The EU Commission and European Dairy Association foresee a favourable future for the European dairy sector.
The EU Commission presented on 5th December 2014 its Prospects for agricultural markets and income 2014-2024. The Commission forecasts that the EU milk deliveries will increase by 12 million tonnes over 10 years, up to 158 million tonnes in 2024. Prices are expected to remain firm at around 350€/tonnes. The world imports are foreseen to increase +2.1% per year. In its presentation, the Commission confirmed that “the EU is expected to be the main contributor to satisfy the global demand”.
The European Dairy Association shares the view of the Commission on this positive outlook. The EU dairy sector, milk producers and processors, is a competitive sector on the world market. It is well positioned to create added value in Europe and beyond.
EDA acknowledges that the dairy markets are currently under pressure and this for several reasons. The world market has entered into another cyclical downturn, exacerbated by the impact of the Russian ban in EU dairy imports. But as the Commission forecast makes clear the markets will inevitably recover.
Commenting on the current situation Alexander Anton, secretary general of the EDA said: “After 30 years of public market management and 10 years of a joined political and economic effort to make the EU dairy sector competitive at EU and global levels, today it is not the time for pushing back the wheel and reintroducing a public volume management. Ernst & Young, in their independent study commissioned by the European Commission in September 2013, concluded that no new market instruments for dairy were needed and that any supply management would simply not work in the EU,because others would fill in the gap that would be created.”
EU dairy processors have and will assume their responsibilities. “The investments of more than €5bn in the last two years in the milk processing capacities in the EU clearly shows that we believe in the positive future of the European dairy sector”, Anton said.
“This positive outlook is also shared by all dairy experts, including the European Commission”, added Anton, “To quote the EU institution, Milk is and will remain the white gold for the next decade.”
Source: The European Dairy Association
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