THE FORCES which destroyed Europe’s banking sector are set to do the same to its food production unless the European Union acts, a Dutch farm leader, Sieta van Keimpema, told a conference in Dublin.
He told the European Milk Board (EMB) meeting of dairy farmers from 14 countries that the EU must face the challenges posed by gigantic retail multiples and speculators inserting themselves into the chain between farmers and consumers.
“The commission . . . was either unwilling or unable to regulate the pricing system of European food production which was the one area that was simply crying out for the imposition of transparent regulation,” he said.
Jackie Cahill, president of the Irish Creamery Milk Suppliers Association, which hosted the conference, said the truth was several European multiple retailers were now of a size which enabled them to make their own markets.
He said these retailers can dictate prices “backward” to farmers and forward to the consumer.
“The idea that these multiples were amenable to self-regulation or that such a light-touch system would work is nothing less than a fantasy,” said Mr Cahill.
Romuald Schaber, president of EMB, said there was a relentless consolidation of already huge companies at processor and retail level without any concern being expressed by the commission, while food producers and farmers received no support for efforts to consolidate or act in unison.
He said it was his opinion the commission seemed happy to watch the power to get decent prices continue to flow away from the people producing the food and towards the massive and dominant intermediaries in the food chain.
The dairy farmer representatives agreed an agency must be empowered to supervise production costs and prices, as well as supply and demand.