By Guy Montague-Jones

At a Council meeting, EU agriculture ministers agreed that the report of the Higher Level Group (HLG) provides “a solid basis for a review of the milk sector” but disagreements were aired on the details of reform.

Under the new Belgian presidency of the EU, member states exchanged views on the HLG report and policy options in light of volatile milk prices and the planned abolition of quotas in 2015.

Disagreement
On the controversial subject of contracts, most of the delegations agreed that there was a need for more enhanced contractual relations between milk producers and processors. But some countries would prefer a flexible and light system taking into account variations in supply arrangements while others advocated more standard contracts.

The balance of power between farmers and the rest of the industry was a key area of disagreement. Some member states called for producers to be better organized while others felt that instruments were already available for producers to negotiate balanced agreements.

As for the question of how to address price volatility, different views were expressed on market measures. A few delegations wanted to limited measures to current ones while others called for more instruments to reduce extreme price variations.

Farmer Protests
Outside the meeting, the volatility issue drew European farmers to the Belgian capital to protest against the withdrawal of quotas and the need for a better safety net to protect farmers if prices slump again. The European Milk Board (EMB) and the European Coordination Via Campesina (ECVC) led the protests that saw around a thousand farmers on the streets of Brussels.

Back in the Council meeting, country of origin labelling was also discussed. In general, ministers saw this as a voluntary option but some could envisage mandatory labeling.

Discussions will continue at the next Council meeting on 27 September. The Commission is then due to submit proposals before the end of the year. This will cover the collective bargaining between producers and processors as well as the possible role of interbranch organisations in the dairy sector.

Source: Dairy Reporter

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