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Herman VERSTEIJLEN Director Agricultural Markets, European Commission

Recommendations of the High Level Group on Milk and what lessons for the future CAP Profondval, 20 September 2010. CEJA Seminar. Herman VERSTEIJLEN Director Agricultural Markets, European Commission. Evolution of farm gate milk prices. EU-15. EU-12. High Level Group Milk: the issues.

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Herman VERSTEIJLEN Director Agricultural Markets, European Commission

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  1. Recommendations of the High Level Group on Milk and what lessons for the future CAPProfondval, 20 September 2010 CEJA Seminar Herman VERSTEIJLEN Director Agricultural Markets, European Commission

  2. Evolution of farm gate milk prices EU-15 EU-12

  3. High Level Group Milk: the issues • Contractual relations: • Adapt supply to demand. • Contract elements: price/formula, volume, timing delivery, duration. • Member States can make use of contracts compulsory. • Bargaining power producers: • Majority Member States wants specific provision in CAP to allow producer organisation (PO) to negotiate price. • Size PO and possible support for setting up: to be discussed.

  4. High Level Group Milk: the issues • Interprofessional/interbranche organisations: • Look at fruits and vegetables sector (transparency, coordination, research, improve quality, production methods, etc.). • Market measures and futures: • Present safety net appropriate. • Reduce income volatility. • Futures, useful complementary tool.

  5. High Level Group Milk: the issues • Marketing standards/origin labelling: • Proper labelling of imitation products (not use dairy denominations!) • Place of farming, obligatory/voluntary for basic primary dairy products? • Transparency, innovation and research: • Food price monitoring tool to monitor margins food chain. • Reinforcement innovation under rural development. • Improve identification of research issues and use better existing frameworks (EU and national). Agenda: Proposal to Council/Parliament end 2010.

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