Voluntary reduction preferred, says German co-op group
“Anyone, who demands an EU-wide reduction in milk deliveries in order to face the consequences of the coronavirus crisis, misunderstands the current legal framework. Instead a realistic view of the political options for action is necessary,” warns Franz-Josef Holzenkamp, the president of the German Raiffeisen Federation (DGRV), the co-operative federation for German co-operatives (pictured).
A voluntary reduction in quantity by milk producers against payment of compensation can only be considered, if other measures available under European market law prove to be inadequate. The market organisation simply does not provide for a mandatory volume reduction, Holzenkamp finds.
Both routes would also take a very long time, which precludes short-term market support. Instead, according to the DRV, the private storage instrument for dairy products should now be used immediately. In this way the problems, with which parts of the market are struggling, can be dealt with more quickly and easily.
The DRV also rejects external political guidelines for quantity control between milk producers and their dairies. “Here, the individual dairy co-operatives are responsible for their own responsibility and in consultation with their members to manage the delivery quantities,” Holzenkamp said.
