On the EU dairy market a new era begins: The odds that should control the three decades of production, are eliminated. The farmers get the more entrepreneurial freedom – but also new risks.
When customers in the supermarket to buy a liter of fresh milk are the complex rules of European agricultural market quite far away. For dairy farmers, the requirements from Brussels but are an important foundation of their daily business.
And there after 31 years is now a real turning point: For the month changes the milk quota falls away as a protective mechanism. You should establish with the help of limits to production a balance between supply and demand.
That after the end Odds again arise butter mountains and milk lakes in Europe, the industry does not feared. As well as the prices in the supermarket – for dairy producers a new freedom, which also brings uncertainty with it begins.
What has brought the milk quota?
Federal Agriculture Minister Christian Schmidt (CSU) do not mourn the quota for: “State intervention in the market is not a viable solution and in view of the global market no longer realistic.” The official government balance for milk quota falls because even rather disappointing.
Instead reliably stabilize the income of dairy farmers, the prices of raw milk in the past 30 years have fluctuated despite the rate by up to 20 cents per kilo. Many farms disappeared. The number of milk producers in Germany declined since 1984 from 369 000 to 77 000
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Why should cease the rate now?
When the milk quota was introduced in 1984, there was too much milk in the European market. And therefore the income of farmers – – Due to the limitation of the bid prices should be backed up. Who exceeded the allowed quota had to pay a tax. But now expect politicians and experts with an increasing demand for dairy products in the world – especially in countries catch up economically. Of these export opportunities to benefit European farmers.
What does that mean Odds from consumers?
“Last twitches” of the quota were felt in the past few days yet, as the Information and Research Centre of the food industry observed. In order not to risk more penalties, some farmers have cut back production by slaughtering Cows or reduced amounts of food. Internationally decreased deliveries so that the last relatively low prices rise again, as the Dairy Industry Association analyzed.
Also, consumers would therefore expect in the coming months with higher prices . Beyond the exports might focus more on smaller farms own markets, for example, with regional organic milk.
What do the dairy farmers?
“The quota is a relic of an agricultural policies of the past,” says the vice president of the Farmers’ Union, Udo Folgart. Now, the companies would get more freedom of choice, barns and milking could better utilize and reduce their fixed costs. The Small Farmers’ Association but also looks problematic effects when the ratio eliminates the penalties for exceeding the limit. This makes it verbillige when businesses even more expansion set and buy more milk cows. This is likely to happen but especially in areas with favorable pasture conditions. On the other hand could, for example in the low mountain ranges many dairy farmers give up .
What is next?
There are hardly any growth potential in Germany, the hopes of the Export set. The global demand for milk and cheese is forecast to rise steadily. But for years the rate of Europe have committed, while the USA, New Zealand and Australia widened the production, explains the Farmers’ Association. “If the EU does not play here, it will be displaced at the end of the global markets.”
The Federal Association of German dairy farmers, however, warns against a higher dependence on the world market. Since only relatively small quantities are traded globally, the price fluctuations are likely to be violent in the future – “with long valleys and short spikes”.