Brussels, 25/05/2010 (Agence Europe) - COPA-COGECA (Committee of Agricultural Organisations in the European Community and General Committee for Agricultural Cooperation in the EU) have called on the European Commission to “use extreme caution” in managing the EU dairy market following its latest decision to sell a large part of intervention stocks . The European farmers' organisations say the market remains fragile and farmers “cannot suffer another income drop”.
After the go-ahead given by the relevant management committee last Thursday, the European Commission published in the Official Journal of Saturday 22 May regulations on releasing butter and skimmed milk power for tender (EUROPE 10144).
COPA-COGECA Secretary General Pekka Pesonen explains that, although there has been some improvement in the market situation for dairy products since the severe crisis last year, the milk market is very sensitive to any new decisions. The average milk price paid to producers in the EU still reaches only 27 to 28 ct/litre which is not much better than last year. He points out that EU farmers' incomes dropped on average by as much as 11.6% last year and that there is increasing concern amongst dairy producers about the extreme price volatility. “Many of them have not yet experienced the benefits of rising market commodity prices on the EU and world markets and they are still being squeezed by low prices and high production costs”, Pekka Pesonen points out.
Preventing a rural exodus. The Commission has just opened up the possibility of selling a “considerable part of dairy public intervention stocks”, the COPA-COGECA press release states, going on to say: “We consequently urge the Commission to exercise extreme caution in the way it releases the quantities onto the market in the future, and ensure that the selling price is not below the current market price, in order to avoid any drop in milk prices”. The Commission, as Pesonen points out, “must pay attention to the quantities of skimmed milk powder which could be subject to tender. It could distort the market if it is not managed properly. Farmers simply cannot face any further pressure on prices or on their incomes”. These farmers' organisations have sent a letter to the Commission “urging it to ensure that there is a reasonable management of dairy stocks to ensure the survival of dairy farmers and to avoid an exodus from the rural areas of the EU”. (L.C./transl.jl)