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Belgian milk producers spray milk in protest over low prices - Source: Reuters
Dairy farmers sprayed about 3 million litres of fresh milk onto fields in Belgium, the latest high profile act in a European-wide protest over low milk prices.
Dairy farmers have blocked deliveries, held back supply and thrown away millions of litres of their produce as part of a campaign over what they argue is a failed liberalisation and milk quota system.
They blame both the European Commission and local governments and about 7,000 litres of milk was dumped in front of German agriculture ministry buildings in Bonn on Saturday.
After a price spike in 2007, global dairy markets have declined with European producer prices falling to lows of about 20 (euro) cents per litre. Most farmers say about 40 cents per litre is needed to cover costs and generate a basic revenue.
Leaders of the protests say they want the European Union to freeze planned increases in production quotas and on Wednesday they demanded the creation of a pan-European institution to regulate the demand and supply of milk.
"It is really sad that we have to throw away the milk," Romuald Schaber, president of the European Milk Board, said at a demonstration in Belgium where protesting farmers watched hundreds of tractors spew milk over fields.
"Our demands were not heard by the politicians."
Belgian, Dutch and German producers have also prevented trucks from entering distribution and storage sites, and have given milk away for free to win public support.
The protesting dairy farmers want to create a monitoring agency in which all actors in the milk market including the farmer, consumers and politicians are represented.
In Spain, however, leading farm unions have called off protests by dairy producers after they signed an agreement on July 20 with the government and wholesalers to use collective agreements to buy milk at indexed prices.
EU action
The European Commission, which is in charge of farm policy for the European Union's 27 members, denies its milk quota system, due to expire in 2015, is to blame for weak prices.
It has already taken steps to shore up dairy markets, including reinstating export subsidies and private storage.
The export subsidies have been a sore point for dairy farmers in New Zealand who have called for the removal of dairy subsidies.
The European Union is, by and large, a proponent of an open market and an EU official in Brussels earlier this month said it is hoped that agricultural subsidies will be addressed at the Doha round of WTO talks.
The European Union wants to see progress on the Doha round of trade negotiations, which stalled last year.
"The G20 should ... continue to press for progress in trade liberalisation, including with regard to a global, ambitious and balanced conclusion of the Doha negotiations in 2010, as agreed at (the) G8 summit in l'Aquila," the document said.
The World Trade Organisation has urged for a renewed pledge by countries to respect free trade, saying protectionist policies could hold back the recovery.
Meanwhile, dairy farmer groups in Europe said about 40% of France's 90,000 producers were taking part in the strike, and that it was starting to hit manufacturers. France's main farm union FNSEA played it down, putting participation at 10% at most.
A spokesman for French dairy farmer group OPL, citing comments from dairy employees, said some processors planned to suspend production lines while others were seeking deliveries from abroad.
Protest leaders said falling milk prices have left many farmers facing bankruptcy.
"The more we work, the harder it is to pay our suppliers. It is just too difficult," said Anne Marcel, a French dairy farmer, choking back tears.
