The Agriculture Minister is satisfied. “Today is a good day for European and German agriculture”, Federal Agriculture Minister Christian Schmidt (CSU) said on Monday in Brussels. That the day from the perspective of the German minister is a good one, for two reasons: First, there is the troubled German dairy farmers a further 58 million euros from the EU agricultural budget. But these are – and that is the opinion Schmidts the second good news -. be subject to volume reductions
Too much milk on the market
Because currently has too much milk on the market. About a year ago, the milk quota, which had governed the production, expired. Since then, more milk is produced than is needed in the EU. Around 160 million liters of it a year, almost four percent more than at the time of the milk quota. However, the increasing production is offset by a decrease in demand. Russia decreases for political reasons no European milk more, Asia buys financial reasons less milk and cheese. This drives down prices.
It used to be 40, now there are 24 cents per liter
Had the farmers receive up to 2014 of the dairy still 40 cents per liter, are today on average just 24 cents per liter. “The range is 18 to 33 cents,” says Hans Foldenauer federally German dairy farmers. For weeks now can buy fresh milk for 46 cents at the supermarket consumers. This much alone actually need the farmers to generate sustainable profits, are dairy farmer Foldenauer remembered the margins of trade and dairies would still top. Just to cover the cost of food, electricity and the veterinarian that dairy farmers need at least 30 cents per liter erlösen.Doch such prices exist today only in exceptional cases and for organic goods. Consequently, more and more dairy farmers give up. It often meets large enterprises that have invested in periods of high milk prices and now their loans can not repay.
As early as last September, the European Commission had put together a first aid package for Europe’s dairy farmers. Of the total 420 million euros good 69 million euros were then flown to Germany, the money is now almost completely distributed. Now there will be another 500 million euros for Europe’s farmers. To get the oversupply of milk in the handle and thus to stabilize prices, the EU will pay out of the pot of 150 million euros to milk producers to cut back production.
The remaining 350 million euros will go to the EU member states for further distribution, of which the largest amount of almost 58 million euros in Germany. Each Member State may decide how it uses the money. It can promote about small businesses or farms, cut back on production. Of which could benefit not only dairy farmers but also farmers who rear pigs or other livestock. The federal government could also double this amount by its own means yet.
100 million euros “plus x”
Schmidt had end-May for a Dairy Summit in Berlin this year an aid package of 100 million euros “plus x” for the German dairy farmers in view posed. Later this week, the CSU politician meets Finance Minister Wolfgang Schäuble (CDU), to discuss the shape of the German package. This figure includes 78 million euros – contributions of farmers in the agricultural accident insurance, which decreases the state’s farmers. Speaking also have tax benefits, exemption arrangements for debt repayment and guarantee programs.
Lower Saxony Agriculture Minister Christian Meyer (Green) was disappointed by the EU offer on Monday. “That would lead in nationwide around 71 000 holdings to just 800 euros per dairy farm out”, he calculated for Germany before. “So much loses a dairy farmer in Lower Saxony on average currently every week.” Meyer argues for a temporary cap on production in Europe. This rejects Commissioner Phil Hogan from however. with dpa
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