Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1234/2007 as regards contractual relations in the milk and milk products sector

Abstract

The proposal provides for optional written contracts to be drawn up in advance for deliveries of raw milk by a farmer to a dairy which would include the key aspects of price, the timing and volume of deliveries, and the duration of the contract.
In order to take into account the specific nature of cooperatives and not to interfere unnecessarily in current structures, cooperatives would not be required to have contracts on condition that their statutes provide for rules with the same objective.
To rebalance bargaining power, it is further proposed to allow farmers to negotiate such contract terms, including the price, collectively via producer organisations. Whilst current competition law provides for this to some extent, the possibilities are limited in the absence of shared processing facilities and there is a lack of legal certainty. The proposal provides for a legal basis in agricultural law to this end. In order not to destabilise the situation in reverse, a size limit is proposed. It does not affect dairy cooperatives, to the extent that they consist of vertical integration of farmers together with processing facilities..

Process

Commission Status

EU Parliament Status

Council Status

Additional Comments

None

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