CAP under scrutiny at MIV

At EU level it is once more about cutting the budgets of the Common Agricultural Policy (CAP) as a result of the upcoming Brexit and new tasks for the Brussels authorities. Second, it is about giving member states more leeway in shaping national agricultural policy.

The outcome of the deliberations will not be known before the 2019 European elections. But it is already becoming apparent that Commissioner Hogan’s proposals for savings can reach a majority in the Council of Ministers and in the EU Parliament.

The upcoming Brexit was debated at the annual congress of the German Dairy Industry Association (MIV) in Berlin.

“We still hope for a political agreement that avoids a hard Brexit without agreements,” said MIV chairman Peter Stahl during the congress.

The redrafted Article 148 of the Common Market Organization in the EU Member States provides for the option of restricting contractual freedom between dairy farmers and their dairy. The Ministry of Agriculture in Germany is currently discussing this option with the federal states.

The representatives of the dairy industry – co-operative and private companies – see no benefit in statutory contract content in terms of price, quantity and duration.

“Contracts alone do not make prices. The price fluctuations on the milk market arise internationally through supply and demand, also as a result of trade wars and embargoes: These market forces can not be eliminated in a free market by predetermined contract content,” is Stahl’s opinion.

National laws can in turn improve the quality and production of the products. The German product law is therefore to be adapted and milk quality regulation is being modernised. Both legislative proposals are important steps and were welcomed by the MIV.

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