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

05.03.2018

Intervention milk powder sold at lowest price yet

European Milk Board criticises dumping tactics

(Brussels, 5 March 2018) At the end of February, the European Commission sold over 4,300 tons of skimmed milk powder at a set minimum price of 110 €/100 kg. This has been the lowest selling price since the beginning of the tendering process and has been met with severe criticism from European milk producers.

The latest sale at 110 €/100 kg clearly contradicts the European Milk Board's call to reduce intervention stocks in a way that will not be detrimental to the market and without selling skimmed milk powder below market value. The largest volume of skimmed milk powder to date –  4,337 tons – was rejected in the most recent tendering process. Since December 2016, 6,421 tons of SMP have been sold as part of 17 calls for tender. About 380,000 tons are still sitting in European intervention storage. The current market price for skimmed milk powder has fallen to 137 €/100 kg.

"Unfortunately, the powder was not sold but outright dumped – this price is scandalous," says the president of the European Milk Board, Romuald Schaber, outraged by the European Commission's behaviour. "You have the feeling that the Commissioner for Agriculture is trying to get rid of stocks without any concern for the consequences." Dumping milk powder in this fashion is very dangerous considering the current market situation and makes conditions even more difficult for milk producers, adds the president of the EMB. "Even the minimum price of 215.10 €/100 kg set in December 2016 does not actually correspond to real production value," continues Schaber. "By steadily reducing the selling price to a mere 110 €, policy-makers continue sending the wrong signs."

After a short-lived recovery, milk prices are already showing a downward trend. German and Belgian dairy farmers have reported a price reduction of about 4 - 10 cents in past weeks. With the projected production increases in coming months, Europe's dairy farmers are heading into the next crisis with their eyes wide open.

Sieta van Keimpema, milk producer from the Netherlands and vice-president of the EMB, remains pragmatic. "Agriculture Commissioner Hogan assured us milk producers that the voluntary production cuts instrument continues to be available at EU level. Mr Commissioner, NOW would be the time to follow through on your assurances and to introduce a new volume reduction programme that includes production caps, as proposed in our Market Responsibility Programme!"

For the EMB it is crystal clear that intervention is ineffective in the face of chronic market instabilities and suppresses future selling prices, thus counteracting market recovery. Instead, production must be aligned with market needs through volume reduction.

 

Contacts:

EMB president Romuald Schaber (DE): +49 (0)160 352 4703
EMB vice-president Sieta van Keimpema (EN, NL, DE) : +31 (0)612 168 000
EMB director Silvia Däberitz (EN, DE, FR): +32 (0)2808 1936


More News

22.05.2018

Milk imports from Oceania will destroy small-scale dairy farms

The Federal Government must turn away from this cheap export-import strategy. The AbL calls for a quality offensive.

17.05.2018

Newsletter May online!

A new Executive Committee has been at the helm of the European Milk Board since mid-April 2018. In a very moving Members' Assembly, Romuald Schaber, founder and President of the European Milk Board, was bid farewell after serving for twelve years. John Comer as well stepped down after six years of committed work. Read more

09.05.2018

Fewer agricultural subsidies necessitate framework for cost-covering prices!

Is the EU progressive enough to properly engineer stabilisation of farmers’ income?

26.04.2018

Newsletter April online!

EMB on the right track for the future The annual Members' Assembly of the European Milk Board was held on 16-17 April 2018 in Brussels. The agenda included workshops and discussions on strategic issues as well as the usual procedural points. As part of the latter, a new Executive Committee was elected. Read more

25.04.2018

High time for action against unfair competition in the dairy sector!

International Pooling Commission of Milk Producers calls for political intervention to create a functioning dairy market in 3-point position paper

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