Copa and Cogeca has underlined the critical situation of the EU milk market in a meeting with the EU Commission this week, warning that producer prices are below production costs and action is vital.
Chairman of the Copa-Cogeca Milk Working Party Mansel Raymond warned: "Today we have low prices across the EU, with farmers producing milk at below the cost of production leading to severe cash flow problems, and some of the members in the working party have warned they could go out of business unless action is taken."
Mr Mansel went on: "Given these difficult times, EU measures to help manage the market - EU public intervention and private storage - must also be more efficient. An increase in the EU milk intervention price must be seriously looked at."
Members of the Working Party believe that extreme market volatility remains an issue to be addressed. Several systems have been analysed by the Working Party ranging from the Margin Protection System in the US, futures markets, fixed price contracts, and flexible contracts (A and B-type payment), but further investigation is needed.
Market round-up
Lawrie & Symington Ltd sold 257 store continental heifers in Lanark on Tuesday to a top of 278.5p per kg and an average of 216p, while 50 store, native-bred heifers peaked at 221.8p and levelled at 204p. Three-hundred-and-twelve store, continental bullocks sold to 282.6p and averaged 230p, while 77 store, native-bred bullocks peaked at 248.5p and levelled at 216p. Forty-five store, dairy-bred bullocks sold to 222.6p and averaged 172p.
Messrs Craig Wilson Ltd sold 476 prime hoggs in Newton Stewart yesterday to a top of £91 per head and 190p per kg to average 174.1p (-2.8p on the week), while 209 prime lambs peaked at £96 and 218p to level at £88.20 and 203p (+5.6p).
There were also 167 cast sheep forward when ewes sold to £118 for TexelXs and £84 for Blackfaces.
The Cumberland and Dumfriesshire Farmers Mart sold 21 prime heifers in Dumfries yesterday to a top of 221.5p and an average of 194.3p.
There were 60 OTM cattle presented in the rough ring when beef cows averaged 130.6p and dairy cows levelled at 105.2p.
The firm also sold 274 prime hoggs to a top of £107.50 and 188p to average 174.3p (-2p), while 112 prime lambs peaked at £93 and 220p to level at 205.6p (-0.3p).
The 281 cast sheep forward saw heavy ewes sell to £157.50 for Texels and average £92.53 (+22p), and light ewes peak at £94.50 for Lleyns and level at £73.38 (+77p).
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