The discussion around the reform of the Common Market Organisation (CMO) is gathering steam in Brussels – and it affects us all because the plan is to conclude this process by the end of 2025. As the European Milk Board, we welcome the fact that the European Commission has taken up some key points that we have been underscoring for years: more clarity in contracts, better market rules and a stronger position for producers. Time is of the essence: the Commission warns that only one in ten farmers across Europe is below the age of 44 years. The sector’s ageing demographic shows that something is off.

At the heart of the reform is the proposal to make written contracts between producers and buyers compulsory for all milk deliveries. This is useful and necessary. Many of us today deliver our milk without prior price negotiations – this is an unacceptable situation in a so-called market economy. In future, contract conditions like price, volume, quality and term must be decided before delivery. This would lead to greater transparency, planning certainty and room for negotiation for us dairy farmers.

That being said: for such contracts to be truly effective, they should not be watered down. We need clear preconditions, like milk prices that cover production costs – including fair remuneration for our work. Furthermore, cooperative dairies cannot be exempt. That is, in fact, where many producers feel like they do not have a voice and are subject to price pressure. Uniform contractual rules must apply to all – irrespective of the buyer’s legal form.

The CMO reform is an important step, but it is only the beginning. The structural issues plaguing the dairy market persist: production that does not align with demand, very little real competition for our milk, too many dependencies. The dairy industry wants to maintain the status quo to hold on to their supply of cheap raw materials. We have a responsibility towards those taking over our farms, to the planet and to citizens, which is why we call for a further-reaching debate that aims to completely restructure the dairy market.

It might be useful to look at Canada. Milk producers sell their milk through Milk Marketing Boards that pool supply, plan volumes and conclude supply contracts with dairies. Production is aligned with national demand and structural surpluses are avoided. The milk price is calculated based on production costs and is not determined by the volatile global market. This system protects against price collapses, ensures stable income and offers family farms economic prospects – without direct public subsidies albeit with politically regulated volumes and market access. Considering a similar model does not mean adopting it in this exact form. The idea is rather to create an open market with fair competition as its foundation.

Such a model is possible in Europe. It needs the courage to usher in change, political support and a strong signal from us producers – we must show our commitment! Let’s capitalise on this latest reform as an opportunity to rethink the dairy market as a whole. An opportunity for fair contracts, market stability and a future for farmers worthy of this profession. Let’s not forget: if large lobbyists are so steadfastly against the CMO reform, it can only mean one thing – we are on the right track.

Jens Scherb, member of the EMB Executive Committee