Concerns about special milk flows due to war

This was discussed on Tuesday in discussions with and between representatives of the dairy industry in Brussels. The European dairy umbrella organization EDA had organized a meeting to discuss European agricultural policy, but this theme was almost completely drowned out by conversations about the consequences that the war in Ukraine will have for dairy farming.

Dairy prices continue to rise
For the time being, dairy prices are only going up. The war has only fueled price increases in recent weeks. The GDT auction from Fonterra showed a slight decline this week, but analysts in New Zealand believe that prices there will continue to rise. The pain for dairy farming and dairy does not lie there. The problems are to be expected in raw material markets and special milk flows.

Concerns about Vlog and bio
Representatives of the animal feed industry, also present at the meeting in Brussels, fear that the production of milk, eggs and meat without genetically modified ingredients (Vlog) will decline sharply this year due to a lack of raw materials. Large quantities of Vlog-certified feed normally come from Ukraine. Think of sunflower meal, corn, rapeseed meal (plus rapeseed and sunflower oil). The same applies to organic products.

Scheme holders will have a problem
There is product from other origins available, but not enough for everyone. This threatens to become a problem for scheme holders and food categories, it was heard. In addition to Vlog, in the Netherlands this could be PlanetProof and Albert Heijn's 'Beter voor' line, and therefore the organic chain. The choice seems to be between suspending requirements or breaking the chain.

The new circumstances are a struggle for the European Union. European Commissioner Frans Timmermans has already made it clear that he does not want to tamper with the Farm-to-Fork strategy, but discussions such as those being held at the EDA and in many other places in Brussels make it clear that nothing is set in stone at the moment.