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Farmers are going to dump milk again 10 years later

9 September 2019 - Wouter Baan - 10 comments

The illustrious European milk strike action of September 2009 is being repeated ten years later. The aim is to once again draw attention to a higher milk price. From the Netherlands, the interest group Dutch Dairymen (DDB) is calling on dairy farmers to come to Belgium en masse.

On September 16, 2009, some 3 million liters of milk were poured over the fields in Ciney, Belgium, to draw attention to the structurally low milk price. Images that made massive national headlines in international media. Thousands of dairy farmers from various European countries attended. According to Sieta van Keimpema, foress of the DDB, a major 'commemoration action' will take place in Ciney on 16 September. Various actions of the European Milk Board (EMB) will also be organized in France this weekend. 

Milk price too low
According to Van Keimpema, the actions are necessary again, because the situation in European dairy farming has not improved in the past 10 years. By this the representative is referring to the imbalance between costs and benefits. "On the basis of research (which is based on Eurostat figures), it appears that the cost price on an average dairy farm is €42 per 100 kilos of milk. This includes the labor factor. The milk prices trade at around €35, or a negative difference of €7."

Dairy farmers 'survive' by not including the labor factor. Van Keimpema says that this is not a sustainable revenue model in the long run. "When a dairy farmer drops out, the benefits do not allow to hire a replacement. That cannot be the intention."

Thousands of stoppers
According to Van Keimpema, the entrepreneurial spirit in European dairy farming is very low. A sign on the wall are the many halts in Dutch dairy farming, while in Germany about 1.000 dairy farms are also for sale. "It is time for this to change. That is what this campaign is for." 

The intention is that as many dairy farmers as possible will once again travel to Belgium, explains Van Keimpema. "Those who come with a tractor will receive compensation for it." She does not dare say whether the turnout will be as large as it was 10 years ago. "Then there was an acute price crisis and a milk supply stop was in the air. That is less the case now." According to her, this does not alter the fact that the timing to take action is right.

The new composition of the European Commission will be announced shortly. A committee that will probably cut back considerably on the European agricultural budget in the coming term of office. "We don't have to wait for the new CAP policy, the time is ripe for a big statement from the dairy sector." With a hard Brexit on the way, there is an acute dark cloud hanging over the European dairy market, according to Van Keimpema.

Market regulation 
Van Keimpema argues for market regulation as possible solutions for the prevention of low milk prices. "Not in the classic way as we know it, but a Market Responsibility Programme where the temperature of the dairy market is measured in an index. In this way, a crisis can be predicted and dairy farmers can be alerted to this in an early stage."

"If a price crisis nevertheless arises, dairy farmers will receive a bonus in this system if they voluntarily reduce production. Dairy farmers who expand in times of crisis must be cut on their milk money."

Click here for the images from 10 years ago. 

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Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.
Comments
10 comments
Robert 9 September 2019
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/melk/ artikel/10883924/boeren-gaan-10-jaar-na-dato-weer-melk-dumpen]Farmers will be dumping milk again 10 years after date[/url]
'Powerful' statement that won't impress anyone. I can already see the headlines in my mind:

"Dutch livestock farmers first pollute the environment with milk production and then throw the milk away in Belgium."

Throw away 3.000.000 liters of milk with a value of € 10.000.

You just have to come up with it in order to bring your 'poverty' to the attention.
sustainable producer 9 September 2019
robert is a farmer at heart and thinks it is shameful that someone wants to take the chestnuts out of the fire for him.
robert thinks that the milk price that fellow dairy farmers receive is ridiculously good.
I think, but I must be wrong that ROBERT is a wolf in sheep's clothing. you cannot build a fair milk price with ROBERT.
Bert 10 September 2019
There are currently more important issues in Dutch livestock farming that are more threatening to many companies than the milk price.
Only problems and statements of d 66, but DDB you do not hear about it!
hans 10 September 2019
Yes, Bertje, as long as you can grow!

Retards like you have screwed up Dutch agriculture, not me me me and the rest can suffocate and if it only seems, Iig bigger than the neighbor.

Idiot.
surrogate 10 September 2019
Bert thinks a fair milk price and a fair farmer's income are not that important.
Bert wants to continue to keep a lot of cattle.
Bert we think you like cattle more than farmers?

Bert 10 September 2019
Take a good look at the step before you start yelling.
The ruling of the Supreme Court currently mainly has consequences for companies that do not want to grow at all, but have made a report in the past in the context of the mandatory NB Act permit application.
Many get a ban on fertilizing and grazing cows, the ban on grazing can be solved by stalling the cows again, but fertilizing your land is still essential for your company.
And I don't speak for myself but for the colleagues who have this uncertainty.
I milk 60 cows myself Did I screw up agriculture Hans ?
I also refer to the statements of politicians who want to halve the livestock, the livestock has almost halved in recent decades, at the time of the designation of the Natura 2000 areas by Minister Brinkhorst there were a million more cows, and the ammonia emissions have been reduced. efficient also 65% reduced we've already done enough!
But if you then start shouting like DDB that we don't earn anything, that is grist to the mill of these opponents to clean up the sector!

Robert 10 September 2019
@ Sustainable producer.

I have a better idea. Stick to 1 tanker of milk and deposit it in Hein Schumacher's garden. It determines what you get for your milk - not Brussels.
hans 10 September 2019
Bert, the whole mess of rules is there because the milk price is too low, and has been for decades.
Growing in production, more milk and/or cows was talked about by "the scientists" as a solution. That this growth in production would be without consequences is an illusion that many liked to believe. PAS is one of those consequences of production expansion.
Maybe(!) you didn't screw up agriculture, so don't defend those who did or you'll be just as guilty.

Since 1980, an employee has worked much fewer hours for much better working conditions.
Employers/other companies were immediately tax-compensated for many tax increases, or were given the freedom to replace personnel or even branches from or to elsewhere, with all the associated financial benefits.
Why did farmers in the same period give everything away, enslaving themselves to their business and the bank?
peter 12 September 2019
@Hans why are we not allowed to pay Eastern European workers below the Dutch minimum wage, for example the minimum wage of their own country? This is punishable!, but it is not punishable for multinationals to buy and sell products in these low-wage countries! And the politicians don't do anything about this.....
If the Netherlands has very high welfare standards and foreigners do not, then multinationals prefer to buy cheaply abroad! RFC would also rather lose its members than rich because these are much too expensive with their milk compared to buying in low-wage countries.

In other words, if politics (as Trump is already doing) does not apply import duties on products from low-wage countries, you will have to compete with low-wage countries and this can only be produced with a lot at low costs. if the politicians are going to levy import taxes, etc., there will have to be a new currency, however, no politicians dare to face this scenario at the moment! I think England is going to be an exemplary case. We will see.........
hans 12 September 2019
Peter, your comment is correct, and partly what I mean.
The farmers are the first to be used to provide large companies with assured profits. While the rest of the population has fared much better, the farmers, betrayed by their advocacy groups and declining businesses, have never progressed, only through more work and more risk.

But after the peasants, in our capitalist, liberal society, other groups have been caught in the same way, thanks to the EU conspiracy.
The EU is free movement of money, goods and people, with (almost) one currency. Everything only for the benefit of the multinationals.

However, the currency is far from one, why else are banks so eager to invest in South Europe? Higher interest rates, due to weaker economies, without the possibility of devaluation. If the euro closes, the conversion will be different per country, but different from when it was introduced.
The euro is only there for multinationals to sell their stuff for a fixed value, and in the event of headwinds in one country, the rest of the EU will stand as guarantor.

Socially, however, the EU is far from being one and should not become one. Income differences provide the greatest profit for multinationals, indeed cheap workers for production, rich population for sales. Import duties would stand in the way of this revenue model.

Now that the EU pushes CETA and MERCOSUR through for the member states, and talks with China are underway, internal social divisions will diminish, and multinationals will be able to derive their much greater profits from farther corners, with products with much lower standards. in terms of work, safety, environment, etc.
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