New milk-rules are a boost to farmers
Posted, February 15, 2012 @ 12:00
New measures which will give dairy farmers greater bargaining power with processors were approved today (Wednesday) by the European parliament in Strasbourg.
The legislative package was negotiated and led through parliament by Jim Nicholson MEP, the European Conservatives and Reformists Group's agriculture spokesman.
It was drawn up in response to widespread concerns that the negotiating power of major food companies was driving prices down to levels that threatened the survival of some dairy farms.
Under the new legislation, the EU will recognise dairy farmer producer organisations (POs) which will be able to collectively negotiate a price for their milk up to limits of 33 per cent of national production or 3.5 percent of total EU production. This should allow farmers to strengthen their position in the dairy supply chain and ultimately achieve a better price per litre for their milk.
The frequent problem of lack of a written contract will also be addressed, with national governments able to impose compulsory contracts or require that a written offer be made to the farmer, which he has the choice of accepting or not.
Concerns over the lack of timely information regarding volumes of raw milk delivered to processors will be resolved by requiring compulsory declarations of milk delivered. This measure is vital in order to assess global EU production after the abolition of quotas in 2015.
The regulation will also strengthen the role of so-called 'interbranch organisations' - which represent all parties involved in the economic activities associated with the production, commerce or processing of milk.
Mr Nicholson, a Northern Ireland MEP, said: "Dairy farmers have been squeezed for too long. So much so that there has been a danger of undermining the entire sector.
"This legislation will start to redress the balance, to make price negotiations a more even affair instead of a one-sided game of 'take it or leave it.'
"It should mean fairer prices, with national governments given the power to introduce tougher measures within their own countries, in particular to ensure that the relationships within the supply chain are managed in a transparent manner in writing, so that farmers have the ability to control who they sell to and at what price.
"There is still work to do. Retailers are not involved in this legislation and we will need to address their relationships with farmers. But this is a substantial step in the right direction."