Thierry Roquefeuil, Chairman of Copa and Cogeca’s Milk Working Party, said “With over 50% of dairy farms located in less favoured areas, the dairy sector is vital for growth and jobs in rural areas where often no other type of employment can exist. Packed with calcium and bone-building nutrients, milk is also a crucial part of a consumers diet. The more positive situation on the dairy markets is welcome news”.
Outlining the market situation, he insisted that EU butter prices are favourable, at over 20% above levels reported last year, due to positive consumption trends. “The market situation for skimmed milk powder remains quite fragile with prices at around 20% less than levels seen last year, but they are starting to pick up. This is partly as a result of lower production volumes than expected”, Roquefeuil explained. “The EU Commission is also making sure that the large quantities of skimmed milk powder in public intervention are being put back on the market gradually, to avoid creating a crisis situation”, added Roquefeuil.
Looking at the Commission's proposal on the Future of Food and Farming, Mr Roquefeuil said "It is good news that measures to manage the market like public intervention and private storage aid will be kept. They are vital to prevent the market from collapsing. We also welcome the fact that direct payments to dairy farmers will continue and that more focus has been put on risk management measures to help farmers deal with the extreme market volatility. It is important that they remain in the second pillar of the CAP and are voluntary for producers to apply”.
