Luxembourg Farmers Face Rising Costs and Subsidy Delays, Prompting Protests
Source: The DairyNews
Luxembourg's agriculture sector is increasingly challenged by escalating production costs, pushing local farmers to rely heavily on EU subsidies. The situation has led to widespread protests demanding fair milk prices across Europe.
Christian Hahn, President of the Agriculture Chamber and operator of a family dairy farm, discussed the precarious financial state of dairy farming with RTL. Despite still being profitable, the margins in dairy production are becoming critically thin, complicating future investments. Hahn highlighted the growing dependence on the EU's eco-schemes, designed to support environmentally friendly farming practices. Although these subsidies are meant to offset lower yields, significant delays in payment—sometimes extending over a year—have left many farmers struggling with cash flow.
In response to the crisis, hundreds of dairy farmers recently protested in Brussels, coinciding with a meeting of EU agriculture ministers that focused on issues like administrative simplification, boosting European productivity, and protecting domestic markets from external competition.
Luxembourg’s Agriculture Minister, Martine Hansen, spoke to RTL about her immediate outreach to local farmers at the first signs of protest. She emphasized that streamlining administrative processes is crucial for future negotiations. Hansen also mentioned plans to thoroughly review the agricultural supply chain to identify inefficiencies, profit distribution, and the justification of current margins. Her final remarks stressed the necessity of setting realistic goals to maintain the sector’s long-term competitiveness.
In response to the crisis, hundreds of dairy farmers recently protested in Brussels, coinciding with a meeting of EU agriculture ministers that focused on issues like administrative simplification, boosting European productivity, and protecting domestic markets from external competition.
Luxembourg’s Agriculture Minister, Martine Hansen, spoke to RTL about her immediate outreach to local farmers at the first signs of protest. She emphasized that streamlining administrative processes is crucial for future negotiations. Hansen also mentioned plans to thoroughly review the agricultural supply chain to identify inefficiencies, profit distribution, and the justification of current margins. Her final remarks stressed the necessity of setting realistic goals to maintain the sector’s long-term competitiveness.
