April 26, 2011

European dairy industry protests against EU plans

The European Milk Board is calling for changes to European Commission and European Parliament plans on the future of dairying, and dairy farmers plan to protest outside the European Parliament in Brussels on May 4.

The European Milk Board disagrees with the vision presented by both the commission and Northern Ireland MEP Jim Nicholson, whose report on dairying is due to be voted on in the parliament's agriculture committee on May 24 and 25.

The board wishes to demand the improvement of milk-pooling arrangements for producers. A board spokesman said, "After two dramatic years, with tremendous financial losses for milk producers, the milk price has slightly recovered. There is, however, no reason to give an all-clear.

"On the one hand, production costs are once more increasing disproportionately and undo the modest improvements on the income side. On the other hand, measures to prevent another failure of the market were neither taken at the European nor at the national level. The critical situation of European dairy farms and what is at stake will be visible and tangible during this fiery action of milk producers, with delegations from many European countries," he said.

European Agriculture Commissioner Dacian Ciolos set out his plans in November to revolutionise milk markets across Europe and give producers significantly greater strength through ending the alleged abuse of power by milk processors and retailers throughout the EU. Ciolos has suggested written contracts between processors and dairy farmers that set out explicit supply terms and which give producer organisations the ability to negotiate terms for up to 3.5% of all of Europe's milk and 33% of national production to give farmers more power.

However, Ciolos has stopped making the contracts mandatory, and instead leaving it to individual member states to decide. He has also said the agreements, which would cover details of price, timing of deliveries and duration, would not be binding on farmers' co-operatives.

Nicholson's report to the parliament said farmers should be able to demand a contract and be allowed to sell their milk to a variety of processors on various agreements. He also wishes greater flexibility in the terms of any deal and a right to renegotiate them.

However, the report is being challenged by other MEPs, including Alyn Smith, of the SNP, who wants compulsory contracts between dairy farmers and processors.