Brussels, 06/09/2011 (Agence Europe) - As announced (see EUROPE 10444), the EU states and institutions are very divided over the question of contractual relations in the dairy sector, with a trialogue (Commission, Council, EP) being scheduled on this subject for 14 September. Difficulties mainly relate to the arrangements for written contracts between milk producers and dairies or cooperatives. Another trialogue on this same text is expected to take place at the end of the month.
The debate at the Special Agriculture Committee (SAC) on Monday 5 September covered the EP amendments and other points on which no solution has yet been found within the Council working group.
The Commission suggests allowing producer organisations to collectively negotiate contract clauses with dairies, and to negotiate prices. This possibility would be subject to quantitative limits (3.5% of the EU market and 33% of total national production, the proposal states). The EP agriculture committee opted for 40% of national production. An EP amendment aims to allow member states whose production is less than 500,000 tonnes to be able to increase this percentage to up to 75% of national production (this concerns Luxembourg, Cyprus and Malta). The Commission, however, is opposed to this. The Polish Presidency of the EU Council is said to be envisaging acceptance of the amendment by proposing a derogation for a limit raised to 45% for the above three countries only.
Cooperatives. The Dutch delegation has proposed an addition to the regulation ruling out the possibility for members of milk cooperatives to be able to simultaneously sell their milk to producer organisations by short-circuiting the cooperative society to which they belong. A number of countries support this request - such as Germany, Ireland and Denmark - while others (and the Commission) consider that the solution is too complex. All countries underline that existing cooperatives should not be weakened.
Contracts. The EP foresees the possibility for each member state to fix a minimum duration for contracts in the dairy sector on its territory. Some countries are in favour (France, Spain, Italy, Austria, etc) while others are opposed (UK, Germany, Denmark, the Netherlands, which fear market distortion). Many countries (including France, Spain, Finland, Austria) support the EP amendment on the management of supplies within the PDO and PGI framework. Others (Germany, UK, Czech Republic) consider this is tantamount to creeping reintroduction of the quota system. On these two subjects, no majority is shaping up, thus preventing the Presidency from adopting a clear stance during the trialogue. (L.C./transl.jl)