On 9^th June, the Agricultural Ministers of Germany, France and Poland issued a joint statement on the current market difficulties facing the dairy sector.

The three countries combined produce over 45% of the EU’s annual milk supply. The so-called “Warsaw Statement” urges the European Commission to put in place EU funds to support voluntary measures at an individual or collective level that contribute to stabilise/reduce the level of production in the EU. The statement also calls for an increase in the level of state aid under the de-minimis provision to €30,000 per farmer.

The German Minister, Christian Schmidt while speaking at a “German Milk Summit” on 7^th June explained that he favoured voluntary milk supply constraints not in the form of a state led production quota but as a financial incentive to better control milk volumes on the market. Furthermore, the German Minister is committed to putting in place a €100 million package including tax measures for dairy farmers.

 By Eamonn Farrell

Agri-Food Policy Executive