Under current conditions, further milk price declines are expected this year according to a report from the European Commission.
In 2015, EU milk deliveries increased by more than 2%, but the prices paid for milk to farmers decreased.
The report said 'there are no indications that medium-term prospects for world dairy product consumption and imports are about to change.'
World imports are still expected to increase by more than 2% annually.
These developments imply further increases in EU milk deliveries in 2016, especially during the first quarter (+5%),which compares to the same period in 2015 when many farmers reduced production in countries at risk of exceeding their quota.
By contrast, under normal weather conditions, milk deliveries could stabilise at slightly below 2015 level towards the end of the year.
This year, deliveries could therefore grow by around 2 million tonnes.
While limited growth is expected in France, where cooperatives and dairy companies limit incentives for farmers to expand production
The report also said higher deliveries could take place in the UK.
Farming unions demand urgent action at EU and UK level
The UK farming unions believe that urgent action is required at an EU and UK level. New ways to boost trade and improve the market, access to finance and fairness in supply chains need to be found to reduce the pressure on struggling farmers.
Liz Truss MP, Richard Lochhead MSP, Michelle O’Neill MLA and Rebecca Evans AM will meet with the four presidents of the farming unions at the NFU offices in Brussels.
Following the meeting, ministers will meet their European counterparts, as well as Agriculture Commissioner Phil Hogan, to discuss a range of measures proposed to help the industry.
NFU President Meurig Raymond said: “The UK food and farming sector is worth £103billion and employs 3.8million people – 13.4 per cent of the UK workforce.
“Our industry is currently experiencing major difficulties which need addressing urgently.
“We are calling on the Secretary of State to voice support for swift measures which could provide the urgent relief we need.
“Lifting of tariffs on fertiliser imports, establishing new financial instruments with the European Investment Bank and working to improve the dysfunctional European supply chain.
“As representatives of 70,000 farmers, we are committed to putting this across to the ministers on Monday.
“We are working at every level – local, national and European – to find new ways to take the burden off our struggling farmers.
“The cumulative effect of the Russian trade ban, supply and demand imbalances in the market and problems with the BPS payments delivery means that UK farmers are facing significant cash flow difficulties.
“We will suggest deliverable actions for the European Commission to tackle this undeniable farming crisis.”
