Tuesday, May 17, 2016

Support from the government: The milk price drops to 19 cents – FAZ – Frankfurter Allgemeine Zeitung

The milk crisis deteriorating further. The price, get the farmers by dairies, has fallen within a few weeks by another 30 percent. For the first time receive milk farmers less than 20 cents for a kilogram of fresh milk. The report Representatives of several dairies. Price negotiations between dairies and farmers would give disbursement rates of 19 or 18 cents in some regions. The farmers produce large losses. The federal government wants to help them with at least tens of millions.

January Grossarth  Author: Jan Grossarth, editor in business, responsible for “human and economic”.

end of the month to the details on a dairy summit will be discussed, where politicians, dairies and farmers’ representatives, at the invitation of Federal agriculture Minister Christian Schmidt (CSU) will participate. As heard from Schmidt’s environment, immediate assistance payments from 60 to over 100 million euros in the week. They will flow as a direct support to the dairy farmers, but could be linked to criteria such as the modernity of the stables in terms of animal welfare.

Even before the meeting, there was trouble. About Pentecost was of representatives of smallholder and alternative organizations such as the Association of German Dairy Farmers (BDM) to hear Schmidt have only the parties invited to be his opinion about. Similarly, representatives of the Association of peasant agriculture expressed (Farmers Union). The Minister does not want to limit the amount of milk in times of crisis through legal mechanisms again, something Professor Green, BDM and Farmers Union. Last year, the European milk quota scheme had expired. But the slight increase in production in the EU is just one of many reasons for the fall in prices. He is also in a global increase in production, as in New Zealand and America, founded.

The situation of dairy farmers is dramatic. According to the Alternative Farmers Union Farmers Union already had to give up almost 4,000 yards. Last year in Germany there were still around 75,000, about half as many as twenty years earlier. If the price of milk below about 25 cents for older farms and up to 30 cents for milk farms, which have yet to pay off loans from recent investments, make the farmers with the milk loss.

Although they produce themselves too a lot of milk. But they point the finger at the trade, which is too powerful in their eyes. Aldi, Lidl, Norma and Rewe had decreased in the past week, the selling price of fresh milk from 59 to 46 cents per liter. The CDU is the trade, the main responsibility. Overlooking the milk crisis were in the coalition on Monday also doubts about the decision of Economics Minister Sigmar Gabriel, according to let merge the retail chains Edeka and Kaiser’s Tengelmann. Previously, the Cartel Office had advised against it. The deputy leader of the Union Gitta Connemann told this newspaper: “The Big Four are in a cannibalistic competition. And in this situation are Economics Minister Gabriel also permission for another fusion. “This was” devastating “. They demanded a sharper Antitrust. “If this continues, the farmers, rural areas lose everything, his face and we our domestic food.”

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for months, the dairy farmers can get government emergency loans, which go back to one of the EU’s decision. They were a response to the first price drop occurs, which occurred as a result of the import boycott Russia. Years ago, about half of the milk price of about 40 plummeted to 28 cents. For many German dairy farmers have been too little, while farmers about in Ireland could still make a profit. The Bundestag will soon adopt a new agricultural market structure law to allow farmers quantity agreements. Agriculture Minister Schmidt wants to work out by the end of a “Green Paper” that the basic concepts of its “market-oriented” agricultural policy for the future includes. The German farmers have therefore three chances to compete in the global market: regionalization and specialization of products and animal-friendly farming methods

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