The German government has settled upon a package of proposals designed to ensure that farmers receive a fair price for milk after a delivery strike brought the issue to the fore in May.
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The government acquiesced to the farmers’ demand that a structure be put in place to limit the amount of milk produced. The government also said that it would push for an EU milk fund to be established to help dairy farmers.
“We are very pleased. We view this as a good first step,” a spokesperson for the German Federal Dairy Farmers Association (BDM) told just-food. “More is still needed to ensure the dairy industry can operate as a viable business but much progress has been made.”
The BDM said it was unclear what impact the production limitations would have on milk prices, but reaffirmed that the measure does go some way to addressing the issue of oversupply in the sector.
Beginning in May, thousands of dairy farmers joined a strike that started in Germany and spread to a number of other western European countries. The farmers were protesting that the price they received for milk did not cover production costs.
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By GlobalData
