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Dear Dairy Farmers and Interested Parties,

So now the Commission’s Milk Report for 2014 is out. The Commission’s work is based on the Milk Package, drawn up with regard to the future of the milk sector after the end of the quotas. In 2014 and 2018, the Commission has to draw up a report on the market situation and the implementation the Milk Package.

What sounds such a routine thing is not to be taken for granted, though. It was only permanent pressure from the EMB and its dairy farmers that induced policy-makers to consider the development in the milk market from all angles.

What are the report’s key messages?

  1. The market is currently developing in a positive way and the medium-term forecast is also optimistic. However, severe market fluctuations are possible.
  2. Because of the favourable market development there has evidently been no incentive for farmers to join producer organisations.
  3. The results of the Milk Conference of September 2013 are still being deliberated.
  4. It is still too early to assess the effect of the Milk Package, particularly on disadvantaged regions.
  5. The Commission harbours strong doubts whether the existing safety net (storage, export subsidies) is sufficient for the period after March 2015.
  6. The Commission intends to carry on stimulating the discussion and accompanying the decision-making process right through to additional crisis instruments.

The basic political aim being emphasised is of maintaining stable milk production throughout the EU. The Commission will not stand idly by and watch too intense a process of concentration in what are called the “favoured areas”. Moreover, the Commission has “reserve powers” for extreme crises, although there are no details of them.

How are we dairy farmers to assess the report?

The positive assessment of the market development comes as no surprise. It reflects the present situation and so was to be expected.

What is surprising, though, are the extremely clear pointers to the market risks. From this realisation the Commission derives the necessity for further crisis instruments, and this is likewise congruent with the EMB’s view.

Once again the decision by the EMB General Meeting in April this year to adopt a crisis concept after the quota system is abolished points the way. Now is the time to ride on the back of the Milk Report and make the crisis concept command majority backing in the political debate.

Romuald Schaber (EMB Präsident)

EU Milk Report

source: wikicommons

On 13 June the EU Commission published the long awaited report on the milk market. The current situation in the EU milk market is described as positive, and medium-term prospects are good, although severe price fluctuations are most likely to re-occur.


EU Council of Ministers of Agriculture

source: wikicommons

On 16 and 17 June, the Council of Ministers of Agriculture addressed the future of the milk market and assessed the EU Commission’s Milk Report. They discussed the call for additional “soft landing” measures in the last year of the quotas.


Dutch study: milk price nowhere near covers the costs

source: DDB

On June 24, the Dutch Dairymen Board (DDB) presented the results of the study into the production costs for a litre of milk in the Netherlands. With a cost price of almost 45 euro cents for 2013, the production costs for a litre of milk are considerably higher than the average milk price paid in 2013, which was just over 37 euro cents. This means there is a coverage deficit of 16 percent, and this is just for 2013.


Interview with Maria Heubuch: From farmer to MEP

source: Florian Jaenicke

Maria Heubuch (55) is a full-time farmer in Leutkirch, south Germany. For 16 years she was National President of the German family farmers’ association (Arbeitsgemeinschaft bäuerliche Landwirtschaft - AbL), a member organisation of the EMB. In the European elections on 25 May, she was elected to the European Parliament eleventh on the Greens’ slate and will possibly sit on the Committee on Agriculture soon.


Current Situation in Dairy Farming In Ireland

source: wikicommons

The Majority of milk processors in Ireland are paying 37 cents per litre inclusive of VAT for May milk. Two processors remained paying 39 cents per litre inclusive of VAT for May milk despite others dropping price by 1 or 2 cents.


EMB Calendar

The EMB Board’s most important dates in July 2014:

  • 1.07.:         Board Meeting in Brussels
  • 14.-15.07.: European Strategy Meeting on TTIP (and CETA)
  • 16.07.:       Stakeholder groups’ TTIP presentations (DG Trade)
  • 24.07.:       High-Level Group on the Milk Market Observatory


European Milk Board asbl
Rue de la Loi 155
B-1040 Bruxelles
Phone: +32 2808 1935
Fax: +32 2808 8265
E-Mail: office@europeanmilkboard.org
Website: http://www.europeanmilkboard.org