EMB Newsletter March/April 2022
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Contact
EMB - European Milk Board asbl
Rue de la Loi 155
B-1040 Bruxelles
Phone: +32 - 2808 - 1935
Fax: +32 - 2808 - 8265
Dear dairy farmers, dear interested parties,
As the COVID pandemic wanes – for now –, dairy producers face new and familiar challenges, but they also work hard, both at the political and sectoral level, to pave the way for much needed improvements of their situation. Farmers have weathered many storms, from the advent of discount supermarkets and subsequent downward pressure on dairy prices from retailers and processors, the abolition of the quota system in 2015 and unrealistic expectations of competing in a global market while also covering costs and garnering a decent income, to more recent trends: the prospect of a Green Deal, consumers’ desire for more sustainability, and decreasing appetite for meat and dairy.
The common thread throughout is the fact that individual dairy producers, small and big, are at pains to counterbalance the negotiating power of processors and retailers. Only together, through regional, national, or European associations such as the European Milk Board, do milk farmers stand a chance of tilting the balance in their favour. Even so, initiatives have come and gone. In Germany, the recent ‘Agrardialog’ created in 2019 at the initiative of industry and retailers in the wake of farmer protests has so far failed to produce the expected results, despite the constructive approach of dairy farmers.
At the end of the day, only a solid political framework, nationally and especially at the EU level, can bring about the necessary change, i.e. to create market conditions that strengthen the market position of the primary sector vis-à-vis the secondary sector. A balance should be struck between market-based solutions and steering measures that enable dairy farmers to cover their costs and to earn sufficient income.
When it comes to sustainability and animal welfare, there must be much wider recognition of the fact that the market alone cannot guarantee a transition to greater climate and environmental protection. The Green Deal will only work if farms can provide decent livelihoods for farmers, and are compensated fairly for additional efforts. For this, an effective policy framework is required.
At the German national level, we hope promising signals from the incoming coalition government will soon translate into concrete proposals. At the European level, the reform of the Common Market Organisation (CMO), negotiated by the European Parliament and the European Council as part of the EU Common Agricultural Policy, has brought some positive results. We support them, like the temporary volume reduction in times of crisis, but we cannot take our eyes off the ball until the measure will indeed be activated when necessary.
In this newsletter edition, you will find information on the most important market indicators. Our Belgian colleagues from MIG take stock of a recent increase in milk prices in 2021, which has proved insufficient. Our members organisations in Switzerland, BIG-M and Uniterre, explain how low milk prices ultimately threaten production, while Kaspars Melnis of the Latvian Agricultural Organization Cooperation Council discusses increasing price disparities in milk purchasing prices. The colleagues at BDM discuss among other things a recently agreed increase in milk prices in Germany, which – problematically – only applies to QM+ certified milk, while Coordination Rurale delves into the details of a low-carbon label in France.
I hope you will enjoy reading this newsletter!
Elmar Hannen, EMB Executive Committee member and BDM board member
A milk price of 50 cents/litre - indispensable to ensure that farmers are remunerated for their work
Rising costs put pressure on milk production
New record on farm-gate price, but there is a major difference in how much farmers earn on it
Dangerous trends in the Latvian dairy sector
Together for a fair remuneration and sustainable agriculture!
The low-carbon label in France
QM+: A scandal that should actually come as no surprise!
More organic production - no problem?
Impressum
European Milk Board asbl
Rue de la Loi 155
B-1040 Bruxelles
Phone: +32 2808 1935
Fax: +32 2808 8265
E-Mail: office@europeanmilkboard.org
Website: http://www.europeanmilkboard.org