On world milk day, Copa & Cogeca call for action on dairy market

Copa & Cogeca Milk Working Party Chairman Mansel Raymond has called, on World Milk Day, for action to solve the bad situation hitting the EU dairy market, warning without support consumers will be robbed of the nutritious benefits of milk.

Speaking on World Milk Day, Mr Raymond said “Packed with calcium and bone-building nutrients, milk is a crucial part of consumers diet. It is especially important among our children who depend on milk and dairy products to grow healthily. Yet many producers don’t earn enough to stay afloat, with the price they get not even covering their production costs. The market is in a critical state, hit by a combination of factors especially the Russian export ban and low oil prices. Market volatility is soaring and are being forced to shut every day. Action is consequently vital to ensure we can meet upcoming demand which is set to grow in the future and to ensure consumers have a healthy balanced diet”.

Outlining measures, Mr Raymond said “Producer organisations, interbranch organisations, cooperatives, who handle 85% of milk in the EU, need financial incentives if the EU wants them to adapt their production using Article 222 over the period mid-April to mid-October 2016. These funds must not affect the crisis reserve. New markets for our quality produce need to be found and exports credits introduced to give traders more certainty when they export. We also need to look at futures markets and insurance to help protect farmers against the increasing market volatility”

“Finally, with farmers only receiving a fraction of the price paid by consumers , EU Farm Commissioner Phil Hogan must act to improve farmers margins in the food chain against the power of retailers and combat unfair practices.”, Raymond concluded.

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