15/02/2012
Kay Swinburne, Welsh Conservative MEP, welcomed the new measures voted on in the European Parliament which will give dairy farmers greater bargaining power and control over the price they receive for milk.
The legislation was drawn up in response to widespread concerns that the negotiating power of major food companies was driving prices down to levels that threatened the survival of some dairy farms.
Importantly, dairy farmer Producer Organisations will now be recognised under the EU legislation, which will allow them to collectively negotiate a price for their milk up to limits of 33 % of national production or 3.5 % of the total EU production. As a result, farmers will have a strong position on the dairy supply chain enabling them to negotiate a better price per litre for their milk.
Finally, the issue of a lack of a written contract will be addressed with national governments having the option of introducing compulsory contracts.
Kay said:
"Welsh dairy farmers have been getting a raw deal on the price of their milk for too long and the uncertain economic situation has only exacerbated this. It is grossly unfair that Welsh dairy farmers receive on average 3p per litre less than the EU average and it is about time this issue is addressed.
“I am pleased to see that the EU is in touch with what dairy farmers are experiencing across Europe with Welsh farmers getting a worse deal than their counterparts across the EU. Whilst it doesn’t solve all of problems that dairy farmers face, this piece of legislation is a good starting point in redressing the balance of power when negotiating the price of milk.
“All EU countries now have the option of introducing contracts, which I would urge the Welsh Government to seriously consider implementing, particularly given that the number of Welsh dairy farmers has halved within the past decade. This move will provide farmers with the much needed stability that they have long been asking for.
“This is a substantial step in the right direction, which I am sure will be welcomed by dairy farmers across Wales."