Re: Brexit and Britain irrelevant?

Over production used to be a weekly comedy moment on Thats Life every Sunday in the 80s. Remember the EEC butter mountain being turned into a ski slope ?

We call it the CAP ... another epic failure

Re: Brexit and Britain irrelevant?

The EU doesn't interfere in milkprices anymore, it's traded on wtc terms, and guess what?

Belgian dairy farmers occupy highways. In Germany angry farmers went to a large dairy company with their tractors. British cow farmers protested at milk factories. French farmers continue to block tourist routes. There is no riot in the Netherlands, but here too it sounds, when asked: it is a crisis.

Re: Brexit and Britain irrelevant?

Ironically, that was the left's (including Corbyn's) reason for opposing this aspect of the EU - it's a capitalist market, where production is for profit and not for need.

(It's what Karl Marx called a "crisis of overproduction").

Re: Brexit and Britain irrelevant?

To complete the dream of trade on wto terms.

The average price that farmers receive for a kilo of milk (farmers count with kilos) is now around 30 cents in Europe. That is almost a quarter less than the price they received in 2014 for a kilo of milk.

And the decline continues. For example, farmers who are affiliated with FrieslandCampina, the largest cooperative in Europe that pays above average, will only receive 28.5 cents next month. Far below the cost price, which in the Netherlands is around 42 cents per kilo. European subsidies included.

One reason for the fall in the milk price is the abolition of the milk quota, which took effect on 1 April 2014, which for more than thirty years in Europe reduced supply, and therefore a stable and artificially high milk price. Yet the farmers wanted to get rid of it: they saw demand, especially outside of Europe, increase and thought they could benefit from it.

This has not been achieved so far. European farmers have started to keep more cows and produce more milk - just like the United States and New Zealand. Demand from emerging economies, however, declined. Chinese imports from the Netherlands almost halved in the first four months of this year. Economic growth in China is disappointing and the country itself is also trying to meet the increasing demand for dairy.

In addition, the Russian trade boycott, which has banned all imports of European dairy since last July. A big blow: in 2013 European exports of dairy products to Russia were still 2.3 billion euros. Before the boycott, 2.5 percent of Dutch dairy went to Russia.

More supply and less demand. And the balance sheet is not expected to recover this year. Also because stocks of milk powder are starting to accumulate. Rabobank, with at least EUR 12 billion a major lender for Dutch dairy farmers, believes that the milk price will fall even further this fall. The bank advises farmers not to fall short of liquidity problems, but to request a delay in repayment.

Farmers were already warned. By releasing the milk quota, the price would float more on the world market and become more volatile. One war or drought, no matter how far, can already have an effect on the milk price. To cope with the fluctuations, farmers have to work with more reserves.

"There is no tap on a cow," says Kees Romijn of the agricultural and horticultural organization LTO. "You can't suddenly produce less." So, in a difficult year, there is nothing left to do but postpone investments and capitalize on capital. "But the liquidity of dairy farmers is starting to dry up. They will run into problems in the coming six months. "

Re: Brexit and Britain irrelevant?

Re: Brexit and Britain irrelevant?

That explains why they are against condom use, even if it prevents aids. They themselves are celibatair, naturally.

Re: Brexit and Britain irrelevant?

Ha! ha! - you could well be right.

Re: Brexit and Britain irrelevant?

If African countries don't want the food at highly subsidised rates Julie then IMO we shouldn't be too quick to send it to them. See how long it would be before there is even more death and suffering from famine and disease amongst the poor. African countries import about 80% of their food (according to the article you quote). Do you think that African producers could produce that amount and be able to export to other countries. They would not sell their produce to their own people for next to nothing. Many people would be too poor to be able to afford it. A lot of what goes on in African countries is really a catch 22 situation IMO. You think the EU is corrupt. The EU can't compare with what goes on in many African states where life is still oh so cheap. Think Mugabe - would you want to do a trade deal with him and be confident the traded goods wouldn't end up corrupt and in the hands of the few rich and powerful rather than the country's population