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Feds blame EU milk subsidies
BY MICHELLE NELSON
MICHELLE.N@THEGUARDIAN.CO.NZ
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Dairy prices fell again in the latest GlobalDairyTrade auction, dragged down by over-supply from Europe for the third consecutive time. Federated Farmers’ dairy spokesman Andrew Hoggard, who was in Ashburton yesterday to attend DairyNZ’s People Expo, said the news had the sound of a “broken record”. He said the removal of the quota system in Europe last year was hurting New
Zealand farmers – who were the only farmers in the world to have dropped production in the face of an over-supply on the global milk market. “Both Europe and the US have increased production,” Mr Hoggard said. The removal of the European quota system as a first step toward deregulation of the dairy industry was healthy, but no move has been made to address subsidies still in place to protect farmer incomes. “The European quotas were in place
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to prevent this (over-supply), but they took them off without looking at the subsidies,” Mr Hoggard said. “That was supposed to be the next step.” Anecdotal reports indicated up to 40 per cent of EU farmers’ income can be attributed to subsidised production, he said.
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