The European Commission announced the allocation of 30 million euros to support private storage of dairy products in the EU
Italy has allocated about 100 million euros to support medium and small agricultural enterprises, and France has allocated 7 billion euros to support medium and small businesses and large agricultural enterprises. At the same time, European companies are forced to reduce production and processing volumes, thus, Muller has already announced a 3% reduction in processing volumes. On the other hand, in the EU countries, the industry community is trying to take measures to stimulate demand for dairy products. In France, all participants in the production chain on the initiative of the dairy Union CNEIL participate in the campaign "fromagissons", aimed at increasing demand for cheeses. The French cheese market was seriously affected, with cheese sales falling by 60% (small farms had a 70-100% drop).
Overall, retail demand for dairy products is stable, but the decline in exports and falling supplies to the HORECA sector have been a serious blow to the EU dairy industry. According to the EU partner, in Germany, retail sales account for only 35% of all milk, 50% is exported, and 15% is exported to the catering sector, meaning 2/3 of sales were unstable during the pandemic. In France, 40% of milk is exported.
The situation in Italy is stabilizing; since mid-March 2020, sales of dairy products in retail grew, except for fresh drinking milk (decrease -7%), sales of UHT milk increased by 19% (price increase +3%), sales of hard cheeses increased by 27% (price +4%), sales of mozzarella increased by 49% (price +5%), sales of yogurt increased by 5%, although this growth in retail sales does not fully compensate for the losses in HORECA. In general, the dairy industry in Italy and the agro-industrial complex in general have not suffered as much as other sectors of the economy, although there is still a problem with the labor, about 200 thousand seasonal workers from other EU countries cannot get to the Italian market in the current situation.
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