In December 2019, the European Commission published a communication about the European Green Deal. The goal of this instrument is to bring about a transition towards a modern, resource-efficient, and competitive economy.

The situation in the Lithuanian milk sector has turned critical overnight. Over the past nine months, the price of raw milk has rapidly declined. Concurrently, the number of dairy farmers, as well as the overall number of dairy cows, is decreasing as well. Between the first quarter of 2022 and 2023, the number of dairy cows dropped by over 4000 cows, which is a 2% decrease. Unsurprisingly, milk production has also decreased, by 3,6% over the same period.

Mass retail has totally disrupted the dairy market, which was already on knife’s edge, by buying out multiple processing companies.

In Switzerland, the Faireswiss range of products finds it difficult to make its way into mass retail. That is why the cooperative has decided to reduce its communication budget and to concentrate on customer canvassing. To this aim, the Faireswiss board has decided to employ someone part-time to canvas food stores, restaurants and other facilities that prepare a large number of meals like residences for persons with disabilities, schools, hospitals etc.

Forty-eight dairy farmers in Luxembourg came together in 2011 to found Fairkoperativ (FKL) and to create their own brand called D’fair Mëllech. The regular (inadequate) milk price is topped up to reach a fair milk price that would allow dairy farmers to make a decent living.

When it comes to producing high-quality, fair milk, the D’fair Mëllech producers uphold high environmental standards on their farms. This means:

• Keeping the use of fossil fuels to a minimum by mainly using feed grown on our land and minimising the import of feed from remote locations. The aim is to produce as much milk as possible using feed produced on the farm.

• We avoid unnecessary soil, water and air pollution. When it comes to the use of fertiliser, we apply nutrients in the quantities that are actually consumed by the crops. Pesticides are only used when economic losses would occur otherwise.

• Soil productivity also needs to be preserved for future generations. We try to maintain pastures and grow a range of feed crops to maintain the diversity of our landscapes and promote biodiversity as well.

• We produce milk while maintaining optimum conditions for animal welfare.

Only then will it be possible to reconcile ecological concerns with environmental, economic and efficient processes on our farms that will be viable in the long term.

Today, our FKL cooperative markets thirteen different milk products in the long-life and fresh milk, chocolate milk, butter, cream, ice-cream, cheese and yoghurt categories. The chocolate milk as well as some ice-cream flavours are produced in cooperation with Fairtrade, i.e. only Fairtrade ingredients are used.

Retailers also support D’fair Mëllech. The direct contact between producers and consumers is the most important feature of our project.That is why our members regularly showcase our products in stores and at many events.

The current economic situation is very difficult and all prices are on the rise. Many people are worried because of the uncertainty about the future. The situation on the dairy market has also changed significantly in recent months. While we were dealing with a substantial cost coverage shortfall of at least 10 cents a few years ago, milk prices have now improved. In spite of rising production costs, dairies have been able to pay a higher milk price. As a result, we are now much closer to the cost-covering milk price demanded by us producers. That is why the dairy farmers at FLK have decided to reduce their “margin” – essentially their profit – on the sale of fair products and to pass on the difference to consumers. This means that consumers can enjoy a price that is “not too high”. In the current situation, "fair" for us fair dairy farmers means suitable consumer prices.

Danielle Warmerdam-Frantz, President, D’fair Mëllech. March/April 2023

Background information: Why did you create D’Fair Mëllech?

Danielle Warmerdam-Frantz, President of the Fair Milk cooperative D’Fair Mëllech, explains:

2009 was the year of miserable milk prices! Dairy farmers could think of no other way than to take to the streets and to pour away their milk in the fields. This action born out of desperation and carried out across Europe was widely covered by the media. Consumers were shaken by these events and many asked what they should buy in order to directly support milk producers. That is why we dairy farmers – members of the European Milk Board (EMB) – came together to work on a project that would return the power to make decisions about our milk back to us. We did not want to leave this to policy-makers. We had to take our fate into our own hands. In Luxembourg, some dairy farmers came together and tried to create their own brand.

How many members are currently part of the D’Fair Mëllech cooperative?

Today, we have 57 members. This represents 15% of the country’s farmers specialised in milk production. In the Grand Duchy, we have almost 600 farms, which means that there is still significant scope for the cooperative to grow. We could have more members but the time aspect is the main sticking point for many farmers. The way our project is designed, we ask members to devote at least twelve hours per year to promotional activities for our products. This means they have to go to points of sale and talk about the value of their work. It is one more way of establishing a direct relationship with consumers. Many farmers don’t have the time for this, or it's not something they feel comfortable doing. Of course, everyone is welcome to join!

Please explain to us how the cooperative works.

Farmers produce their milk and sell it to Luxlait (the only dairy in the Grand Duchy but there are three other options in Germany and France). The cooperative then buys the packaged milk and resells it to different points of sale. Consumers buy the milk; the shop makes a profit. We then receive a percentage on these sales. The profits earned are then paid to farmers, distributed equally. Whether you have 20 or 500 cows, the amount you receive will be similar. This is because we believe in solidarity among farmers. Everyone should enjoy decent work and a dignified life. The rules are accepted by all members, and there is no jealously between small and large dairy farms.

Is the generational renewal in place?

Let us make a decent living and the generational renewal shouldn’t be too difficult in the future (laughs). We are seeing young people returning to the sector. Of course, this remains a vocation, a family legacy and always a point of pride. You don’t become a farmer from one day to the next. You have to enter this profession because you love it, it is your passion, and you have to give it your all. It can sometimes be difficult and uncertain, for sure. If you are not up to this challenge, it’s probably better to choose something else. The greatest threat is being unable to take control of events as they occur. If new crises emerge, they could lead to instability on the market and things could become difficult, from one day to the next. We are never totally safe from a situation similar to what happened around 2009, even if it currently seems like there are no clouds on the horizon.

Laurent Trotta, extract from an article published in Roude Léiw on 26 October 2022

The figures speak for themselves: 1,400 exhibitors from 60 countries and about 300,000 visitors – that was the International Green Week 2023 in Berlin. Die faire Milch was also back with a stand in the North Rhine-Westphalia Hall. The network held together through the Covid-19 pandemic and kept in touch regularly. That is why we were looking forward to seeing each other and it was a joy to finally be back together in Berlin.

Since 2013, the FaireFrance brand has been selling dairy products at a fair price that permits producers to live off their work. A holistic concept that makes it possible to preserve family farms, cultural landscapes and local know-how. The brand celebrates its ten-year anniversary this year, with the support of French consumers that translates in strong sales growth.

Something that should be commonplace in the dairy market has in fact become a rare sensation: for a few years now, Fair Milk has made it possible for farmers to earn a decent living. This brand founded in 2006 in Austria now puts socially sustainable products on supermarket shelves for consumers. At the Fair Milk Conference held in France, FaireFrance was joined by other Fair Milk projects and the European Milk Board asbl (EMB) to celebrate the progress of this important brand founded by farmers.

Since the EMB was founded fifteen years ago, we have been struggling – sometimes more, sometimes less successfully – to generate a revenue that would allow us and our families a decent life. 2022 was a better year – despite the fact that our production costs sky-rocketed. In Belgium, we had farm-gate prices of almost 60 cents per litre. Why is it then that over four months, this price paid to producers has fallen by 30% and is now at 36 cents per litre? While it is true that our price is closely linked to butter and milk powder exports, they have reduced by only 10% (4,564 euros/t for butter, 3,375 euros/t for milk powder). Something doesn’t add up.