European intervention in the dairy sector was insufficient and misdirected, says Vasco Cordeiro
The President of the Government stated that the European intervention in the dairy sector was insufficient and misdirected. It merely adopted palliative measures in a situation that is affecting prices and producers' income.
"We cannot but regard as an insufficient and misdirected response that was provided to this situation at European level. It is insufficient because we are talking about the allocation of 4.8 million Euros to the entire national territory. Only the Government of the Azores has defined a series of mechanisms, created under the Regional Budget, which provide a similar amount to the overall aid that the European Union granted to Portugal," said Vasco Cordeiro.
The President of the Government spoke at the celebrations of 40th anniversary of the São Miguel Agricultural Association (AASM).
Moreover, Vasco Cordeiro stressed that the intervention of European institutions was misguided "because it has not changed the causes and reasons of the current situation of the European milk sector."
"Understanding the true nature of this problem and providing the appropriate responses at European level is a key aspect,” the President of the Government noted, stressing the need to address the market situation of these products.
In his speech, Vasco Cordeiro recalled that the dairy industry faces challenges, not only derived from the end of the milk quota system but also derived from an adverse context in importer markets such as Russia and China.
Taking into account the database of the European Milk Observatory between January and September 2015, milk production in the 28 EU countries only grew 0.1 percent compared to the same period in 2014.
Vasco Cordeiro stressed that the Regional Government has acted in this matter and developed various levels of intervention with impact on the competitiveness of the sector, pointing out the investment in infrastructures such as water supply, electrification of farms and the improvement of rural roads.
The President of the Government also mentioned the intervention in the training and qualification of farmers and the implementation of income support measures, such as the case of the dairy cow premium that is set at 190 Euros per head on the islands of São Miguel and Terceira in 2015 and 2016.
The creation of lines of credit to support the liquidity of farms or the financial burden of bank loans, currently under negotiations with the Azores Agricultural Federation, was another measure highlighted by Vasco Cordeiro. In this regard, the President of the Government also stressed the anticipation of payments of a set of measures amounting to 54 million Euros, using the prerogatives conferred by the Community decision.
In addition, there is another measure aimed at the restructuring of farmers that is being prepared together with the Azores Agricultural Federation to respond to the challenges the milk sector faces, announced the President of the Government.
During the celebration ceremony of the 40th anniversary of AASM, Vasco Cordeiro stressed that over this association has played a key role over the last decades. It also had the courage to become a partner entity that assumes its share of responsibility in defining and implementing solutions that have led the agricultural sector to its current level.
"The Government feels quite comfortable and hopes that AASM, similarly to what happens with regional associations, continues to play this role as it gives more power to the Azores as well as to solutions we have implemented in the Region," said Vasco Cordeiro.