THE Weekly Times asked European Union Agriculture Commissioner MARIANN FISCHER BOEL how she could justify imposing milk export subsidies on the world. Here is her response

Is the Commission aware of the impact this decision will have on Australian and NZ dairy farmers?

Our decision to re-introduce export refunds for butter, cheese and whole and skimmed milk powder, for the first time since their suspension in June 2007, is part of a wider plan to help the EU dairy market to recover from the recent sharp decline in prices.

What we are doing is well within the limits imposed on us by the World Trade Organisation. This in no way represents a change in our policy. In the Doha Round of World Trade Organisation talks, we have pledged to phase out such payments by 2013, on condition our trading partners discipline their export support programs - such as export credits and State Trading Enterprises. These refunds do not represent unfair competition to dairy producers from other countries, including Australian farmers, as they do not undercut prices on overseas markets.

Given you as Commissioner, have visited Australia, do you personally care about the plight of Australian dairy farmers?

I had the pleasure to visit a number of dairy farms in Victoria in 2006. These visits were extremely valuable and helped me to understand better the differences between EU and Australian agriculture.

The people I met explained to me the sort of problems Australian dairy farmers currently face. But let's be clear. I am the EU Agriculture Commissioner and my first duty is to support European farmers. Over the last few months, our producers have faced a steep fall in prices and many face bankruptcy. What we are doing is a temporary measure and I do not agree with your statement that this will devastate Australian farmers or prevent a recovery of the world market.

Are you aware Australia's dairy farmers, most of whom are in the state of Victoria, are in the midst of a 10-year drought that has slashed production?

I am fully aware of the drought problems affecting dairy farmers in some parts of Australia. I respect the efforts being made by the Australian Government to fight this problem. But EU farmers also face severe difficulties caused by the sharp fall in prices. If some of these people go out of business, there will be no way back for them.

Why has the Commission introduced these support mechanisms?

As I explain above, these measures are a temporary response to a critical situation on the EU dairy market.

What would happen to the EU dairy industry without this support?

We fear that a number of particularly small-scale milk producers would be forced to sell up. There is likely to be no way back for them.

How does the EU justify supporting farmers, who in many instances are completely uncompetitive in the global marketplace?

We have a mixed farming sector in Europe, ranging from relatively large-scale, highly competitive producers to small family farms. There is space for all in our farm sector. In Alpine regions, for example, farmers do more than simply produce food. In these areas, there is no alternative to sheep or milk production. Without this type of farming, we would face major environmental problems and the end of the road for entire communities. That is why we have completely revamped the way we support our farmers. Our farm payments are no longer linked to what farmers produce, but are made in return for farmers fulfilling a whole raft of environmental, animal welfare and food safety standards. This is classed by the WTO as non-trade-distorting support.

Do you or your family operate a dairy farm?

No. My husband handed on ownership of our arable farm to our daughter and her husband two years ago.

What support do you receive from the Commission and indirectly from your national government on that farm, both in terms of direct payments and indirect stewardship payments?

We don't own or run a farm.

What is the income you derive from that farm?

See above.

What is your milk income?

See above.