Brussels, 02/09/2015 (Agence Europe) - On Tuesday 1 September in a press release, the European Milk Board (EMB) explained that a German study had revealed the seriousness of the losses suffered by milk producers,
This study was carried out by the Büro für Agrarsoziologie & Landwirtschaft (BAL/Office for the Sociology of Agriculture and Farming). It illustrates the significant disparity between milk prices and production costs. In April 2015, the production of a litre of milk in Germany cost 45.44 cents, despite the fact that the price of milk had only risen to 31.34 cents. The study reveals the inability to make a profit due to the price-costs relationship, which, in April this year, rose to 0.69 cents. In real terms this means that milk prices have only allowed for 69% of costs to be covered. The EMB explains that “This deficit helps us to better understand why more and more milk producers are taking to the streets to protest”.
EMB President, Romuald Schaber, asserted “prices have also continued to fall sharply since April. In Germany, we are currently paying a price of between 25 and 30 cents for a litre of milk”. The situation is very similar in other EU countries. In the Baltic countries, for example, the prices paid to producers are already below 20 cents. In Belgium the prices stand at 25 cents, 24-28 cents in the Netherlands and 28.6 cents in Denmark.
Romuald Schaber added that “given these facts, it is clear that it is absolutely necessary to change things with regard to European milk policy”.
The EMB explained that it was advocating a Market Responsibility Programme (a crisis management instrument) to help avoid overproduction and therefore obtain milk prices could provide a certain amount of remuneration. The EMB is also calling for the money from the super-levy to be used immediately to finance a “voluntary cut on milk supply, in order to reduce the volume”.
In a backdrop to the Agriculture Council on 7 September (see EUROPE 11379), a demonstration of European farmers will take place. They are unhappy with the situation on the agricultural markets in the animal rearing sector (pork meat), as well as in the milk and fruit and vegetable sectors. An estimated 4,000 farmers will demonstrate in front of the Council of Ministers of the EU building.
“As you know, strong protests by dairy farmers are flaring up all over Europe. The farmers are furious and are now coming to Brussels on 7 September to denounce loudly and clearly the current EU policy of unlimited production”, said EMB President Romuald Schaber. He added that in periods of crisis, volumes had to be limited.
The European Coordination Via Campesina organisation will demonstrate alongside of EMB and stated: “We do not limit our demands to emergency measures such as postponing banking maturities, implementing an umpteenth support plan for export, providing additional funds for the promotion of dairy products or even greater spreading of penalties for exceeding quotas”.
With public regulation of the dairy market Via Campesina is seeking to obtain: sustained prices above production costs; i-European competition being neutralized; a disconnection of dairy product prices for the domestic market from those for the world market (only 10% of European production); a fairer distribution of milk production, protecting the most disadvantaged areas of the EU and an immediate end to negotiations on free trade agreements (TTIP, CETA with the US and Canada etc.). (Lionel Changeur)