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Thu, 20 Nov, 2014 12:10:45 AM FTimes - Xinhua - STT Report, Nov. 20  Valio production centre in Riihimäki when it suspended production from August 7, 2014 following counter sanctions imposed by Russia. File Photo – Lehtikuva. Finnish milk producers were astounded on Wednesday on learning that they will not get European Union compensation for losses caused by the Russian import restrictions, reported Xinhua.
Minister for Agriculture and Forestry Petteri Orpo expressed disappointment on Wednesday, but explained that the situation was attributed to the way the producers have organized themselves in Finland.
The Finnish dairy industry is largely based on co-operative business models. Milk producers' co-operatives have absorbed much of the impact of Russian sanctions and the income of milk producers has not declined in Finland to the extent required by the European Union.
“The impact will hit the purse of the farmers at the end of the year when the co-operatives will not be able to make the usual payments,” Orpo said on national radio.
Agriculture and Forestry minister Petteri Orpo spoke in parliament on the issue on Wednesday. Photo – Lehtikuva. The EU Commissioner for Agriculture Phil Hogan announced late Tuesday that the three Baltic nations will get in all 28 million euros in compensation.
The price a milk producer gets has declined in Estonia by 27 percent, in Latvia by 26 percent and in Lithuania by 33 percent as a result of the sanctions while in Finland the established decline is only 11 percent.
Orpo assured he will be able to explain to commissioner Hogan that prices had declined in Finland and the trend continued.
On the domestic political scene the decisions by the EU attracted irate comments directed towards the government.
Former EU Commissioner and current Member of the European Parliament Olli Rehn of the opposition Centre party demanded that Prime Minister Alexander Stubb put "all his clout" into action so that Finnish milk farmers would get the compensation.
News agency STT adds: Suomen Keskusta (Centre Party) Members of the European Parliament had called for a swift action from Prime Minister Alexander Stubb so that the Finnish dairy sector could be compensated.
Valio milk. Photo – Lehtikuva. Anneli Jäätteenmäki, a Center Party member of the European Parliament said the situation had demonstrated failure in Finnish lobbying.
“Prime Minister Alexander Stubb has been silent. He is known as a staunch supporter of EU sanctions against Russia. The price is being paid by Finnish milk producers and the food industry,” said Jäätteenmäki.
Olli Rehn, another Center Party MEP said there was no justification to exclude Finland from the compensation.
Rehn believes Finland should not be punished due to the fact that milk cooperatives have covered for the losses following Russian ban on food and dairy products.
Rehn who considers the size of 28 million euros a disappointment said he will write to the EU Commission regarding the issue.
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