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.