Flexible market oriented supply management in times of crises
for the lasting stability of sustainable milk production throughout Europe
A surfeit of supply: surpluses are preventing cost-covering prices paid to milk producers and destroying farms and regional structures
The European milk market is under considerable pressure from volumes, with milk supply manifestly exceeding demand. The flooding of the market with milk has resulted in all-time low milk prices. Milk producers are not being paid prices as high as the production costs. This situation is almost wholly responsible for farms abandoning milk production and thus for the loss of regional supply structures to boot.
Promoting sales is not enough; production volume has to be reduced
The EU Commission has been trying to stabilise the market with export refunds and by storing vast quantities of butter and MMP. Although these measures have already cost hundreds of millions of Euros, they have not prevented the slump in the milk price referred to above. It is not enough to be active on the sales level. The production volume has to be reduced.
Joint responsibility of politicians and milk producers
Politicians and producers have a joint responsibility for a sustainable milk production throughout Europe. This is a social issue, with the values at stake being such as security of supply, food quality, sustainability, food sovereignty, and the vitality of the countryside.
By taking the measures outlined below the politicians can create the requisite basic conditions for cost-covering milk producer prices in a favourable and sustainable way, enabling farms to survive.
Crises instrument: The Market Responsibility Programme (MRP)
A crises instrument is required for producers to have more clout in the market and for cost-covering milk-producer prices to be achieved. The MRP is a programme for the EU milk sector that is used when there is a risk of a milk market imbalance.
Positions of the European Milk Board
- Prerequisites for an effective and affordable environmental and climate policy (01/2022)
- EMB proposals "How do you get farmers to effectively engage with the Green Deal and Farm to Fork strategies?" (05/2020)
- EMB position paper "For a responsible milk production – climate-friendly, socially and economically sustainable" (01/2020)
- Joint Statement on behalf of Farmers and Dairy Producers’ Organisations for Local and Fair Milk in West Africa and Europe (04/2019)
- EMB Position paper on insurances (03/2019)
- EMB Market Responsibility Programme (12/2018)
- EMB Position paper on EU free trade agreements with third countries (11/2018)
- EMB Position paper on the withdrawal of the United Kingdom from membership of the European Union (Brexit) (11/2018)
- EMB Position paper on Common Agricultural Policy 2021-2027. Key reform aspects for the dairy sector (10/2018)
- EMB Position paper on unfair trading practices (07/2018)
- EMB Position paper "No second class EU citizens" (07/2018)
- Position paper on eliminating unfair competition in the dairy sector (04/2018)
- EMB Position paper on the CAP reform (08/2017)
- Evaluation of the "Improving Market Outcomes" report of the Agricultural Markets Task Force (12/2016)
- Is the Margin Protection Program (MPP) suitable for Europe as well? (03/2016)
- Committee of Regions: The future of the dairy sector (05/2015)
- EMB Position on TTIP (5/2014)
- What is the cost of producing milk? (01/2013)
- Publication on cooperatives in the milk sector (5/2012)
- Comment on the milk package of the EU Commission (21/1/2011)
- Concept Monitoring body (21/1/2011)
- The European Milk Board’s Position Paper on the EU High Level Group Meeting on 2.2.2010
- Block exemption for milk producers from the European Competition Law (Draft)
- PROPOSAL FOR A BLOCK EXEMPTION REGULATION FOR MILK PRODUCERS