Production costs and October meeting EMB in Italy

logo-EMB-300x192For almost a year now, milk prices in the EU have been stuck in a downward
spiral. In most countries, prices currently range between 25 and 30 cents per
kilogramme; in the Baltic countries, they are even lower.

Production costs

The EMB, in cooperation with its member organisations, commissioned a
study of milk production costs, which provided the following result: In the
main producer countries like Germany, France, the Netherlands, Belgium,
Denmark and Italy, production costs stand uniformly between 40 and 50
cents per kilogramme.
Because of this cost-price discrepancy, thousands of farms are struggling to
survive. Many are taking on new loans and falling further into debt.
Innumerable farms have already given up milk production.

Phil Hogan

However, EU Agriculture Commissioner Phil Hogan’s reaction to the
situation is cynical. He recently said in an interview with private online
channel viEUws, “I don’t think that many farmers are producing below the
cost of production. They say they are but at the end of the day, they
continue to produce. In any business, if you’re producing below cost of
production for a considerable period of time, it is going to create, obviously,
difficulties for the business. But I don’t see any evidence of that.”
Such statements are unbelievable and a slap in the face for milk producers
throughout Europe. It is this mix of blind faith in markets, ignorance and
arrogance clear to see in Hogan and other policymakers that is putting the
livelihood of countless milk producers in the EU on the line.

October meeting

On October 13 and 14, the EMB autumn assembly will be held in
Montechiari, Italy. It is an opportunity to find a response to the behaviour of
Hogan and his supporters. We EMB dairy farmers will not allow our
livelihood to be destroyed by inept policymakers. It is in our common interest
to fight for sustainable, small-scale farming – something that the people of
Europe also support.

Romuald Schaber, EMB President