The Commission is due to publish its proposals by the end of 2010, following on from recommendations laid out earlier in the year by the High Level Expert Group on Milk.
A leaked document outlining the Commission proposals has now given the industry an early indication of the likely direction the reforms will take.
Farming reaction
Giving its reaction, farming lobby Copa-Cogeca said: “some of the measures are in line with our demands, especially moves to improve farmers positioning in the food chain.”
Henri Brichart, chairman of Copa-Cogeca’s milk working party, welcomed the Commission’s approach to contracts and its willingness to look at the role of inter-branch organisations, similar to those in the EU fruit and vegetable sector.
But the European Dairy Association (EDA), which represents the interests of processors, has expressed some concern about the proposals.
Processing side
Secretary general Joop Kleibeuker told DairyReporter.com that the proposals regarding contracts between processors and farmers are “quite prescriptive still”.
Kleibeuker said the reforms should not exclude more flexible contracts where a relationship has been built up and confidence is established. He welcomed the idea of providing contract guidance but said making contracts too prescriptive would not help develop the dairy market.
On the subject of producer organisations, Kleibeuker expressed concern that the reforms could allow groups that do not take delivery of milk to be able to negotiate on behalf of farmers. Kleibeuker said no organisation should be able to “have significant influence on the market without market responsibility.” He added that the Commission should ensure that any reforms should stay with EU competition rules.
Last week Kleibeuker, accompanied by 15 managers from the European processing industry, put these points to Dacian Ciolos, the Commissioner for agriculture.
Kleibeuker said the dialogue had been constructive and that all parties are agreed on the need to ensure market growth and instill confidence among both farmers and processors.