Milk supply in Belgium up, processing down

The total Belgian supply increased by 3,3% last year to 4.320 million liters. In 2021 this was still 4.182 million liters. The growth in supply was largely attributable to Flanders. In Wallonia, supply remained stable. In the first half of this year, the Flemish supply still grew by 4%, but Walloon farmers also became more active.

Despite the increased supply, milk processing in Belgium decreased because imports fell. Last year it was 380 million liters. In 2018 that was more than 1 billion liters.

The average milk supply per company also increased. In Flanders from 779.000 liters to 845.000 liters per company, in Wallonia the supply went from 495.000 liters to 515.000 liters per company.

Due to the high milk prices, the companies were also doing well economically. Milk prices more than made up for the costs, according to outgoing chairman of the Belgian dairy organization BCZ, Renaat Debergh.

Yet there is also a lot of uncertainty for Belgian dairy farmers. The biggest problem is the enteric emissions covenant. On this basis, companies must specifically significantly reduce methane emissions. Agriculture objects to this, which is why it is asking the government to make dairy farming comply with a ceiling for all greenhouse gases, as is also being pursued elsewhere in Europe.

The dairy industry is also protesting against the planned increase in VAT on dairy from 6% to 9%. This is happening in the context of a broad tax reform, but according to the BCZ it feels unreasonable to increase the tax on food in such a way.