The third day of the Agriculture and Fisheries Council was devoted to agriculture issues. The ministers discussed topics including rural development, simplification of the Common Agricultural Policy and developments in food prices.

Ministers discussed rural development
The Council held an orientation debate on rural development within the framework of the design of the future EU Common Agricultural Policy. In the debate, the Member States stressed the importance of the agricultural sector for the rural economy, as well as the importance of managing the challenges facing the agricultural sector; a changing climate, the need for renewable energy, water management and how to preserve biodiversity.

Simplification of the Common Agricultural Policy
At the Council meeting in May, the ministers adopted conclusions urging the Commission to review the proposed simplifications and respond. The Commission therefore presented a working document with an assessment of the 39 proposals and a report on the Commission’s other work to simplify the Common Agricultural Policy.

EU working to achieve reasonable food prices
The Commission presented a communication on developments in food prices. In the communication ‘A better functioning food supply chain in Europe’, the Commission proposes concrete measures for how to continue the work to improve the efficiency of the European food supply chain, in order to achieve reasonable food prices for consumers. It was noted that well-functioning competitiveness is important for both consumers and producers.

The situation on the milk market
The ministers received a report from the Commission on the situation on the milk market. Since July 2009, the Council has decided on a number of measures for the milk sector. The intervention period for butter and skimmed milk powder has been extended and a voluntary quota buy-back scheme has been introduced. The Council has also granted EUR 300 million to be used as a temporary extra measure for the milk sector in 2010.