The European Milk Board (EMB) has called on the European Commission to urgently prepare to launch a voluntary volume reduction scheme with capping, as it seeks to mitigate the damaging impacts of coronavirus.
According to the EMB, the ongoing coronavirus ‘crisis’ has placed considerable strain on the dairy sector.
The organisation reports that pressures caused by the pandemic, including difficulties in procurement and logistics affecting milk-processing, the prospect of personnel shortages, and a collapse in demand for some products, mean that in many areas throughout Europe milk production on farms exceeds current processing and market capacity.
While some individual dairy-market stakeholders are already taking measures to adapt to the current situation, the EMB argues that only concerted action can effectively curb the damaging effects of the virus.
The proposed volume reduction scheme would see farmers collectively reduce production on their farms and would be activated if the situation continues to worsen, as the organisation predicts it will.
The EMB argues that the overarching institutions of the EU provide the ideal instrument for coordinating such effective joint action and has called on the European Commission to act.
The organisation issued a stark warning that, should appropriate and timely action not be taken, the sector risked falling into its ‘worst crisis yet’.
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