Farmers Urged to Cooperate With Supply Chain12 November 2012
CZECH REPUBLIC - With the abolition of EU milk quota set for 2015 there are fears that Czech milk production will drop and potentially struggle in a pressurised European milk market.
"The Agricultural Association is against the abolition of quotas," said Mr Pride Chairman of the Agricultural Association.
"However, we are realists, and it makes no sense to promise something that is hard to deliver."
He added that he had started a cooperation deal with the Food Chamber. Concluding long-term mutually acceptable agreements. It is Mr Pride's view that these agreements could benefit farmers and dairies. Breeders also recommended the strengthening of sales organizations.
The national annual quota is 2.8 billion litres and remains one of the last self sufficient sectors in Czech farming. Although the country does import milk, a net profit is achieved on the volume exported elsewhere.
"The nation's milk cheque often represents the biggest income made from farm sales. Recently however, due to lower prices, farmers now get just over seven crowns per litre meaning dairying output has taken a hit," said Mr Ludek, of Agricultural Cooperatives.
A combination of low prices and cancellation of quotas will be detrimental to us," added Mr Ludek
Thomas Kreutzer, chamber director, said "The state should help to further the promotion of Czech products and promoting exports."
The new regulation, which is based on the EU dairy package, aims to strengthen the bargaining position of farmers. According to Mr Pride this package also opens other possibilities that need to act.
TheCattleSite News Desk