It will probably eventually impact Australian milk trade with China.

Australian cost of milk production is far higher than that in Europe. Current Europe wholesale prices $.37 per litre is real cheap.

http://money.cnn.com/2015/09/07/news/economy/europe-milk-prices-protest/index.html?iid=EL


Quote:

Europe is drowning in milk. Russia has banned imports, Chinese demand is weakening and limits on production have been removed. The result: a huge glut of milk. There is so much sloshing around the European Union that milk is often cheaper than bottled water. A liter bottle of water costs around $1.50 in the U.K.; a liter of milk $1. In France, milk is also around $1 per liter, similar to the price of mineral water. And in German discount supermarkets such as Lidl and Aldi, a liter of milk can be as cheap as 55 cents, while a liter bottle of water costs around 72 cents. The slump is a disaster for dairy farmers. Thousands protested in Brussels Monday, blocking streets with their tractors, and showering police with hay and eggs. While the price of milk in shops has fallen by around 5% this year, wholesale milk prices have collapsed by about 20% to around 37 cents. That's forcing many farmers to sell their milk for less than it costs them to produce it. The EU said Monday it will provide farmers with 500 million euros ($555 million) in emergency support to help them cope with the plummeting prices. Europe's dairy farmers were already reeling from the food embargo imposed by Moscow last year in retaliation for Western sanctions over Ukraine. Russia was one of the EU's biggest markets for dairy products, accounting for 32% of cheese exports and 24% of butter exports. A slowdown in demand from China, the world's biggest milk importer, is also hurting the dairy industry. China is a big buyer of powdered milk. Europe's farmers are now calling for the reintroduction of production quotas to try to balance the market. The quotas were abolished earlier this year, leaving farmers free to produce as much as they like for the first time in 30 years. The deregulation led to more oversupply, piling even more pressure on prices. "Unless production is reduced, the market will carry on deteriorating at a pace," said Romuald Schaber, president of the European Milk Board, which represents dairy farmers.

Transport costs will come into it stupid

You can shove that Fatwa up yours!!

Maqqa wrote on Jan 3^rd, 2016 at 2:16pm:

Transport costs will come into it stupid You can shove that Fatwa up yours!!

You appear very ignorant of transport costs. Maqqa should grant himself a self education FATWA to dispel Maqqa's gross ignorance.

The EU has massive issues with agricultural subsisidies. The answer to this is not more handouts. Then our government will have to offer handouts to compensate our farmers for the unfair competition on the global market. They should just let some of them go out of business. That is what is supposed to happen when an industry produces too much of something.

Isn't bottled water dearer than milk here too? (I don't buy bottled water, so don't really know.)

freediver wrote on Jan 3^rd, 2016 at 6:20pm:

The EU has massive issues with agricultural subsisidies. The answer to this is not more handouts. Then our government will have to offer handouts to compensate our farmers for the unfair competition on the global market. They should just let some of them go out of business. That is what is supposed to happen when an industry produces too much of something.

EU is the ultimate socialist state with everything subsidised, politicians for about every 15 people and more regulation than you can point a stick at.   it is also deeply in debt. struggling with recession and in an economic pincer.

longweekend58 wrote on Jan 3^rd, 2016 at 6:25pm:

freediver wrote on Jan 3rd, 2016 at 6:20pm: The EU has massive issues with agricultural subsisidies. The answer to this is not more handouts. Then our government will have to offer handouts to compensate our farmers for the unfair competition on the global market. They should just let some of them go out of business. That is what is supposed to happen when an industry produces too much of something. EU is the ultimate socialist state with everything subsidised, politicians for about every 15 people and more regulation than you can point a stick at.   it is also deeply in debt. struggling with recession and in an economic pincer.

Sounds like Australia without the holes in the ground.

Sun Tzu wrote on Jan 3^rd, 2016 at 6:36pm:

longweekend58 wrote on Jan 3rd, 2016 at 6:25pm: freediver wrote on Jan 3rd, 2016 at 6:20pm: The EU has massive issues with agricultural subsisidies. The answer to this is not more handouts. Then our government will have to offer handouts to compensate our farmers for the unfair competition on the global market. They should just let some of them go out of business. That is what is supposed to happen when an industry produces too much of something. EU is the ultimate socialist state with everything subsidised, politicians for about every 15 people and more regulation than you can point a stick at.   it is also deeply in debt. struggling with recession and in an economic pincer. Sounds like Australia without the holes in the ground.

the holes are in your head fool.

longweekend58 wrote on Jan 3^rd, 2016 at 6:38pm:

Sun Tzu wrote on Jan 3rd, 2016 at 6:36pm: longweekend58 wrote on Jan 3rd, 2016 at 6:25pm: freediver wrote on Jan 3rd, 2016 at 6:20pm: The EU has massive issues with agricultural subsisidies. The answer to this is not more handouts. Then our government will have to offer handouts to compensate our farmers for the unfair competition on the global market. They should just let some of them go out of business. That is what is supposed to happen when an industry produces too much of something. EU is the ultimate socialist state with everything subsidised, politicians for about every 15 people and more regulation than you can point a stick at.   it is also deeply in debt. struggling with recession and in an economic pincer. Sounds like Australia without the holes in the ground. the holes are in your head fool.

Longweekend58 evidently has no holes in his head and hears, breathes, digests, defecates and communicates through his sphincter.

Sun Tzu wrote on Jan 3^rd, 2016 at 6:43pm:

longweekend58 wrote on Jan 3rd, 2016 at 6:38pm: Sun Tzu wrote on Jan 3rd, 2016 at 6:36pm: longweekend58 wrote on Jan 3rd, 2016 at 6:25pm: freediver wrote on Jan 3rd, 2016 at 6:20pm: The EU has massive issues with agricultural subsisidies. The answer to this is not more handouts. Then our government will have to offer handouts to compensate our farmers for the unfair competition on the global market. They should just let some of them go out of business. That is what is supposed to happen when an industry produces too much of something. EU is the ultimate socialist state with everything subsidised, politicians for about every 15 people and more regulation than you can point a stick at.   it is also deeply in debt. struggling with recession and in an economic pincer. Sounds like Australia without the holes in the ground. the holes are in your head fool. Longweekend58 evidently has no holes in his head and hears, breathes, digests, defecates and communicates through his sphincter.

And that's just the start of things.