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Sunday 27 May RNW - News and analysis from the Netherlands in 10 languages, worldwide 24/7 on radio, television and online

EU not to raise milk price

Published on 7 September 2009 - 8:51pm
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The European Commission has refused to intervene to guarantee a higher price for milk produced by farmers in the European Union. Countries including France and Germany were pushing for intervention but other countries and the commission were against.

 

They believe it is best to keep to present policy aimed at allowing market forces to do their work. The European Commission may be prepared to offer temporary assistance to dairy farmers and raise the price they receive for milk.

 

 

 

photo: flickr/mjk23
 

  • flickr/mjk23

Discussion

Hiram 7 September 2009 - 10:25pm
"They believe it is best to keep to present policy aimed at allowing market forces to do their work." They, the EU, aren't talking about "market forces" doing their work. If they, the EU, are concerned about the market forces they wouldn't set the milk prices. Setting the price of milk is an anti-market force. If a farmer can't charge an increase after an increase in prices such as feed, fuel. labour, etc. then the farmer has to go out of business. Farmers can't stay in business if their cost or expenses are more than their profit. The EU is trying to keep the prices down in order to protect the public but in the long run, the system fails because there aren't any private dairy farmers. What you see are the state own farms. Then the public becomes the losers and the members of the political party become the winners.

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