Stabile und hohe Milchpreise?! – Optionen für eine Beeinflussung der Milchpreise

Martin Banse (), Janina Knuck and Sascha Weber

No 283948, Thünen Working Paper from Johann Heinrich von Thünen-Institut (vTI), Federal Research Institute for Rural Areas, Forestry and Fisheries

Abstract: This paper examines different ways of influencing milk prices and contributes to their possibilities and limitations. It becomes clear that the measures to increase the level of the EU milk price would require drastic reductions in EU milk production, either by increasing the world price level or by separating the EU price level from the world price level. However, the attempt to increase the world market price level by restricting EU milk production would only be of very short duration due to the expected market reactions in other milk producing countries. A separation of the EU price level from world market prices would only be possible if the EU trade position in milk and milk products would change from a net exporter to a net importer. This, in turn, would require significant restrictions on EU milk production. Given the current market conditions and the possible effects on milk production and processing structures, this option should be seen as not realistic. The second objective of stabilisation is discussed extensively in this paper. The milk market in particular has been affected in recent years by extreme price fluctuations with negative effects on the market players involved. On the milk producers' side, the extreme price fluctuations can lead to liquidity constraints threatening their existence if prices fall sharply. The reduction of the price risk and the distribution of the price risk in the milk value chain is an essential part of the implementation of the objective of price stabilisation. It becomes clear that the distribution of price risk in the milk value chain is not equally distributed. Thus, for most cooperative milk processors, it often remains with the milk producers. This could be remedied by revising the statutes and delivery regulations accordingly.

Keywords: Agricultural and Food Policy; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 28
Date: 2019-02-20
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jhimwp:283948

DOI: 10.22004/ag.econ.283948

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