Short term solutions to dairy crisis must not distract from essential CAP reform - Lyon

2.03.07pm BST (GMT +0100) Thu 17th Sep 2009

George Lyon, Liberal Democrat MEP for Scotland, has given his support to a series of measures aimed at countering the crisis in the dairy farming sector.

A resolution debated today in the European Parliament urged the European Commission to adopt a package of short-term initiatives aimed at supporting dairy producers whose product prices have dropped 40% in three years while consumer prices have risen by 14%.

George Lyon, Liberal Democrat MEP for Scotland and ALDE coordinator on the Agriculture Committee, endorsed the package saying:

"Milk producers across Europe are facing a crisis with fallen demand caused by recession and increased production in developing nations. As with other stricken sectors, we must act to alleviate their pain. This is a short-term crisis that requires immediate action.

"But this short term action should not distract us from the important work of reforming the discredited common agricultural policy.

"For too long, Scotland has paid the price for an inefficient agriculture policy that has failed both farmers and consumers. This crisis should not be used as an excuse to turn our backs on the road to further reform of the CAP.

"Going back to milk lakes, super levy and quotas is the wrong road for our dairy industry to go down.

"The Commission must focus on sorting out the current market, which is clearly failing. Consumers are losing out as they fail to benefit from the fall in milk value, and farmers are losing out as they don't receive their fair share of the retail milk price.

"I want the Agriculture Commissioner to commit to action that will end supermarkets' abuse of their monopoly positions. Liberal Democrats have long called for an independent supermarket regulator to look at supermarket domination and the effect that this is having on our farmers.

"It is vital that we transform the system to create a functional milk market that gives a fair deal to farmers and a fair price to consumers."