Report of the Group on Dairy Products

 

IFAP 36th World Congress

29 May-4June, 2004

Chair: Leo Bertoia, Dairy Farmers of Canada

Secretary: Rick Phillips, Dairy Farmers of Canada

 

Welcome

Mr. Joe Logan of the U.S. National Farmers Union welcomed the Dairy Group to Washington DC and the United States. 

World market situation and outlook for dairy products

Philippe Jachnik, President of the International Dairy Federation, made a comprehensive presentation on the world market situation and outlook for dairy products.

 

Updates on policy developments in the dairy sector

Updates on domestic policy developments in the dairy sector were received from the EU by COPA, North America by the NFU USA, New Zealand by Federated Farmers, Australia by ADFF, Japan by JA Zenchu, Uruguay by CNFR, and South Africa by Agri-SA.

What actions have co-operatives taken to enhance producers' return from milk sales?
The Dairy Group heard from Mr. Walt Wosje, CEO of Cooperatives Working Together (CWT) in the USA, and Mr. Peter Gaemelke, President Landbruksraadet, Denmark on the topic "What actions have co-operatives taken to enhance producers' return from milk sales?" 

 

Mr. Wosje, explained that in the United States, cooperatives established Cooperatives Working Together (CWT) to introduce and manage a number of programs aimed at better balancing supply and demand including: a herd retirement program; a production reduction program; and, an export assistance program all financed by voluntary producer contributions.  This combination of programs is credited with raising producer milk prices by about U.S.57 cents per hundredweight.

 

Mr. Gaemelke described a more traditional method to improve farmer returns through the development of strong cooperatives, as government support policy becomes less effective in a liberalizing world.  He emphasized the ability of large cooperatives to meet the market requirements of increasingly concentrated distribution channels.  Larger cooperatives were seen to have the ability to supply a full product range; with consistent quality; and, full traceability.  At the same time, these cooperatives provided producers with the bargaining power they need to ensure adequate prices.  It was observed that as retailers become trans-national, so too must producer cooperatives.

Pressures on milk producers in a changing world: restructuring the industry and attitudes towards consumption

Mr. Bernard Airieau, Vice-Chair of the Committee (France), raised issues such as the need for producers to be able to capture some of the value-added associated with particular markets through differential pricing and pooling of market returns; increasing levels of concentration, especially at the distribution and retail level; anti-milk attacks from a variety of sources including vegetable-based competitors and animal welfare and vegetarian groups; and, the need to develop better producer-processor relationships and strategic alliances. All these issues were identified by the Group as being of significant concern to producers. 

Proposal to create an additional Vice-Chair for a representative of the developing countries

The Dairy Group is pleased to announce that it has established a new 2nd Vice-Chair position which will be filled by a representative of developing countries.

Preparation of the 4th World Dairy Producers' Round Table

The Dairy Group has also approved the establishment of an organizing committee for a 4th World Dairy Producers Round Table.  India has agreed to host the event in the fall of 2005.

  

The Dairy Group expressed its sincere thanks to Mr. Leo Bertoia, who will be retiring as Chair, for his work over the past four years.  During his tenure a number of new initiatives were pursued including the establishment of a Dairy Round Table on Trade and the IFAP Dairy Quarterly news bulletin.  Mr. Bertoia expressed his thanks to the Group for their support during his presidency.

 

Election of Officers

Elections for the post of Chair, 1st Vice-Chair, and 2nd Vice-Chair were held with the following results:

Chair:                              Mr. Bernard Airieau  (France)

1st Vice-Chair:                 Mr. Charlie Peterson (New Zealand)

2nd Vice-Chair:               Ms. Sarala Gopalan (India)