NETHERLANDS/GERMANY/BELGIUM – Dairy co-operative Campina has warned that EU income support will not make up for an expected cut in its milk prices.

Although the company has not yet released its prices for 2004, it has said that its prices could fall more sharply than its competitors. It blamed a price war between Dutch supermarket chains, increased competition and the high euro exchange rate for the news.

However, the company said that all is not lost, as some of its products have performed well in 2004. These include its extended shelf life milk, fat free milk drinks in the Netherlands and the Optiwell brand in Germany and the Netherlands.