Processors smooth milk prices over the cycle and farmers seem to get a fair market price.
Evaluating the impact of the voluntary milk supply reduction programme must take into account slippage and the opportunity cost of milk not delivered.
EU Agriculture Council supports proposal for voluntary milk supply reduction scheme, but its effectiveness can be questioned.
The Commission’s €500 million assistance package for farmers follows closely the template followed in the 2009 milk crisis.
Dairy assistance package expected at Agriculture Council meeting Monday 7 September 2015
OECD figures show a continued slight fall in EU transfers to farmers as measured by the Producer Support Estimate indicator.
The EU dairy market is now recovering from the severe drop in milk prices in 2009. Perhaps the clearest sign of this recovery is the setting of export refunds on dairy products to zero since mid-November, as world market prices for dairy products have strengthened in recent months. It is thus an opportune time to [...]
4000 dairy farmers with 900 tractors demonstrated outside an EU agricultural ministers meeting in Luxembourg yesterday calling for more aid for the sector. Inside, ministers faced a Franco-German memorandum backed by 20 member states with a series of demands for market distorting measures. In the event the concessions the Commission made are probably the least [...]
Earlier in the month I wrote that Agriculture Commissioner Mariann Fischer Boel was holding the line against protesting dairy farmers and a clutch of national agriculture ministers looking for more aid for their troubled farmers. It looks as though I spoke too soon. At this month’s farm council, Commissioner Fischer Boel found a further 280 [...]
Regular readers of this blog will know by now that I don’t count myself among Agriculture Commissioner Mariann Fischer Boel’s greatest fans. I think she fudged what turned out to be a very costly reform of sugar subsidies, bears a share of the responsibility for the collapse of the Doha Round, missed a golden opportunity [...]
It’s a familar scenario: the milk price falls; farmers come out to the street; and the Commission starts to panic. Following a ‘milk strike’ across Europe, an emergency meeting is to be held by farm ministers on October 5th. Nineteen member states have signalled support for a Franco-German initiative for an aid package for dairy [...]
The Commission today produced its report on the dairy market requested by the European Council in June, and Commissioner Fisher Boel has underlined its main findings in her blog. The background to the current market crisis is shown clearly in the graph reproduced from the Commission report.
If there was a jewel in the crown of the CAP health check deal agreed last November it was probably the decision to phase out milk quota between now and 2015, with a one per cent increase in quota each year. But this prize is now under threat as several powerful EU member states led [...]
The resort to intervention buying and export refunds in the dairy sector has been predictably bad PR for the EU, especially in the southern hemisphere. But a more fundamental question is, can these tired old policy instruments work any magic in a deep economic crisis?
It was the recession of the 1930s that ushered in agricultural protectionism and subsidies, not least in the United States. Now the European Union has reverted to two of its old favourite policy instruments: intervention buying and export subsidies in the dairy sector just when we thought we had seen the last of them. Stocks [...]
Commissioner Mariann Fischer Boel’s proposal for five annual dairy quota increases of 1 per cent each, adopted unchanged by farm ministers, is under attack from two sides. The Commission believes that this is a sure sign that it has negotiated a fair middle path through a morass of conflicting objectives. A less charitable interpretation would [...]
The elimination of milk quotas as currently foreseen in 2015 will result in a loss to producers of €4 billion, and a gain to consumers of €3.7 billion, according to research by economists at the Institut d’Economie Industrielle in Toulouse. The group were asked to evaluate the impacts of the expiry of the EU milk [...]
As the debate goes on in the EU about whether milk quotas can be increased by 2 per cent as part of the soft landing when they are eventually abolished in 2015, it is an opportunity to reflect how milk quotas have affected the UK dairy industry. They were introduced in 1984 to ease the [...]
The Commission has proposed a 2% increase in milk quotas beginning on 1 April 2008 to apply on an equal basis to the 27 Member States. This proposal repeats the Commission’s proposal for a 2% increase in the 2003 Mid Term Review (additional to the 1.5% increase already agreed for 11 Member States as part [...]
How to manage the transition to the phasing out of milk quotas is one of the items on the CAP Health Check agenda. A recent study from the FAPRI-Ireland team based in the Rural Economy Research Centre, Teagasc in Ireland has examined the impacts of two alternative transition paths to phasing out milk quotas by [...]
The UK Farmers Guardian reports that Mrs Fischer Boel was forced to confirm that allowing an increase in milk production would be addressed as part of the Commission’s Health Check proposals expected in November after Germany raised concerns about rising retail prices. The Commission has a number of options, including an annual market-linked increase in [...]
A particular milestone in the CAP was passed last month when the European Commission set export refunds on dairy products to zero for the first time ever in the management of the EU dairy regime. This reflects the extraordinary jump in world market prices for milk products in the past twelve months, with prices for [...]
British dairy farmers are leaving the industry in large numbers, but world milk and milk product prices are heading upwards fast. How can one explain this paradox? The simple answer is, of course, that the key UK liquid milk market is largely insulated from world market factors.
The satisfied look of this cow in the Azores is no great surprise as it receives one of the biggest cattle subsidies in the EU, although still not enough for Portugal who voted against the last CAP reform on the issue of the fate of dairy cows in the Atlantic islands. After 39 years of [...]
The EU’s share of global milk production is falling as a result of the quota system according to Rabobank dairy specialist Mark Voorbegen. Addressing a seminar organized by Dairy UK, he said that the EU had a 27 per cent share of the global market in 2005, down from the 1995 level of 31 per [...]