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

23.08.2017

"Milk Market Review" study: Dairy industry was unable to sell additional milk volumes adequately

© MEG Milch Board

This study was carried out due to the violent collapse of farm-gate prices in Germany during the most recent milk crisis in 2015 and 2016, as well to find out whether this was unavoidable considering market conditions. Prices did not plummet so drastically in other EU countries.

The Büro für Agrarsoziologie und Landwirtschaft was commissioned by producer organisation MEG Milch Board to investigate further by analysing the market for different milk products on the basis of available market data. However, they also looked at milk volumes, product flows in the EU and in third countries, farm-gate prices in the EU and much more.

 

One can summarise as follows:

  • In terms of sales, the dairy industry was not prepared for the increase in supply volumes.
  • The milk surpluses accrued between 2013 and 2015 could not be dealt with solely by export to third countries.
  • They were mainly pushed on to the already saturated EU internal market as "cheap cheese".
  • This flood of cheap products from Germany led to very significant decreases in export prices as compared to other EU countries, and was a decisive factor in the extreme drop in producer prices in Germany.
  • The substantial volume increase, coupled with very poor value creation with regards to all important export products, contributed to a price collapse.
  • Milk surpluses were "sold off" for the smallest of profits, without any regard for falling producer prices.
  • The resulting competition for market share led to German producer prices unnecessarily falling even further as compared to other EU countries.

 

Conclusions:

The crisis was thus triggered by milk production that was not aligned with market needs. The position of the MEG Milch Board w.V. presented in the "RoadMap Milch & Markt" over two years ago remains very relevant even today. Their key demands refer to contractually fixed milk volume, quality, term of contract as well as milk supply price. No litre should be left on the farm, if the listed criteria are not contractually determined. Implementing milk sales on the basis of contracts, as set out in the RoadMap Milch & Markt, would have, at the very least, tempered the crisis. This is what we have to continue to fight for!

MEG Milch Board Press release of 20 July 2017

Brochure "Marktreview Milch" and study "Marktreview Milk" (in German)


More News

16.08.2018

Newsletter August online!

I am greatly concerned to see how Europe is currently facing significant pressure – nationalistic forces internally and divisive motivations externally. I am convinced that there will only be losers if this very dangerous situation were to become even worse. Read more

19.07.2018

Study shows success of the EU volume reduction scheme announced 2 years ago

(Brussels, 19.07.2018) Two years ago – on 18 July 2016 – European Commissioner for Agriculture Phil Hogan announced the EU volume reduction scheme for the dairy market. The measure was a great success and showed that even small reductions have a major effect on producer prices. A study by A. Fink-Keßler and A. Trouvé examined...

16.07.2018

Current figures from Germany show: gap between production costs and milk price is further increasing

(Brussels, 16.07.2018) The quarterly cost figures for Germany are now available and show that cost coverage in April 2018 was only 78%, while it was 88% in January. Production costs in April amounted to 42.70 cents; however, producers only received 33.42 cents per kilogram of milk. This problematic combination of falling milk...

13.07.2018

Newsletter July online!

As newly elected member of the Executive Committee of the European Milk Board, I would like to draw your attention in my editorial on current issues in Ireland. Angers mounts as Ireland’s biggest Co-op underpays on May milk price. Read more

11.07.2018

Drought causes discomfort for Europe's dairy farmers

Large parts of Europe have experienced major losses due to the continued heatwave. After a wet spring in countries like Ireland, the United Kingdom and France, the dry weather is now negatively affecting pastures, hay and silage production as well as cereal and straw production. As a consequence of the drought, milk producers...

20.06.2018

Newsletter June online!

It's a pleasant surprise when EU policy-makers propose positive developments: At the end of May, the European Parliament voted in favour of the report by Italian MEP Herbert Dorfmann on the 'Future of Food and Farming' and thus presented the Commission with a clear direction for the reform of the Common Agricultural...

18.06.2018

Urgent recommendation

EU Agriculture Council should decide to use milk powder from intervention as animal feed