Hogan to discuss Finnish dairy support

European Commissioner reconsiders dairy support to Finland after it was omitted from an earlier financial assistance package.

Phil Hogan, the European commissioner for agriculture and rural development, has said he will consider financial support for Finland’s dairy producers following the Russian ban on the import of agricultural products from the European Union.

On 19 November the European Commission granted subsidies to Estonian, Latvian and Lithuanian milk producers. Petteri Orpo, Finland’s agriculture minister, protested, saying that he had had informal confirmation from Hogan that Finland would be included in the support package. After speaking to Orpo, Hogan said: “I fully understand the difficulties being experienced by dairy farmers in Finland and I am seeking a solution that is fair, reasonable and justifiable.”

Finland was left out because prices obtained by milk producers there have fallen less steeply than in the other Baltic states. The price of milk in Finland fell by 11% from September 2013 to September 2014 because there was more milk available on the domestic market as a result of the ban, while the demand from Finnish consumers remained the same. Prices in Estonia decreased by 27%, in Latvia by 26% and Lithuania by 33%.

The Commission’s decision was strongly criticised by opposition parties in the national parliament. Timo Soini, leader of the far-right Finns Party, said that it was “extremely rude” to neglect Finland. In the period 2011-13, 22% of cows’ milk production in Finland was exported to Russia, a higher percentage than in Lithuania (14%) or Estonia (8%).

Finland is to send statistical experts to Brussels for discussions with Hogan’s staff, armed with full details of the price drop. “Should the information justify measures, then we should be in a position to make progress on a package targeted to the dairy sector in Finland,” Hogan added.

Lenita Toivakka, the Finnish minister for European affairs and foreign trade, said on Tuesday (25 November) that she would consider offering producers domestic compensation if the EU “does not compensate for the consequences”, though she was confident that a solution would be found.

Estonia will receive €6.9 million, Latvia will get €14.1m and another €7.7m will go to Lithuania, according to calculations based on milk production levels. The grants follow earlier support from the Commission for fruit and vegetable producers hit by the Russian import ban.