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

News Details

###PDFLINK### Icon-Print Tip A Friend Icon

02.05.2012

Dairy market news – The crisis is here

 

In spring 2012 the dairy market situation of many countries in Europe is the same, vividly recalling the events of 2008 and 2009: milk prices tumbling to...

In spring 2012 the dairy market situation of many countries in Europe is the same, vividly recalling the events of 2008 and 2009: milk prices tumbling to worrying levels – with the difference being that this time costs are even rising. Unfortunately the European Milk Board’s predictions have proven correct.

In Italy, for instance, when milk contracts expired at the end of March 2012 the market collapsed and the milk price plummeted to below the 30-cent mark. Farmers are now having to face significant price reductions of around 15 per cent for contracts with the Italian dairy industry for 2012. In 2011 the average farm-gate price was still 40 to 41 cents for drinking milk and milk for the production of cream cheese. The price for traditional and quality products like Grana and Gorgonzola was 42 to 43 cents. Milk for the production of Parmigiano Reggiano cheese even fetched short-term peak prices of up to 70 cents.

In the Netherlands the situation on the open market is the most critical, owing to massive overproduction. Here it is currently very hard – if not impossible – for farmers to sell their milk. Spot-market prices of milk have fallen to between 21 and 24 cents. That is ten to twelve cents less than dairy farmers are still being paid by their co-operatives. However, the downward trend is more than clear for everyone.

The situation is similar in other European countries with prices crashing to below 30 cents as a result of huge production volumes. Average basic farm-gate prices for milk in France for instance dropped from 31-32 cents in March to 28 cents in April; in Belgium, to 28-29 cents in March and to 25 cents in April. In Germany the average farm-gate price was marginally above that at 31-32 cents.

And the main feature of the current situation in the Swiss dairy market is an unprecedented record production, expected to be reflected by 3.5% reductions in farm-gate prices in May. The only way to shift the increased volume of milk is to dispose of it on the world market in the form of butter and milk powder. At present every producer must pay a contribution of some 0,8 cents a kilo for these dumping exports.

In addition to the downward trend in farm-gate prices there is an extremely difficult situation with operating costs on the farms in many countries. In Italy, for instance, the prices of fuel and electrical energy have risen by 20 per cent. Soya has gone up by 22 per cent. As a result, the costs of producing one litre of milk in Italy are a whopping 45 cents. According to a recent study, in Ireland production costs rose by six cents a litre of milk between 2006 and 2011. In Germany, too, milk production costs have increased by about five cents since 2009.


More News

19.10.2014

Situation on European milk market is getting worse

Milk prices are starting to decrease in all European countries. Too much milk on the markets in relation to the demand is causing these significant price decreases.

In Italy the milk price was  at a level of 41 and 42 Cent per liter until August. In September it started to decrease and it is now at a level of 37 to 39...

Category: Ireland / Scotland / Wales 09.10.2014

UK farmers blockade

Last night, up to 70 tractors blocked two entrances to the Morrisons distribution centre near Bridgwater in Somerset. Hundreds of farmers blockaded the Muller Wiseman plant in Market Drayton, Shropshire on Monday.

Farmers for Action are protesting over a drop in the price they get for milk. Some farmers now say they face...

Category: Ireland / Scotland / Wales 01.10.2014

Cutbacks of farmgate milk prices in Great Britain

Protests continue in the UK due to the on-going cutbacks of farmgate milk prices paid by the major dairy processors.

Arla is cutting its farm gate price by 1.67 ppl. Dairy Crest is following with a reduction of 1.3 ppl. Müller is dropping its standard farmgate milk price by 1.9 ppl to 27.1 ppl. The reductions come into force...

Category: Press 01.10.2014

EU Agricultural Policy: NGOs call for dialogue on production and prices

New Commissioner must put responsible milk policy into practice

16.09.2014

Press release: A new Commissioner for Agriculture must not change course

Even though Ciolos is stepping down as Commissioner for Agriculture at the end of the year, the new Commissioner must continue the policy of stabilising the milk market

Displaying results 1 to 5 out of 354

1

2

3

4

5

6

7

Next >