High Level Group makes 7 recommendations for EU dairy sector - July 26th, 2010
The High Level Group on Milk, set up last October in the wake of last year's dairy crisis, has
finalised the report on its deliberations, including recommendations to the Commission on seven
issues. These include an invitation to come forward with concrete moves to enhance the use of
written contracts in the dairy supply chain and to consider proposals to increase the collective
bargaining power of dairy producers.
EU Commissioner for Agriculture and Rural Development Dacian Ciolos stated: "I welcome the work
of the HLG and this report. I will now study it in detail with a view to coming forward with legislative
proposals before the end of the year. My main aim is that we consider medium to long term measures
which address the lessons learned from last year's crisis aimed at better structuring the sector as a
whole."
The recommendations to the Commission from the High Level Group related to:
• Contractual relations between milk producers and milk processors: Enhancement of formal
written contracts, made in advance, to cover deliveries of raw milk (inc. price, volume, timing &
duration) – through guidelines or a legislative proposal, maybe made compulsory by the Member
State.
• Collective bargaining power of producers: Possible proposal for provision to allow producer
organisations constituted by dairy farmers to negotiate jointly their contract terms, including price,
with a dairy. Whether permanent or temporary (but sufficiently long), the provision should be subject
to review.
• The possible role of interbranch organisations in the dairy sector: Examination of whether
any of the current provisions for interprofessional organisations in the fruit & vegetables sector could
also be applicable in the dairy sector.
• Transparency in the dairy supply chain: Further elaboration of the European Food Price
Monitoring Tool, and a look at the provision of more information (e.g. on volumes of dairy products)
by EUROSTAT & national statistics offices.
• Market measures and futures: Consideration of "green box compatible" instruments to reduce
income volatility, including possibly facilitating the use of futures markets, in particular via targeted
training programmes.
• Marketing standards and origin labelling: Ongoing Commission work on labelling should
consider the feasibility of different options for "place of farming" labelling for dairy products and
should seek distinct labelling for imitation dairy products.
• Innovation and research: Improvement in communicating existing possibilities for innovation
and research within the existing framework of Rural Development and research framework
programmes. Stakeholders should define clear research priorities for the dairy sector in order to
allow better coordination of national & Community research programmes.
The full 50-page report (with annexes) will be posted shortly at: http://ec.europa.eu/agriculture/markets/
milk/index_en.htm
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