Disgruntled dairy farmers protest in Munich

An estimated 3,000 dairy farmers took to the streets of Munich to protest the effects of a recent drop in the price of milk products. Arriving on hundreds of tractors from near and far, the farmers said they wanted to have their voices heard in the state parliament, particularly with the Christian Social Union (CSU), Bavaria's majority party and sister party to Chancellor Angela Merkel's Christian Democrats (CDU).

Asking for support from the federal government as well, the protestors accused Merkel and Agricultural Minister Christian Schmidt, a member of the CSU, of destroying their livelihoods by remaining inactive.

Cowbells and pickets

Romuald Schaber, chairman of the association of German dairy farmers (BDM), announced at the rally that the farmers would not be defeated without going out with a bang, prompting participants to ring their cowbells vociferously.

Some of the protestors later moved on to the Bavarian State Chancellery, setting up an impromptu overnight picket there. Intended to put pressure on CSU-leader Horst Seehofer, Schaber announced further protests ahead of next week's meeting of EU agricultural ministers in Brussels.

Disagreement among pressure groups

But the event is likely to stand in the shadow of widespread discord among various pressure groups in the dairy industry. The prospect of introducing new regulatory measures in dairy production has created a drift among leading lobbies. BDM came out in support of an initial proposal to introduce national caps in order to stabilize the price of dairy products, while the European Dairy Association (EDA) rejected the idea of limiting production.

BDM chair Romuald Schaber said that rather than a return to the previous quota regulation, farmers needed government incentives to limit their own output voluntarily. He also spoke in favor of the introduction of a minimum price on milk products. But the EDA said that overhead costs in running such an operation would be too costly, rejecting the proposal.

The EU Commission said it would issue a detailed response to the current situation in the coming days, promising to address both "short-term and long-term challenges" for Europe's dairy farmers. Phil Hogan, European Commissioner for Agriculture and Rural Development, said that there were various ideas and suggestions in discussion.

Expiration of EU dairy quota

Experts have cited various reasons for the recent price drop in the dairy market. Russia's decision to ban agricultural imports and a lower demand from Chinese market were considered to be among the explanations for the decline in prices.

But the chief cause behind the price slump was the expiration of the EU dairy quota back in March, which had been limiting production rates since the 1980s. With the expiration of the quota system, farmers were free to produce as much dairy as they liked, leading to an oversaturated market.

Germany alone has more than 80,000 dairy farmers, many of whom are reportedly worried about the future. Other EU nations, including France and the UK, have also had reports of price slumps in the dairy market since the quota system expired.

ss/jr (AFP, dpa)