A new Irish-Dutch scientific study highlights that it is especially cooperatives that have a "high market share" of more than 50% in the Scandinavian countries, as well as in Ireland, the Netherlands, France, and Austria. These large dairy farmers are able to withstand price fluctuations in the European and international dairy markets.
Small farms, in particular, are expected to face difficulties in the coming years. The study was conducted by scientists from the Irish agricultural institute Teagasc and Dr. Ir. Roel Jongeneel of Wageningen University & Research (WUR).
The study report was prepared for the Agricultural Committee of the European Parliament and not only considers the development of dairy farming in recent years to the present but also provides recommendations for the coming years. For instance, it notes that the number of dairy farms in EU countries has increased due to the accession of new EU member states, and that total production has increased as a result of the abolition of milk quotas.
However, the dairy sector across Europe has also undergone a number of “structural” changes over the past twenty years, including: a significant reduction in the number of dairy farms; a general increase in the average size of dairy farms; and a prolonged decline in the number of dairy cows. In several EU countries, the development of the dairy sector remains considerably behind, as the new figures reveal.
The researchers emphasize that environmental policy—both at the EU level and within the EU countries—“exerts an ever-growing influence” on the dairy sector. “Reducing greenhouse gas emissions and improving water quality increasingly impact the EU dairy sector and are already as important, if not more important, than the Common Agricultural Policy (CAP) in some member states.” Such obligations risk confusing, alienating, and discouraging farmers, the authors state.
Looking ahead, it is pointed out that dairy farming will continue to require financial support from the EU’s Common Agricultural Policy (CAP), and that the EU must introduce ‘instruments and incentives’ (i.e., financial compensation) to reduce manure surpluses and lower greenhouse gas emissions. It is even suggested to implement a kind of CO2 tax and an accounting system for nitrogen rights, similar to the current emissions trading system for large industrial companies.
Within EU administrative and political circles, initial exploratory discussions are already underway and plans prepared for a new Common Agricultural Policy for the period 2025-2030. Following the European elections in June, new coalition agreements will need to be made in the new European Parliament, which the new European Commission, starting in 2025, will implement.