Dairy farms cease operations after tougher EU regulations

The number of Maltese dairy farms dropped by 14 per cent in the past four years, according to new data supplied by the European Commission.

While in 2006, Malta had 152 registered milk producers, the number fell to 130 this year.

EU sources said the main reason for the drop was the stringent rules introduced by the ministry responsible for agriculture to abide by EU directives.

“We have seen an important shift in Malta’s milk producers,” a Commission official said. “More animal welfare and hygiene requirements have pushed out rogue producers who couldn’t cope with the new EU standards,” he said.

The sources said although the loss of 22 producers in four years was quite significant for a small market like Malta’s, production remained almost at the same levels as in 2006, which meant other producers increased their output through more investment and newer technology.

In 2009, Malta produced a total of 40,275 tons of milk, just a few hundreds of tons below the 41,000 of 2006.

Malta managed to keep within its milk quota, negotiated with the EU before accession, allowing the island to produce up to 50,169 tons of milk a year.

According to EU rules, countries that exceed the production quotas incur fines of up to €28 per 100 kilograms overrun. This year, a total of €19 million in fines were slapped on the Netherlands, Denmark and Cyprus for exceeding quotas.

Malta had to implement various changes to raise the standard of milk production since accession.

In 2008, the government had given 14 farmers supplying raw milk to the Malta Dairy Products a three-month warning to put their house in order or lose their licence. Many of them eventually ceased operations.

The quota system will be abolished in 2015.