joint statement on behalf of farmers and dairy producers’ organisations for local ... · 2019. 4....

JointStatementonbehalfofFarmersandDairyProducers’OrganisationsforLocalandFairMilkinWestAfricaand

EuropeBrussels,April2019

We, local milk producers in West Africa and Chad, represent nearly 50 million livestock keepers, theirfamilies and their communities.We derive our income and livelihood from (agro-) pastoral livestock keeping,mainlyinthearidandsemi-aridareasofWestAfricaandChad,facingclimatechange,poverty,growinginsecurityand littleaccess tobasic support servicesand infrastructure.Despite theseconstraints,weproducemore thanhalfofthemilkconsumedinourregion.

ImportantpotentialThere is significant potential to develop and leverage our local milk collection and processing structures toprovide access to employment and income, as well as contribute to food security and nutrition. Local dairydevelopment can contribute substantially to the sustainable socio-economic development of often fragile andmarginal rural areas, and tomore security, peace and regional cooperation. These are all elements that offerpromisingprospects,especially toyoungpeople inruralareas.Localsystemsofmini-dairies,collectioncentres,local industries and local distribution networks provide consumerswith high quality local dairy products. Theyhelp(agro-)pastorallivestockkeeperstogetafairpricefortheirproduceandassistthemindealingwithcomplexconstraints(land,politics,climate,etc.)overwhichtheyhavelittlecontrol.

ImportofmilkpowderUntilthispotentialisfullyexploited,theregionisforcedtoimportlargeandgrowingquantitiesofmilkpowdersorsubstitutesofmilk.Theyareusedbyprocessors,mainlyindustrialones,totransformthemintovariousdairyproducts (pasteurizedmilk,yogurts,etc.)or to recondition them intosmallerpackages.AttractedbyagrowingWestAfricandemand,Europeandairycompaniesare investingheavily inprocessingandmarketingtofindnewoutlets for their surpluses of various milk powders. They export from Europe, and import into West AfricaskimmedorwholemilkpowderstoAfricaatalowcost.Inrecentyears,theyhavemassivelyexportedasubstituteofwholemilkpowder–ablendofskimmedmilkrefattenedwithvegetableoils(mainlypalmoil)-toAfrica,whichareonaverage30%cheaper.Itisimpossibletofacethisunfaircompetition.Ruralwomenarethefirstvictimsof thisprocess, as theyarequiteoftenmilkproducers,processorsaswell asentrepreneurs.Theyareat theheartofthelocaldairysystem,fromwhichtheyderiveincomewhichisprimarilyallocatedtotheneedsoftheirfamiliesandwhichimprovestheirsocialposition.

We,livestockkeepersanddairyproducersfromWestAfrica,holdourgovernmentsandECOWASaccountablefortheirpoliticalchoicesandexpect increasedsupportforequitabledevelopmentofthelocaldairysector.Weaskthem to raise import taxes for imported products and targeted VAT exemption measures on local milk; toreinforce market transparency (in particular regarding re-fattened powder blended with vegetable oils, andensuring labellingwouldreflecttheoriginandcontentofmilk);toobligeforeign investmentstoget involvedinlocalmilkcollection;andtousenewtaxrevenuestosupportthedevelopmentofthelocaldairysector.

ProblematicEuropeanpoliticsThemassiveexportofre-fattenedpowderblendswithvegetableoilsisthemostharmfulconsequenceofafailedEuropean policy. A policy that pushes to produce more and more at the lowest possible price, leading tosuccessivepricecrisesandtherebyforcingEuropeandairyproducerstoselltheirmilkatpricesthatdonotallowthemtolivewithdignity.ThisEuropeandairypolicyisincoherentwiththeengagementsoftheEuropeanUnion'sdevelopmentcooperationwhich,however,isstronglyinvestedinthesustainabledevelopmentoftheSahel.WeshowedsolidaritywithourEuropeancolleaguesduringthesecrises.

We,Europeandairyproducers,donotwanttobecomplicitintheharmfuleffectsoftheEuropeandairypolicyonthedevelopmentoffairandlocaldairysectorsinAfrica,byexportingoursurplusesatdumpingprices.Wearecommitted,togetherwithEuropeancitizensandorganizations,todemandachangeinEuropeanpoliciessothatthey contribute todeveloping thepotentialof local and fairdairy value chains inAfrica.Weare committed tocontinuetodevelopsolidarityprojectsdevelopingthesesectorsinthehandsofproducers.

We,milkproducersofbothWestAfricaandEurope, share the commongoal thatwewant tobeable tomakeadecentlivingfromourworkandtocontributeinasupportivewaytothesustainabledevelopmentofouragricultureandourterritories.WearecommittedtoworktogethertodeveloplocalandfairdairysectorsinAfricaandEurope,andwork together tochangepolicies so that theyenableus toachieve thiscommongoal.That iswhy,bythisdeclaration,weasktheEuropeanUniontotakethefollowingmeasures:

• Prohibit all forms of dumping1 of dairy products and re-fattened powder blends on African markets,includingbyavoidingallformsofexportsupporttocomplywiththeinterestsofEuropeandairyexportersinovercoming European overproduction; stop funding the promotion of dairy products and powder blendsexportsthatendangerthedevelopmentofthelocalmilksectorinAfrica.

• AllowEuropeanproducers tobenefit fromprices covering theirproductioncosts.At thispoint,Europeanproducersdonotreceivepricesthatcovertheircostsentirely,causingthemtoremaindependentondirectpayments.

• Adoptmeasures tomanage the supply of European dairy production in the event of a crisis in order toavoidstructuralandcyclicaloverproductionthatcouldhaveadverseeffectsformilkproducersinEuropeandAfrica,notablythroughtheMarketResponsibilityProgramme2(MRP).Thisprogrammemakesitpossibletomonitorandanticipateimminentcrisesandtorespondtothembyasystemofreducingthemilkproductiontoguaranteethestabilityofthemarket.

• ReviewthetradeagreementsandnegotiationsbetweentheEuropeanUnionandWestAfrica,avoidinganypressurefortheconclusionoftheEconomicPartnershipAgreementsandagreetorevisethemsothattheysupporttheintegrationoftheregionalmarket;andbyrespectingthesovereigntyofWestAfricancountriestoprotectanddevelopthepotentialofthelocaldairysector(includingtheWestAfricanregionalpolicywhichisunderpreparation,entitledthe"milkoffensive")andtoreviewtheircommonexternaltariffsin2020,withoutreciprocalconcessions.

• Strengthen the transparency of the markets by extending the mandate of the European Milk MarketObservatory,bycollectingandanalysingdatarelatedtotheproductioncostsintheMemberStates,thecostsandmarginsofprocessinganddistributingdifferentdairyproductsandre-fattenedvegetableblends,andthevolumes and prices of different types of products exported to developing countries, including re-fattenedpowderblends,anddataonintra-EuropeanexchangesbetweendairycompaniestotheiraffiliatedcompaniesinAfrica.

• Ensure the coherence of European agricultural and commercial policies for sustainable development byensuringeffectiveanalysesoftheirimpactonthesustainabledevelopmentobjectives,onhumanrightsandontherightsofpeasantsandotherpeopleworkinginruralareas3.Thiscoherencewouldbereinforcedbythecreation of a mechanism bringing together all the European institutions and policies (agriculture, trade,environment,health,cooperation,internationalrelations,migration)andstakeholderstodevelopapproachesand tools to promote rights and the attainment of the sustainable development goals in a coherent andinclusiveway.

1Theexportingpricecannotbelowerthanthe“nationalaveragetotalproductioncostwithoutsubsidies”2See:http://www.europeanmilkboard.org/special-content/market-responsibility-programme.html3InaccordancewiththeDeclarationadoptedattheUnitedNationsGeneralAssemblyof17thDecember2018https://www.un.org/en/ga/search/view_doc.asp?symbol=A/RES/73/165

• Support existing initiatives in Africa by milk producers, including through financial support for local and

equitabledairysectordevelopmentprojectsthathelptoincreaseproducers' incomes,enhancecooperationbetween stakeholders, including by promoting local dairy products to West African consumers, and bysupportingtheECOWAS"milkoffensive".

SignedinBrussels,onApril10th,2019

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With the support of: