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Dairy Cooperatives Praised for Role in Better Milk Pricing

01 July 2016

EU - Faced with low dairy prices and rising volatility on agricultural markets, President of European farming organisation Cogeca Thomas Magnusson said dairy cooperatives have a crucial role in enabling farmers to get a better price for their milk.

Speaking at a Cogeca Presidency Business Forum on Dairy Cooperatives event in Brussels, Mr Magnusson said: “We are facing a serious crisis on the EU dairy market, with prices more than 40 per cent down on levels seen two years ago and volatility increasing.

"It is consequently essential to encourage the development of dairy cooperatives as they help farmers to secure a better price for their produce and reduce the price volatility."

Cogeca said this was confirmed by a recent study carried out by the EU Commission which found that: “A large market share for cooperatives in a particular sector or country, can increase the price level and reduce the price volatility, as is currently the case in the dairy sector”.

Mr Magnusson continued: “Dairy cooperatives offer unique economic benefits to their farmer members, as they provide market outlets, more competitive buying prices and secure revenues, as well as more favourable long term perspectives.

"The examples presented today, demonstrate that cooperative governance is key to dairy cooperatives. Even the largest international and transnational dairy cooperatives, have well developed governance structures, which ensure that their farmer members are heard and that they maintain control on decisions affecting their transactions.”

TheCattleSite News Desk

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