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European Commission Proposes Dairy Industry Changes

Dec. 9 (Bloomberg) -- The European Commission published proposals to give milk producers in the 27-nation bloc more bargaining power.

The changes, to remain in force until 2020, include allowing for collective bargaining to give producers more say in contracts, the commission said in an e-mailed statement today. Contracts between milk producers and processors could be drawn up in advance of deliveries that ensure price, timing and volume of deliveries, the commission said.

“In order to rebalance bargaining power in the supply chain, the proposal foresees allowing farmers to negotiate contracts collectively through producer organizations,” the commission said.

The European Union plans to scrap milk production quotas in 2015 because most countries’ output is well below the levels mandated by the limits, according to the report. Another goal of the proposal announced today would be to help with a “soft landing” when quotas end, according to the report.

To contact the reporter on this story: Tony Dreibus in London at tdreibus@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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