Brussels, 22/09/2010 (Agence Europe) - EU agriculture ministers will once again have their work cut out when they meet in Brussels on Monday 27 September if they are to agree on a common position on how to respond to the recommendations made by the high level group on milk and dairy products (see EUROPE 10202). At the last meeting of the Special Committee on Agriculture (SCA) on 20 September, there was division among the delegations, especially on contractual relations between producers and dairies and market measures. It would appear unlikely that the Agriculture Council will be able to come to agreement on the text of conclusions on how to follow up on the work of the high level committee on milk. Ultimately, there may only be conclusions from the Presidency of the Council of Ministers, which carry much less political weight than unanimous Council conclusions. It will then be for the European Commission to pull together what ministers say and to draft proposals on contractual relations, enhancing producers' negotiating power and the role of inter-branch organisations by the end of the year.
The so-called liberal countries seem determined to block the adoption of ambitious conclusions on milk. For example, on producers' negotiating power, the United Kingdom and the Netherlands are against any derogation to competition law (though such derogations are designed to give primary producers greater bargaining power in negotiations with dairies).
Contractual relations. Most countries acknowledge the need to strengthen contractual relations between producers and dairies and to provide for more frequent use of formal written contracts between the two parties. Several countries, including the Czech Republic, Denmark, Finland, Germany and Luxembourg, however, want the text to stress the voluntary nature of such contracts. Others, such as Spain, argue that these contracts should be compulsory.
Bargaining power. Several liberal countries do not want the paragraph included which invites the Commission to bring forward legislation allowing milk producers organisations to negotiate contract terms, including price.
Market measures. The draft text notes that market instruments which play the role of safety net should be retained, and says that existing market instruments have to be updated. This has brought an outcry from the liberal countries and also from Italy. (L.C./transl.rt)