With producer prices at critical levels for two and a half years, the sector has launched a debate on the milk market situation with members from across the EU in a meeting in Brussels today.
Milk and Dairy Products Chairman Thierry Roquefeui said: “Discussions today showed that dairy farmers across Europe are still facing low prices and cash flow difficulties, despite a constant improvement in dairy commodity prices in the past four months.
“We are therefore urging member states to make sure that support from the recently agreed €350 million aid package reaches farmers as soon as possible.
EU milk production has meanwhile dropped by 2% in June compared to the same time in 2015 and by 1.4% in July and it is expected to go down further until the rest of the year.
“At world level, this is also the case in three of the four main milk producing regions”, he added.
“At world and EU level, dairy commodity prices have been picking up with EU butter prices seeing a significant recovery since June, being close to 2013 levels.
“Overall, dairy commodity prices have seen an increase of 20% on average. World demand has been dynamic, also due to demand from China. I believe that dairy farmers should start to see improvements in their milk price soon”, Mr Roquefeui concluded.