Local view for "http://purl.org/linkedpolitics/eu/plenary/2012-06-14-Speech-4-094-000"
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"en.20120614.8.4-094-000"2
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"Mr President, after relatively buoyant prices through 2010, is it any wonder that production rose dramatically and we are now seeing the market oversupplied and prices starting to slide?
The ability of milk producers to turn on the tap has never been easier. The ability to put extra feed into big Holstein cows and knock out a thousand litres per head is just so easy. This is a reflection of the market signals indicating better returns. The question Scottish milk producers are asking is whether this is the start of a long-term slide or just a blip in the market as it evens out. We will have to wait and see.
The biggest concern of Scottish and UK producers has been that of the constant UK price being lower than the rest of the EU. Again, in 2011, we are 11.8 % below the EU price. Part of the problem is the power of the retailers – which one of my colleagues has already alluded to – but another part of the problem has been poor returns from the manufacturing sector due to lack of brands and lack of value-added products.
In the last few weeks we have seen huge changes in the UK market as Arla, the Danish Farmers Co-op, has taken over Milk Link and now controls 25 % of the UK market and Müller has bought Wiseman and now controls 16 % of the UK market. It is hoped that these companies, with their strong brands and their large export markets, will help address some of the fundamental problems that we have had in the manufacturing sector and act as a balance against the power of the retailer when it comes to purchasing milk."@en1
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