EMB Newsletter January 2017
Dear dairy farmers and interested parties,
A more balanced market, thanks to the EMB’s proposals
EMB’s proposals have proven to be effective. We had called for an obligatory volume reduction programme to enable the market to emerge from the great milk price crisis of 2016; we had demanded that the European Union use the revenue generated by the super levy imposed in 2014-2015, totalling more than 1.2 billion euros, for this extraordinary intervention plan.
Even if the Commission did not implement our proposals in full, we can now say that more than 58,000 farms in Europe have backed them, although the resources used were far fewer than demanded. So we can rightly claim that the voluntary production reduction helped restore balance to the market, because milk prices are now much better than in spring 2016. In fact the price for a litre of milk, which in the far north of Europe was below the 20-cent mark, is now well over 30 cents a litre, and in some regions is even almost 35 cents.
What we have to do in the next few months is fight against the release of butter and milk powder stocks. Although milk farmers all over Europe are far from getting cost-covering prices, milk powder from market intervention is being released on the market.
Therefore the European Milk Board is organising a symbolic milk powder action on 23 January on the occasion of the meeting of EU Ministers of Agriculture in Brussels: “Milk powder from market intervention threatens milk price - Permanent crisis instrument NOW!!
Dairy farmers from all over Europe will show to the Ministers what are the consequences of their short-sighted policy!
We will continue to fight to make sure that the European Commission implements a legal framework for the Market Responsibility Programme. The positive experience of the last years shows that it is the only solution capable of stabilising the market in the long term.
Roberto Cavaliere, EMB Board member and president of APL Italy