EU Agriculture & Rural Development Commissioner Dacian Cioloș explained:

“Price signals on the European dairy market show that the Russian ban is starting to hit this sector. In a number of Member States export earnings are being lost and new outlets need to be found. The European dairy sector needs time and help to adapt so I am announcing today targeted market support, focusing on milk powder, butter and exported cheeses If needed, further measures will follow.”

The Commissioner went on to say:

“In the coming days I will also present to Member States and the European Parliament a first full analysis of the short and medium term impact of this Russian ban on all major European agri-food sectors, together with an overview of the policy options. Again, my message to EU producers today is clear: Where material risks of market destabilisation appear, I will continue to use the new CAP to act pre-emptively to stabilise the market.”

The Commission will provide Private Storage Aid for butter and SMP to cover the daily costs of storing these products for 3-7 months. A draft implementing Act will be presented to the Committee next week for a formal vote.

Given the importance of certain cheeses in the value of EU exports to Russia (worth close to 1 billion € in 2013), the Commission is wanting to extend this measure to cheeses. The rules on PSA for cheese and the extension of the intervention period will be regulated by a Delegated Act which the Commission will table in the near future under the emergency market rules established in last year´s CAP reform.

Source: europa.eu