The European Milk Board (EMB) has today (Friday, January 12) said that the rise of farmer protests across Europe shows that there is a need for fundamental market reform.
Kjartan Poulsen, president of the EMB, emphasised that these strong demonstrations are not without reason: “Enough really is enough. Farmers have absolutely nothing left in their pockets.
“The withdrawn subsidies are diminishing income levels, while increased production costs caused also by green measures are driving them into ever greater deficits.”
The EMB has said that far too little money is landing in the hands of those whose farms secure food supplies, arguing that many food retailing companies are “making billions” in profits.
Elmar Hannen, vice-president of the EMB and representative of German dairy farmers in the European umbrella organisation, added: “What we see is that the actual milk prices cannot close the gap caused by the reduced subsidies and increasing costs.
“The market therefore has to be reformed so that producers can generate a decent income.
“This also includes a reform of contractual relations… for instance, it is crucial to include cooperatives as well.”
Market reform
The EMB has also said that market crisis instruments must be permanently and reliably established, such as the ‘Market Responsibility Programme’ or a cross-European commitment to producer prices that are above the production costs.
The organisation also stressed that political reinforcement of producer pooling can also improve the market position of farmers.
“Masses of people involved in agriculture are taking to the streets. It is now up to the political sector to start offering reforms,” Poulsen said.
“Nothing has been done in recent years, despite the obvious destabilisation.”
The board said that additional withdrawals of subsidies and increased requirements are making the already “disastrous” income situation even worse.
Elmar Hannen stated: “It must be clear how the necessary money can be earned on the market.
“Farmers must be able to cover their costs, and need stability for reliable production. Europe therefore needs fundamental market reforms.”