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Voluntary production cuts in the CAP report on the Common Market Organisation of the EU Parliament's Committee on Agriculture

The positive articles in the Parliament’s report have not yet been carved in stone. For this reason, we need to keep up our efforts. In particular, the milk producers in their countries must continue to exert pressure on those responsible for agricultural policy in the coming months. Our aim is ultimately for the good draft of the EU Parliament to be implemented, so that it can withstand the expected pressure from some EU Member States and the EU Commission.


We continue to count on the great and strong commitment of the dairy farmers as well as on the constructive work of many Members of the European Parliament.


Background: voluntary production cuts in the CAP report on the Common Market Organisation of the EU Parliament's Committee on Agriculture

Article 219a on voluntary production cuts for all sectors in the event of a serious market imbalance, including the possibility of capping production, is of great importance for the crisis-ridden milk sector. This would make it possible in future to somewhat contain the harmful overproduction. Here, however, it would be important to determine more clearly when such a crisis instrument should be used. In other words, the definition of when a crisis occurs would have to be adapted to real circumstances.


Please find our proposal here:

Production costs need to be included in the definition of alert thresholds. According to the current proposal of the Committee on Agriculture, these alert thresholds are based on an average current market price compared with the average price for a certain number of weeks. There is a risk that the crisis alert will not be triggered if milk prices slowly fall over a longer period of time, even though a crisis is occurring. The alert thresholds should therefore be based on other criteria, among others production costs and milk prices. A significant shortfall therefore is an essential crisis indicator.


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Newsletter June 2009

The Newsletter of June - complete version here