24 Nov 2016
EUROPEAN COMMISSION DAILY NEWS – 24 NOVEMBERBrussels Daily
European milk package strengthens dairy producers’ position in the supply chain
The European Commission published today the second report on the operation of the so-called Milk Package, a series of measures launched in 2012 to strengthen the position of European dairy producers in the supply chain.
The report shows that after three years of implementation, European farmers are increasingly using the tools provided by the Milk Package, such as collective negotiation of contract terms via producer organisations, or the use of written contracts. The measure allowing collective negotiation is designed to reinforce the bargaining power of milk producers, whilst written contracts offer better transparency and traceability to farmers.
The report was initially due to be delivered in 2018, but in light of the continuing difficulties in the dairy sector, EU Commissioner for Agriculture, Phil Hogan decided to fast-track the report to the end of 2016. This commitment was part of the series of solidarity packages for the dairy sector announced and implemented during the past year.
Welcoming the report, Phil Hogan stated today: “The report shows that there are measures that we can take at EU level to secure a better position for dairy farmers in the supply chain. Following on from the Agricultural Markets Task Force report last week, I see this report as further evidence for policy action, in the context of the 2017 Commission Work Programme.”. Read Press Statement here For more information Webpage on Milk Package
Agriculture: Commission launches tender procedure on limited quantity of skimmed milk powder in intervention
A tender procedure on skimmed milk powder currently in intervention will open this Friday 25 November following today’s vote by Member States on the Commission’s proposal. European operators will have until 13 December to submit their first bids to national authorities. In order to test the market reaction, the quantity of product concerned by the tender procedure is limited, corresponding to only 6% of the total amount of 355 000 tonnes of skimmed milk powder stored and taken out of the markets since the opening of the measure in September 2014. The European milk market is showing encouraging recovery signs, with an increase of about 10% of the average price paid to producers in the last 3 months. Following a steady decrease, no more quantities of skimmed milk powder (SMP) have been put into public intervention since September 2016, even though this market measure remains open. Commenting on today’s vote and decision, Commissioner Hogan said: “I am pleased to say that we are seeing something of a recovery in those hardest-hit markets, though we all know how fragile recovery can be in agricultural markets. Sustaining this recovery and working towards balance in the dairy market remains a priority. Reflecting the fragile nature of the recovery, the Commission will act with appropriate caution and the tender process will be under constant reassessment to prevent any unnecessary disruption.” All the support measures put in place by the Commission to help dairy producers, like private storage and public intervention, remain in place. For more information see here.
NEWS IN FULL