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New ActionAid report on milking the poor

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Friday, 14 October 2011

New ActionAid report on milking the poor

ActionAid’s new report, Milking the Poor, shows that subsidised EU milk is causing unfair competition to poor farmers in Bangladesh, suppressing investment in the dairy industry and undermining the EU’s investments in food security.

Due to a change in the rules, farmers receiving CAP subsidies are no longer bound by production limits.

In 2010 alone, the EU exported 378,000 tonnes of skimmed milk powder to developing countries – mainly in Africa and the Middle East. A further 11% increase is projected for 2011.

The report reveals an absurd situation, where one company Arla Foods – producer of Lurpak butter and DANO milk powder – receives a substantial amount of the €5 billion on offer per year to dairy farmers in the EU.

The company has seen sales of its EU-subsidised milk powder rocket in recent years, earning it a substantial profit. Interestingly though, Arla is only able to produce its milk powder at a profit because of the EU subsidies.

Source: ActionAid