ICOS attended a European Commission Civil Dialogue Meeting on the Dairy Sector on 22nd October, where the central topics for discussion were the positive dairy market situation, and the implications of the new CAP and various Farm to Fork Strategy proposals on the sector.
With regard to the market situation, it was outlined that there has been a modest increase in production in the EU in 2021 (+0.8%) to date – with Ireland noted as the country with the greatest increase (+6.4%). This, more or less stable, situation is expected to continue for Q3 and Q4, with marginal declines in production in Germany, France and the Netherlands, to be compensated by production increases in Ireland, Italy and Poland. It is believed that the higher costs of feed is resulting in an slower than anticipated yield growth.
Of particular note was the positive situation for producer prices, which increased each month of the year, including in the spring – the first time this has occurred since the European Commission has begun collecting this data. However, participants in the discussion highlighted that price increases for producers were being counter balanced by the recent sharp increases in costs, of feed, fertiliser and construction materials.
Speaking on the Farm to Fork Strategy, which includes a number of targets which will have a significant impact on livestock production, including the reduction of nutrient losses by 50% by 2030, the European Commission highlighted the role of new CAP and the national CAP Strategic Plans which are currently under development, in implementing the goals. They also highlighted the significant impact of upcoming legislation, on animal welfare during transport and on a sustainable food labelling framework, which together with the new CAP, is anticipated to drive a new food systems approach towards the production and consumption of dairy products into future.
Alison Graham – European Affairs Executive
24 Nov 2022