Change Edition

Fair price for Luxembourg dairy farmers
Economics

Fair price for Luxembourg dairy farmers

14.03.2012 From our online archive
European dairy farmers, who in 2009 poured tons of milk during protests against low prices, should soon be able to negotiate prices collectively with dairies, after a compromise was reached on Tuesday in Brussels.

(ADW) European dairy farmers, who in 2009 poured tons of milk during protests against low prices, should soon be able to negotiate prices collectively with dairies, after a compromise was reached on Tuesday in Brussels.

The agreement explains that states wishing to can make it compulsory to introduce the use of written contracts ahead of milk deliveries, and allow producers to engage in collective bargaining. The text is intended to accompany the end of milk quotas, scheduled for 2015.

Currently, dairy farmers often do not know at the time of delivery the price they will receive for their milk. Rates are sometimes fixed much later by the dairies. In addition, farmers often have little choice of the processing plant used, or even the transporter for delivery of unprocessed milk.

The compromise reached on Tuesday morning between representatives of the European Parliament and 27 EU governments is intended to remedy the situation.

In order not to harm competition, an organisation of dairy farmers cannot negotiate alone a volume greater than 3.5% of European milk production, and 33% of national production for the state concerned. There are exemptions for small countries like Malta, Cyprus and of course Luxembourg where they can negotiate up to 45% of national production.