The European Dairy Market in Q3 2022

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european dairy market 2022The future outlook remains bleak for European milk supply unless the milk price paid to farmers is increased considerably by processors. Farmers are drowning under the weight of pressure caused by the sudden severity of the price increases for all of their input costs. Inflation was already rampant in the post Covid economy and the war in Ukraine has significantly increased the inflationary pressures that are impacting farmers throughout Europe.

The mass exodus of farmers creates an existential threat to global food chains. According to EMB Executive Committee member Elmar Hannen ‘Further massive losses in the number of farmers is the worst thing that can happen to us in Europe. It will be impossible to recover from this. This rapid withering down of the sector will undoubtedly lead to difficulties in food production in Europe’.

The EMB is calling for a 5 point plan to support milk production that is more stable and sustainable in the future which are: 1) Exploding production costs to be covered by prices 2) Social sustainability in the CAP and Green Deal to be immediately anchored and implemented 3) The market to contribute to the transformation of the agricultural sector 4) Horizontal producer organisations must be established 5) Mirror measures must apply to imported agricultural products. (Dairy Reporter)

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