The dairy Cecily has already moved their posts. Two weeks to the Ansbacher Straße 20b the CSU constituency office of federal Agriculture Minister Christian Schmidt (CSU) besiege. On Tuesday morning, the action of the dairy farmers in Neustadt an der Aisch, a Middle Franconian town between Würzburg and Nuremberg began. Farmers are outraged and frustrated. You do not feel taken seriously by Minister Schmidt. And they fear for their existence, finally, the milk price moves sharply for months down.
pay some dairies produce one liter of milk only 18 till 19 Cent. The reason for the price decline: it is made too much milk. About a year ago the EU-wide milk quota was abolished. They regulated how much milk could produce a farmer. So they wanted to ensure stable prices – ultimately without success.
Now the farmers can restore as much milk as they want , In order to make economies reasonably cost recovery, would need approximately 75,000 dairy farmers in Germany but a production price of about 40 cents per liter, it is said.
The market is inundated with milk from Europe and from Germany, says Hans Foldenauer, spokesman for the Federal Association of German Dairy Farmers (BDM), who protested also against the constituency office of the Minister of Agriculture. Falling demand from China and Russia holds Foldenauer for the current situation slightly critical – although this is called by experts as the main reason for the strong price fluctuations. Last year, the dairy export was even increased and this year sales grow abroad. The problem is that this increase lies in the export still under the expansion of the offer, says Foldenauer.
“We have the Minister presented a concept about how to tackle in crisis phases of this development. But leaning Schmidt easy,” he criticized. Dairy farmers demand to cap a limited time in difficult situations production at EU level. But but the farmers want to be compensated. The EU had created in March the legal conditions for voluntary, temporary production cuts in the EU countries. Producers can deny the quantities without antitrust law to fall into trouble. In principle this is an odd light.
But why will not get involved in such a scheme, the Federal Government? Agriculture Minister Schmidt would not like earlier limit the amounts and intervene directly in the market, says BDM spokesman Foldenauer. The government put the other hand on tax cuts and liquidity support. This in turn criticize farmers. Direct aid to the watering can principle would fizzle out without any impact on the market. Schmidt puts farmers close also to change the segment, if they could not withstand the competition. “One approach is organic farming, for example, is less affected by the price war,” he said of the Süddeutsche Zeitung .
The Institute of Nutrition (ife) in Kiel has been investigating the situation on the milk market and has issued to the end of the quota regime a study. Their conclusion: In general functioning of the milk market, only the high price volatility meant that even well-running dairy farms would get liquidity problems. At the end, businesses that make dairy farming ad, although they would work long-term viability, according to the study. Therefore it is necessary that the state intervening in the market to “stabilize prices in exceptional circumstances”. But how?
The proposal of milk producers for quantity control in times of crisis, the institution has limited useful. Instead, some better early warning indicators are proposed or an insurance system can absorb large losses to the farmers.
“The market needs rules”, keeps milk lobbyist Foldenauer hand. “Otherwise there is a crash, like now.” In addition, the low prices led to an unhealthy development. Especially companies that have invested in recent years much in a modern production, now stood face huge problems. “These businesses do not close, but be expropriated tacitly” says Foldenauer. “Since then, an investor gets in and takes over the land.”
There is consensus in the agricultural policy that smaller farms and farm structures to be obtained in Germany, in order not to leave the whole market few large farms. But how can you achieve that? For May 30, Minister Schmidt has now convened a Dairy Summit. Until then, the cow Cecily to endure before his constituency office. From the meeting, the farmers promise hardly a solution.
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