A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
Focus on issues

The Copa and the Cogeca alert the European Commission
about the critical situation of dairy markets, and call for action



Copa-Cogeca press release



How is the European dairy market adapting to the elimination of quotas? For the Copa-Cogeca, the adjustment is painful, at a time when producer prices are below production costs. With all due respect to the supporters of head-in-the-sand policy within the European Commission—the very same ones who transgress by an overoptimistic reasoning in an especially unstable market––it is clear that if no action is taken today, the harder will be the fall. Must we then wait for the collapse of the European dairy market to act?

In a recent press release that we are publishing below
1, the European trade-union organization is therefore calling for the adoption of pertinent measures, as the dairy market is currently exposed to extreme volatility, which is the intrinsic nature of that market. Beyond the recently adopted measures–– intensification of the Milk Market Observatory operations, subsidies to build reserves and development of the super levy––the Copa-Cogeca intends to go further and examine the programs that have been effective overseas, such as safeguarding revenues in the United States.


momagri Editorial Board


Copa and Cogeca underlined the critical situation on the EU milk market in a meeting with the EU Commission today, warning that producer prices are below production costs and action is vital.

Chairman of Copa-Cogeca Milk Working Party Mansel Raymond warned “Today we have low prices all across the EU, with farmers producing below production costs, leading to severe cash flow problems and some of members in the working party warned they could go out of business unless action is taken. At the same time, farmers are being confronted with an 800 million euros super-levy bill. We therefore urge the Commission to ensure that money from the superlevy stays in the sector. This decision must be made quickly to alleviate the difficult situation.

Given these difficult times, EU measures to help manage the market - EU public intervention and private storage – must also be made more efficient. An increase in the EU milk intervention price must be seriously looked at.

After a presentation on a Market responsibility Programme within the Civil Dialogue Group on Milk, members of Copa and Cogeca Working Party on Milk and Dairy Products warned that it would be totally unworkable and impractical and rejected it outright.

Extreme market volatility meanwhile remains an issue to be addressed. Taking some volatility out of the market is essential. Several systems have been analysed by the Copa and Cogeca Working Party ranging from the Margin Protection System in the US, futures markets, fixed price contracts, flexible contracts (A and B-type payment). These all need to be further investigated and a Copa and Cogeca seminar could be organised in the future to address voluntary options. Farmers need to have individual choice, of a voluntary nature.

Wrapping up, Copa-Cogeca Secretary-General Pekka Pesonen underlined the need to ensure a level playing field in the bilateral free trade talks between the EU and US vis a vis the cost of legally protecting the EU’s names (geographical indications (GIs) which protect quality produce from imitations.



1 The entire press release is available from:
http://www.copa-cogeca.be/Menu.aspx?lang=en



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Paris, 19 December 2018