EU announces dairy aid in light of Russian ban

The European Commission has announced that it will open Private Storage Aid for butter, skimmed milk powder and certain cheese in a bid to alleviate the impact of recent Russian restrictions on EU imports.

EU Agriculture & Rural Development Commissioner Dacian Cioloș says, “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.

“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 skimmed milk powder to cover the daily costs of storing these products for three to seven months. Next week the Committee will be presented with a draft implementing Act for a formal vote. The Commission also hopes to extend this measure to cheeses.