The price of milk will also increase - "In November the price of milk will be 10-15% higher" - August 28 th, 2007
» "The reduced quantity of fodder determines the small farmers from the areas affected by drought to sell or kill their cattle."
» "The farmers sell directly on the market about 1,9 billion liters of milk and keep for individual consume about 1,5 billions liters".
Starting November this year the price of milk will increase with 10-15%. That is caused by the long period of dryness that will affect especially the production and price of fodders. In many regions of the country the farmers started to sell or slaughter their cattle, this having an important role in the decrease of the milk production this autumn.
Not only have the farmers in Romania faced these problems caused by drought but also most of the European countries. The reduction of the grain production and the increase of the price of fodder will influence the prices in the next period.
"We cannot find milk in Hungary even"
"The price oh milk will be higher with 10-15% starting November this year, due to the drought that affected the production and the price of fodder" states Valeriu Steriu, the president of the Romanian Dairy Processors Organization.
The price of fodder will increase this autumn and this fact will have a consequence on the milk market towards the end of the year. "The number of cattle is reduced, the fodder is more expensive and the conditions for milk collection are harder. These days is not an advantage anymore to invest in collecting points were only few farmers deliver" said engineer Bujor Dan Titus, administrator of a dairy processing company from Salaj county. Small farmers, mostly from the areas seriously affected by the draught have resorted to selling or slaughtering their cattle due to the lack of fodder. "The quantity of milk has decreased; the places where one can get the milk from are few. We don't find milk even in Hungary because the drought affected the most European Countries", said Bujor Dan.
According to the National Institute for Statistics, the milk production destined to consumption reached a volume of 95,765 tones in the first half of 2007, 2.3% less than at the same period in 2006. The representatives of the producers in the milk industry announced that the price of the main food products will increase with 40% this autumn especially for bread, milk, vegetables, fruits and oil.
"The decrease of VAT for milk"
"The dairy market will reach 1 bill. EUR in 2008, provided there will be at least a 10% increase per year", said the president of the Romanian Dairy Processors Organization, Valeriu Steriu, quoted by Rompress. "At this time the dairy market is about 850 millions EUR only for the industry but we expect a constantly increase in the next years with about 10% per year." said Steriu.
Romanian milk factories process about 1.1 billion liters of milk annually while the farmers sell directly on the market 1.9 billion liters pf milk and keep for individual consumption 1.5 billion liters.
Due to the drought the processors of the vegetable and food industry asked for a VAT reduction for the main food products. The representatives of the Romanian Dairy Processors Organization asked for a VAT level for milk of 5-9% because in many European countries this product is VAT free.
Most European countries are facing in this period with a price increase for fodder that will lead to an increase for food prices. At the beginning of August, Bulgaria announced a price increase for dairy products due to the drought. This year, Romania produced 3.49 million tones of wheat grains (wheat, barley, two-rowed barley) which represents only 55% of the production last year. It is estimated that this year UE countries will produce 276 millions tones of grains, 5 mill tones less than the last years' average.
Source: Romania Libera, August 28 th, 2007 |
