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

News Details

PDF-Icon Icon-Print Tip A Friend Icon


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


EMB update on this week's rallies

Belgium: Citizens can invest in a fair agricultural cooperative

A first in Belgium: Cooperative Faircoop is now open to citizens, who can become cooperative members by buying shares. In a press conference held yesterday (October 22) in Brussels, Fairebel presented the conditions for this so-called COWfunding. Any citizen can...

Category: Press 14.10.2015

Press release: European dairy farmers from more than ten countries call for voluntary production cuts

(Montichiari, 14.10.2015) They simply won’t rest in Europe. For months now dairy farmers have been taking to the streets in many EU member states demonstrating strongly with the same aim. Across Europe they are demanding an end to the EU policy that is currently responsible for doing away with milk production in entire...


Press invitation: EMB dairy farmers gear up for further campaigns of action and present recent cost study for Italy

Dear Media Representatives,

How can the current milk crisis be stopped? How can milk production in Europe be maintained, given the drastic situation in the milk market? What are the best strategies for finally achieving cost-covering prices for the dairy farmers?

These questions will be discussed by the members of the...

Category: General 02.10.2015

Update of this week's rallies


Danone proposes including production costs in milk pricePromising news from dairy giant Danone: According to France-Presse (AFP) from september 29, food corporation Danone has offered to include the production costs of dairy farmers in the milk price. Danone says it will introduce production costs into the milk price...


Displaying results 6 to 10 out of 430

< Previous








Next >