EU called on to activate voluntary milk volume reduction scheme
The European Milk Board (EMB) has written to the EU Commission, calling for the activation of the Voluntary Volume Reduction Scheme.
The letter, addressed to Christophe Hansen, European commissioner for agriculture and food, said: “Europe is on the brink of another potentially devastating crisis in the dairy sector.”
“In many member states, milk producers are currently witnessing a sharp and accelerating drop in prices.
“Numerous farms - especially family-run farms - now face immediate threats to their existence.
“This situation is not unexpected. EU institutions have long been aware that the milk market is highly volatile and that European dairy farms already operate at the limits of economic viability.
"Another price collapse would endanger a producer base that is already close to breaking point."
According to EMB, the voluntary milk volume reduction scheme was created "precisely for this situation”.
The letter described the scheme as “a market-stabilising crisis instrument designed to reduce market pressure early and stop price crashes before they become uncontrollable.”
“This tool exists because the EU recognised it needed such a mechanism to prevent severe market crises," it said.
“Now is the time to finally activate it.”
‘Call to EU’
According to the letter, activating this measure is necessary "because prices are already falling and will continue to drop rapidly without intervention".
The letter also said activating the measure now would be "economically sound", "politically responsible", and "essential" for the stability of rural areas.
“The EU has repeatedly acknowledged how critical the situation in agriculture has already become,” the letter said.
The letter lists potential far-reaching consequences of inaction, which, according to EMB, includes: "the loss of thousands of farms"; preventing young people from entering production; "irreversible damage" to rural regions; and "social and economic instability across Europe".
The letter “urgently calls” for Commissioner Hansen to "stop the ongoing milk price collapse" and activate the crisis measure voluntary milk volume reduction scheme "without delay".
“The voluntary volume reduction is an existing, proven and effective instrument. Not using it now would be a serious political mistake,” according to the letter.
It is signed on behalf of Europe’s dairy farmers, EMB, and its member organisations in Europe, which includes the Irish Creamery Milk Suppliers Association (ICMSA).
