Milk prices in EU are rising, greek producers can’t benefit from it

greek milk production can't benefit from EU price rise

It seems that greek producers can’t take advantage of the latest positive developments in milk prices, as experts of the greek market have noted to Agrotypos. While prices in Italy and the Netherlands are rising lately, it seems that in the Greek market, the current situation is looking that a price stabilisation is more probable. As Mr. Athanasios Vasilekas, President of the Holstein Association of Greece said: “there is a positive development in European prices, nevertheless in Greece we remain under the psychological milestone of 38 cents per kg. Greek producers have also to tackle with high production costs, compared with other European milk producers. Futhermore, Mr. Christos Apostolopoulos, President of the Greek Dairy Industries Association thinks that the latest rice in european milk is a result of the supply reduction measures announced by the European Commision.As European Milk Market Observatory states: “EU milk collection was up by
3.3% in the first half of 2016. Milk deliveries were 2% lowerin June2016 (-273 000 t)-
first month with a reduction since quota expiry.The Netherlands and Ireland still reported a combined increase of some 90 000 t. Provisional data points to a further contraction in July.

These figures relate to milk collection, i.e. milk collected by dairies and reported by the
latter to their national authorities, irrespective of whether milk comes from producers
located in the same MS or in another one.

As MMO also notes, “The  Commission  depicted  the  main  elements  of  the
July  support  package,  with  a  special  focus  on  the  milk production reduction
scheme. Experts  shared a  general  consensus on  the improvement   of   market   conditions,   once   the adjustment in supply has started to materialize”.

Mr Vasilekas remarks: “In September we had a small rice price in greek milk market, from 37,5 cents to 38 cents per kg. In the meantime, Greek producers are facing difficulties that their european colleagues don’t. For example Polish milk producers don’t have to pay so much taxes, neither do they have to tackle with a rise in their insurance contributions”.

“Greek milk market is a different king of thing compared to other european markets. It is difficult to see a radical change, either a positive, or a negative one. We have been witnessing lately an optimism in the EU market, something we can’t explain in terms of figures and statistics, that is why I don’t think this rise will last in the long term”, Mr. Apostolopoulos, President of the Greek Dairy Industries Association remarked.

You can read here the conclusions ot the MMO board meeting that took place on September, 6th

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