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15 November 2016 | Press Release 19/2016

Milk, Market and Power: Who Influences the Milk Price?

IAMO will host forum event at this year’s EuroTier in Hanover

Since the turn of the millennium, EU reforms liberated the dairy market systematically. Price support instruments such as intervention pricing for milk powder and butter as well as export subsidies no longer exist. The dairy market is now subject to supply and demand in a free market. As a result, the milk prices fluctuated between extremes of low and high prices. Since the abolishment of the EU milk quota system in April 2015, the milk price has dropped drastically in value. On the raw milk market, tens of thousands of dairy farmers offer perishable raw milk to about one hundred dairies. Dairies then sell their products mainly to a handful of retailers. At first glance, the bargaining power seems clearly distributed. However, in the public the influence of these bargaining positions on the pricing of dairy products is debated controversially.

In the light of this controversy, IAMO and the German Agribusiness Alliance of the Committee on Eastern European Economic Relations (OA) will host the forum event on ‘Milk, Market, and Power: Who Influences the Milk Price?’ at the EuroTier in Hanover, Germany, on 17 November. The forum event aims to give an overview on recent development on the milk market for the interested public and to discuss issues involving the production, processing and marketing of milk and dairy products with experts of the field. IAMO scientist Aaron Grau will open the event by explaining recent price trends on the part of consumers and producers. Then, Prof. Dr. Sebastian Hess from Christian-Albrechts-Universität zu Kiel, Ludwig Börger from the German Farmers’ Association (DBV - Deutscher Bauernverband e.V.), and Romuald Schaber from the German Dairy Farmers Association (BDM - Bundesverband Deutscher Milchviehhalter e.V.) will discuss who influences the milk price significantly and which future developments on the milk market can be expected. Prof. Dr. Jens-Peter Loy from Christian-Albrechts-Universität zu Kiel will host the discussion.

EuroTier is the world’s leading trade show for animal husbandry and livestock management. The trade fair’s program consists of numerous conferences, lectures and panel discussions alongside 2,300 exhibitors from more than 100 countries. EuroTier is organized by the German Agricultural Society (DLG – Deutsche Landwirtschafts-Gesellschaft) and takes place at the fair grounds Hanover from 14 to 18 November 2016.

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EuroTier 2016 – ‘Milk, Market and Power: Who Influences the Milk Price?’
17 November 2016 | 10:00 – 10:45 am
Fair grounds Hanover, Germany | Cattle Forum | Hall 12 | Stand H 20

About IAMO

The Leibniz Institute of Agricultural Development in Transition Economies (IAMO) analyses economic, social and political processes of change in the agricultural and food sector, and in rural areas. The geographic focus covers the enlarging EU, transition regions of Central, Eastern and South Eastern Europe, as well as Central and Eastern Asia. IAMO works to enhance the understanding of institutional, structural and technological changes. Moreover, IAMO studies the resulting impacts on the agricultural and food sector as well as the living conditions of rural populations. The outcomes of our work are used to derive and analyse strategies and options for enterprises, agricultural markets and politics. Since its founding in 1994, IAMO has been part of the Leibniz Association, a German community of independent research institutes.

Leibniz Institute of Agricultural Development in Transition Economies (IAMO)
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