Resolution on the crisis in the dairy farming sector

The Council took note of the Commission communication on the dairy market situation in 2009 (COM(2009)0385) and held an exchange of views on the matter in the context of a Presidency questionnaire.

Most delegations welcomed the in-depth analysis carried out by the Commission and the market measures undertaken since the beginning of the crisis, but had divergent views on which additional measures would be best suited to solve the current difficulties. However, the outcome of the health check was not called into question.

Several delegations indicated that the measures listed in the communication were insufficient to solve the crisis. Comments were made inter alia regarding quota management on an individual producer level, the proposed temporary state aids and the use of Article 68 of Regulation (EC) No 73/2009.

The Council instructed the Special Committee on Agriculture to further examine the issue with a view to a new discussion at Council in October 2009. The Commission representative ruled out those suggestions which she estimated could contradict the “Health Check” commitments, such as the increasing of intervention prices or the freezing of dairy quotas, requested by some Member States. However, she declared that she was ready to look closely at another set of suggestions addressing labelling, quality, or promotion issues.

The communication is a response to the June European Council's request for an in-depth market analysis and possible options for stabilising the dairy market while respecting the outcome of the Health Check results.