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Wednesday, February 28, 2024

Gostyn. A dairy cooperative and a reduction in the purchase price of milk. Farmers are protesting. It was 2.50; it’s a dollar less

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You’re putting us in debt! – shouted nervous milk producers to the management board of Spółdzielnia Mleczarska in Gostyń (Greater Poland Voivodeship). They emphasize that a year ago they got PLN 1 more per liter than they do now. – Production is no longer profitable – they admit in front of the TVN24 camera. The cooperative reports that the lower purchase prices were forced by the difficult situation on the market.

The price offered to producers by the cooperative is – as farmers say – unacceptable.

– The break-even point for a producer who does not have to repay large loans is two zlotys per liter. And yet, in order to build a cowshed, you need to take a loan, because there is no other way. Keeping the herd costs money every year, and now I have PLN 13, 15 thousand less every month. This is already a big problem – says Piotr Zimiński, a milk producer.

Farmers: production is no longer profitableTVN24

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Other farmers are in a similar, very difficult situation. They note that the cost of production – in connection with rising electricity prices – has grown strongly. Therefore, they do not hide their indignation at the actions of the dairy cooperative.

During the meeting with the management board organized on this matter, very harsh words were spoken, including those related to “carrying out the president in wheelbarrows”. The gathered producers emphasized that “the cooperative wants to put them in debt”.

Read also: Ban on the import and transit of Ukrainian grain. The minister dispels doubts

Cooperative: There is no other way

The Gostyń cooperative – as Michał Klincewicz, vice-president of the board – said, had to radically reduce the purchase prices, because “it is struggling with very big difficulties”.

Farmers are protesting

Farmers are protestingTVN24

– We are dealing with a crisis on the dairy market in Poland. We see the specter of the company’s unbalance. Our primary task is to balance the company. We cannot allow it to enter the path of indebtedness, collapse – says Klincewicz.

It specifies that the purchase rate of milk results from the cashing of products minus production costs.

Seeking agreement

Farmers, however, believe that the difficult situation of the cooperative may result from poor management and failed investments. They indicate that perhaps it would be possible to look for savings somewhere, without putting the problems on the shoulders of producers.

A year ago, due to the panic caused by the explosion war in Ukrainemilk prices soared. – Producers were selling them at a price of PLN 2.50 to even three zlotys per liter – reports Aleksander Przybylski, a TVN24 reporter looking at the farmers’ protests after the prices fell to PLN 1.50 per liter. Farmers, as Przybylski reports, took into account the fact that it was a certain “hill” and prices would fall in the future. But they did not expect the reduction to be so radical.

Cooperative: we must avoid entering the path of debt

Cooperative: we must avoid entering the path of debtTVN24

After the May weekend, further meetings of delegations selected from among farmers with the supervisory board are to take place. The goal is to reach an agreement that is acceptable to both parties.

Spółdzielnia Mleczarska in Gostyń offers a radically lower purchase price of milk

Main photo source: TVN24

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