Bernard J. Durkan
Question:121 Mr. Durkan asked the Minister for Agriculture and Food the plans, if any, he has for the cereal growing industry in the aftermath of Agenda 2000; and if he will make a statement on the matter. [13815/99]
Written Answers. - Cereals Sector.
The outcome of the negotiations on Agenda 2000 represents a significant improvement on the commission's original proposals for the reform of the cereals sector. The intervention price reduction agreed was 15 per cent as opposed to 20 per cent, with compensation for half of the price reduction.
Most analysts predict that due to an expected upturn in world prices, the price in the EU will not drop by the full 15 per cent. The reinstatement of a positive rate of set-aside of 10 per cent should act as a further influence on price buoyancy in the EU and on world markets. If these price forecasts prove to be correct then potential losses will be significantly reduced and could even be eliminated. The Agenda 2000 proposals will simplify the arable crops support system, will help remove uncertainty for grain growers, and will enable them to plan ahead with a reasonable degree of confidence.