After a year, EU dairy industry still problematical

One year after the European milk delivery strike in May-June 2008, the milk price is worse than ever.

The milk market crisis is again coming to a head after demands by the European Milk Board (EMB) were not met despite positive signals from the politicians.

In 2008, milk producers form Germany, the Netherlands, Belgium, Luxemburg and Switzerland went on strike and withheld their milk as well as blocking a large number of dairy factories  .

Now, one year later, the situation in the milk market is still no better. Quite the opposite, in fact milk prices are at an all-time low - in no country are farmers paid more than 24 cents, says Sieta van Keimpema, Vice-President of the EMB. Often it is a paltry 20 cents per litre that milk producers receive from the dairies. The official said the EMB demands could have prevented the drastic market distortions and the bleeding to death of dairy farms.

According to the EMB, the measures taken by the EU Council of Agriculture and Fisheries and the EU Commission last year further exacerbated the situation, whereby more milk was allowed to be produced despite the fall in demand. Romuald Schaber, President of the EMB said they have already warned the EU Commission on greater pressure on milk prices due to decreasing demand. The EU Commission and the Ministers of Agriculture bear full responsibility through their irresponsible policy of deregulating the market. The European Milk Board's demands to reduce the volume of milk have so far been ignored, and the crisis has gone from bad to worse.

The EU Ministers of Agriculture have to create the right general conditions for the milk market as flexible volume regulation will balance between supply and demand. In addition, monitoring of the market should ensure that developments in the milk market are constantly picked up on and analysed.

EMB is supported by new EU member states. This was confirmed in a joint declaration made by the EMB and the Chambers of Agriculture of the Czech Republic, Slovakia, Slovenia, Hungary, Bulgaria, Lithuania and Poland in the Czech city of Brno on 2 June.

In recent weeks the French dairy farmers have also shown with their protest demonstrations that they are for flexible supply control. They are no longer prepared to put up with milk prices that fail to cover the costs of production.