Milk strikes spread as anger spills over

Published on Thursday 5 June 2008 20:24

THE mood of rebellion among dairy farmers on mainland Europe – following cuts in the price they receive for milk – appears to be growing more determined by the day.

In Germany, an estimated 80 per cent of dairy farmers are not delivering milk. This comes despite the German Dairy Farmers Association asking its members to suspend their campaign and to cease picketing dairy plants so that discussions can continue on resolving the impasse.

Farmers are continuing both to withhold milk and to mount pickets. A mass demonstration was due to be held last night at the Brandenburg Gate in Berlin. Several dairy companies have signed a document entrusting the milk industry federation to enter into negotiations, but there has been little sign of progress so far.

In Austria, the number of farmers joining the boycott is growing rapidly and the volume of milk being delivered is at least 50 per cent down on what would be expected at this time of year. Events organised by IG-Milch, the dairy farmers association, have attracted more than 5,000 producers. They are incensed that the Chamber of Agriculture, the dairy industry and retailers have been holding talks without involving IG-Milch.

Austrian consumers are now feeling the effects of the farmers' actions, with the supermarket chain Aldi informing customers that there will no fresh milk in many of its stores.

However, an agreement has been reached in Switzerland, which will see producers receive an additional four euro cents per litre as from 1 July. This will take the typical Swiss ex-farm price to the equivalent of 37p per litre – 10p higher than most UK prices. Farmers appear to be satisfied with this deal.

In the Netherlands and Luxembourg, a large number of producers continue to support the strike, but clearly the outcome of talks in Germany will have a big influence on future actions. In Belgium, there are some signs that, if farmers can agree to assume responsibility for the supply of milk throughout the year to match demand, higher prices might just be on offer. In France, producers continue to blockade several dairies in the Moselle district, as well as in the Pyrenees. If talks fail, dairies in Normandy will also be targeted. No French milk is being allowed to enter Germany, while Danish producers are following suit.

In Ireland, there is growing unrest at the price of milk, with farmers repeatedly claiming they are finding it increasingly difficult to make a worthwhile margin. Ireland can grow grass like no other country in the EU, but producers still need to feed their cows and use fertiliser: the costs of these has virtually doubled in the past 12 months.

Ian Potter, an industry commentator in the UK, said: "The farmers are angry because some milk prices are falling close to 21p per litre. It is a case of farmers across the EU defending themselves. Fortunately, in the UK, prices are creeping up and action is not expected at the moment. But the clouds are darkening, and it won't take much for a storm to break here."

Doris Robertson, of Dairy Farmers of Scotland, said: "I know that our members are very supportive of their colleagues throughout Europe, but I don't think we will see action here."

Production in the UK is at its peak in June and farmers cannot afford to blockade dairies or pour milk down the drain, but they will not accept any price reductions later in the year.