Monday, May 30, 2016

Milk Price: There is just too much milk! – Times Online

With its milk many farmers earn long gone enough. The milk price is so low that many can not even cover its costs, it comes to the existence. The policy now promises relief. Agriculture Minister Christian Schmidt met with farmers’ representatives, envoys from dairies and trade – the result: at least 100 million euro emergency aid will raise the federal government. A “business as usual” will not give it, promised Schmidt.

If true times. Because the dairy crisis is not going away with 100 million euros and an accompanying “industry dialogue”. There is just too much milk! Worldwide, the EU’s biggest milk producer, and within the EU takes Germany production rankings. Because this country is far more milk produced than consumed, they must be exported. The Russian embargo and falling demand in China make the currently difficult, but because it is the dairy farmers not unlike other export-dependent fallow – about the automotive industry.

The intermediate test the farmer lobby, with reference to the promotion of electric cars now get government support for dairy farmers, can only be explained with a mental short circuit in an emotional debate. An incorrect subsidy (the electric cars) does not necessarily justify another. now really never included Particularly for small agricultural subsidies to major problems in Europe.

No one cuts out of compassion prices

The number of farms has been falling for years, and is likely to continue. Especially small farms produce too much at high cost, and for each family in which all members still toiling 60 hours a week, are the bad news. Nevertheless, the price is ultimately always the result of the interplay of supply and demand. If we lived – just a mind game – in an economy of scarcity, which some may remember from the post-war years, then most farmers would not reduce out of pure compassion prices. And against the subsidization of EU agricultural exports to developing countries, farmers have also not overly loud protests, although characterized decades smallholder livelihoods were destroyed in Africa. It’s just all a question of position.

agriculture – EUR 100 million dairy farmers Agriculture Minister Christian Schmidt (CSU) has the dairy farmers promised emergency aid. This should farmers be able to bridge financial bottlenecks. They suffer particularly under the low milk prices.

From the individual perspective, each individual dairy farmer did what he thought was right. This can not blame you him. Also consumers can no reproach, inexpensive shop. spend more money at the supermarket checkout, does also not necessarily that more arrives at the farm – the consumer organization Food Watch has the basis of several samples is. the situation was somewhat better at most from the farmers who produced organic milk.

In a few years all over again

And the trade? If a topic is in fact. Already responsible for nearly three-quarters of all sales in the food retail sector on five major corporations. And more size means more market power, also with respect to suppliers. But had not fought a few months ago about the ministerial approval for the acquisition of Tengelmann by Edeka? Had not the Cartel Office warned that Germany’s biggest grocer would be far more powerful even then? Had the Monopolies Commission not noted that including particularly the suppliers would suffer? Economy Minister Sigmar Gabriel allowed the takeover nevertheless to obtain thousands of jobs in the trade.

Already clear, Gabriel is not Schmidt – another man, other party. But the same government! And both the ministerial approval and the results of milk Summit, are an example of that individual policy interventions always have direct and indirect consequences.

For the dairy farmers is the result of today’s summit just a crisis break. In a few years, the process starts again from the beginning. Because not demand increases, the amount of milk will fall. Either way.


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