EC wants more transparency in milk production
To effectively respond to market developments, the Commission needs timely information on the amount of raw milk delivered. Therefore, provisions stipulating that the first purchasers regularly transmit such information to Member States.
The Commission also needs notifications from Member States of the contractual negotiations, recognition of producer organizations and their associations and interbranch organizations, as well as contractual relations in the milk and milk products. So Milk package introduces the obligation for submitting declarations for the first purchasers focused on the amount each month for their milk. Statements will be sent only by the first purchasers (purchasers of milk directly from the farmer) - intermediaries who next will distribute milk to processors will not have to submit a declaration.
The purpose of this requirement is to monitor the size of the withdrawal of milk quota system, which should result in greater transparency in the production of milk. This entry also met with resistance, and parts of dairy organizations, as for them, the information is "sensitive information." Especially where one or two cooperatives dominate the milk market.
According to the EU Commission's proposals EMB in the Package are intended as milk crisis prevention in the milk. But it appears that the lack of effective tools to prevent disturbances. The proposed monitoring of milk production can ensure transparency in the regular area. In this way, according to the EMB, you can get the target area (corridor for the target price), which should be within the European average milk price. In this model, they are not defined or determined price. Price development should take place as before on the market. The European average producer price of milk falls below the limit set in the corridor, the European milk production for producers will be gradually reduced as long until the producer price will return to the hall. When the producer price exceeds the upper limit of the amount of milk is gradually increased until the average producer price reaches of the corridor. Making quantitative change lies in the hands of producer organizations
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