Calls for action at latest EU Milk Market Observatory meeting

Published 5 August 15

In a detour from its usual purpose of monitoring markets, the most recent Milk Market Observatory (MMO) meeting took a more political turn. Producer organisations highlighted the cash flow difficulties dairy farmers are facing and called for the Commission to take action to address the risk of farmers leaving the industry. Specifically, they asked for the Intervention price to be reviewed, financial support to ease cash flow issues and to explore possible tools to regulate supply.

The regular review of the EU and global markets showed a continuation of the imbalance between supply and demand. Milk production in the EU-28 remains above 2014 levels and stock levels are now described as excessive for cheese and milk powders. This is impacting on dairy product prices and keeping pressure on farmgate prices, which at an average of €34.08/100kg (equivalent to 22.69ppl) are at their lowest point since June 2010 - with further price cuts expected. The review concluded improvements in market prospects would only occur when milk production started to decline.