Contractual relations in the milk and milk products sector

Between 2007 and 2009, after rising briefly the milk price collapsed as a result of structural overproduction.

Another factor behind the collapse was the EU's initial phasing out of milk quotas.

The glut of milk forced many farmers to sell at loss, but dairies and supermarkets failed to pass on the drop in prices to consumers.

The Commission suggested establishing a producer organisation for dairy farmers to boost their bargaining power vis-à-vis dairies and supermarkets. This would have led to greater transparency in the supply chain and made it easier for farmers to earn a living from their produce.

The Greens believe that dairy farmers should have the bargaining power they need to obtain fair farm-gate prices and make a living off their produce.

Consequently, we supported the Commission's proposal, but wanted it to be strengthened in several areas.

For instance, we called for binding contract frameworks and sufficient support for dairy farmer organisations to give them a chance to stand up to industrial dairies and supermarket chains.

Agreements concluded within such frameworks should make provision for renegotiations in the event of any sharp drop in prices.

The Greens were unable to prevent the Commission's proposal from being severely watered down during the negotiations.

Since the final version of the text lacked any substance, we decided to vote against it, though it went on to be adopted by the majority anyway.