What happened in the Black Forest?

The Danish farmer met with his German, Lithuanian, French, Italian, Latvian, Belgian, Irish (these are a lot of different nations, but let’s continue…), Luxembourgish, Norwegian, Swiss and Dutch colleagues. For the milk market needs to be reformed! There was a lot to be discussed at EMB General Assembly.

Brussels, 10/10/2018

Overview published with the latest figures from France, Germany, Denmark, Belgium, Luxembourg and the Netherlands

The results of the latest milk production cost calculations in six European countries show in objective economic terms – black on white – that daily business for milk producers is grim: milk production costs and farm-gate prices are moving further apart! Even in so-called 'good years', i.e. between dairy crises, prices are permanently below production costs.

According to the latest study by the Bureau for Rural Sociology and Agriculture (BAL) – What is the cost of producing milk? – the average milk production cost over 5 years in six European countries was between 41 and 46 cents per kilogram of milk. However, producer prices during the same period were on an average between 32 and a maximum 35 cents per kilogram of milk. "European milk producers are squarely in the red every month," says study author Dr. Karin Jürgens, hitting the nail on the head. "If this dilemma is not solved, it will become increasingly difficult for dairy farmers – both large and smaller ones – to continue to produce milk in Europe."

In 2017, production costs in all six countries inclusive of remuneration and average net investments were significantly higher than milk prices and were between 43.39 cents/kg (Germany) and 48.89 cents/kg (Luxembourg). And even without taking into account the necessary net investments, the average cost shortfall over 5 years is significant and between 14% (Denmark) and 27% (Belgium and France).

Please find the cost study here 

September 2018

Marilo Hurel, French dairy farmer, remembers the milk strike nine years ago.

 “Non, je ne regrette rien...”

“I regret nothing”; that’s exactly how I feel about having taken part in the milk strike;

proud to have done it, happy to never regret that I didn’t try everything;
fully aware that this was our best way to rally support (unlike burning tires in front of the prefectures!),
but so disillusioned with my profession...
when we know that a 3-day general strike would have brought the dairies to their knees.

Two years ago I made the toughest decision of my life: to stop producing milk.
I still haven’t got over the loss of my herd.
It was months before I could set foot in my empty, silent cowshed.
I am also empty, even though I think I made the right decision.
Those 14 days of milk strike were tough but rewarding;
tough having to pour milk from my cows, the product of my labour, down the drain, throwing food away,
but rewarding because of the enthusiasm, solidarity and openness that I finally found with the other strikers.
As Edith Piaf sang, “I regret nothing, not a single thing”.

Brussels, 19/07/2018

Two years ago – on 18 July 2016 – European Commissioner for Agriculture Phil Hogan announced the EU volume reduction scheme for the dairy market. The measure was a great success and showed that even small reductions have a major effect on producer prices.

A study by A. Fink-Keßler and A. Trouvé examined the EU volume reduction scheme. Here are the main findings of the study:
 

• The voluntary volume reduction scheme was a great success: with a small reduction in production, a great price effect was achieved;

• Direct effect on milk prices: prices increased from 25.68 cents/kg (07/2016) to 34.16 cents/kg (07/2017);

• 48,200 milk producers from 27 EU Member States took part (approx. 3% of all European dairy farms);

• Reduced volume: 833,551t (approx. 2% of the milk volume of the same period in the previous year);

• The 4 largest milk-producing countries showed the highest participation in the programme: Germany (232,300 tonnes), France (152,732 tonnes) and the United Kingdom (90,814 tonnes). Together, these three countries account for 57% of the total reduction volume. The Netherlands reduced by 56,117 tonnes;

• Ireland had the highest percentage of participating farms (21%) and reduction volume (4%).

Background: The EU milk volume reduction scheme ran from October 2016 to January 2017. Farmers were given the opportunity to voluntarily reduce their production volume in exchange of a compensation (14 cents per kilogram of reduced milk compared to the same 3-months period of the previous year).

The programme has marked a turning point in Europe's dairy policy. With the volume reduction programme, the European Commission has finally provided dairy farmers with an efficient instrument. It is now important that a crisis instrument is firmly anchored in the new CAP so that production volumes can be adjusted in times of crisis, as provided for in the EMB Market Responsibility Programme.

Analysis of the EU volume reduction programme 2016/17

Here you can watch a short video on the study

Erwin Schöpges got elected as the new EMB President in April of this year. Sieta van Keimpema remains Vice President and, together with Kjartan Poulsen, Roberto Cavaliere and Boris Gondouin, is part of the well-established team. New members of the Executive Committee are Pat McCormack (ICMSA, Ireland) and Johannes Pflaller (BDM, Germany). Romuald Schaber and John Comer stepped down after many years of commitment.