The efforts of dairy companies to reduce the price of cow’s milk to farmers at the same time as the price of it available on the “shelf” of supermarkets continues to rise, are brought to the fore by the Greek Holstein Breed Association and the Hellenic Livestock Association (SEK).
In particular, as the Holstein Breed Association of Greece points out in its announcement, “from the payment of the milk produced in December 2022, a reduction (de-escalation, as their executives call it) of the offered price of milk to the producer is carried out by the dairy industries”.
According to the cattle breeders, while the price increases in key areas of production (energy, medicines, disinfectants, animal feed, etc.) happened in a very short period of time, and had actually started well before the start of the Ukrainian problem, the price increase was excruciatingly slowly, until it reached the highest levels in December.
“That is, levels that allowed the survival of the units, of those who of course endured all these trials and managed to stay in the market. Without de-escalation, of course, in the high cost prices for production, which are here to stay from what it seems, a price reduction is beginning which we are very afraid will not lead again to the well-known precarious day-to-day existence”, emphasizes the Holstein Breed Association.
What is the reason for the price reduction?
To the question of what is the cause of the price reduction, according to the cattle farmers, “the dairy industries, for the most part, invoke a reduction in consumption. They also say that the situation with feed and energy prices will normalize.
They are right about the first one. As for the second, they obviously have divinatory abilities. But the fact is that the prices of the basic types of animal feed (silage, corn, grain), at least until September 2023, are not going to decrease for producers, because supplies were made all this time at the particularly high prices that exist today” .
Intense reflection
The same reduction in the producer price is beginning to be seen in goat and sheep milk, the SEK points out, stressing that livestock farmers are at a critical juncture for the continuation of their production activity.
“The difference between the producer price and the shelf price is chaotic. We are sounding the alarm of danger for the extinction of Greek livestock, with a reduction in livestock and cessation of activity. Let processors and supermarkets also consider whether they will be profitable without milk. Let the government consider that agricultural production will be driven without producers”, emphasizes SEK, demanding real support for livestock farmers: “Support with an additional 70 million euros beyond the 89 that have been planned is necessary. Let the controls against profiteering at the expense of the producers be strengthened and finally let the Agriculture Ministry complete the process of control mechanisms through the “ARTEMIS 2” [compensation program].
