European Milk Board

News European Milk Board

Dairy farmers protest against EU storage scheme

5 May 2020 - Jorine Cosse

The European Milk Board does not agree with the decision of the European Commission to open up the private storage scheme after all. According to the organization, this measure is not the right solution for the growing dairy crisis.

In response to the decision from Brussels, the European Milk Board (EMB) is announcing demonstrations to take place across Europe next Thursday, May 7. With this, the European dairy farmers want to make it clear that this approach does not work. The message of the demonstrations is very simple: The EMB wants Brussels to immediately apply a reduction in European production.

Production reduction
The European Commission already partially permits the reduction of production volume. Industry and producer organizations have temporary permission to apply production reductions. However, according to the EMB, this makes no sense. Vice-President Sieta van Keimpema emphasizes that such an arrangement only works if it is coordinated by the EU.

An individual commitment to reduce production through production planning is less effective, according to the EMB, because each individual organization can approach it differently. When Brussels takes matters into its own hands, every organization has to follow the same rules. Both measures were used in 2016, showing that an EU-regulated approach actually led to an improvement in prices. The individual approach did not help.

Different approach required
The EMB has indicated to the European Commission that other measures are required. The organization has even drawn up its own plan that can be used when situations such as the current crisis arise. This plan is aimed at responding to the market situation and consists of 3 phases: recognition, approach and end of the crisis. However, the European Commission has not yet responded to this. In response, European dairy farmers are now launching demonstrations

The demonstrations are taking place in Belgium, Germany, France, Italy, Denmark, Lithuania and Luxembourg. They are mainly aimed at the surplus of milk powder that causes problems.

MilkBE
It is striking that Belgian dairy farmers participate in the demonstrations, while MilkBE has expressed its satisfaction with the European measure. They see private dairy storage as a good start and emphasize the importance of cooperation within the European dairy sector in order to reduce production.

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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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