Agricultural professors respond to discussion on the dairy market crisis Professors of the agricultural schools in Berlin, Göttingen and Rostock have in the form of a press release position to debate proposals to solve the milk crisis involved. Professors introductory notice that at the current low milk prices losses are generated. As major cause of the current drop of in milk prices are in addition to a extension of the offer after the abolition of the milk quota in particular the decline in foreign demand seen for dairy products. To adjust the excess supply to demand, 3 proposals will be discussed:
- Milk price cartel of farmers and if necessary. Dairies, to enforce with greater clout over the LEH
- Reintroduction of the State quota system
- Competition-oriented structural adjustment
A milk price cartel would be first competition law inadmissible. Whether and to what extent is a merger of milk producers and if necessary. Dairies against the conflicting market forces prevail in his own camp and the LEH, is not guaranteed. The voluntary nature of participation down narrow limits an market enforceable in the market and price control. A cartel in the long term is already not strong enough against the background of a global market. The reintroduction of a milk quota is not very realistic after the negative experiences of the past 30 years. The sometimes conflicting interests of surplus and grant States in the EU would compromise solutions lead to providing market-based quantities nor prices. The model of rate in the EU is currently not part of the majority. A German solo will have no significant effect. A competitive milk market policy helps that reduce the milk supply to the least efficient operations with their production task and thus pave the way for rising prices. To alleviate social hardship cases refers to the currently active safety net intervention for butter and skimmed milk powder. For the financing of liquidity, not only the State is required, but also the banks in their own best interest. In terms of any free-market principles on the game should be on the constant ups and downs of the price development for short term measures. Many consumers have a high sympathy for agriculture and understand their difficult situation. A overthrow of the market but is the wrong instrument to help farmers.
