A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

The drought in New Zealand, a windfall for
European dairy farmers?

April 8, 2013


Since the start of 2013, New Zealand is suffering from the worst drought in over 30 years. The production of the world’s largest dairy exporter is directly affected: Prices of processed products are going through the roof, and global prices are soaring (a 10 percent increase on March 5), butter quotes at the Fonterra auction exceeded $4,500 per ton, when they were below $2,500 per ton at the same time last year.

They say one man’s loss is another man’s gain. European dairy farmers––and some more than others––are impatiently waiting for the New Zealander drought to let them regain more lucrative milk prices. And who can blame them? In Spain, the 2012 lowered output and de-capitalization of dairy cattle in an environment of socio-economic crisis have weakened the dairy sector; In the United Kingdom, milk collection remained very depressed in 2012; In France, as they face increased costs to feed their cows, farmers have been demonstrating since the fall for a €0.03 increase for each liter of milk.

For the time being, the price upsurge of dairy products has yet to impact European farmers, but various estimates are indicating that prices paid to farmers could reach an average of €330/1,000 liters over 2013.

The milk market is a structurally unstable and highly volatile market, as shown by the recurring dairy crises since 2007. According to recent statements by major European and French agricultural unions, upholding the dairy sector, especially to face global price swings, entails reforming the CAP. New Zealand’s drought will not by itself safeguard the European dairy sector in the long term, and it is now time, when European milk quotas will be eliminated in 2015, to implement flexible regulatory tools that can provide lucrative and stable incomes to tomorrow’s European farmers1.

1 With this in mind, European Agriculture Commissioner Dacian Ciolos recently pledged to hold a conference in 2013 on the regulation of the dairy sector.
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Paris, 18 December 2018