As you probably know (or not) there's a two-day mass protest going on in Brussels by dairy farmers.
They are unhappy because milk is often sold at below production costs due to a drop in international demand and increased competition.
The dairy farmers want an increase of up to 25% in their prices to cover costs.
Dairy farmers in Shropshire, England, recently won a price increase to £0.29 (0.36 euros) per litre from a leading processor.
The EU is the world's largest milk producer and in 2010 nearly 47% of its 123bn euro budget went on subsidies and other forms of financial aid for farmers, including dairy producers.
Personally I think a farm should be treated as any other company and thus submit to the ups and downs of the market. A healthy company tries to be efficient and flexible, is ready for multiple different future scenarios. Also healthy companies aren't (or shouldn't be) dependent on subsidies.
Of course, any form of monopoly or cartels in the sector of processors should be countered, so the free market can do it's invisible hand-thing, instead of extortion of dairy farmers.
But as long as there's no monopoly or cartel I think the dairy farmers must innovate and stop complaining.
(or choose a different job altogether, outsource the cows if the cost of living is too high for such a sector)
By the way, the farmers are rioting in a typical fashion :p
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So what do you think? Should the price of milk and agricultural products be regulated (either directly of through subsidies) or not?
Are the farmers right to protest because of the fact they are losing money with their line of work?
What's your take on it?
Edit:
This is of course not just a topic only about (dairy) farmers, but also about the whole fundamental principle of the (artificial) agricultural sector in Europe (which is immensly subsidised) and the policies of EU towards the agricultural sector.
I'm aware of the origins of these subsidies (the hardships after both World Wars) and the obsessive need for selfsufficiency, but I wonder if it's still neccessary.
They are unhappy because milk is often sold at below production costs due to a drop in international demand and increased competition.
The dairy farmers want an increase of up to 25% in their prices to cover costs.
Dairy farmers in Shropshire, England, recently won a price increase to £0.29 (0.36 euros) per litre from a leading processor.
The EU is the world's largest milk producer and in 2010 nearly 47% of its 123bn euro budget went on subsidies and other forms of financial aid for farmers, including dairy producers.
Personally I think a farm should be treated as any other company and thus submit to the ups and downs of the market. A healthy company tries to be efficient and flexible, is ready for multiple different future scenarios. Also healthy companies aren't (or shouldn't be) dependent on subsidies.
Of course, any form of monopoly or cartels in the sector of processors should be countered, so the free market can do it's invisible hand-thing, instead of extortion of dairy farmers.
But as long as there's no monopoly or cartel I think the dairy farmers must innovate and stop complaining.
(or choose a different job altogether, outsource the cows if the cost of living is too high for such a sector)
By the way, the farmers are rioting in a typical fashion :p
So what do you think? Should the price of milk and agricultural products be regulated (either directly of through subsidies) or not?
Are the farmers right to protest because of the fact they are losing money with their line of work?
What's your take on it?
Edit:
This is of course not just a topic only about (dairy) farmers, but also about the whole fundamental principle of the (artificial) agricultural sector in Europe (which is immensly subsidised) and the policies of EU towards the agricultural sector.
I'm aware of the origins of these subsidies (the hardships after both World Wars) and the obsessive need for selfsufficiency, but I wonder if it's still neccessary.