Milk and milk products

The dairy sector is of great importance to the European Union (EU) in a variety of ways. Its most striking feature is that milk is produced in every single EU Member State without exception. Dairy is the most prominent sector in many regions of the EU, often regions of particular value for their landscape and environment (e.g. mountainous areas). Dairy farming has helped to shape those landscapes. Dairying therefore has an importance that goes far beyond simple statistics. Dairy farming gives many rural areas their distinctive character, and a thriving milk sector is important for the economy and employment.

The dairy market situation has deteriorated dramatically since mid-2008. After a price spike in 2007 alongside the high food prices in general, prices have dropped substantially affecting dairy producers' income. This has triggered substantial unrest amongst dairy farmers with many demonstrations.

The Commission rapidly recognised the seriousness of the dairy market situation and decided on a pro-active support policy.

Press releases

19/01/2010: € 18 million EU support for the promotion of dairy products
04/12/2009: Milk: Agreement reached on distribution of additional €300 million for dairy farmers
28/10/2009: Commission temporarily allows Member States to pay farmers up to €15,000 in state aid

20/10/2009: EU extends intervention period for butter and skimmed milk powder
09/10/2009: Commission adopts latest proposals to support dairy farmers
05/10/2009: High Level Group to look at long-term future of dairy sector
17/09/2009: Commission proposes further measures to help dairy sector in the short, medium and long term
22/07/2009: Commission proposes measures to stabilise dairy market

Reports

The Commission report "Dairy market situation 2009", published in July 2009, describes the dairy reform process up to the CAP Health Check. It contains:

an EU and international market situation analysis,
a summary of Commission market support measures,
a description of other instruments available to the Commission and the Member States within existing legislation,
options for further action and discussion.

Quarterly reports on the dairy markets

December 2009 [pdf]
October 2009 [pdf]

High Level Expert Group on Milk

The High Level Expert Group on Milk (HLG) was established by the European Commission to look into the medium and long-term future of the dairy sector, particularly in view of the phase-out of milk quotas, which will be concluded in April 2015. Its work runs in parallel to the measures the Commission is introducing to stabilise the dairy market in the short term. The HLG is chaired by Jean-Luc Demarty, the Commission's Director-General for Agriculture and Rural Development, and Member States are represented by senior officials. Meetings are scheduled to take place once a month, and the HLG will issue its final report by the end of June 2010.

The HLG is invited to discuss the following items, although this list is not necessarily exhaustive:

Contractual relations between milk producers and dairies to better balance supply and demand on the dairy market
What can be done to strengthen the bargaining power of milk producers?
Are the existing market instruments appropriate?
Transparency and information to consumers, quality, health and labelling issues
Innovation and research with a view to making the sector more competitive
A possible futures market in dairy

Press releases

1st meeting (13/10/2009) Also available in