After price drops in the second half of the summer, the Global Dairy Trade Index has been on the rise again since 15 September – by 0.4% on 20 October (previously by +2.2% and 3.6% respectively). The average price for Italian spot milk fell in October by 1.55% to a level of 34.8 cents per kg as compared to the previous month (-22.5% as compared to October 2019).

The EU-27 milk price was provisionally rising by a further 1.2% in September and is estimated at 33.4 cents per kg. The EU butter prices were around 345 EUR per 100 kg, which is a drop of 0.6% as compared to the previous week and a decrease of 1.6% over the last four weeks. The EU skimmed milk powder prices are currently 217 EUR per 100 kg, which is a stagnation (+/- 0%) as compared to the previous week, but an increase of 1.4% as compared to prices four weeks ago.

The rates for dairy product futures on the European Energy Exchange (EEX) showed a slight upward trend. For example, skimmed milk powder contracts for January 2021 had increased as of 21 October by 0.2% to 2,224 EUR per tonne according to a monthly comparison, while those for butter had decreased in the same period by 1% to reach 3,350 EUR per tonne.

European Milk Board

“Reorientation of agricultural market policy”: the BDM and EMB made their way to Koblenz with this demand and appealed to the Ministers and officials (State Secretaries etc.) in a demonstration organised by the BDM. There were many high-impact actions like the protest procession, the demonstration involving the symbolic doling out of the soup farmers have landed in thanks to the Agriculture Ministers as well as the boat ride toward the Ministers on the Mosel. The Deutsches Eck or “German Corner” (the point where the Mosel meets the Rhine) was taken over by dairy farmers and about 20 Faironikas. In addition to the actions, there were also a number of meetings with representatives of civil society and agricultural organisations. We would sincerely like to thank everyone who made it to Koblenz and supported us.

Committee on the Future of Farming begins its work

On 7 September, the 31 individuals invited by the Federal Chancellor’s Office to participate in the “Committee on the Future of Farming” (Zukunftskommission Landwirtschaft – ZKL) met for the first time. Our President Stefan Mann was invited to represent the BDM e.V. The launch was also attended by Federal Chancellor Angela Merkel, Federal Minister for Agriculture Julia Klöckner and Federal Minister for the Environment Svenja Schulze. The first point on the agenda were the rules of procedure: the work of the ZKL is envisaged to continue beyond the upcoming parliamentary elections in 2021 and a possible change in government. The first concrete results are expected by mid-2021. For the BDM, improving the economic situation in the agricultural sector while upholding environmental requirements is a top priority. This not only warrants an analysis of national agricultural policy, it also means that the ZKL must pay close attention to further developments in the Common Agricultural Policy (CAP) and, above all else, the Common Market Organisation (CMO).

Sectoral communication – dairy farmers must pay yet again

The dairy industry associations and the German farmers’ union have decided to revive common sectoral communication. The Central Marketing Agency (CMA), which used to be responsible for this activity, was banned by a court ruling some years ago. It used to be funded by the agricultural sector through a statutory levy. The future funding is now meant to be voluntary but, once again, by dairy farmers in the form of a contribution of 15 cents per 1,000 kg of milk to be paid via the dairy industry. The BDM is against this development because effective communication about small-scale dairy farming can only be ensured by the farmers themselves. This position is also reflected in the BDM Sector Strategy 2030. Dairies have their own interests and approaches.

Farm-gate prices continue their slight upward trend

As was the case in July, some dairies will increase their farm-gate price in August by up to 1 cent per kg. However, many dairies are holding back on any possible price increases. The prices known to date range between 27.70 cents/kg (Arla Foods amba) and 36 cents/kg (Berchtesgadener Land) for 4.0% fat and 3.4% protein.

Hans Foldenauer, Bundesverband Deutscher Milchviehhalter e.V. (BDM)

Imagine this: butter from New Zealand is sold in Europe, packaged as Kerrygold! All you have is an indication on the back in fine print: origin NZ. That is exactly what is happening in Switzerland. In an expensive advertising campaign worth millions, the Swiss brand “DIE BUTTER” was promoted. It even received state aid, all of which was extremely successful. In fact, it is one of the best-known food brands on the Swiss market.

Steadily shrinking milk production for years, coupled with increased consumption, has resulted in a butter shortage in Switzerland this year. However, this has not led to an increase in milk prices. Instead, 3,900 tonnes of butter were simply imported from various EU countries. The assumption within the milk interbranch organisation was that this butter would be put on the market in special packaging. But this is not what the retail sector wanted. They are simply selling this imported butter in the same packaging and under the same branding as the well-known “DIE BUTTER” brand. Farmers' organisations voiced their protest somewhat quietly, adopting a very measured tone – for fear of retaliation by buyers. 

This latest example of deceit also explains why the Swiss retail sector continues to stand in the way of our GMO-free milk and meat production receiving the recognition and praise it deserves. The retailers want to hang on to Swiss brands, but the raw materials for the products being sold under these banners are to be bought as cheaply as possible. This will only change when the market operates in a framework where farmers can finally participate on an equal footing with other stakeholders.

Werner Locher, BIG-M Secretary

APROLEP was born, has grown and has taken action thanks to the will, commitment and dedication of a handful of milk producers who decided to do all they could for a better future. It was born from a cry of protest that would have gone unheard if it had been uttered in isolation. Our message must be clear, carefully constructed and coherent.

APROLEP was not, is not and will never be a project that aims to gain power. It is a project that serves, organises, attempts to mobilise everyone’s abilities and to have them join forces to do something constructive for the sector. We set off on this path without requesting or receiving any aid, living off the revenue from advertising in our magazine, symposiums and membership fees, but most importantly by relying on volunteers, people generously donating their time, as well as the dedication and skills of many colleagues who believed in the project and contributed to it. We are APROLEP. The strength of an association lies in its members and their contributions.

We advocate for a ‘fair price’, even though this sounds like a utopia when we are told that nothing can be done to regulate the market and that reducing production costs and applying for subsidies is the only way forward. We are still to achieve this goal but the entire sector as well as governmental authorities, including at European level, all agree that we must be paid a fair price that includes remuneration for our work and covers our production costs. We were quick to warn that the end of quotas would be problematic. We are in favour of origin labelling for milk and we promote the consumption of national milk and milk products, while globalisation has become the predominant view. The coronavirus arrived, borders were shut, shelves were emptied and everyone realised that local production and food sovereignty are very important.

We did not remain silent in the face of attacks from activists who want to prohibit us from rearing animals to feed society. We have shown that we care about our animals and their well-being and that we work the land in an environmentally respectful way to produce healthy and nutritious foodstuffs like milk. In spite of the pandemic, agriculture did not come to a standstill, cows did not disappear, but pollution decreased because the main sources of greenhouse gas emissions, including transport, reduced their activity.

What kind of milk production do we want for Portugal in 2030? With producers giving up milk production, we are losing economic, social and political weight. If our production sector diminishes, the viability of the dairy industry and security of supply for the population will be threatened. The next CAP cannot abandon the Portuguese milk production sector. The steady reduction in support since 2013 and one of the continuously lowest prices in Europe have led to a drastic reduction in the number of producers. The dairy sector and policy-makers at both regional and national level need to work together to stem this drop in revenue and number of producers.

Carlos Neves, Secretary General of APROLEP