Dairy Farmers Propose Market Responsibility Programme
EUROPE – Concerned dairy farmers have presented a Market Responsibility Programme (MRP) to the European Commission in the latest move in the campaign for more crisis management instruments.
3 June 2015
1 minute read
The MRP will avoid overproduction by leading to “voluntary cuts in production”, explains the European Milk Board, to reach better milk prices in a “fast and efficient” way.
This is in response to a lengthy period of price cuts and low milk margins, which saw German farms produce milk at 14 cents below production costs in January.
"This puts enormous pressure on dairy farmers,” said EMB President, Romuald Schaber, commenting on the “very critical” market situation.
“Many of them will not be able to face this pressure any longer and their very existence is at stake. This applies above all to growing farms and those which are undertaking investments."
The figures come from a German Office for Agriculture and Agricultural Sociology study using the MEG Milk Marker index and costing from the industry from the European Commission's Farm Accountancy Data Network (FADN).
Findings showed production costs at little almost 46 cents per kilo and average farm gate prices at 31 cents per kilo.
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