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Россия 27.03.2020

JOINT anti-crisis action in the dairy sector

Источник: The DairyNews
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Situation: In many areas, the amount of milk being produced on farms is too high for existing processing and market capacity. The spread of the Coronavirus is leading to major difficulties in procurement and logistics in the processing industry. This is further compounded by possible personnel shortages, as well as the collapse in demand for certain products.

An effective way to bring real relief: actively reduce the pressure caused by these surplus milk volumes in the EU.

  • In order to do so: The European Commission should IMMEDIATELY start preparing for the launch of a voluntary volume reduction scheme with capping, as foreseen in the Market Responsibility Programme. As the situation continues to worsen as is currently expected, volume reduction must be promptly activated.  

In this way, farmers will JOINTLY reduce production on their farms. Such concerted action, coordinated at EU level, can then adapt production volumes to current circumstances and can keep the economic consequences in check. 

Make no mistake: the time to act is now. If agricultural production does not react, there is a very high risk of the entire sector falling into its worst crisis yet. Even after the health consequences of the Coronavirus crisis start to subside, the economic fallout will continue to wreak havoc. In the major crisis of 2016, the voluntary production reduction scheme was launched too late. This critical error must not be repeated in the context of the current crisis. Because agriculture and its products are indispensable for all EU citizens' livelihoods.

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