That was the message from Copa Cogeca’s Mansel Raymond at an event in Brussels organised by MEPs yesterday. The Welsh dairy farmer is chairman of the Milk Working Party at the European agriculture umbrella organisation.
He said: “In the short term, pressure on the market provoked by the loss of Russia, the EU’s main export market for dairy products, and the lower purchases by China on the world market must be alleviated.
“The price paid to producers for putting milk into public intervention stores barely covers 60% of production costs, dragging prices down. It must be updated to take account of market realities and to avoid a collapse of the market.
“We also need support to find new market outlets for our produce, to remove artificial barriers to trade and to boost export promotion and export support. The European Commission must act.”
He added: “Global demand for dairy products is nevertheless expected to rise in the medium-term, forecast to grow by 2.1% annually up to 2024, and we need to be in a position to make use of these market opportunities and remain a key player
“Futures markets need to be developed to take some volatility out and to help farmers hedge against risks. Support from the EU institutions is crucial here in the start-up phase. Dairy cooperatives need to be encouraged to help farmers better manage risk and get a better price for their produce. Other tools to help protect farmers against risk like insurance should also be looked at.”
Mr Raymond also called for a full implementation of the EU milk package, with written contracts between farmers and processors. And he called on the Commission to “act and punish abusive practices in the food chain”.
“We need to have more openness and transparency in the supply chain which can be achieved via the recently created EU milk market observatory which provides up to date market data,” he said.