Dear dairy farmers, dear interested parties,

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.

At the recent milk producer fair in Battice, MIG used its traditional bottle of milk to show that there was a cost coverage shortfall of 8.4 cents per kilo in the second quarter of 2023 (see MIG article below).

The closer we get to the fateful date of 2030 under the Green Deal, the clearer it is becoming that milk and meat represent half the agricultural production value in Belgium. However, over the last two decades, the dairy herd has shrunk by 30%, the number of farmers has reduced by more than 60% and farmer income is inadequate and unstable. Furthermore, the many challenges raise real questions about the future of livestock farming: climate change, animal welfare, biodiversity protection and preserving landscapes...

With so many open issues, the future of our farms is uncertain. Do we need to champion productivism and implement new technologies? Should we highlight the quality of our products? Should we focus on feed autonomy, on-farm processing, the creation of real producer cooperatives that work to establish Fair Milk projects in their countries? What repercussions will these changes have on our profession as livestock and dairy farmers? 

In Belgium, MIG participated in a public survey looking to decode the expectations and difficulties faced by young people entering the farming sector. I think that our different countries across Europe are facing the same issues. Generational renewal and passing on farms are the biggest concerns in the agricultural sector. I think these two striking figures illustrate my point: 68% of farmers are over 50 years old and only 22% know who will take over from them. When talking about the future of our farms, perhaps the EMB should call on the European Commission to set a cap on how much agricultural land industry giants can acquire, so that they can no longer grab our lands while claiming that they themselves have become farmers (some even claim to be ACTIVE farmers) and are now eligible for CAP subsidies. I would like to mention the agricultural land grabbing in Germany by Aldi (more than 30,000 hectares) as well as in Belgium by the Colruyt group. But there are many other examples out there of financial models that have nothing to do with primary agricultural production.

It is our duty to put an end to this immediately if we want our profession to be upheld in its entirety as we know it today. Let’s remain committed and show civil society that with their support, we can take things in our own hands and offer sustainable, fair, viable and eco-friendly agriculture that protects the environment for our future generations.

 

Guy Francq, member of the EMB Executive Committee

8th European Fair Milk Conference celebrates the commitment of farmers and honours contributions to social sustainability

© EMB

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.

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Spanish law: paying above the cost of production

© Pixabay: Peggy_Marco

In 2021, Spanish law makers introduced a novelty to stop the destruction of value in the food chain. The Spanish agricultural organisation COAG (Coordinadora de Organizaciones de Agricultores y Ganaderos) gives us an overview.

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German Ministry of Food and Agriculture aims to support dairy farmers - first step in the right direction

© AbL

The Federal Ministry of Food and Agriculture (BMEL) organised a conference on the “Future of dairy farming in Germany” on 31 August in Berlin. In addition to the BDM, the AbL also participated in this conference and provides their evaluation of the event, which they believe expressed support for dairy farming.

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Future of dairy farming in Germany: challenges and opportunities in focus at Berlin conference

© BDM

The conference organised by the Federal Ministry for Food and Agriculture on 31 August in Berlin concluded with the first indications from the ministry in favour of strengthening dairy farming. The BDM engaged actively in discussions with representatives from the dairy industry, research, NGOs, trade and with farmers themselves. We also expressed our criticism of agricultural policy to date with an action in front of the conference venue, and presented our expectations of this conference by publishing an eight-point position paper.

When taking office, Federal Minister for Agriculture Cem Özdemir had promised “to really turn things around”, but there is not much of that to be seen within everyday politics. This is why our action with the Ferris wheel was accompanied by the message: “Let’s turn things around big time to preserve viable, small-scale farming, greater animal welfare, climate services, environmental production, more biodiversity!”

Parliamentary State Secretary at the BMEL, Dr Ophelia Nick, announced that she wished to pay special attention to the nature of supply relations between milk producers and dairies. She said that appropriate measures that are compatible with EU law shall be discussed with the coalition partners. This includes, above all else, the transposition of Article 148 of the Common Market Organisation (CMO).

Another positive signal was that improving price monitoring and market transparency was also discussed. This could lead to further development of the EU Milk Market Observatory – something that we dairy farmers had to fight long and hard for in the first place. Article 148 CMO is also important at EU level because it does away with the exception from compulsory contracts that currently exists for cooperative dairies. This is significant as about 70% of German milk is still processed by cooperatives.

Meeting with Federal Minister for Agriculture Cem Özdemir

When Federal Minister Cem Özdemir visited the farm of a BDM member, the association highlighted that it is not possible to secure the future of the agricultural sector with subsidies alone. The BDM used concrete figures to show how tense the financial situation becomes when you try to compensate for the milk price reduction of about 25 cents compared to 2022 with public funds. In this context, Minister Özdemir stated that he fully understood the need for a better market position for producers. In his view, the planned national transposition of Article 148 CMO would be the first important step towards supporting producers – even if there is already major resistance to this change. At the same time, critical and constructive discussions were had about further expectations of farms, political failures and constraints, as well as areas like the CAP that require urgent action.

Autumn Agriculture Ministers Conference in Kiel from 20-22 September

In the lead-up to the Conference of the Ministers of Agriculture, the BDM visited the party headquarters of the CDU, FDP, SPD and Bündnis 90/The Greens. Dairy farmers “sailing” in the same boat presented a joint position paper to the party representatives entitled “Eight demands for economically and environmentally sustainable dairy farming”. At the initiative of Lower Saxony, the issues on the dairy market were put on the agenda of the conference where all federal-state ministers will come together.

At the meeting with associations, we talked about the situation on the dairy market and the resulting need for action. In line with the request from Lower Saxony, we expressed our expectation for the conference to discuss possible binding criteria regarding contractual agreements on volume, price and duration within the scope of Article 148 CMO. In this meeting as well as in many other discussions with ministers, various positions were expressed, as was expected. Representatives of farmers’ unions were against the activation of the article. The Bavarian Minister of Agriculture also defended a position against this. It was recorded in the minutes of the meeting that Lower Saxony, Brandenburg, Saxony and Bremen were in favour of expanding the Milk Market Observatory to include an early-warning mechanism and of triggering effective crisis instruments (voluntary production reduction).

 

Bundesverband Deutscher Milchviehhalter e.V. (BDM)

Crisis in the Alps: Swiss dairy farmers fight for survival and fairness

© Uniterre

Things are far from idyllic in the Swiss alps! Producers continue to struggle and their numbers keep dwindling. In 2022, some 300 dairy farms definitively shut their doors. There are only 17,600 farms still hanging on – we would not have dared imagine this figure ten years ago, so it is safe to say that we are facing hard times.

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The Lithuanian dairy sector faces mounting challenges

© LPGA

The situation for milk farmers in Lithuania continues to deteriorate. Over the past year, the Lithuanian dairy sector has witnessed a worrying decline, notably a reduction of 7,500 dairy cows, equating to a 3.3% decrease. At the same time, the number of operational dairy farms saw a steep drop of 11%, totalling a loss of 2,500 farms. This downward trend has continued with a 2.5% drop in milk deliveries. Worse still, despite this drop in milk deliveries, there has been no corresponding increase in milk prices. To draw a comparison: the current milk purchasing price is about 30% lower than it was in 2022. From January to August 2023, the income of milk producers in Lithuania was a staggering 120 million euros lower than during the same period of last year.

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Reduction in milk price: the gap between costs and producer income is growing yet again

© MIG

A fair milk price for producers is one that covers all their production costs, offers them decent pay for the work done and ensures that they can put aside savings. It is plain to see that the milk price in 2023 is not fair.

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The growing wolf population in Denmark: challenges and responses

Denmark's wolf population has recently reached unprecedented numbers, shifting the balance in the country's ecosystem. For decades, the fox was Denmark's largest predator. However, in recent years, packs of wolves have firmly established their territories, both inside and outside the designated wolf areas in the western regions.

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