Padraig Walshe demands EU action to prevent new milk crisis

The president of the main farmers' lobby organisation in Europe, Copa-Cogeca, has urged MEPs to take action to prevent a new European dairy crisis.

According to Padraig Walshe the EU market is still fragile and the market price does not always cover farmers' production cost.

"Producers suffered enormously during the deep EU-wide dairy crisis at the end of 2008, losing close to €10 billion in turnover in 2009. The EU market is still delicate and it is dependent on world market demand, which could change at any moment.

"A strong EU policy solution is consequently needed to prevent another crisis from occurring."

Walshe wants "safety net" systems that would deal with increasing market volatility.

He also wants to see EU competition rules being adjusted, to enable co-operatives and other producer organisations to grow and collectively negotiate, giving them a better position "in the food chain".

"Formalised milk delivery contracts, which can be voluntary, would also offer a certain degree of stability and predictability," he said.