Categories: Market

Producers defend themselves against criticism: Will low milk prices harm the climate?

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Low milk price and high labor requirements are causing a rapid decline in dairy farms.
joschka schaffnerRingier journalism student

Switzerland is losing dairy farmers: The number of dairy farms has decreased by more than half since 2000, according to the Federal Department of Agriculture. They are disappearing twice as fast as other farms, Boris Beuret (46), the new head of the Swiss dairy producers’ umbrella organization (SMP), said in an interview with “Le Temps” over the weekend.

Beuret sees the blame for the liberalization of the milk market and the associated low milk price. For years, farmers, processors and politicians have debated how much a liter of milk costs. With the decrease in cheese exports this year, the problem aggravated again.

“The development over the past two decades has not been good,” says Werner Locher (70), a member of the dairy cooperative who has a job at Bonstetten ZH. It plunges many dairy farmers into existential difficulties.

Low milk price causes environmental problems

However, devastating side effects are often overlooked. “Swiss milk production is undergoing a structural change due to price pressure,” says Locher. And this is serious not only for farmers, but also for the environment.

Because the remaining producers are getting bigger and bigger. Locher says this is the only way milk production can still be profitable. “As a result of this change, intensive dairy farming requires increasingly valuable arable land.”

Agronomist Laura Spring (38) also warns: “Economic pressure on the dairy industry is now leading to ecological failures.” In addition, farmers who say goodbye to milk production are fueling the problem. “They often switch to more lucrative pig or chicken farming,” says the managing director of the Vision Landwirtschaft association. “The operation is therefore significantly more harmful to the environment.”

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False incentives and economic restraints

Bahar sees the need for action in politics. “Today’s agricultural policy puts the wrong incentives,” he says. It encourages a high-performance strategy. Redistribution of direct payments can both support more sustainable agriculture and stabilize the price of milk. “Research shows that with the right breeds of cows, location-appropriate livestock without concentrated feed will make both ecological and economic sense.”

Locher also complains that the current political framework conditions lead to economic constraints. However, when it comes to the price of milk, he also sees the SMP as responsible: “The association has failed to advocate for regulation of milk quantity.” If production were in line with demand, the dairy industry would not be in this mess.

Dairy producers’ confederation disagrees

The umbrella establishment sees little to catch up with. “Low milk price means structural change continues,” SMP said when asked by Blick.

“The remaining companies will remain at least as sustainable as they are today, and they will probably do even better.” The competitive pressure of animal nutrition with human nutrition would be greatly exaggerated.

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Source :Blick

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