Home/Measures taken to bring the price of milk back up

Measures taken to bring the price of milk back up

The milk market is in turmoil. After months of protests, objections and outcries from trade associations (see clash between French farmers and the dairy giant Lactalis, which has even had consequences in Italy with Coldiretti), the price of milk has finally started to rise again. Merit for this should be attributed to good performance from world exports as well as a decrease in production. In Italy, price lists of PDO products have slowly started to rise again, as anticipated by Coldiretti, with a positive reaction from Parmigiano Reggiano and, following more slowly, Grana Padano.

Another factor which should positively influence the recovery is the procedure – to be initiated in the near future – to employ 500 million from extraordinary funds assigned by the European Union to the 28 member states (Great Britain included) to control production.
Part of the European aid is aimed at managing stock in order to prevent another fall in prices. The objective is to take global production factors into consideration, from food to energy.

Butter and powders are rebounding both in Europe and Oceania where a real programme to cull dairy cows is underway in order to control production; in the Australian state of Victoria alone weekly sales of cows to the slaughterhouse are currently around 700 units. However, for now there is uncertainty regarding price lists in the United States, a country in which prices of raw milk paid to milk producers, whey powder and skimmed milk powder are rising but the latest prices for butter, cheese and whole milk powder are tending to decrease. It is not ‘raining money’ for the Americans as it is for the Europeans, but the States is relying on a plan to relaunch consumption in schools and a food education plan alongside policies to support those in need.

A gradual increase in production is expected in Africa although not in the immediate future due to the unstable political conditions afflicting various countries. An increase in production will provide opportunities for innovation and technology, including Made in Italy products.