NFU calls on EU to deliver for dairy farmers’ future
The NFU has called on European policy makers to help make the sector more market focused and to provide dairy farmers with the right tools to supply a growing demand for dairy products worldwide.
NFU dairy board chairman Mansel Raymond made his comments in Brussels today (Tuesday) at a high level dairy conference attended by over 400 stakeholders representing EU institutions, industry, research and national governments.
Dairy farmer Mr Raymond, also chairman of the EU farmers’ organisation Copa-Cogeca dairy working group, focused on several key areas where European policy makers could make a positive impact on the future of the sector.
“Given the CAP budget reductions, farmers need to obtain a realistic return from the market which covers their costs of production so that they can continue to develop their businesses. Quotas are going – this is right in a globalised market – but the EU has a number of other tools in its box.
“Priority should be given to the full implementation of the milk package. Contractual relations play a vital role in giving more predictability to milk producers as far as the volume, price and duration are concerned.
“For too long producers have had no choice but to sell milk below the cost of production – this is unacceptable. We need the EU to use whatever tools it can to help the market work properly so as to deliver a fair and sustainable price to milk producers. We need retailers to act more responsibly towards the milk producers, and to secure long term supply of milk for consumers across the EU. The increased role of producer organisations and the EU’s support in this area will also be essential.
“Market management tools – such as public intervention and private storage – are also of primary importance to help dairy producers cope with the effects of extreme market volatility.
“Important free trade talks are on-going between the EU and the US, Canada and other markets which could have important ramifications on our industry. The EU must defend our sector interests so that we can take advantage of new markets with our high quality products.”
Mr Raymond said action was vital after more than a quarter of a million European dairy farmers had left the industry since 2007.
“Low and volatile milk prices, environmental regulation and little potential to grow are the main reasons why milk producers are getting out of the industry,” said Mr Raymond.
“On the other hand the European dairy industry represents 13 per cent of the turnover of the total food and drink industry in Europe – this shows the importance of the industry and why we must support it.”
