Cost Covering Essential For Dairy Future

EUROPE – Europe’s dairy sector is developing positively but more action is needed to ensure a secure future.
calendar icon 19 June 2014
clock icon 1 minute read

This is the European Milk Board’s summation of an EU Commission report, out last Friday, on the milk market situation.

The EMB, in response to the report findings, prioritised ‘cost covering’ as a long term solution, highlighting it as a ‘main demand’.

While internal and external dairy demand is strong, the report stressed the ‘high risks’ of price volatility.

Market monitoring and ‘crisis prevention’ were necessary after quota abolition, the report said.

Welcoming the report, the EMB agreed on a need for ‘efficient crisis instruments’ which could limit production in 2015.

France, Spain, Italy and the UK have recently disagreed with softening existing rules prematurely, instead wishing on political solutions to a sustainable milk price for the EU, added the EMB.

An EMB spokesperson said: “The increase of milk production during the last months, reaching up to 5-15 per cent in a large number of important milk producing countries of the EU – shows the potential of future volume increases.

“The currently dropping production compared to the previous year is mainly due to the high superlevy due by those exceeding their quota, on the basis of the quota system still in force.”

The spokesperson added: “The limiting effect of the regulation thus currently significantly contributes to the slowly onsetting market recovery.”

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