheese.
"What we are expecting is that the ministers take measures to save the dairy sector in the short-term," said Pascal Massol, President of French milk producers union APLI.
"There should be measures to help farmers get through these difficult times. Prices must go up and some milk should be removed from the market and also the quota system should be suspended for a while."
Protesting dairy farmers suspended their delivery boycott last week to await the outcome of Monday's meeting.
The joint French-German call for new dairy regulations has won the support of a majority of the EU's 27 members, but EU Agriculture Commissioner Mariann Fischer Boel has said many of their suggestions had already been implemented or discussed by the Commission.
LONGER-TERM CHANGES
In an interview with French daily La Croix on Wednesday, Fischer Boel also reiterated her opposition to a reduction in dairy production quotas and pointed to signs of a recovery in dairy prices.
The French-German draft plan also includes longer-term changes like making EU intervention buying possible all-year round and developing contractual agreements between dairy producers and processors.
French Agriculture Minister Bruno Le Maire has also floated this week the idea of replacing milk quotas with "indicative volumes" as a way of balancing supply and demand.
His efforts have won the backing of French farm unions, including those that took part in a delivery strike last month.
"We're not asking for a magic decision on Monday," Francois Lucas, head of French farm union Coordination Rurale, told reporters after a meeting between Le Maire and the French dairy sector on Thursday.
There was no immediate plan to resume the delivery boycott but his union would continue to carry out protests, he said.
Dairy farmers unions have pushed for the establishment of a pan-European institution to regulate the demand and supply of milk. They want to create a monitoring agency in which all actors in the market, including the farmer, consumer and politician, are represented.
"We want an organisation that monitors the market and the cost price," said Sieta van Keimpema of the Dutch Dairymen Board, which represents Dutch dairy farmers. "We need more regulation because a deregulated market leads to misuse."
Another idea to help stabilise the sector in the face of world market fluctuations would be to create a European futures market for butter and milk powder, which Le Maire is backing.