flag de flag gb flag fr
Imprint | RSS     European Milk Board ASBL | Rue du Commerce 124 | B-1000 Bruxelles

News Details

PDF-Icon Icon-Print Tip A Friend Icon

19.01.2012

PR: The same goes for the financial market and the dairy market:

 

There must be clear rules! A proposed solution for European milk supply

Hamm/Berlin, 19.1.2012: The international finance and debt problems make it clear: free market forces create dangerous turbulence, plunging the sector deep into crisis. The same goes for the dairy market. It is now in a state of frenzy, and the planned deregulation measures – such as the abolition of the quota in 2015 – will push it even further towards ruin. The trend is towards rock-bottom prices that fluctuate dramatically and the milk producers’ greater dependency on dairy groups and banks. Clear rules are needed that guarantee the operation of a healthy market.

The financial sector cannot operate without efficient financial supervision, transparency and the outlawing of dangerous speculation. In the dairy sector, too, severe structural deficits necessitate far-reaching measures. In the current situation farmers have no bargaining power and so are unable to adjust their supply to consumer demand in a targeted way.

 

Lessons and solutions for the dairy market

To strengthen their bargaining position vis-à-vis the processors, members of co-operatives and producers that supply private dairies must be given the opportunity to join a producer organisation that negotiates on their behalf. Such a producer organisation must be able to become as strong in the market as a dairy.

Moreover, a monitoring agency has to be set up to enable supply to be adjusted to demand across the markets. Its remit is to gather key data such as production costs, prices, and the volume of supply and demand. On that basis it calculates volume adjustments, i.e. works out how much has to be produced so that a) supply is geared to demand and b) a cost-covering farm-gate price is achieved for the producers and c) a fair milk price is achieved for the consumers.

 

Dangerous speculation

Speculation has caused the financial sector to fluctuate with disastrous effects. It is not clear whether the market can recover. It is irresponsible for foodstuffs like milk to be the subject of speculation. According to the World Bank, the so-called silent tsunami – as world food experts call dangerous price rises in staple foods due in part to speculation on food in futures markets – plunged 44 million people into poverty between June 2010 and April 2011.

 

The financial sector and the dairy sector must be restored to functionality. People’s trust in the markets has been shattered. In future it must be proven that the markets can operate in the interest of our society. And that is only possible with clear rules!


Contact: EMB Press Officer Silvia Däberitz (DE, EN, ES): 0049 2381 4361 200

Press release as pdf

Photos in the gallery



More News

Category: Press 21.11.2014

Press release: Members' Assembly of the European Milk Board

European milk producers warn against market liberalisation

Category: Press 06.11.2014

Press release: First European Fair Milk Conference

Ciolos, Oxfam and Slow Food receive the “Golden Faironika”

Category: Austria / Switzerland, Germany 04.11.2014

Germany: Discounter cuts milk prices

The German discounter Aldi has cut the prices for fresh milk and UHT-milk by 10 cents per litre. Fresh milk and UHT milk with 1,5% fat are currently sold for 55 cents. The price for whole milk was equally reduced by 10 cents and is now sold for 59 cents. Aldi also cut the prices for milk products like curd, cream and condensed...

Category: Austria / Switzerland 31.10.2014

Dumping prices for milk – complaint against Austrian supermarket chain

Yesterday (30 October), the Austrian Farmers’ Union filed a complaint against the supermarket chain „Zielpunkt“ at the Austrian Federal Competition Authority for the current price dumping of UHT-milk. According to the current flyer, Zielpunkt sells UHT-milk for 54 cents on two days this week.

The Austrian Farmers’ Union had...

Category: Ireland / Scotland / Wales 30.10.2014

Blockade of cheese factory in UK

Yesterday, hundreds of UK dairy farmers blockaded an Adams Foods cheese factory in Leek, Staffordshire. It’s a protest over “cheap” cheese imports from Ireland and other countries, which they claim are undercutting British dairy producers.

The peaceful demonstration was part of an FFA-backed campaign by dairy farmers against...

Displaying results 6 to 10 out of 365

< Previous

1

2

3

4

5

6

7

Next >