Activities of Maria do Céu PATRÃO NEVES related to 2010/0362(COD)
Plenary speeches (9)
Explanations of vote
Explanations of vote
Explanations of vote
Explanations of vote
Explanations of vote
Explanations of vote
Explanations of vote
Explanations of vote
Contractual relations in the milk and milk products sector (debate)
Amendments (32)
Amendment 42 #
Proposal for a regulation
Recital 1
Recital 1
(1) Successive reforms of the common market organisation covering milk and milk products, now contained in Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation), have been aimed at market-orientation (i.e. letting price signals guide the decisions of farmers in terms of what and how much to produce) so as to strengthen the competitive situation of the dairy sector and its sustainability in the context of globalised trade, without however renouncing appropriate regulation instruments, rejecting a pure liberalisation of the sector. By Council Regulation (EC) No 72/2009 of 19 January 2009 on modifications to the Common Agricultural Policy by amending Regulations (EC) No 247/2006, (EC) No 320/2006, (EC) No 1405/2006, (EC) No 1234/2007, (EC) No 3/2008 and (EC) No 479/2008 and repealing Regulations (EEC) No 1883/78, (EEC) No 1254/89, (EEC) No 2247/89, (EEC) No 2055/93, (EC) No 1868/94, (EC) No 2596/97, (EC) No 1182/2005 and (EC) No 315/20075 , ("Health Check" reform of 2008-2009) it was therefore decided that it was necessary, given the situation in the sector at that time and its recent development, to increase quotas gradually in order to, as one way of ensureing a smooth transition to the end of the milk quota system in 2015.
Amendment 45 #
Proposal for a regulation
Recital 2
Recital 2
(2) In 2007-2009, exceptional developments took place in milk and milk products sector markets which, it is now recognised, are tending to recur. Initially, extreme weather conditions in Oceania brought about a significant decline in supplies, leading to a rapid and significant increase in prices. Yet while world supplies had started their recovery, and prices had started to return to more normal levels in some European regions, the subsequent financial and economic crisis negatively affected EU dairy producers, aggravating price volatility. Initially feed and other input costs including energy increased significantly as a result of higher commodity prices. Subsequently, a drop in worldwide, as well as EU, demand, including for milk and milk products, whilst EU production was stable led to a collapse in EU prices, down to the lower safety net level. This sharp decline in dairy commodity prices failed to fully translate into lowera proportional fall in dairy prices at consumer levels, generating a widening in the gross margin of the downstream sectors for most milk and milk sector products, and countries, and preventingmaking it difficult for demand for them to adjust to low commodity prices, slowing downin some cases slowing down and in other cases influencing price recovery and exacerbating the impact of low prices on milk producers, leading to mounting debts among producers, making many farms unsustainable and forcing farmers to give up farming. It is in this context of falling income for producers and recurrent price volatility, along with the announced end of quotas, that consideration should be given to some compensation for the acquired quota and that a regulation is required which will at the very least provide the milk sector with the level of management and information that were previously guaranteed.
Amendment 51 #
Proposal for a regulation
Recital 2 a (new)
Recital 2 a (new)
(2a) The European dairy sector has become subject to market logic and is suffering terribly from the deregulation advocated by the liberal model and the resulting price volatility. The unprecedented dairy crisis that Europe experienced in 2009 is a well-known example. It plunged European agriculture into total disarray, such was the fall in production prices, with Europe’s farmers no longer able to face up to their production costs and obtain a reasonable profit margin. There is thus a need to take a position in favour of regulating the dairy market in such a way that supply meets the demand and production prices rise again, and to establish a new balance in the supply chain for dairy products. To achieve this, regulatory intervention by the public authorities is justified in order to adjust production to market requirements in the medium and long term.
Amendment 55 #
Proposal for a regulation
Recital 3
Recital 3
(3) In October 2009, in light of this difficult market situation for milk, a High Level Expert Group on Milk ("HLG") was set up with the purpose of discussing mid- term and long-term arrangements for the milk and milk products sector, givenin a context that was restricted in advance to the expiry of dairy quotas in 2015. While respecting the outcome of the Health Check, the HLG was to work on a regulatory framework to be put in place, to contribute to stabilising the market and producers' income and enhance its transparency.
Amendment 59 #
Proposal for a regulation
Recital 4
Recital 4
(4) The HLG obtained oral and written input from major European stakeholder groups in the dairy supply chain representing farmers, dairy processors, dairy traders, retailers and consumers. Further, the HLG received contributions from invited academic experts, third country representatives, National Competition Authorities and the Commission's services. A dairy stakeholder conference was also held on 26 March 2010 allowing a wider range of actors in the supply chain to express their views. The HLG delivered its report on 15 June 2010, which contained an analysis of, without constituting an overview of the contributions received, presented an analysis and interpretation in line with the HLG's own criteria. In this context, the report on the current situation of the dairy sector andformulated a number of recommendations, relating in particular to contractualising supplies, strengthening the bargaining power of producers and strengthening the role of inter-branch organisations, whilst omitting to make any reference to distribution.
Amendment 66 #
Proposal for a regulation
Recital 6
Recital 6
(6) There is a problem of price transmission along the chain, sin particular as regards farm-gate prices. Conversely, during 2009 the supply of milk did not react to lower demand. Indeed, in some large producer Member States, in reaction to lower prices, farmers produced more than in the previous year. Value-added in the chain has become increasingly concce value- added has become increasingly concentrated in the downstream sectors, notably with large-scale distribution, which, in the current context of the sector's market orientrated in the downstream sectors, notably with dairiesion, must inevitably be involved.
Amendment 76 #
Proposal for a regulation
Recital 7
Recital 7
(7) For dairies, the volume which will be delivered during the season is not always well planned. Even for dairy co-operatives (owned by farmers which posses processing facilities, by which 58% of EU raw milk is processed, although the percentage varies considerably from one Member State to another) there is a potential lack of adaptation of supply to demand: farmers are obliged to deliver all their milk to their co-operative and the co- operative is obliged to accept all the milk. In this context the Commission should conduct a reassessment of the European cooperative sector and issue specific guidelines with the aim of ensuring that it is adapted to the current reform.
Amendment 82 #
Proposal for a regulation
Recital 8
Recital 8
(8) The use of formalised, written contracts even containing basic elements made in advance of delivery is not widespread. However, they could increase awareness and reinforce the responsibility of the operators in the dairy chain to better take into account the signals of the market, improve price transmission and adapt supply to demand, as well as help avoid certain unfair commercial practices, if they were extended to the whole of the chain.
Amendment 83 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) Without collective control of European production the contractual system advocated by the HLG will not, even if it is backed up by such other measures as strengthening producers’ bargaining power, the role of producer organisations and inter- professional/interbranch organisations, succeed in securing fair and stable milk prices for producers and consumers. We need to produce less milk while preserving the largest possible number of farms. Having numerous farms in Europe helps stabilise rural development and boosts employment.
Amendment 89 #
Proposal for a regulation
Recital 9
Recital 9
(9) In the absence of EU legislation on such contracts, Member States may currently, within their own contract law systems, make the use of such contracts compulsory provided that in doing so EU law is respected and in particular that the proper functioning of the internal market and the common market organisation is respected. Given the diversity of situatHowever, given that contractual relations form the basis of the Commission's across the EU in this context, in the interests of subsidiarity, such a decision should remain with Member States. However, tproposal for the future regulation of the milk sector, the same principle, with flexible implementing rules, should be followed by all the Member States, since a voluntary scheme would risk leaving the current situation unchanged. Given the imminent dismantling of quotas and without an effective alternative mechanism, the end result would be to leave the sector unregulated. To ensure appropriate minimum standards for such contracts and good functioning of the internal market and the common market organisation, some basic conditions for the use of such contracts should therefore be laid down at EU level. Since some dairy co- operatives may have rules with similar effect in their statutes, with requirements to be specified, in the interests of simplicity they should then be exempted from a requirement for contracts. In order to ensure that any such system is effective where intermediate parties collect milk from farmers to deliver to processors, it should apply equally in such a case.
Amendment 93 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) The EU, in accordance with its motto 'unity in diversity', should seek to develop common policies that take into account and do not compromise the specific characteristics inherent to the various Member States. Amending the regulation should therefore take account of the diversity of the milk sector in the various Member States and should not lay down conditions for the industry that would eliminate milk production in Member States and regions where it traditionally guarantees an income for rural communities, thereby helping to populate and revitalise rural areas in disadvantaged regions such as mountain regions and the outermost regions.
Amendment 94 #
Proposal for a regulation
Recital 9 b (new)
Recital 9 b (new)
(9b) In many Member States the milk sector is essentially organised in cooperatives which function as the sole collection centre, above all in isolated and/or remote regions, in which the majority of partners have a small degree of representativeness. For some of the Member States, a proposal for a regulation founded on first-level contractual relations, put forward as voluntary, which leaves cooperatives on one side, does not make any contribution that would have a real and effective impact.
Amendment 97 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to ensure the rational development of production and so to ensure a fair standard of living for dairy farmers, their bargaining power vis-à-vis processors and the whole of the chain should be strengthened, which should result in a fairer distribution of value-added along the supply chain. Therefore, in order to realise these objectives of the common agricultural policy, a provision should be adopted pursuant to Articles 42 and 43(2) TFEU to allow producer organisations constituted by dairy farmers or their associations to negotiate contract terms, including price, jointly for some or all of its members' production with a dairy. In order to maintain effective competition on the dairy market, this possibility should be subject to appropriate quantitative limits. Such producer organisations should therefore also be eligible for recognition under Article 122 of Regulation (EC) No 1234/2007. The Commission should be empowered to adopt delegated acts in accordance with Article 290 TFEU in respect of the conditions for approval of associations of producer organisations.
Amendment 102 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) The Commission should create a price formation observatory to prevent the policy of dumping, among other objectives.
Amendment 106 #
Proposal for a regulation
Recital 12
Recital 12
(12) Rules have been introduced at EU level for interbranch organisations in some sectors. TProvided that they bring together representatives of all the parties concerned, these organisations can play useful roles in allowing dialogue between actors in the supply chain, in functioning as a privileged forum for sectoral consultation and in promoting best practice and market transparency. Such rules should equally be applied in the milk and milk products sector, along with the provisions clarifying the position of such organisations under competition law whilst ensuring that they do not distort competition or the internal market or affect the good functioning of the common market organisation.
Amendment 116 #
Proposal for a regulation
Recital 14
Recital 14
(14) The measures set out in this Regulation, are justified in the current economic circumstances of the dairy market and the structure of the supply chain. They should therefore be applied for a sufficiently long duration (both before and after the abolition of milk quotas) to allow them to have full effect. However, given their far-reaching nature, they should nevertheless be temporary in nature, and be subject to regular review to see how they have operated and, whether they should continue to apply or whether they should be reformulated, particularly as regards giving further consideration to maintaining quotas. This should be dealt with in Commission reports on the development of the milk market, and covering in particular potential incentives to encourage farmers to enter into joint production agreements, to be submitted by 30 June 2014 and 31 December 2018.
Amendment 135 #
Proposal for a regulation
Article 1 – point 3
Article 1 – point 3
Regulation (EC) 1234/2007
Article 123 – paragraph 4 - introductory part
Article 123 – paragraph 4 - introductory part
4. Member States may also recognise as inter- branch organisations those organisations which:
Amendment 138 #
Proposal for a regulation
Article 1 – point 3
Article 1 – point 3
Regulation (EC) 1234/2007
Article 123 – paragraph 4 – point a
Article 123 – paragraph 4 – point a
(a) are made up of effective representatives of economic activities linked to the production of, trade in, or processing of products of the milk and milk products, processing, distribution, consumers, applied research (universities and private sector) and in general all parties involved in the milk sector;
Amendment 146 #
Proposal for a regulation
Article 1 – point 3
Article 1 – point 3
Regulation (EC) 1234/2007
Article 123 – paragraph 4 – point c – introductory part
Article 123 – paragraph 4 – point c – introductory part
(c) carry out one or morsome of the following activities, with the power to make decisions in the area in which they operate, in one or more regions of the Union, taking into account the interests of the whole of the chain, notably consumers:
Amendment 152 #
Proposal for a regulation
Article 1 – point 3
Article 1 – point 3
Regulation (EC) 1234/2007
Article 123 – paragraph 4 – point c – subpoint ii
Article 123 – paragraph 4 – point c – subpoint ii
(ii) helping to coordinate better the way the products of the milk and milk products sector are placed on the market, in particular by means of research and market studies, including potential export markets;
Amendment 154 #
Proposal for a regulation
Article 1 – point 3
Article 1 – point 3
Regulation (EC) 1234/2007
Article 123 – paragraph 4 – point c – subpoint ii a (new)
Article 123 – paragraph 4 – point c – subpoint ii a (new)
(iia) promoting consumption.
Amendment 164 #
Proposal for a regulation
Article 1 – point 3
Article 1 – point 3
Regulation (EC) 1234/2007
Article 123 – paragraph 4 – point c – subpoint vii
Article 123 – paragraph 4 – point c – subpoint vii
(vii) exploiting the potential of organic farming and protecting and promoting such farming as well as designations of origin, quality labels, product labelling and geographical indications; and
Amendment 165 #
Proposal for a regulation
Article 1 – point 3
Article 1 – point 3
Regulation (EC) 1234/2007
Article 123 – paragraph 4 – point c – subpoint vii a (new)
Article 123 – paragraph 4 – point c – subpoint vii a (new)
(viia) promoting research and development strategies for milk sector products in order to create value-added products that are more attractive to consumers and that allow producers to receive more satisfactory remuneration;
Amendment 214 #
Proposal for a regulation - amending act
Article 1 – point 4
Article 1 – point 4
Regulation (EC) No 1234/2007
Article 126 a – paragraph 4
Article 126 a – paragraph 4
4. For the purposes of applying point (c) of paragraph 2, the Commission shall publish, by the methods it considers appropriate, the amounts of raw milk production in the Union and the Member Statesall information on milk production (volume, quality, prices) in the Union and the Member States serving to define the nature of the sector, using the most up-to- date information available.
Amendment 223 #
Proposal for a regulation - amending act
Article 1 – point 4
Article 1 – point 4
Regulation (EC) No 1234/2007
Article 126 a – paragraph 5 – subparagraph 1
Article 126 a – paragraph 5 – subparagraph 1
5. By way of derogation fromNotwithstanding paragraph 2(c)(ii) and (iii), even where the threshold of 33% is not exceeded, the competition authority referred to in the second subparagraph may decide in an individual case that the negotiation by the producer organisation may not take placeust be reviewed if it considers that this is necessary in order to prevent competition being excluded or in order to avoid serious prejudice to SME processors of raw milk in its territory.
Amendment 240 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) No 1234/2007
Article 185 e – paragraph 1
Article 185 e – paragraph 1
1. Processors of raw milk shall declare to the competent national authority the quantity of, quality, and prices of the raw milk that has been delivered to them each month, seeking, in so doing, to provide a comprehensive, accurate, and up-to-date description of the sector making for greater transparency.
Amendment 244 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) No 1234/2007
Article 185 e – paragraph 2
Article 185 e – paragraph 2
2. In order to ensure the usefulness and timeliness of such declarations for market management purposes, and that they are up to date, the Commission may, by means of delegated acts, adopt rules on the scope, content, format and timing of such declarations.
Amendment 251 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) No 1234/2007
Article 185 f – paragraph 1 – subparagraph 1
Article 185 f – paragraph 1 – subparagraph 1
1. If a Member State decides that everyWritten contracts for deliveryies of raw milk by a farmproducer to a processor of raw milk must be covered by a written contract between the parties, such a contract shall fulfil the conditions laid down in paragraph 2.
Amendment 261 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) No 1234/2007
Article 185 f – paragraph 1 – subparagraph 2
Article 185 f – paragraph 1 – subparagraph 2
In the case described in the first subparagraph, the Member State concerned shall also decide that if the delivery of raw milk is made through one or more collectors, each stage of the delivery must be covered by such a contract between the parties. To this end, a “collector” means an undertaking which transports raw milk from a farmer or another collector to a processor of raw milk or another collector, where the ownership of the raw milk is transferred in each case.
Amendment 267 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) No 1234/2007
Article 185 f – paragraph 2 – point c – subpoint i – indent 1
Article 185 f – paragraph 2 – point c – subpoint i – indent 1
– be static and becalculated according to a negotiated formula set out in the contract, and/or
Amendment 271 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) No 1234/2007
Article 185 f – paragraph 2 – point c – subpoint i – indent 2
Article 185 f – paragraph 2 – point c – subpoint i – indent 2
– vary only on factors which are set out in the contract, in particular theprice indexation based on development of the market situation based on, other market indicators, the volume delivered and the quality or composition of the raw milk delivered,
Amendment 286 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) 1234/2007
Article 185 f – paragraph 2 – point c – subpoint iii a (new)
Article 185 f – paragraph 2 – point c – subpoint iii a (new)
(iiia) a flexibility clause whereby milk not covered by a contract may, up to reasonable quantities, be delivered to a processor, bearing in mind in particular that the seasonality of production does not invariably remain in step with fluctuating markets, nor can biological production cycles respond immediately to market fluctuations.