Brussels, 27/09/2010 (Agence Europe) - On Monday 27 September in Brussels, European Commissioner for Agriculture and Rural Development Dacian Cioloº promised to present a package on “milk” by the end of the year. This package will include legislative proposals on contractual relations between producers and the milk processing industry, greater negotiating clout for producers, the question of inter-professional organisations and transparency. On the same day, the EU Council of Ministers adopted conclusions, which largely go in the direction of the recommendations issued by the high level group on milk and milk products set up in 2009 to draw lessons from the crisis that shook up the sector that year. The Council did not reach a unanimous vote on this text, as it had been expected to, and it therefore involves conclusions from the presidency and not from the Council (EUROPE 10222). Five countries did not support the text: the United Kingdom, Denmark, the Netherlands and Sweden (the Czech Republic abstained).
The Commission intends to create greater stability for the sector in Europe, while allowing the market enough room to play its role. A minimum of stability is imperative if the milk sector is going to continue to invest, with the prospect of milk quotas coming to an end in 2015. In the context of questions on “marketing standards” and the possible labelling of where the product comes from, the Commission will develop proposals before the end of the year as part of the “package on quality”. Contractual relations. According to the text of the conclusions, the Commission is being invited to examine the most appropriate way (guidelines or legislative proposal) on promoting the use of formal written contracts, established in advance, for the deliveries of raw milk. Bargaining power. The Commission is urged to reflect on developing a legislative proposal, which includes a provision “in compliance with agricultural law” enabling milk producer organisations to jointly negotiate contract clauses, including prices, for the production of milk. Market measures. The Council considers that it is necessary to maintain and, if necessary, adapt existing market instruments by using them as a security net and not as a payment mechanism. The Council calls on the Commission to explore new instruments, in an effort to help reduce income volatility. (L.C./transl.fl)