Video guest: Josephine Mwangi

July 2018
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5



Follow the CTA Brussels Daily


twitter logo


facebook logo cta

Monday, 16 June 2014

Report on the dairy market and the "Milk Package"

The European Commission has today published a report on the development of the dairy market situation and the operation of the 2012 "Milk Package". It describes the rather positive outlook for the dairy market, takes stock of the implementation of the provisions and possibilities of the "Milk Package" and outlines further considerations in view of the end of the quota system in 2015.
Commissioner for Agriculture and Rural Development Dacian Cioloş said: "Since 2010, the European Commission has been following very closely the milk sector to ensure a smooth transition toward the end of the quota in 2015. This report confirms the positive trend for the world dairy markets but also the necessity to continue working on the best ways to tackle the challenge of price volatility in the future".
The so-called "Milk Package", adopted under co-decision in 2012, aims at strengthening the position of dairy producers in the dairy supply chain and preparing the sector for a more market-oriented and sustainable future, seeking in particular to learn lessons from the 2009 dairy market crisis. Member States have the option to make written contracts between milk producers and processors compulsory. Farmers have the possibility to negotiate contract terms including the price of raw milk collectively via producer organisations. Specific EU rules for inter-branch organisations allow actors in the dairy supply chain to dialogue and to carry out a number of activities, and Member States are allowed, under certain conditions, to apply rules to regulate the supply of PDO/PGI cheeses.
The report confirms that contracts between farmers and processors have been made compulsory in 12 Member States (Bulgaria, Croatia, Cyprus, France, Hungary, Italy, Latvia, Lithuania, Portugal, Romania, Slovakia and Spain), while in some others (Belgium, United Kingdom), codes of good practice have been agreed between farmers and processors organisations. National provisions for recognition of Producer Organisations (POs) have resulted in 228 formally recognised POs in six Member States (Belgium, Czech Republic, France, Germany, Italy and Spain). In four of those Member States (Czech Republic, France, Germany and Spain), POs have conducted collective negotiations covering between 4 and 33% of total deliveries. Two Member States (France and Italy) have applied rules for regulating the supply of certain PDO/PGI cheeses.
The Commission considers that it is too early to see significant effects of the Milk Package on the milk sector, especially in disadvantaged regions. The arrangements needed to actually apply the possibilities of the Milk Package, like the creation of POs and the organisation of collective negotiations, require time and a strong dynamic from farmers themselves.

Source: European Commission