In the wake of milk quotas ending Copa-Cogeca has outlined measures crucial to ensure a viable EU dairy sector in the years to come.
Chairman of Milk and Dairy Products Working Party, Mansel Raymond, said: “Post quotas, milk producers will continue to be exposed to market volatility, which is a global phenomenon. Volatility is here to stay and it is a risk factor for farmers’ business and strongly impacts on investments. In the short-term, faced with severe economic problems, milk producers cash flow is under pressure. It is therefore essential that money from the milk super-levy bill returns to the sector so that investments can be made now to enable the sector to meet demand which is expected to grow in the medium-term.”
Copa-Cogeca Secretary-General Pekka Pesonen stressed: “In this new post-quota era, the right tools must be in place to help milk producers and dairy cooperatives cope with its effects. Although the EU’s regulatory framework already includes market measures which could help protect producers against this volatility, like EU public intervention and private storage, they no longer represent a real “safety net” able to help milk producers in times of severe market imbalance.
“These tools need to be adapted and made more efficient to take account of rising production costs and market realities. Other tools for risk management are needed and could include encouraging the development of futures markets to take some volatility out of the market.”