On the 27^th of July, BIG-M, the Swiss member organisation of the European Milk Board, organised a so-called cattle processsion in Zurich, in order to highlight the unfair dealings in the milk market and to protest against the business practices of MIGROS, one of the biggest retail chains in Switzerland. It was for this reason, that 400 producers and their families from all over Switzerland gathered this morning at the corporate headquarters of MIGROS in Zurich. They were calling for fairer conditions in the milk market.

BIG-M critisied in particular the approach of MIGROS in the Milk Interprofessional Organisation (BOM) which endorsed on the 18^th of June 2010 a 3 Rappen increase in the recommended price. Due to the decision of the Federal Council, the generally binding resolutions of the BOM meant that the profit had to be passed from the dairies to the producers. However, nobody abides by the decisions of the committee, in fact there are two delegates from MIGROS on this committee.

BIG-M has therefore agreed that MIGROS is chiefly responsible and has accused the large enterprise of, inter alia, misinforming consumers, endorsing cheap imports, and promoting export dumping. Furthermore, the BIG-M criticises MIGROS for agreeing the price rise and informing customers that the profit would be passed on to the producers and that MIGROS would thereby reduce its own margin in favour of the farmers, but this is not the case. Martin Haab, Chairman of the BIG-M, therefore said that “it is not enough anymore that we get together and discuss the situation. Everyone already knows about the situation. Now it is up to MIGROS to act accordingly”.

Werner Locher, Managing Director of BIG-M, said “BIG-M does not accept consumer misinformation”. The association demands a more honest information policy and the implementation of the already agreed upon recommended price”.

Click here for the German version of the press release of Uniterre  (PDF / 138 KB).

Common Agricultural Policy concerns all of us!

Instruments for the milk production adapted to the society’s needs

The conference „CAP post 2013“concluded yesterday in the late afternoon in Brussels. The majority of participants came to the conclusion that a comprehensive reform of the EU agricultural policy is needed. Representatives of the European Milk Board (EMB) who attended the conference emphasise that future policy should be oriented towards the interests of dairy farmers and consumers.

Brussels / Hamm (21.7.2010): With this conference European Commissioner for Agriculture Dacian Ciolos forged a new path. Civil society shall be more involved in defining the goals and instruments of the EU agricultural policy. Consequently, people from all walks of life as well as many critical experts took part, not only as speakers on the podium but also in the audience.

Romuald Schaber, president of the European Milk Board stated that „During the conference many people mentioned that it is of great importance that producers obtain prices on the dairy market that cover their production costs. The agricultural policy has to provide the rules and instruments to enable producers to organise themselves so that they can negotiate prices and volumes on an equal footing with the industry.” Romuald Schaber added: “That is a vital prerequisite for the younger generation of producers to venture into agriculture. Today only 7% of farmers in Europe are under 35 years of age. So young people can see a future in agriculture, favourable conditions and confidence of a guaranteed income are essential. For this purpose rules for regulating the market are needed.”

Sonja Korspeter, Secretary General of the EMB, stressed that: „We need competition for quality and not just competition at any price. It is absolutely clear that we cannot sustain high quality production in the long-term, if the price in terms of products remains at such a low level. This means that we have to strengthen the producers in the food chain, independent from cooperatives, so that they can obtain prices that cover their production costs. Other services provided for the society can be remunerated by compensation payments.”

European Commissioner for Agriculture Dacian Ciolos underlined in his closing statement that the diversity of farms is a European trademark: „This is all about compensatory justice, not about uniformity”. The Commissioner said: „Food security should be a vital aspect of a future agricultural policy” and he added: “Employment in rural areas is a crucial issue.” He said that economic and ecological aspects have to be taken into account in equal measure.

Furthermore Dacian Ciolos stressed: “The Common Agricultural Policy concerns all of us!” The European Milk Board shares this opinion and that is why the EMB supports ARC, the Agricultural and Rural Convention ( www.arc2020.eu) and is committed to developing proposals together with civil society to include them actively in the reform process of the EU agricultural policy.

Contact:

Romuald Schaber (DE): 0049/1603524703

Sonja Korspeter (FR, EN): 0049 1786021685

Please click here to access the pdf version  (PDF / 174 KB)

Please click here to access the press release from ARC
  (PDF / 116 KB)

Romuald Schaber, president of the European Milk Board (EMB) said that: “The agricultural policy has hitherto been primarily oriented towards the interests of the industry. The reform of the EU agricultural policy post 2013 should rather focus on the interests of civil society.” Producers and consumers share interests. Consumers attach great importance to high quality, locally produced products.

To meet the expectations of consumers and perform other services for the society, producers need to obtain prices for their products which cover the cost of production. Romuald Schaber explains: “It is thus important that the policy-makers create a legal framework that improves the situation and bargaining power of producers on the market.”

Furthermore the European milk production has to be adjusted to the demand of the population in Europe in terms of quality as well as volumes. Trading surpluses as standard products on the world market will result in market distortions and thus threaten the existence of producers in Europe and beyond its borders.

Please find attached the English version of the press release published by ARC that explains the overall situation. For the first time in the history of Europe more than 50 different and diverse groups agreed on common principles for a future EU agricultural policy. The civil society can continue to contribute to this process in the coming months on the ARC website www.arc2020.eu. European Commissioner for Agriculture Dacian Ciolos will be presented with a joint paper with proposals for a far-reaching reform in autumn.

Contact:

Romuald Schaber (DE): 0049/1603524703

Sonja Korspeter (FR, EN): 0049 1786021685

Click here for the pdf version  (PDF / 140 KB)

Click here for the press release published by ARC  (PDF / 137 KB)

Click here to access to ARC statement of principles offered to the Conference  (PDF / 152 KB)

Click here to read the speech of Dacian Ciolos (in French)  (PDF / 52 KB)

A storm was gathering in Brussels yesterday and this was not solely caused by the thunderstorms which darkened the skies over Berleymont, the European Commission Building in Brussels. On the 12^th of July, the Agricultural Ministers of the 27 Member States met to discuss agricultural reform in the EU. Milk producers from the whole of Europe descended on Brussels for this occasion. They wanted to make sure that their voices were heard and make clear their feelings on the report of the high ranking expert group ( High Level Group on Milk). They protested on a number of issues, namely, agricultural contracts, export dumping and demonstrated in favour of a fair price for their milk, for better conditions in the milk market and volume control. The European Milk Board, with the support of its member associations from around Europe, called on its members to attend the demonstration. They were professionally supported in this by the European office of Via Campesina and by representatives from various environmental, development aid and consumer organisations.

Several speakers from the ECVC and the EMB highlighted the need for improvements in the HLGM report and they called on the Commission, Parliament and Council to take account of their remedial proposals regarding income security of producers and achieve a balance of power in the milk market.

Furthermore, representatives from environmental organisations and development aid groups stressed the importance of regulation in the market, in order to impede export dumping which burdens producers in developing countries.

In order to highlight the current untenable position of the producers, a group of enslaved farmers surrounded by the representatives of the dairy industry moved through the crowd. The farmers were eventually liberated by the representatives of the EMB and ECVC. Romuald Schaber, President of the EMB explained the sequences of events and stated that “[the scene acted out] portrays the daily reality of European milk producers. A number of dairy farmers are being squeezed out of the market controlled by the dairy industry, which can then dictate an unfair price for milk products.”

The livelihoods of many milk producers are severely threatened and a further liberalisation of the market would exacerbate the situation even further. In order to vent their frustration and according to the motto “soon you can do the milking yourselves” which could be read on placards, the participants at the demonstration, enthusiastically threw hundreds of wellington boots in the direction of the Council building.

All the speakers stated the associations have much work to do, however, as nothing is decided, that now is the time to approach and work with the Ministers, representatives and members of the Belgian Council Presidency, to make clear the concerns of the milk producers and come up with appropriate solutions.

Here you will find commentary from the European Milk Board regarding the proposals of the EU High Level Group as well as proposals for a block exemption regulation for milk producers which create a workable framework for an improved position on the market for dairy producers. These were the first steps in the direction of a promising future for milk producers in Europe.

PDF Commentary (4 pages)  (PDF / 144 KB)

PDF Summary of the Block Exemption Regulation (2 pages)  (PDF / 120 KB)

Click here to see the pictures of the demonstration

http://www.youtube.com/watch?v=oVdp1_1mY1Q

In order to point out their discontent, producers filled up a swimming pool with milk and they put figurines of representatives of the branch organisation to symbolize that they « are swimming in overproduction » according to Nicolas Bezençon, coordinator of Uniterre, swiss EMB member.

Representatives of Union Sud des Paysans and a representative of the branch organisation were there for the occasion. Thus the union Uniterre explained in front of these representatives its will to modify in deep the current rules in the BO Milk.

The Swiss farmers union demands the general applicability of the BO Milk decisions to all dairy farmers to be accepted by the branch organisation.

So whilst farmers of the EU were demonstrating today in Brussels criticising the High Level Group propositions, in Switzerland dairy farmers expressed their anger about the so-called ideal for the future liberal European dairy policy. All that glitters is not gold.

Click here to access to the pictures

Another problem is the contractualisation - i.e. direct contracts between producers and dairies- that the HLGM has proposed. These contracts would lead the producers to a total dependency of the dairy industry which, as stronger market player, would dictate the conditions.

Furthermore the proposals of the HLGM do not stipulate a regulation of the milk production. However, there will be no fair prices for producers without a regulation of the milk production and the dairy market. If to much milk is produced in Europe, this cheap milk floods not only our market and threatens the position of our producers on the market. The markets in developing countries are harmed as well. In many cases the local production is subsequently abandoned and poverty thus increases.

The future lies in a demand-oriented production with cost-covering prices and a market where all players are capable of acting.” says Lidia Senra.

One positive aspect of the report of the HLGM is that it clearly acknowledges that the milk producers are in a weak position on the dairy market” says Romuald Schaber.

The demontrators from many European countries reject the short-sighted proposals of the HLGM. Several issues will have to be addressed again. The European Ministers for Agriculture are called upon to back a re-oriented dairy policy

If you have any questions, do not hesitate to contact us. You can reach us under the following numbers:

EMB: Silvia Däberitz: 0049 2381 4361200

ECVC:  Lidia Senra: (ES-PT-FR): 00 34609845861- Gérard Choplin (FR-EN-DE): 0032 473257378

Please visit our homepages for further information on European Coordination Via Campesina and European Milk Board:

  EMB : www.europeanmilkboard.org

  ECVC: www.eurovia.org

Here is the press release in pdf  (PDF / 135 KB)

Photos

Press_release_EU_Council_Agriculture_and_Fisheries  (PDF / 148 KB)

Videos:

Television_RTL_Belgium_in_French

http://www.youtube.com/watch?v=K5CWqxCyfoc
http://www.youtube.com/watch?v=95GdIdW1A8s&feature=player_embedded

http://www.youtube.com/watch?v=QkrkW-13fkw

http://www.youtube.com/watch?v=d8XMNFrsUTs

The European Milk Board (EMB) presented Georg Häusler, cabinet chief of the European Commissioner of Agriculture Dacian Ciolos, with a draft of a block exemption regulation. This exemption from European competition law would enable milk producers to organise themselves independent from the dairies to develop common marketing rules. “This regulation is a vital prerequisite for milk producers and dairies to negotiate on an equal footing.  Block exemption regulations are a common practice, especially for small- and medium-sized companies and can easily be applied to the market position of milk producers. We could thus avert the disappearance of tens of thousands of European dairy farms” says Sieta van Keimpema, vice-president of EMB, during the meeting with Georg Häusler.

The EU High Level Group on Milk (HLGM) published its report on June 15th and acknowledged the existing imbalances on the dairy market and has invited the EU Commission to consider legal possibilities to develop a special arrangement for milk producer organisations concerning the European competition law. By presenting such a special arrangement EMB takes up and concretises the proposal of the HLGM.

What are the details of the block exemption regulation?

„This measure is suitable to create a framework that will make it possible to counterbalance marketing disadvantages of raw milk and ensure a real competition between milk producers and dairies. Furthermore, there will also be genuine competition between dairies for raw milk” says Hans Loghtenberg, EMB member from Luxemburg, explaining the situation in the dairy market. “If we have common marketing rules (e.g. concerning minimum prices, quality) within the EU, milk producer organisations we can prevent being pitted against each other by dairies that operate internationally“ he says. An abuse of a dominant position on the market by milk producer organisations is still being prevented by the EU completion law.

Sieta van Keimpema, vice-president of EMB, says: “A block exemption regulation for EU milk producer organisations is the first step towards a real market participation of milk producers. This measure is also cost neutral and renders emergency funding superfluous.”

During the meeting Sieta van Keimpema says furthermore: „The survival of high-quality milk productions in Europe depends on whether milk producers succeed in obtaining a cost-covering price for their milk. A block exemption regulation is the first step into the right direction and strengthens the position of milk producers vis-à-vis the massive, concentrated market power of dairies and retailers”.

Here you find a summary of the block exemption regulation.  (PDF / 120 KB)

Contact: EMB press office: Silvia Däberitz (DE,EN,ES): 0049 2381 4361200

Federal authorities are currently working on milk price regulation, but the next Farm Bill, which governs the agricultural policy in the U.S., is not expected until 2012. In the U.S., the Congress votes on the Farm Bill while the Executive just implements the law. However the Chairman of the House Committee on Agriculture, Collin Peters, took the initiative to engage the dialogue early on the next bill. Thus 8 proposals of dairy market reform will be soon debated in the Congress. The various bills presented by senators are bills from Democrats or Republicans with the support of national organisations from producers or cooperatives or dairies. Big and small farmers feel that they cannot make a living from the current price of milk. A huge debate is ongoing to determine the future of the milk market and what to do to help milk producers.

Here the link to the 8 initiatives

Milk producers need stable and fair milk prices that cover their average production costs.

Consumers need stable and fair milk prices that reflect the real costs of producers, processing industry and retail.  The additional amount charged by processing industry and retail has to be distributed fair and transparently among all members of the milk chain.

What is the problem with the recommendations of the HLG?

The report of the HLG states that the existing safety net is sufficient. If this were the case, tens of thousands of milk producers all over Europe would not, however, have had to give up their farms in recent years and many more would currently not fear for their existence. There will be no sustainable solution without a regulation of the milk production and the dairy market. The future does neither lie in the contractualisation and a futures market as proposed by the HLG, nor in the world market or the restructuring of production and dairies. The future lies in a demand-oriented production with cost-covering prices and a market with equal players. A sustainable milk production also requires Europe to strength its animal feed production.

Conctractualisation on a voluntary basis as proposed by the HLG will not regulate the production and will not lead to fair prices for producers and consumers. It is already possible for producers to have contracts. However, because of their weak bargaining power, these contracts are not fair. Contractualisation marks the end of a European milk policy and leaves decisions to member states and dairies. The EU should analyse the current situation in Switzerland carefully; it was this very policy that has led to overproduction, conflicts and falling prices.

Price volatility is not inevitable.  It is rather the result of political decisions aimed at integrating Europe into the deregulated world market.  Price volatility is particularly harmful for milk producers, who have to make long-term investments.

Europe has to stop exporting its dairy products at prices below the production costs. This is important for European producers as well as producers in third countries.

Providing consumers with high-quality dairy products with transparent prices has to be the priority.

Let’s go to Brussels!

The European Council of Ministers of Agriculture will discuss the findings of the HLG on the 12th of July and the European Parliament on the 13th of July. EMB and ECVC call on both political bodies to reject the proposals of the HLG.

ECVC and EMB appeal to all milk producers, all other farmers, as well as consumers to demonstrate for another European milk policy on the 12th of July in Brussels.

The slogans of the demonstration:

AGAINST CONTRACTUALISATION – IN FAVOUR OF VOLUME REGULATION

JOINT FORCES – FOR FAIR CONDITIONS IN THE MILK SECTOR

AGAINST EXPORT DUMPING – FOR FOOD SOVEREIGNTY

FAIR PRICES FROM PRODUCERS TO CONSUMERS

FOR A SUSTAINABLE MILK PRODUCTION – MORE GRASSLAND AND LESS SOY

Contact:

EMB: www.europeanmilkboard.org,  Silvia Däberitz (DE, EN, ES) Tel.: 0049 – 2381 – 4361200

ECVC: www.eurovia.org - Lidia Senra: (ES-PT-FR): +34609845861

Gérard  Choplin  (FR-EN-DE) : +32 473257378,

Dear Media Representative,

we have to break  the chains. Tightening them even further is no solution. Current plans to reform the dairy market, which will be discussed by the European Council of Ministers of Agriculture on 12 July, however, will leave milk producers gasping for breath. „That is why milk producers from many European countries will be demonstrating for their freedom outside the EU-Council building when the European Ministers of Agriculture meet in Brussels.“ says Romuald Schaber, president of the European Milk Board (EMB).  EMB has, in co-operation with the European Coordination Via Campesina (ECVC), called for a demonstration. Furthermore representatives of development aid and environmental organisations supporting the cause of milk producers are expected to participate.

Dear Media Representative, we would like to invite you to the European milk producers’ rally  at 12am on 12 July at the Schuman Roundabout in Brussels.

Fitting outfits – strong symbolic acts

Producers are enslaved by the economic conditions. Milk producers from EMB and ECVC member states like France, Germany, the Netherlands, Italy, Luxemburg, Belgium and Austria will paint a clear picture of the conditions on the dairy market with fitting outfits and symbolic acts and will thus demonstrate against the recommendations of the EU High Level Group on Milk (HLGM). The current unfair relations between producers and dairies and retail trade respectively would not be improved by these proposals, but exarberated instead.  

„If the HLGM’s current reform plans are implemented, milk producers will become prisoners of the dairies. HLGH proposals such as contractualisation are not suitable to improve the situation of milk producers. The contrary is the case, they worsen the situation even further” says Romuald Schaber emphasising that protests are necessary. „There are other proposals for solutions that would ensure a fair milk production for producers and consumers worldwide. EMB has presented EU policy-makers with such a concept. These proposals have to be taken into account for a reform of the milk market. We will make this clear on 12 July in Brussels” continues Schaber.

Contacts:

Romuald Schaber (DE):              0049/1603524703

Sieta van Keimpema (EN / NL): 0031/612168000

Willem Smeenk (FR / NL / DE): 0033/686436156

Background

EMB and ECVC represent well over 100,000 milk producers in Europe. In 2009 European milk producers protested ardently for fair conditions in the milk market and this subsequently led to the EU Commission setting up the High Level Group on Milk (HLGM) by the. The HLGM was supposed to assess measures to weather the crisis in the milk market. The final report of the HLGM was published on 15 June  2010 and contains no tangible proposals that would improve the tense situation on the dairy market.