| Wtorek, 09 lutego 2010, 08:51 | Mapa serwisu | Kontakt | Reklama | Regulamin | |
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29.01.2009 EU should enjoy the taste of their own medicine! They must respect WTO Dr.Patel ===================== I agree with Osler, it seems unusual that the EU would: Limit production to approximately 110% of their requirement by quota, Sell that quota to dairy farmers, increase the quota volume by 2% because of lack of supply and then set up a sales system for that quota, After that then they give production subsidies to the farm, now decoupled from production but still going to the land where the product is made and When the world prices drop below a figure that the quota limited and so by definition not competitive farmers in the EU can make the product, They subsidise the export of the excess and drive down the world prices. As studies have seen in the EU these export refunds then go to a very small number of companies who are supposed to pass it back to their farmer suppliers. Perhaps a fairer way would be to increase the on farm support so that the producers actually get the funds rather than affecting the rest of the world. A pooling system to the suppliers of the companies producing these products could be in order. It was amazing how the stock levels of powder and butter dropped or more to the point did not grow when the export subsidies were reduced. The effect of subsidies will be that the processors will produce more of the subsidied, unwanted products as they are now profitable. It is economically rational but is it logical? I may be incorrect on some of the points and would appreciate clarification from those closer to the scene Andrew W Australia ====================== Good for John W !! So every time you are in "exceptional circumstances", EU Treasury will help you to compete with countries without such Treasury. Later, EU will decide to provide some relief to those poor countries which their dairy farmers are so poor and inneficient. Meanwhile at FAO's conferences and meetings, EU countries will try to ellaborate some development projects for such countries that are trying - not hard enough- to develop their dairy sector. End of play called : "EU cinicism". Ricardo Inciarte ==================== It won't help as well as in case of banks. Max Ukraine ====================== Osler Yes this is an unfortunate consequence but these really are exceptional circumstances and the subsidies are minimal and still do not bring the milk price into stability but a step in the right direction. The alternative is for farmers and manufacturers to go out of business and then for the shortage of available dairy products to result in a global price increase where third world countries can not afford to buy which results in even more casualties, a complete picture of the situation needs to be taken into account and this is I firmly believe done very responsibly by the ministry. John W. UK ====================== John, It may come to you as a surprise that in Developing Countries when market prices are bellow the production cost we bear it and many disappear in the process. Subsidies just have justification for those that receive them. EEC subsidies will again depress prices further down. Even EEC authorities recognize that subsidies distort international prices. Osler Desouzart Brazil -------------------------------------------------------------------------------- From: FAO-Dairy-Outlook [mailto:FAO-Dairy-O utlook@fao.org] Sent: Tuesday, January 27, 2009 10:49 AM To: dairy-outlook-l@mailserv.fao.org Subject: 2 comments: EU agreed to reinstate export subsidies Yes, in my view subsidies are required at this point as milk powder prices are currently below the cost of milk and it seems to be exceptional circumstances as with the banks! John W. UK ============================ Yes, one and the same. It is a perfect way to distort international trade and to promote disruption of production in Developing Countries, above all among the least developed. We have seen this film before. Mountains of butter and milk powder finish by distorting international prices and being sent as "food aid" to least developed countries, where populist rulers use them to keep urban areas happy in detriment of the local production. How can we expect that an African, Latin American or Asian producer competes not against European producers, butagainst Brussels treasury? Osler Desouzart Brazil |
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