Delegated regulation 2015/1853 - For temporary exceptional aid to farmers in the livestock sectors - Main contents

EN

Official Journal of the European Union

L 271/25

Global demand growth for milk and milk products has generally decreased throughout 2014 and in the first half of 2015, notably as a result of the slowdown in export to China, the main importer of milk products in the world.

The Union market for pigmeat has deteriorated througout 2014 and 2015. Union domestic production had increased and well performing exports declined strongly as a result of the loss of Russia as an export market. Due to the specifics of the pig market, with a system of inherent delayed adaptation of the breeding sector to reduced demand for slaugthter pigs, the market situation developed into a critical oversupply and continuing price pressure going beyond the one of normal cyclical periods.

On 25 June 2015 the Russian government announced the prolongation of the ban on the import of agricultural products and foodstuffs originating in the Union for another year, up to 6 August 2016.

The milk and milk products and pigmeat sectors are therefore confronted with market disturbances due to a strong supply-demand imbalance.

As a consequence, prices of raw milk and pigmeat in the Union have further decreased and downward pressure is likely to continue, reaching unsustainable levels for many farmers, who are experiencing cash-flow and treasury difficulties. In July 2015, average raw milk prices in the Union had decreased by 12 % compared to the average July price in years 2010 to 2014, and by 20 % when compared with July 2014. In July 2015 the pig carcass price had decreased by 13 % and piglet prices by 23 % compared to the average price in July 2014. In addition, prices have reached exceptionally low levels, below the last five years' average.

In addition, yields for spring and summer crops were negatively affected in several Member States because of high temperatures in July and August and very low rainfall. The beef and veal, milk and milk products, pigmeat and sheepmeat and goatmeat sectors have been severely influenced by the increase of production costs owing to the scarcity of feed crops and pastures.

Market intervention instruments in the form of public intervention and private storage for butter and skimmed milk powder have remained available without interruption since September 2014. While those instruments have softened the deleterious effects of the fall in prices, they have not prevented the continuous decrease in milk products' prices and raw milk prices. Private storage for pigmeat has stabilised pig prices in March and April 2015 but not stimulated a substantial price recovery. Given the production cycle of pigmeat, opening a private storage aid scheme at this particular period of time would not appropriately address the present market disturbance. Similarly, market tools provided for under Regulation (EU) No 1308/2013 for other livestock sectors are not designed to alleviate regionally confined economic problems. Any additional market intervention measure that might be envisaged in the form of private storage aid, while being complementary to the targeted financial assistance, would not...