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Dairy farmers' strike spreads across EU.

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Zurich-area milk deliveries were down by as much as two-thirds in early June and many of the city's shops went without milk, as the threat of an all-out strike in protest of low milk prices spread across Europe.

In a German-led boycott, disgruntled dairy farmers vented their frustration at falling profits and rising production costs by pouring their milk on their fields instead of selling it to supermarkets and dairies.

The farmers say the amount they receive for milk has fallen by 30 per cent in the past six months, while production costs have risen by around eight per cent. They hope to force a price hike to the equivalent of 40 to 45 Swiss rappen (40 to 45 cents) a litre--up from the 27 to 30 rappen to which it has sunk in some parts. Some farmers say they need at least 33 rappen a litre to break even.

Experts said that the delivery boycott was unlikely to have a big effect on the EU as a whole, due to an oversupply of milk that had led to the lower prices. The milk price had been boosted by the EU's milk quotas, which kept businesses alive...

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