Brussels, 31/03/2015 (Agence Europe) - At a demonstration in Brussels outside the European Parliament, milk producers sounded the alarm: the end of milk production quotas on Tuesday 31 March will lead to a weakening in the position of farmers on the market and sharp price falls.
Romuald Schaber, President of the European Milk Board (EMB), warned: “Thanks to the expected milk surplus, as of now conglomerates will dictate terms and conditions to the farmers even more than before. Prices will be rock-bottom, as Europe's farmers will have even less market power to achieve a cost-covering milk price in the future”. He said that without an effective crisis management instrument, dairy farmers will be facing “rock-bottom prices time and again” and many will be “catapulted out of milk production very soon”.
To raise awareness among political representatives and the public, European milk producers held a rally outside the Parliament (around 10 or so tractors were parked around Luxembourg Square) part of a symbolic vigil, set around a fire. EMB Vice-President Sieta van Keimpema railed: “The system for the period after the milk quotas is severely deficient. Unfortunately politicians have failed to put suitable market instruments in place to prevent a crisis”. She argued that it is most likely that dairy farmers in many EU countries will step up production considerably when the quota system ends without the market being able to offload the whole volume in any reasonable way. “Chronic price collapses are inevitable, the next crisis is on its way”, added Schaber.
The EMB is all the more insistent in its demand for the implementation of a market responsibility programme (MRP). This can be used to compel milk producers to act responsibly I line with the market in times of crisis. In times of surplus, producers who decide to reduce their production will receive a bonus. On the other hand, those who increase their production in an over-saturated market should take responsibility for this and pay a market responsibility levy. The EMB notes that over the past few months milk prices have already fallen to rock bottom levels in many European countries. “We are now calling for the super levy from the last milk marketing year, amounting to some €409 million, and the penalty payments prescribed in the regulation for 2015 to be used for the dairy sector. This money ought to be used to implement the market responsibility programme”, said Schaber.
Copa-Cogeca is calling for current measures to be adapted (public intervention and private storage) and wants new risk management instruments: futures markets to take some volatility out of the market or income/margins insurance.
On Tuesday, the European Coordination Via Campesina (ECVC) criticised the ending of milk quotas, which means European milk producers will be abandoned to the abusive practices of the industry and distributors. Via Campesina argues for a European public policy with fair prices, market and production regulation and the creation of a sustainable milk production model throughout the EU. (Lionel Changeur)