CAUGHT IN THE PAC
agriculture ministers of 27 European Union countries returned to the charge in the debate on the reform of the Common Agricultural Policy (CAP) which should be ready this summer to replace the current one that expires at the end of 2013.
On the table is a commitment with the producers to a more ecological agriculture as Brussels announced initiatives to reward farmers who make more environmental efforts. The aim is to ensure that the new policy walks towards the sustainable development of natural resources and also fight against climate change. However, officials remind farmers European sustainability begins by guaranteeing fair prices to producers from oligopolistic practices of large distribution chains. They add that a more green without financial support threatens the competitiveness of producers in the EU when the European back door negotiations with third countries opening products without quality checks required of local farmers.
The new PAC will consider modifying the calculation of direct payments by another system that would combine several factors including the size of the area, generating employment and purchasing power of farmers. The discussion will address the recent report approved by the European Parliament which calls, among other things, an end to financial speculation to avoid price volatility that threatens the sector. According to MEPs, speculative movements are responsible for almost 50 percent of recent price increases.
addition, it predicts an increase in the volatility of agricultural commodity prices and problems in the markets by a lack of supply of raw materials as the FAO warns that considered "alarming" the latest data on food prices , pointing to a similar scale to that experienced during the food crisis in the summer of 2008. Add that 2010 closed with 925 million hungry in the world as it grows exponentially in demand for food in emerging countries, especially China and India.
Against this background, Brussels is merely admitting that at present in agricultural markets is more uncertain than ever about price fluctuations, although this instability is due to non-agricultural sectors, linked to other commodities like oil.
As data to take account of the shocking developments in recent years lived in the price of diesel, in 2004 it stood at 0.49 euros per liter, which in the past six years the total increase amounts to 63%. Something unaffordable for the field, who has spent years losing profitability because this excessive increase in prices. UniĆ³ de Llauradors For the price of farm diesel has risen by 14% in the last month and 42% in a year with what already reaches the most expensive in history with a current average of 0.88 euros per liter the whole of the Region which will undoubtedly contribute to the impoverishment of the agricultural income.
However, the report on prospects for agricultural markets in the EU between 2010-2020 Brussels expected to improve agricultural incomes by 2020, when estimated to exceed 20 percent in the period 2005-2009 levels after overcoming the effects of economic crisis, but assumes that periods of market volatility and price volatility will become more frequent.
The pace of recovery will be very different between the incomes of farmers in the old Member States, among which include the English, and the new European Union countries, mainly Eastern European countries, with an increase of 10 percent for the first and up to 45 percent for the second, to aid the producer who will be key because it will also increase over the same period. In any case, the improvement in income will be limited by rising production costs and so we can see the oil and oil products are reducing the income of farmers Brussels no support with direct aid.
From Asaja calls once again establish a professional oil industry, and currently the only measure to lower the cost is the return of the Special Tax on Hydrocarbons and no longer applies the tax deduction oil bill, which was in effect for some years. Should be envisaged or exemption from the same as in fishing or the same as it has been agreed in the transport using the minimum allowed by the EU. Asaja
points out again that the increase in production costs, along with price volatility and overall financial crisis are driving farmers and ranchers to make your business alive critical situations with very little and in some cases, no profit margin in their holdings. Brussels hopefully take action on the matter.
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