EU Dairy Agreement Strengthens Farmers
Brussels -- Tuesday 6 December, 2011
Dairy farmers have been given more clout following an agreement on a package of measures on the sector. It aims to clarify the sometimes strained relationship between farmers and the companies they supply to.
For many years dairy farmers have been squeezed by big retailers (supermarkets) as the sale of milk has inexorably moved away from local delivery to shop shelves.
Many of the smaller to medium-sized milk farmers could not make ends meet, and they have had to sell their herds or their land to the bigger factory-type producers.
My colleague James Nicholson MEP, the Parliament's Rapporteur on the package welcomed the agreement which responds to the concerns of dairy farmers across the EU who feel that processors and supermarkets use their enormous power to undermine their position.
Under the agreement reached today, more power will be given to producer organisations.
They can grow up to 33 percent of production in a member state or 3.5 percent of total EU production.
Collectively, farmers will therefore be able to negotiate a better deal.
The regular lack of a written contract will be addressed as national governments will be able to impose compulsory contracts or require that a written offer be made to the farmer, which he has the choice of accepting or not.
Concerns over the lack of timely information regarding volumes of raw milk delivered to processors will also be resolved by requiring compulsory declarations of milk delivered.
The regulation will also strengthen the role of so-called 'interbranch organisations' - producer organisations which represent the economic activities associated with production, commerce or processing.
The deal is expected to be formally adopted in February.
