Brussels, 08/11/2011 (Agence Europe) - Discussions on contracts in the milk sector are becoming problematical because of possible discrimination against cross-border producers. France and Germany are seeking a solution to this problem. In fact, the outcome of the inter-institutional trialogue on the milk package on Thursday 10 November remains uncertain (see also EUROPE 10486).
Debate within the Special Committee on Agriculture (SCA) on Monday 7 November focused on preparation of this forthcoming trialogue meeting. European Parliament (EP) rapporteur James Nicholson (ECR, UK) indicated to the Polish Presidency that the EP was prepared to drop its demand for compulsory contracts (between producers and dairies) if the Council accepted the Franco-Italo-Spanish position on the management of supplies for quality diary products listed under protected designation of origin (PDO), or protected geographical indication (PGI). Northern European member states, against flexibility in the management of supplies for quality products, formed a blocking minority on the SCA. Germany changed its stance and was prepared, ultimately, to accept the compromise on PGIs. This compromise would give producers of goods protected under the PGI or PDO an exemption which could restrict their production volumes (a sort of re-introduction of quotas). This would affect virtually exclusively French cheese (vacherin, beaufort, etc.). The United Kingdom, too, was prepared to agree to the compromise on PGIs.
Legal stalemate. The Council legal department says that if a country imposes compulsory contracts, then these would apply also to producers from other countries who deliver supplies in that country. For example, if France were to impose contracts, German producers in the Saarland who make deliveries in Lorraine in France would be required to abide by the same French arrangements (compulsory contracts) as French suppliers. Thus, according to the Council legal staff, it is not possible to put compulsory contracts in place and limit them simply to national producers without discriminating against producers in countries where there are no compulsory contracts. Discussions find themselves in a kind of legal deadlock, and Germany is taking the issue very seriously.
In negotiations on the milk package, the idea that would appear currently to be winning the day is not to make contracts compulsory for everyone but to leave it up to member states to decide if contracts should be compulsory or not. France is reported to have suggested a compromise that provides not for a contract obligation but an obligation on the dairy to propose a contract to the producer, who would not be required to accept it. (LC/transl.rt)