First Meeting of High Level Milk Group

EU - The High Level Experts' Group on Milk met for the first time in Brussels earlier this week to discuss contractual relations and bargaining power in the dairy sector.
calendar icon 15 October 2009
clock icon 1 minute read

The High Level Group was established by the European Commission to look into the medium and long-term future of the dairy sector, particularly in view of the phase-out of milk quotas, which will be concluded in April 2015. Its work runs in parallel to the measures the Commission is introducing to stabilise the dairy market in the short term. Up for discussion earlier this week were the following questions:

1. Is there a need for formalised contracts between dairy farmers and dairy purchasers/processors to cover the supply of raw milk?

Would they help to reduce volatility?

Should they be obligatory for all deliveries or be at the choice of the parties?

2. What should be the essential elements of such contracts?

Price? How could this be freely negotiated between the parties whilst ensuring equivalent treatment for similar transactions?

Volume – fixed in advance? How should under-deliveries or additional volumes be provided for?

Duration – what is an appropriate period? Should a compulsory minimum period be fixed in advance?

3. How should breaches of contract be handled?

By private contract law or by direct Member State enforcement?

4) How can the bargaining power of farmers be increased?

What role could farmers' (producer) organisations play in this context?

The next meeting of the HLG will take place on 10 November 2009.

TheCattleSite News Desk

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.