Brussels, 15/05/2015 (Agence Europe) - At a meeting with the European Commission on Tuesday 12 May, Copa-Cogeca highlighted the “critical” situation on the EU milk market today.
The prices being paid to producers are lower than production costs: it is therefore vital to intervene, the agricultural organisations stressed. Mansel Raymond, who chairs the Copa-Cogeca Milk Working Party, highlighted the low prices across the EU, with farmers producing below production costs, “leading to severe cash flow problems”. At the same time, farmers are being confronted with an 800 million euros super-levy bill. He therefore urged the Commission to “ensure that money from the super-levy stays in the sector”. He argued, too, that EU market management measures (public intervention and private storage) had to be made more efficient. “An increase in the EU milk intervention price must be seriously looked at”, he said. Copa-Cogeca opposes the market responsibility programme proposed by the European Milk Board (EMB).
Market volatility is also an issue that must be addressed. The working party has analysed a number of systems, including the margin protection system in the United States, futures markets, fixed price contracts and flexible contracts (A- and B-type payment). All of these systems need to be further investigated and a Copa-Cogeca seminar could be organised in the future to address voluntary options. (Lionel Changeur)