1. Dairy market and EU policy developments
Mansel RAYMOND, Chairman of Copa and Cogeca Working Party on Milk and Dairy Products|
Marketing dairy cooperatives, , Chodov,
Czech Republic

2. Outline What are Copa and Cogeca? Milk production – world and EU
World and EU demand and exports
Milk and dairy commodities price evolution
Copa & Cogeca’s requests
Prospects world production and demand

3. What are Copa and Cogeca?

4. What are Copa and Cogeca?
Fighting
for a
sustainable,
innovative and competitive
agriculture
COGECA
1959
22,000 European agricultural cooperatives
COPA
1958
23 million European farmers and family members

5. What are Copa and Cogeca? – cont’d

6. Dairy cooperatives 58% of the market share at EU level
add value to their members and members’ product
an important link in the milk supply chain
ensure market access for their members
add vitality to the local economy and environment, including in areas facing natural handicaps.
help their members coping with market volatility and provide a better price on the condition that they have a large market share in a particular country.

7. Milk production – world and EU
What are Copa and Cogeca?
Milk production – world and EU

8. World milk production
Source: DG AGRI

9. EU milk production
Source: DG AGRI

10. World and EU demand Milk production – world and EU
What are Copa and Cogeca?
Milk production – world and EU
World and EU demand

11. World demand
Source: DG AGRI

12. World and EU exports
Source: DG AGRI

13. Sales of dairy products at retail level in the EU
Source: DG AGRI

14. Milk and dairy commodity
What are Copa & Cogeca?
Milk production – world and EU
World and EU demand
Milk and dairy commodity
price evolution

15. World milk price evolution

16. World dairy commodity prices

17. In summary: Global demand has been mixed
SouthEast Asia, Mexico, Africa - good
stagnating global economic growth: weak commodity prices (oil prices), declining capital and investment flows into developing and emerging markets
+ Russian ban, China?
But there are positive signs.
Increasing world production starting with 2014, stocks?
Significant increases in domestic use of dairy products but not for liquid milk
Depressing milk and dairy commodity prices and severe cash flow difficulties for farmers
but dairy commodity prices recovering since June

18. Copa & Cogeca’s requests
What are Copa and Cogeca?
Milk production – world and EU
World and EU demand
Milk & dairy commodity price evolution
Copa & Cogeca’s requests

19. Copa and Cogeca requests First package of measures (September 2015)
Farm income, cash flow:
advancing direct payments
ensuring the return of the super-levy back to the sector
keeping open the public intervention and PSA for butter and SMP
allowing the PSA for cheeses
reviewing the intervention price for butter and SMP
increasing the promotion budget

20. Copa and Cogeca requests First package of measures (September 2015) – cont’d
New market opportunities
alternative markets + SPS and anti-dumping measures
Cover the risk with new markets, through credit export insurance
Food chain
continuity of the milk package beyond 2020
define abusive practices at EU level
+ a comprehensive toolbox to cope with exreme market volatility

21. Copa and Cogeca requests Second package of measures (February 2016)
Farm income, cash flow:
Simple financial instruments (help farmers maintain their investments and refinance their loans)
Reduce the cost of inputs by removing import duties, especially for fertilisers, machinery, and other production factors
Grant flexibility with business plans in the second pillar, state aid, and adjust the ceiling for de minimis aid
Promote flexible and dynamic risk management tools
Temporarily increase the intervention price for SMP and butter

22. Copa and Cogeca requests Second package of measures (February 2016) – cont’d
Trade issues
Re-open the Russian market
Accelerate negotiations with Japan, support TTIP (markets in development, focusing on value-added products)
Credit export insurance and promotion
Food chain
Better functioning food chain (price transparency, preventing delays in payment, curbing unfair trading practices)
Voluntary production initiatives: Article 222 of the single CMO

23. Copa and Cogeca requests Third package of measures (July 2016)
The priority: farmers’ liquidity
A new package of measures to support the sector, using additional funds without affecting the crisis reserve
New markets + export credit insurance/guarantees

24. In the near future There is still need to tackle:
The open question of origin labelling for milk and dairy products
The reinforcement of the milk package (contract terms, collective negotiation)
A toolbox to cope with market volatility
Unfair commercial practices

25. Prospects world production and demand
What are Copa and Cogeca?
Milk production – world and EU
World and EU demand
Milk & dairy price evolution
Copa and Cogeca’s requests
Prospects world production and demand

26. Medium-term prospects for world milk production

27. Medium-term prospects for world dairy demand

28. THANK YOU VERY MUCH!