Dairy farmers from across Europe are being encouraged to take part in an online survey to determine the level of interest in a supply control initiative, ultimately aimed at increasing milk prices.

The survey is being taken forward by Holstein NI, in conjunction with Holstein UK and Fair Price Farming NI. Together, they continue to press the case for the European dairy industry to adopt a voluntary milk supply arrangement as proposed by the European Commission, which would allow co-ops to plan and effectively regulate milk production over a six-month period.

To date, gaining widespread support across Europe from farm lobby organisations has been difficult, especially given the fact that no funding has been made available by the Commission.

However, the main argument made by Holstein NI is that the current problems are the result of supply being ahead of demand. So, compensating producers for reducing production would bring the market back into balance and reduce product heading for intervention.

Proposal

The proposal is that farmers cut back by 5% from the same month in 2015, and are compensated in NI with a payment of 20p/litre for this reduced volume for a minimum of three months. According to Holstein NI, the scheme would cost £2m per month here, which they describe as “small change” compared with some profits made by dairy processors.

Holstein NI argues that the alternative is that the market corrects as production falls due to some farmers going out of business. Others are left with crippling debt for the next few years.

The survey can be found here.

Meanwhile, European Commissioner for Agriculture and Rural Development Phil Hogan has described as “premature” any thoughts that the Commission might come forward with a second aid package for struggling European farmers.