The dairy sector is "not in good health" according to the European Milk Board (EMB), as it demands reforms to "future-proof" agriculture.

The EMB lobbies for milk producers in Europe.

At its latest general assembly, member organisations from numerous European countries including Ireland came together to discuss the key challenges faced by the dairy sector.

According to the EMB, it was agreed by all at the assembly that "even if cost-covering farm-gate prices are now paid more often than before, the fundamental issues plaguing the dairy sector persist and they must be addressed now".“Real costs plus a profit margin - that’s what we should be receiving and it’s still not the case," EMB president Kjartan Poulsen said.

"The sector is not in good health."

His colleague, EMB vice president Boris Gondouin, said that the sector needs "positive, long-term regulation".

"It’s true that a sort of sectoral regulation exists at this moment as well - but it is tremendously problematic because it relies on many farms going out of business, which, in turn, keeps production volumes lower," Gondouin said.

"That cannot be the future of the dairy sector."

The EMB stated that "structural issues" affecting the milk market have not been resolved.

"On the contrary - they have become worse than ever before. That is why milk producers must keep up the fight for far-reaching, sensible reforms," the EMB said.

The board said it recognised the European Commission’s "progressive stance, but we need to see more decisive action"."The assembly welcomed the European Commission’s current position on reform of the Common Market Organisation," the EMB said.

"But for dairy farmers, that is not enough. We now need the European Parliament and the Council to make specific political decisions to initiate real reforms.

"That is the only way to keep farmers on their farms and for new entrants to find real prospects in the sector."

The EMB is calling for a number of key reforms, outlined below:

Crisis instruments with preventive effect - the integration of anticipatory measures for market stabilisation like the Market Responsibility Programme to effectively prevent extreme price fluctuations and losses;
Strengthening producer organisations - producer organisations across Europe should have collective bargaining power that represents at least 30% of the EU market;
Fair trading practices through legislation that prohibit prices below production costs;
EU-wide compulsory contracts between milk producers and processors as the basis for balanced and collegial cooperation;
Co-operative dairies must be included as an integral part of the market order - with all corresponding rights and duties;
Bureaucratic measures that complicate things for producers and production must be identified and drastically reduced.  

“Our proposals point the way to crisis-proof, fair and sustainable milk production. Now is the time to implement them," EMB president Kjartan Poulsen added.