Latest news with #KjartanPoulsen
Agriland
3 days ago
- Business
- Agriland
Call to sustain position of milk producers on World Milk Day
As World Milk Day takes place tomorrow (Sunday June 1), the European Milk Board (EMB) is reaffirming its call for sustainably strengthening the position of milk producers in the food chain. The board has said that fair and adequate remuneration for dairy farmers is the only way to secure the future of the European dairy sector in the long-term and to ensure the supply of high-quality milk products to the population. EMB president Kjartan Poulsen said: 'World Milk Day is an important occasion to recognise the hard work of our dairy farmers and, at the same time, to draw attention to the ongoing challenges in the sector. 'Without the right reforms, the existence of many farms remains under threat. It is high time that politicians create framework conditions that enable cost-covering prices and guarantee that producers are adequately remunerated for their valuable work.' Milk producers The EMB sees the Common Agricultural Policy (CAP) of the EU as a key instrument for improving the producer position. Against the background of World Milk Day, the EMB has drawn up reform proposals for the CAP and the Common Market Organisation (CMO), which aim to increase market stability and give farmers a stronger negotiating position. The EMB's current reform proposals for the CAP/CMO include: Integration of crisis instruments that have a preventive effect and are triggered early in the event of market imbalances. The aim is to avoid extreme price fluctuations and losses with instruments like the Market Responsibility Programme; Strengthening the collective bargaining power of producers by promoting producer organisations with a pooling limit of 30% across the EU. This is intended to enable farmers to achieve fairer prices vis-a-vis the stronger processors and retailers; Introduction of mandatory criteria – such as the prohibition of prices below costs – for fair trading practices along the value chain. This is intended to prevent unfair competition and the exploitation of market power; Obligatory contracts with the appropriate clauses to promote fairness between producers and processors; Integrating processing cooperatives into this market framework – with all its rights and obligations. 'The current discussions about the future direction of the CAP offer a decisive opportunity to set the course for a more resilient and fairer milk market,' Poulsen continued. 'It is of paramount importance that policymakers set a clear focus on empowering producers and are not swayed by other interests. The future of the European dairy sector depends on it.' The EMB has appealed to policymakers at national and European level to implement these reform proposals in the interest of milk producers. The board said that this is the only way to achieve the goal of strengthening the producer position along the chain and to ensure the sustainable production of high-quality milk in Europe in the long-term. World Milk Day World Milk Day is celebrated each year on June 1 and is about supporting nutrition, health, and economic resilience around the globe. World Milk Day is described as a movement that highlights milk as a vital, accessible food source that nourishes billions. Tomorrow (Sunday, June 1) marks the 25th anniversary of World Milk Day, with this year celebrating the power of dairy as a nutrient-rich food and an important part of healthy, sustainable diets. Along with calcium and protein, milk is rich in iodine and vitamins B2 and B12, while also providing potassium and phosphorus. Chief executive at the Dairy Council NI, Ian Stevenson commented: 'Milk is a naturally nutrient-rich choice that supports active lifestyles and healthy diets. 'Today, we raise a glass in appreciation of our local dairy farmers and processors and their vital role in producing wholesome, nutritious food for communities here in Northern Ireland and across the world.'
Irish Examiner
05-05-2025
- Business
- Irish Examiner
Farm View: Europe's dairy mega-merger risks weakening farmer power
Europe's new dairy co-op giant, after the Arla-DMK merger, will not be welcomed by some dairy farmers on the continent. Co-ops have ceased to be the representatives of producers' interests they claim to be on paper, said Kjartan Poulsen, an Arla member, but also the president of the European Milk Board, which represents tens of thousands of dairy farmers through its 21 member organisations in 16 European countries (including ICMSA in Ireland). "Co-operatives in their current form neither live up to their responsibility nor meet the standards they themselves set out," said Poulsen. He said obligatory contracts between agricultural producers and processors were currently being discussed at EU level, as an instrument for fair and transparent prices paid to farmers, but co-ops regularly demand exceptions to this obligation. And he said co-op members also lose out because they cannot be represented by producer organisations to fight for higher prices. Meanwhile, co-ops cover large EU market shares, and the new giant Arla and DMK are creating is a prime example of this, said the EMB president. "So, if co-operatives are exempted from contractual obligations, this means that a large part of the market, and thus the problem, is not covered. Fair prices and transparent contracts remain an illusion at the expense of producers." The proposed merger of Arla Foods, which is based in Denmark, and Germany's DMK Group will unite more than 12,000 dairy farmers in Europe's largest dairy co-op. With members in Denmark, Sweden, the UK, Germany, Belgium, Luxembourg and the Netherlands, the new group would have a combined annual revenue of about €19bn (based on Arla's €13.8bn and DMK's €5.1bn in 2024). Arla and DMK believe the merger will provide resilience during the anticipated decline of the European milk pool. The European Commission predicts the EU dairy herd shrinking 13% by 2035, compared to the 2021-2023 average, and says EU milk production could decline 0.2% per year up to 2035. The merger is subject to regulatory approval and the backing in June of the board of representatives in each co-op. Kjartan Poulsen warned of a systematic weakening of democracy in co-ops, interfering with their goal to support the economic situation of members. He said individual members do not have the legal or economic knowledge, time or structural resources to really shape decision-making. Many co-ops are run by management rather than members, who are often only involved via representative assemblies, according to the EMB president. "Crucial lines of business such as marketing are often outsourced, making control even more difficult." Many farmers are dependent on their co-operative as a buyer — criticism threatens their livelihood. He said there was a particularly clear conflict of interest in the dairy sector between co-ops procuring the cheapest possible raw materials (low milk prices) and fighting for good milk prices paid to their members. He called for contracts between producers and buyers, which have been put on the table by the European Commission, to apply equally to co-ops and other processors. He also called for members to have the possibility to be represented by producer organisations within co-ops. The EMB has long campaigned for a milk price that covers the average milk production costs, and a crisis prevention instrument to prevent over-production of milk.
