September 8, 2010

Dairy UK sets out Common Agricultural Policy reform position

The UK dairy industry could suffer if reform of the Common Agricultural Policy (CAP) were to adopt all the recommendations of the High Level Experts Group (HLEG) on Milk, Dairy UK has warned.

Unveiling the organisation's latest policy briefing, director general Jim Begg acknowledged the formation of the HLEG had provided a much need opportunity for the EU to debate measures to help the dairy industry adapt to life without quotas.

However, he stressed many of its recommendations were intended to address perceived deficiencies in other EU member states.

Dairy UK has already warned HLEG recommendations on milk contracts could be overly prescriptive, having already got in place contractual relationships with processors which were in advance of any on the continent.

Any measures by the Commission should prejudice the integrity of co-ops nor unfairly discriminate against private dairy companies which represent the minority of the EU supply chain.

It would create instability and harm processor investment, said Begg, if any proposal were to be brought forward that would enable farmers to resign contracts following a price change they did not agree with.

In November, commissioner Dacian Ciolos will bring forward proposals for reform and Begg said the dairy industry needed to be prepared and he invited debate from industry stakeholders on the issues raised in the new policy document.

"CAP reform and the recommendations of the High Level Experts Group are so important in determining the future structure and direction of the dairy sector," he said.