flag de flag gb flag fr
Legal notice     European Milk Board ASBL | Rue de la Loi 155 | B-1040 Bruxelles

News Details

PDF-Icon Icon-Print

02.05.2012

Dairy market news – The crisis is here

In spring 2012 the dairy market situation of many countries in Europe is the same, vividly recalling the events of 2008 and 2009: milk prices tumbling to...

In spring 2012 the dairy market situation of many countries in Europe is the same, vividly recalling the events of 2008 and 2009: milk prices tumbling to worrying levels – with the difference being that this time costs are even rising. Unfortunately the European Milk Board’s predictions have proven correct.

In Italy, for instance, when milk contracts expired at the end of March 2012 the market collapsed and the milk price plummeted to below the 30-cent mark. Farmers are now having to face significant price reductions of around 15 per cent for contracts with the Italian dairy industry for 2012. In 2011 the average farm-gate price was still 40 to 41 cents for drinking milk and milk for the production of cream cheese. The price for traditional and quality products like Grana and Gorgonzola was 42 to 43 cents. Milk for the production of Parmigiano Reggiano cheese even fetched short-term peak prices of up to 70 cents.

In the Netherlands the situation on the open market is the most critical, owing to massive overproduction. Here it is currently very hard – if not impossible – for farmers to sell their milk. Spot-market prices of milk have fallen to between 21 and 24 cents. That is ten to twelve cents less than dairy farmers are still being paid by their co-operatives. However, the downward trend is more than clear for everyone.

The situation is similar in other European countries with prices crashing to below 30 cents as a result of huge production volumes. Average basic farm-gate prices for milk in France for instance dropped from 31-32 cents in March to 28 cents in April; in Belgium, to 28-29 cents in March and to 25 cents in April. In Germany the average farm-gate price was marginally above that at 31-32 cents.

And the main feature of the current situation in the Swiss dairy market is an unprecedented record production, expected to be reflected by 3.5% reductions in farm-gate prices in May. The only way to shift the increased volume of milk is to dispose of it on the world market in the form of butter and milk powder. At present every producer must pay a contribution of some 0,8 cents a kilo for these dumping exports.

In addition to the downward trend in farm-gate prices there is an extremely difficult situation with operating costs on the farms in many countries. In Italy, for instance, the prices of fuel and electrical energy have risen by 20 per cent. Soya has gone up by 22 per cent. As a result, the costs of producing one litre of milk in Italy are a whopping 45 cents. According to a recent study, in Ireland production costs rose by six cents a litre of milk between 2006 and 2011. In Germany, too, milk production costs have increased by about five cents since 2009.


More News

18.04.2018

European dairy farmers' organisation: after many years as President, Romuald Schaber passes the baton to Erwin Schöpges

(Brussels, 18.04.2018) From yesterday’s general assembly of the European Milk Board (EMB), Erwin Schöpges emerged as the new President of the European umbrella organisation. The 53-year-old dairy farmer from Belgium has actively championed a fair milk policy ever since the EMB was founded. In addition, the EMB Executive...

17.04.2018

Further downhill

German dairy farmers had to cope with a cost shortfall of 12 percent in January 2018

13.03.2018

Newsletter March online!

For us French producers, the year started with a bang, with our dear President Macron's conclusions regarding the meetings on the "general state of agriculture and food". The prices of agricultural products should henceforth be fixed on the basis of production costs. Read more

05.03.2018

Intervention milk powder sold at lowest price yet

European Milk Board criticises dumping tactics

02.03.2018

Study by German entity BAL reveals real milk production costs in France

Publication of this study on production costs permits progress toward the implementation of the French President's proposals

28.02.2018

Présentation des résultats de l'étude sur les coûts de la production laitière en France

Invitation à la conférence de presse conjointe le 2 mars 2018 au Salon de l'agriculture à Paris

05.02.2018

Committee of the Regions: Suspending buying-in of milk powder risks triggering another crisis in the dairy sector

Following the Council's decision to suspend automatic buying-in of skimmed milk powder, the European Committee of the Regions warns of another potential crisis in the milk sector

Displaying results
<< First < Previous 1-7 8-14 15-21 22-28 29-35 36-42 43-49 Next > Last >>