German farmers and co-ops meet
At the invitation of Joachim Rukwied, president of the DBV (German Farmers Association), there has been a top-level meeting with the management and supervisory boards of cooperative dairies. They discussed approaches to the current milk price crises and how to limit future problems. Specifically, they agreed to the following measures:
- The Agriculture Council and the Dairy Summit of the Federal Minister of Agriculture proposed industry organisation must be used for improving the position of the German dairy industry. This includes, in particular: promotion and increased research and development.
- Since the expiry of the EU quota system, responsibility for production volumes, management of the dairy market and dealing with increasing price fluctuations are solely in the hands of market players. These are mostly cooperative dairies and milk producers. The German Farmers’ Association underlined its expectation that differentiated payment rates must be discussed, oriented around fixed price agreements or recovery related tiered pricing. All participants of the conversation iareaware that the long-term securing of producer prices cannot achieved permanently higher, but at a more stable price level. Legislative intervention in the design of the supply relationships will be rejected.
- Potential for improving the competitiveness of the cooperative dairies in the area of added value and marketing should be enhanced. This includes reviewing, and where needed, an adjustment of marketing structures. All methods must be used to achieve a greater concentration of supply.
- The Farmers’ Association and the co-operative dairies emphasise that the milk production is market and sales-oriented. This has to be communicated by all parties to the producers in order to resolve the current imbalance in the market.
Despite the economic slowdown in some third countries, the German Farmers’ Association and the co-operative dairies continue to see the need to improve access to third country markets. That includes policies to relax the Russian import embargo.
