We all saw that the voluntary supply reduction in 2016 and 2017 was effective. You can imagine not only us farmers but also EU policy-makers breathing a sigh of relief when it finally put a stop to the constant slump in prices.

But the voluntary production reduction scheme should have come about a lot earlier. It was clear much earlier on that intervention and private storage would not suffice with such a severe distortion in the market. It is also evident at present that large volumes in storage create problems in the long run. To avoid mistakes like this in future, the principle of voluntary supply reduction ought to be enshrined in EU legislation on agriculture.

There is a proposal from the European Parliament to this effect concerning what is termed the “Omnibus Regulation”, which is currently being discussed in the trialogue between the EU Council, Commission and Parliament. The Parliament proposes a new article 220a "Voluntary production reduction scheme" to be inserted in Regulation (EU) No 1308/2013. The European Milk Board calls on all parties involved in the trialogue to adopt this proposal and enshrine it in the applicable legislation. This is a matter of nothing less than creating confidence in a sector severely battered by crises in recent years.

“Commit yourselves to a responsible policy and to your farmers.
Enshrine the instrument in law so that it is not just applied at will or even not at all, but is really implemented when the market needs it. And the market will need it!”

Contacts :

EMB president Romuald Schaber (DE) : +49 (0)160 352 4703
EMB managing director Silvia Däberitz (DE, EN) : +32 (0)2 808 1936