EDA publishes major issues dairy sector report

By Guy Montague-Jones

- Last updated on GMT

Related tags: Supply and demand

The European Dairy Association (EDA) has published a biannual report on major dairy issues, updating processors on the market situation and regulatory and trade developments.

The report, which can be downloaded by clicking here​, begins with a forward from EDA secretary general Joop Kleibeuker and president Werner Buck outlining the lobbying done by the association ahead of reforms to EU dairy policies.

The Commission is now considering recommendations from the High Level Expert Group on Milk (HLEG) for reforming the sector once milk quotas are abolished in 2015.

Dairy reform stance

In its lobbying of the HLEG and the Commission, the EDA has pushed for the emphasis for any reform to be on improving the competitive position of the entire European dairy sector.

In their joint statement, Kleibeuker and Buck said: “The origin of the so-called milk crisis in 2008/09 has not been the poor relations between the milk producers and their ​buyers, the milk processing industry, but a strong decrease in market demand for dairy products.”

Market overview

Discussing the market situation following the 2008/09 price crash, the EDA report went on to say that “the first half of 2010 has shown us that the global dairy prices crisis is over.”

This improvement in the pricing situation comes as a result of the return of demand on the international market coupled with lower market supply that saw the total EU quota for the year 2009/2010 underused by a record margin of 8 per cent.

Looking forward the EDA said there is no great imbalance or fluctuation in supply and demand at present which would give rise to significant price fluctuations.

But the report added: “Over the remainder to 2010, milk deliveries both within and beyond EU borders should strengthen due to higher milk prices without outstripping demand. This would suggest stronger and higher prices.”

Other issues discussed in the report include the sale of intervention stocks, international trade relations, hygiene and food safety issues and health claims.

Related topics: Markets

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