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MILK-NEWS

http://www.europeanmilkboard.org

Dear dairy farmers and interested parties,

For almost a year now, milk prices in the EU have been stuck in a downward spiral. In most countries, prices currently range between 25 and 30 cents per kilogramme; in the Baltic countries, they are even lower.

The EMB, in cooperation with its member organisations, commissioned a study of milk production costs, which provided the following result: In the main producer countries like Germany, France, the Netherlands, Belgium, Denmark and Italy, production costs stand uniformly between 40 and 50 cents per kilogramme.

Because of this cost-price discrepancy, thousands of farms are struggling to survive. Many are taking on new loans and falling further into debt. Innumerable farms have already given up milk production.

However, EU Agriculture Commissioner Phil Hogan's reaction to the situation is cynical. He recently said in an interview with private online channel viEUws, "I don't think that many farmers are producing below the cost of production. They say they are but at the end of the day, they continue to produce. In any business, if you're producing below cost of production for a considerable period of time, it is going to create, obviously, difficulties for the business. But I don't see any evidence of that."

Such statements are unbelievable and a slap in the face for milk producers throughout Europe. It is this mix of blind faith in markets, ignorance and arrogance clear to see in Hogan and other policymakers that is putting the livelihood of countless milk producers in the EU on the line.

On October 13 and 14, the EMB autumn assembly will be held in Montechiari, Italy. It is an opportunity to find a response to the behaviour of Hogan and his supporters. We EMB dairy farmers will not allow our livelihood to be destroyed by inept policymakers. It is in our common interest to fight for sustainable, small-scale farming - something that the people of Europe also support.

Romuald Schaber, EMB President

Danish production costs including a fair income now available

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© LDB

In 2014 production costs in Denmark were 43,32 cents

Current press release (29.9.2015):

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Denmark: 86 percent of dairy farms show deficit

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© wikimedia commons

According to an article in the Danish newspaper Jyllands-Posten, 86 percent of milk producers have severe cash-flow problems. The situation has slightly improved since the publication of the article (29.7.) due to an increase in organic milk prices, but the overall situation stays the same - dramatic.

 

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France: Danone proposes taking production costs into account

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© wikimedia commons

According to the French news agency AFP, dairy giant Danone has asked the milk producers supplying their five factories in France to take their production costs into account when fixing the price of milk. However, this new formula to calculate price could be accompanied by a drop in the volume of milk bought from certain producers.

 

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Switzerland: The dairy market caters to companies - not to farmers!

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© wikimedia commons

Swiss dairy farmers are still waiting for better times. The reference price for the protected domestic segment still stands at 68 centimes (approx. 62.20 euro cents); however, the milk prices actually paid are much lower. Dairy sector organisations are satisfied as the reference price has not been lowered.

 

 

 

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Why compulsory preferential sale in cooperative statutes is a problem

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© wikimedia commons

Compulsory preferential sale, which has been historically derived from the provisions of the Milk Law of 1930 and was meant to address the mismanagement and hygiene issues concerning commercial milk, is now obsolete. Monopoly and competition regulations are calling for a necessary overhaul of this existing practice.

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News from Brussels

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Impressum

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