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 end of milk quotas in Europe: A difficult adjustment

June 15, 2015

The World Milk Day was held on June 1st. Yet, European farmers and consumers are not sorting things out since the elimination of milk quotas.

In fact, we notice a growing struggle to fight price volatility, which is worsened by the buildup of the European dairy cattle in anticipation of the elimination of quotas and the consequences of the Russian embargo. As a result, there is a significant difference in the prices paid to farmers in the various member-states.

The Netherlands fully held its own among the seven European milk producing nations. Its dairy farmers were paid €332.5/ton this past April, against €302/ton for their French counterparts––a €30/t differential. In France, dairy farmers have been subjected to a 25 percent price drop in six months––to €302/t from €403/t. In Germany, milk prices are no longer covering production costs.

The elimination of quotas has brought to light those who best tackle this market intrinsic instability, and, on the contrary, those who do not. Most of all, this often-painful adjustment is made without any assistance from the European Commission, which not only refuses to speak of a dairy crisis, but also proposes minimal means that are quite far from helping farmers and stabilizing markets.

Yet it is becoming increasingly obvious that farmers cannot individually prevent endogenous risks and price fluctuations. It is feared that, without any governmental intervention mechanism, the structural price volatility will lead to an unbearable situation and an unbridled competition that could send European farmers on their way to insolvency.

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Paris, 24 June 2019