Announced by the industrial milk price declines are unacceptable for producers. According to Jean-Michel Lemetayer, President of the National Federation of the syndicats d'exploitants agricoles (FNSEA). He explains that one may see Create dairy deserts in France. Under AOC cheeses may disappear in favour of industrial cheese. Consequences of deregulation of the European markets.
How do you explain this milk crisis
The crisis the dairy industry today, we are going to know in other sectors. Because it is due to the extreme price volatility caused by deregulation of the markets. Farmers have faced increases of 10, 20, 30 or even 100, if talking about crop, and then markets are suddenly returned. It is unclear to handle these situations. If we stick to the case of milk producers, industrialists paid them their production more expensive until the summer, but at a time where their expenses have soared. What wiped out largely the gain of the rebound in the market. In addition, the increase eventually was a catch-up, because it came after two years of very low prices, in 2005 and 2006. Under these conditions, decreases price of EUR 70 per 1000 litres in the last quarter and 120 euros for the beginning of 2009 that announce industry as D'Entremont are absolutely not bearable.
Are current disorders the result of the challenge by the administration of the previous pricing system
The problems came from the dismantling of the common organisation of the dairy market. Market disruptions will also worsen with the abolition of milk quotas in Europe scheduled for 2013. This is a huge mistake. It is a nonsense to abandon the tools of market regulation. The quotas have been invented in 1985 to adjust production to demand and regulate prices. However the European Commission not in use, already, in this way, since it them increases, regardless of the market. The alleged reason is to lower prices to compete with the Australia and the New Zealand. But Europe is never as competitive as Oceania, not for climatic reasons. It is a region where there is no winter and where the animals are raised in the open air, while here it buildings and heating.
French producers are really resolved to demonstrate against price declines
The mobilization is inevitable. The Union of producers of milk will decide on the modalities of action in the coming days. The dairy sector is a detonator and will be used to stop the Government and the European Union on the effects of the volatility of prices.
Is a compromise still possible
No compromise is possible on the basis of price decline proposed by industry. And the negotiating margin is extremely low on producers. In any event, nothing will happen without a clear commitment by the industrial policy of prices in 2009. Producers have agreed to adapt prices to fluctuations in the market, but provided that this is not always in the sense of a down for them. In 2007, when prices skyrocket in Germany, no French industrial talked to adapt prices to increase. I don't want to imagine that, in the current context, the industrial consent decreases in price distribution. I can understand that we fight to preserve the purchasing power, but certainly not on the backs of farmers.
Can we still expect save quotas at European level
Northern Europe is against, but I think that the Germany could join our point of view in light of recent months. Should also find a way to better equip the countries entered in the European Union. The France cannot take the risk to play the low prices, the concentration and disappear dairy map all areas of mountain, as Cantal, the Franche-Comté, the Auvergne and with all the beautiful plateaus of French cheeses under AOC.