In its first attempt to broker a compromise in the EU farm talks, the German Presidency has backed Commission price cut calls in the beef and dairy sectors. The Germans have also left intact the Commission's plans for only partial compensation for price cuts.
But the paper presented to farm ministers last night shows some signs of recognising concerns of Irish farmers in both sectors.
The president of the Irish Farmers' Association, Mr Tom Parlon, described the recognition of the need to support more extensive forms of beef production and amendment to the milk quota proposals of the Commission as "moves in the right direction".
The president of the ICMSA, Mr Frank Allen, said the proposals did not provide the basis for a settlement. On the dairy side, he said, it was extremely disappointing that there was "no significant movement".
"If there is an increase in the milk quota," he said, "Ireland must claim its priority status under the 1984 quota agreement."
The Presidency strategy, backed by the Commission, is to try and get agreement on policy issues before dealing with the bitterly divisive funding questions later in the week. A paper on these, notably introducing formally proposals on "degressivity" of compensation payments, is expected tomorrow.
The German paper backs proposals for guaranteed price cuts of 30 per cent in beef and 15 per cent in milk. And it extends the scope of so-called "extensification' payments to beef producers by recognising as extensive farming stocking densities as high as 1.8 animals per hectare rather than the 1.4 proposed by the Commission. The Irish are looking for a density of two animals per hectare. On milk, the Germans recognise the Irish case against Commission proposals to give particularly generous treatment to Finnish and Austrian milk producers. The amended proposal reduces their extra allocation and provides for an unspecified increase for other member-states.
