NZO shares concerns over low milk prices

The Dutch Dairy Association (NZO) shares dairy farmers’ concerns about the persistently low milk prices. The dairy industry and dairy farming are experiencing a difficult time, one marked by disappointing price developments resulting from a combination of sluggish demand for dairy products and relatively high supplies of milk on the global market.

The milk price in the European Union is shaped by supply and demand on the international market. Since the agricultural policy reforms, the milk price in the European Union has become even more closely tied to developments on the global market. Intense price fluctuations are thus inevitable.

It is the responsibility of individual entrepreneurs, dairy farmers and dairy processors to manage the risks that come with the fluctuations in price. A voluntary restriction of production in the European Union, which the Agriculture and Fisheries Council have put forward as a possibility, would be ineffective given the price’s strong relationship with the world market.

The NZO supports the decision to continue withholding skimmed milk powder from the market. According to the NZO, other ways to improve the market situation include further improvements to transparency in the EU dairy market (e.g. through the Milk Market Observatory), the strategic strengthening of export possibilities through trade agreements with countries outside the EU, and the removal of trade barriers.