The EU plans to help the milk industry with storage aid for milk powder. However, dairy farmers warn that these measures will shift current problems into the future.
The EU Commission proposed financial aid for private storage of milk powder last week. It also allows the dairy industry to organize quantity control that will override certain competition rules in the next six months.
The European Milk Board (EMB) and the representation of the interests of milk producers (MIG) argue that such rules do not end the crisis because high stocks continue to burden the market.
EMF President Erwin Schöppges said yesterday that EU stocks should not exceed 45,000 tons. That would only be half of what the EU Commission is proposing in combination with a voluntary reduction in production.
Schöppges explains the low prices for milk and butter with the lower consumption in hotels, restaurants and cafes, which cannot be offset by better sales through the food retail sector. Milk producers are planning protests in various EU countries in the coming weeks.Traffic in Brussels has already been shut down by thousands of demonstrators with their tractors. The EMF has around 100,000 members in 16 EU countries.
The EU ended a 30-year milk quota regime in 2015. Since then, more dairy products have been allowed to be exported and the industry bears the price risk of overproduction.
Around 155 million tonnes of milk are produced in the EU community each year, which make up a significant proportion of the total added value from agricultural products. Germany, Poland, the Netherlands, Italy and Spain produce 70% of this amount.
Source
Hansa Terminhandel GmbH
