European Dairy Producers Get Help From Euro Commission Milk Package

Europe farmers are increasingly using producer organizations to help them in negotiating contract terms or providing the suitable written contracts.
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A European Commission report published on 24 November 2016 highlighted the strengthening effects of the EC’s 2012 Milk Package on the European dairy producers.

The package included measures to support the European dairy sector in light of the end to the quota system that took place in 2015.

The tools provided by the 2012 Milk Package has helped the European farmers in gaining extended market.

Europe farmers are increasingly using producer organizations to help them in negotiating contract terms or providing the suitable written contracts.

The EU commissioner for Agriculture, Phil Hogan, welcomed the report and expressed hope that the measures taken at the EU level will help “secure a better position for dairy farmers in the supply chain.”

The 2012 Milk Package provided two key instruments for the farmers – producer organizations and collective negotiations.  But the report emphasizes that EU member states or farmer organizations are not yet fully utilizing these measures.

The report hopes to encourage EU member states to enhance farmer’s weight in the milk supply chain and expand the role of Inter-Branch Organizations.

Producers, processors, and trading entities in the sector make the IBO’s collectively.  Such organizations allow for more productive dialogues between various players in the supply chain.

The EU Milk Package boosts European dairy farmer’s position in the dairy market and reshapes the sector to be more market-oriented.

The measures applied by the package will be in effect only until 2020.  However, the current report concludes that an extension would be necessary to help the package reach full potentials.

This report was expected in 2018 on the market situation and the progress on the implementations of the measures and consider how the measure has affected the milk farmers and their production.

The report was published in 2016, a year in advance of its intended 2018 schedule, within a solidarity package which was launched by EU Commissioner Hogan in September 2015.

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