WELSH FARMERS HUNGRY FOR CAP REFORM - ÖPIK

6.04.19pm BST (GMT +0100) Mon 28th Apr 2008

Liberal Democrat MP for Montgomeryshire, Lembit Öpik, today joined with Farmers' Union members in calling on Europe's Farm Commissioner to reform the Common Agricultural Policy.

EU food security could be severely threatened by the outdated principles underpinning Common Agricultural Policy (CAP) and World Trade Organisation (WTO) talks.

Vast increases in feed and energy costs have undermined recent improvements in milk and livestock prices amid growing concerns over the potential impact of the CAP Health Check and the WTO Doha negotiations.

"The CAP allocation reflects a historical concept that has its feet firmly in the post-war era rather than the 21st century.

"It was a reaction to the extreme food shortages during and after the war, and we mustn't forget that during that period many thousands of people in Europe died as a result of food shortages.

"However, over the last decades we have come to expect cheap food, and overproduction was one of the major symptoms of the CAP.

"Rising food prices and rising farm incomes have been misinterpreted by policy makers as need to create a flat rate payment to farmers, rather than one which reflects the productivity of a farm.

"Let us not forget that rising food prices also translate to rising feed prices for the majority of Welsh farmers."

A total of 33 countries around the world are already facing potential conflict and social unrest because of acute rises in food and energy prices. The impact of rising food prices as a consequence of global food shortages are also being felt in the EU, as well as in the US and Canada, where Wal-Mart has barred bulk sale of certain types of rice in its cash-and-carry businesses.