(Source: EUROPEAN COURT OF AUDITORS)
After peaking in early 2014, the average price received by EU milk producers began to fall. In mid-2016, prices started rising again.
The CAP includes a number of tools for addressing market disturbance. Direct payments play a stabilisation role as they provide a constant source of income for farmers. A ‘safety net’ aims to support prices by temporarily removing surpluses of dairy products from the market. The Commission can also adopt exceptional measures against threats of market disturbance: they did so between 2014 and 2016.
We examined how well the Commission and the relevant authorities in Member States had managed their response to the dairy market disturbance of 2014-2016. Overall, we found that the Commission and the Member States had taken broad measures to help farmers during the market disturbance, but that the analysis they made was generally insufficient to decide on the level of support needed and target it.
ECA special report pursuant to Article 287(4), second subparagraph, TFEU.