Austrian dairy associations optimistic about future

Austrian dairy organizations have responded with optimism, after the minister of agriculture has released a six-point programme for the future of the Austrian dairy sector.

Josef Moosbrugger, chairman of the dairy committee of the Austrian Agricultural Chamber, says, “Both the dairy farmers and the processing facilities have been active in getting ready for the end of the quota system and invested heavily in the future direction of their businesses.”

The Austrian cattle and milk industries were provided €270 million in public funding for the years 2007-2013 from the EU. This triggered investments of around € 1.1 billion.

“Even though the industry has well prepared, the policy must not after the end of the quota be unceremoniously abolished. It will namely not work with direct payments alone”, states Moosbrugger.

He points to the initiative of minister of agriculture Andrea Rupprechter, who has made provision for a deeper analysis of the market situation.

“The most important requirements for success in the markets are the quality of our raw milk and specialties made from it,” Moosbrugger says.

“The abolition of the milk quota is for our industry an important turning point. Domestic dairy products have already proven their strength on the market and are prepared for the new situation,” says Helmut Petschar, president of the Association of Austrian milk processors (VÖM). “The prerequisite for this is the high quality of our products – starting with the dairy farmers and the high quality processing in the companies, which represent a special value for the consumer.”

Others agree. “The European Commission see a positive market outlook for the dairy sector. The increasing demand helps short-term challenges in the dairy market and provides medium term budget outlook for dairy products”, Tassos Haniotis from the Austrian Directorate General for Agriculture says.

He points to the increasing consumption within the EU and the export opportunities, especially to China. After the decreased prices in the previous year due to a strong increase in milk supply, the situation has now stabilized.