16 EU nations call for more dairy industry support

France, Germany and 14 other EU member states have demanded for more action to be taken to protect their dairy farmers from the global financial crisis.

Farm ministers from the 16 EU nations called for more financial aid to be disbursed urgently, saying current measures were insufficient for supporting dairy farms at risk.

The EU must take strong and concrete new measures to avoid a large-scale loss of farms, the ministers said in a joint-statement.

Milk prices have dropped 40 percent since spring, and farmers would lose up to EUR10 billion (US$14.4 billion) be forced to exit the industry if Brussels fail to take any action, said EU farmers group Copa.

Farmers complained they had to sell their milk for less than production costs and face bankruptcy if the situation continues.

But not all is hopeless. The EU is already providing some extra help for farmers and milk prices had started to increase again, including in the Netherlands, Northern Ireland and Italy, according to EU Farm Commissioner Mariann Fischer Boel.