Brussels, 20/02/2012 (Agence Europe) - On 15 February, the European Parliament (EP) approved a regulation on contractual relations in the milk sector “which serves industry interests” and which makes no provision for mechanisms that will allow milk prices to properly remunerate production and labour costs, said European Coordination Via Campesina on 17 February. The organisation is of the opinion that the reform offers no solution to the problems that brought about the 2009 crisis and regrets the lack of measures to avoid price volatility.
The agreement on contractual relations means that the volume of raw milk that can be covered by negotiations between producers' organisations and processors or collectors may not exceed 3.5% of total EU output. Nor may it exceed either 33% of overall national production or 45% in states where total production is less than 500,000 tonnes.
Via Campesina says that it is untrue that the new regulation will enhance the negotiating power of producers as is “does not include any formula for setting prices that builds in the costs of production and payment for labour, nor, indeed, mechanisms preventing the industry from imposing conditions that are unfavourable or ruinous to producers”.
Multinational companies, such as Lactalis, or large cooperative groups will be able to impose their interests through a model of contractual relations that favours them, and not the general interest of citizens and producers, the organisation says. By way of a solution to the crises, Via Campesina proposes “public regulation of production and the market”, in order to balance the food chain and prevent price volatility. It argues that production will become increasingly concentrated in ever larger, more industrialised farms, a move which would be “harmful to sustainable family production and to maintaining production in all dairy regions of Europe”. Furthermore, with this regulation, dumping of EU surplus milk in third countries “will continue, with serious effects for both EU and the third country producers”. Via Campesina says that, at the last Agriculture Council, four European ministers had the courage to express their reservations over ending milk quotas in 2015. The organisation concludes: “Another milk policy is needed, a policy which puts a priority on regulation of production and on sustainable milk production based on the production of fodder and linked to the land.” (LC/transl.rt)