The jobs of Cowboys are in danger
Raw milk’s price is about 55-61 HUF / kg which is a 31 percent decline to the same period of previous year's.
If the purchase price stays under 60 HUF / kg permanently, production can be reduced into half and nearly 50% of staff reductions will occur in the sector. According to the Hungarian Chamber of Agriculture’s calculations the production cost are continuously rising. In 2009 89 HUF / kg is expected to show the hopeless situation of the producers. In recent months, the European dairy market balance has been faltered and the international demand for dairy products has been decreased. The EU's exports of dairy products in almost every case dropped in 2008. Hungary has proposed with other a countries, the increasing of the volume of the intervention, together with the earlier period of the intervention, the increasing of the quota-based subsidy of at least 50 percent, the 50 percent increase of export refunds, the matching of the grants in the old and the new countries and furthermore, the freezing of the quotas. Mariann Fischer Boel, Commissioner for EU agriculture made it clear that the Commission is willing to negotiate payment arrangements, but rejects the review of earlier decisions of the quotas.
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