SCOTLAND’S farmers and crofters should benefit from a new package of emergency aid drawn-up by the European Commission, according to Richard Lochhead the Scottish Governmemt’s rural affairs secretary

The moves have been announced by commissioner Phil Hogan in Brussels in response to widespread concern across the EU about the ongoing crisis facing agriculture.

Mr Lochhead said: “Farmers here in Scotland and across Europe are feeling the pinch from poor market prices. This has to change if we are to safeguard the future of food production and our farming industry.

“I very much welcome the EU package of support, and the European Commission’s recognition of the ongoing and deepening difficulties facing agriculture right across Europe.

“Some of the measures announced by commissioner Hogan will provide immediate assistance for hard-pressed Scottish farmers and crofters, such as the raised intervention ceilings for skimmed milk powder and butter which can help stabilise prices at a time when the market is oversupplied.

“Other measures will take longer to deliver benefits for Scottish agriculture, for example the work of the agricultural markets taskforce to look specifically at the dairy sector and the establishment of a meat market observatory which will, over time, help to increase transparency and build supply chain trust.

“We need to see the fine detail but the package is a step in the right direction that builds on the commission’s previous aid for dairy farmers as well as the action the Scottish Government is taking to support producers at this difficult time.”

Commissioner Hogan said: “In the interest of EU farmers, I am prepared to use all the instruments that the legislators have put at our disposal, both as a short term and long term measure.

“ We must use the appropriate instruments and actions to enable farmers to be resilient in the face of volatility whilst providing immediate assistance to them.

“The commission’s response is a comprehensive one, taking on board as many of the proposals as can be done, within the legal and budgetary constraints that apply to all of us.

“I believe this is a package of measures which, when taken with the full implementation of the September solidarity package, can have a material and positive impact on European agricultural markets and it should now be given the chance to succeed.”

With regard to measures for the dairy sector the commission said it will activate, for a limited period of time, the possibility to enable producer organisations , and co-operatives to establish voluntary agreements on their production and supply.

But according to sources, this measure was opposed by a number of member states, ahead of the meeting, including the UK and Republic of Ireland.

Romuald Schaber, president of the European Milk Board criticised the proposed dairy sector help stating : “ These measures cannot put an end to the crisis in the dairy market.

“The measures, are only half-baked and have not been thought through. It is clear that measures aiming at increasing intervention volumes and selectively implemented production cuts will not relieve the dramatic situation and thus not put a halt to milk price slumps.

“The increase of production volumes in the coming months will quickly neutralise the potential effect that these measures could have.”

For in-depth news and views on Scottish agriculture, see this Friday’s issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk