The 11-page draft own-initiative report, published last week, seeks to assess the support measures of the dairy package and recommends solutions to address market volatility. Rapporteur James Nicholson has called on the Commission to implement more “responsive and realistic” safety net measures and review the rate of intervention to be “more reflective of production costs and adapted as the market changes”. Nicholson would like to see the sector explore “longer-term integrated supply chain contracts”, fixed margin contracts and the “opportunity to ‘lock-in’ a milk price for a set period of time”. He recommends further incentivisation to “create and join POs as a tool to address imbalances in the supply chain”. The Agriculture Committee of the European Parliament will vote on the report in early May, with the plenary expected to adopt its position later in the summer.

