Takac: EU Must Address Energy Prices and Dairy Sector Crisis

Bratislava, 30 March (TASR) - The European Union must urgently respond to high energy prices and the worsening situation in the dairy sector, Minister of Agriculture and Rural Development Richard Takac (Smer-SD) said after a meeting of the EU Agriculture Council on Monday. The minister warned that high electricity and gas prices are significantly increasing costs in agriculture and the food industry, weakening the competitiveness of European producers. "The most important issue troubling the entire European Union is the high price of electricity and gas. Tractors, agricultural machinery, bakeries and dairies - everything runs on energy and gas. If these inputs are extremely expensive, the whole sector is at risk," he said. Takac also criticised the setup of the future Common Agricultural Policy, particularly reduced funding, capping of direct payments and excessive bureaucracy. "Capping direct payments is devastating for Slovakia given the structure of our farms," Takac warned. At the same time, he pointed to the slow disbursement of compensation after crises, which he said arrives too late. Slovakia also raised the urgent issue of developments in the dairy sector at the meeting. According to Takac, purchase prices of milk have dropped from around 54 to 55 cents to less than 40 cents per litre, causing problems for primary producers. The minister called on the European Commission to use available crisis tools and prevent farm closures. mf