Dairy farmers from across Europe came together this week for the European Milk Board (EMB) General Assembly in Brussels.

A key topic at the assembly was the worsening situation on the dairy market and milk price.

Significant drops in producer prices have been reported in several European countries.

According to the European Milk Board, this means that many farms are "once again, on the brink of going out of business".

The representatives called for the immediate activation of voluntary production reductions at EU level.

The EMB said that this crisis instrument was created to take early action and reign in overproduction and price drops.

“The EU must take action now in order to prevent a massive collapse in milk price,” the EMB has stated.

Fair Milk initiatives

The assembly also highlighted the importance of Fair Milk projects in Europe.

These initiatives, spearheaded by farmers, aim to show that fair prices, transparency and respect are possible across the entire value chain.

The EMB said: "They not only lead to better incomes but also strengthen self-marketing and consumer trust.

"Especially against the backdrop of a looming crisis, these projects stand as clear evidence that functioning alternatives to the current market model exist – and that political action is indispensable in creating a fairer dairy sector."

Farmer contracts

Another important discussion point at the General Assembly was the latest reform of the Common Market Organisation, where trilogue between the EU institutions is ongoing.

In this context, the EMB has said that obligatory, effective milk delivery contracts carry "enormous significance".

The EMB Executive Committee emphasised that real, compulsory contracts are the only way to strengthen the position of farmers in the supply chain.

This includes:

Prohibiting farm-gate prices that are below production costs – based on accurate, transparent calculations;
Obligatory inclusion of delivery volumes in contracts to create planning certainty and fair conditions;
Cooperatives must not be exempt from this requirement. The EMB sees an urgent need for action on this front. At the end of the day, cooperatives must be subject to the same rules as the rest of the sector.

Mirror clauses

EMB representatives at the assembly also reiterated their call for mirror clauses in agricultural trade.

"If European farmers must comply with strict standards, imported products must also be subject to the same rules – and the EU must monitor this effectively. Only then can fair competition prevail," the EMB stated.