EC MINISTERS STRUGGLE TO AGREE ON DAIRY CUTS
European Community, EC, agriculture
ministers struggled today to finalise new rules aimed at
limiting sales into public cold stores of unwanted butter at
high guaranteed EC prices, diplomats said.
    The plan is the key element in a landmark accord to cut
dairy output by 9.5 pct over two years agreed in outline last
December after virtually nine days of non-stop negotiations.
    The accord, which is due to operate from the start of the
new milk marketing year on April 1, was hailed as the most
significant step in an on-going campaign to reform costly EC
farm policies and cut embarrassing food surpluses.
    Diplomats say the December agreement itself is not
threatened but that its effect could be considerably weakened
if the proposals are altered too radically.
    West Germany and Ireland are opposed to proposed limits on
a farmer's now automatic right to sell surplus butter into
public stores when market prices and stocks are high.
    Faced with a butter "mountain" of a record 1.2 mln tonnes
costing over two mln dlrs per day just to store, EC farm
Commissioner Frans Andriessen says farmers must be encouraged
to cut production to meet demand.
    He is keen to reach an agreement on the milk problem before
the ministers move on to consider this year's annual price
review which proposes extending the new system for butter sales
to other sectors such as cereals.
 Reuter
