EU Commission to strengthen dairy producers’ position in supply chain

The European Commission has released the second report on the operation of the so-called Milk Package, which featured a series of measures launched in 2012 to bolster the position of European dairy producers in the supply chain.

The report suggests that after three years of implementation, farmers across Europe have been effectively using the tools offered by the Milk Package, such as collective negotiation of contract terms via producer organisations, or the use of written contracts.

The measures suggested for the dairy farmers have resulted in collective negotiation among dairy farmers, as well as reinforced their bargaining power, whilst written contracts offer better transparency and traceability to farmers.

EU Commissioner for Agriculture Phil Hogan said: "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."

The report was due to be delivered in 2018, but due to the growing turbulences in the dairy sector, Hogan decided to fast-track the report to the end of this year. The report also examines further possibilities for dairy farmers.

The report concludes that an extension of its application beyond 2020 should be taken into consideration, for Milk Package's possibilities to materialise.