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News Corona crisis

European dairy farmer critical of EU dairy storage

28 April 2020 - Jorine Cosse

Last Wednesday it was announced that the European Commission is nevertheless opening up the private storage scheme for meat and dairy products. While the European Dairy Association applauds the measure, the European Milk Board takes a critical stance.

It is clear that action is required. The European Dairy Association (EDA) is therefore pleased with the commitment of the measure by the European Commission (EC). Especially because at the beginning of April there was absolutely no support from Brussels. The EDA sees this as a first step in solving the crisis.

Critical attitude EMB
However, the European Milk Board (EMB) is less enthusiastic. According to the organization, storing dairy (products) is not the best solution to the growing problem. The EMB believes that production in the EU should first be scaled back. In their statement, they indicate that storage in the past has also not led to desired results.

According to the EMB, this measure does not prevent the EU from creating surpluses. They would rather see Brussels tackle the problem at the root, in production. Ultimately, the stored surpluses will also put pressure on dairy prices, because they have to be sold again within a certain period of time to guarantee quality. As long as European dairy farmers continue to produce at the same level, dairy products will continue to pile up as long as the sales markets do not function (optimally).

Reduce production before storage.
However, the organization does not say that the storage measure should not be taken. The EMB urges Brussels to first reduce production and then focus on surpluses. After all, a lot is already stored in cold stores, with this measure the surplus will only increase.

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Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.

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