France calls for reduced EU milk production
The French proposal suggests that a €200m fund be created to incentivise farmers to cut milk production by about 3% or 2bn litres in 2016 compared with 2015.
France proposes that farmers be paid a rate of €100 for every 1000 litres of milk not produced compared with the previous year.
It adds that countries that do not ease milk production should be penalised through binding measures. For example, processors or milk collectors who increase their collections of raw milk from producers would be hit with a financial penalty.
France says that by using a dissuasive approach to milk production in Europe, the EU can bring about a significant reduction in dairy volumes placed on the market which will allow for price recovery.
France other proposals include increasing the intervention price for butter and skimmed milk powder for the coming year. Along with this, France would like to see an increase in the intervention ceilings for butter and SMP. ■