Europe’s choice

Travelling in France last week, I was reminded of the diversity and energy of the dairy industry, despite the ongoing woes of low prices. At the local supermarket in northern France, I wondered at the vast spectrum of dairy products for sale, ranging from yogurts, to dairy desserts, to collections of creams and variants of milk. Whatever Europe is or isn’t, it is a dairy-loving place. We did eat a lot of it while there.

We drove through fields where cows of every variant collected, from Jersey tints to your usual black and white. Cows do add a lot to the landscape, in my humble opinion.

However, all is not as serene as it seems on the Continent. The issue of milk reduction is coming to the fore, as the European Union gears up to offer a €500m scheme where producers will be paid for delivery to storage. Meanwhile, the lack of a united approach in this area is hampering the process of implementing stronger measures in order to further aid the dairy industry, some industry players say.

Others, such as the UK, are expressing reservations about such supply management in this free market. The European Dairy Association has also stated, “16 months after the end of the milk quota regime is not the time to consider reintroducing production constraints because of temporary difficulties caused by many and mainly external factors.” The EDA has also cited the World Trade Organization’s export refund ban in 2015, which exacerbated low pricing conditions.

The farmers are more upbeat about this programme, but there are also those who note that resources are limited and wonder about how far the funds allocated will go in the end. As usual, it remains to be seen. I personally think this market has bottomed out, and with any luck, the recent uptick in prices will continue. In the meantime, Europe, please enjoy your dairy.

Related content

Leave a reply

Dairy Industries International