The European Milk Board has warned that milk prices could face a sharp collapse if Europe does not act quickly to curb volumes. The warning was delivered on Monday in Brussels as the group pressed member states to back voluntary supply reduction measures before the situation worsens. The issue is now moving into the political spotlight, with Irish farm leaders calling on Minister for Agriculture Martin Heydon to clarify Ireland’s position.
EMB says pressure on volumes is now severe
European Milk Board president Kjartan Poulsen said the situation is unlike anything the organisation has seen in this form. He said the signals are clear and that if no action is taken now, Europe is heading straight into a milk price collapse.
The EMB said the seriousness of the situation has been acknowledged in many member states, but several key countries are still blocking decisive action at European level. Vice-president Boris Gondouin singled out Germany, France and Denmark, saying those who hesitate are knowingly accepting another price crash and major farm losses.
The group is pushing for a voluntary milk reduction scheme that would pay suppliers a defined amount per litre not to produce milk for a limited period. Its aim is to reduce volumes in the short term and prevent a further drop in prices.
Poulsen said that if food security in Europe is taken seriously, stable producer prices must be protected and that the first step is to reduce volumes. He said that is the only way to secure a future for the next generation of farmers.
Irish farm leaders press for a clear answer
Irish Creamery Milk Suppliers Association president Denis Drennan has asked Minister for Agriculture Martin Heydon to say whether Ireland will support an EU-wide voluntary supply reduction scheme at the Council of Ministers meeting scheduled for Monday 27 April in Brussels. Drennan said he understands through EMB sister organisations that seven member states are already backing the plan.
He said dairy farmers are being hit by surging input costs and milk prices that remain below the cost of production. He added that while milk base prices have risen this month, the increase is still not enough for farmers to break even or make a decent living.
Drennan pointed to the voluntary supply scheme introduced in 2016, saying it succeeded because it produced a measurable reduction in supply, forced buyers to buy forward immediately and helped trigger a recovery in milk prices that stabilised primary production.
What the proposed scheme would do
The scheme under discussion would give milk suppliers a financial payment per litre to voluntarily reduce output for a defined period. Supporters say that would send a signal to the market that supply is tightening and could help restore balance before prices fall further.
The EMB is urging governments to back the measure now rather than wait for a deeper crisis. The organisation says delay would increase the risk of another price crash and more farm closures.
What happens next
The immediate focus is the Council of Ministers meeting in Brussels on Monday 27 April, where Ireland’s position may become clearer. For dairy farmers watching prices and volumes closely, the next move could determine whether milk markets stabilise or face the collapse the EMB is warning about.
