The European Court of Auditors examines whether temporary support measures for the dairy market have worked well. From 2014 to 2017, this temporary support involved more than 740 million euros.
The EU aid was intended for sectors that were damaged by a Russian ban on European dairy products. That was a retribution for the European embargo against Russian companies because of the Russian annexation of the Ukrainian peninsula De Crimea.
In order to prevent dairy prices from falling to an unsustainably low level, a European safety net was established to eliminate part of the surpluses. In 2014-2015, prices for milk producers fell by around 10 cents per liter to around 30 cents. The European Commission considered that the milk sector was experiencing market disruption. The EU countries were able to supplement the EU financing from their own national budgets.
"Milk producers have experienced a significant decrease in their income," said Nikolaos Milionis of the European Court of Auditors. This body manages the control of the measures taken. They will check whether the EU amounts have been well spent to help dairy farmers cope with the crisis.
The Court's auditors will carry out audit visits to France, Italy, Ireland and Finland to see how the EU measures were implemented in practice. The largest producers of cow's milk are Germany, France, the United Kingdom, the Netherlands, Poland and Italy. Two thirds of all milk processed by dairy companies is used for the production of cheese and butter.
The final report of the European Court of Auditors is expected to be published at the end of 2020.