The European Parliament approved a new regulation that boosts dairy farmers' bargaining power to get fair prices for their raw milk and help them prepare for the end of milk quotas in 2015. To enter into force, the new regulation still needs to be formally endorsed by the Council. It will apply until the end of June 2020.

MEPs adopted the new rules that enable farmers' organisations to negotiate raw milk prices on their behalf without falling foul of competition law. The rules were previously agreed with the Council, as it was announced in December 2011. With this regulation, Parliament secures more bargaining power for dairy farmers that can get fairer prices for their raw milk. In addition, the regulation includes that the volume of raw milk covered by negotiations between producers' organisation and processors or collectors may not exceed 3.5% of total EU output, in order to ensure fair competition. Nor may it exceed either 33% of overall national production or 45% in states where total production is below 500,000 tonnes.

With regard to the contracts, Member States may continue to decide whether or not to impose contracts covering milk delivery from farmers to collectors or processors for their territory. If made compulsory, these contracts will have to be drawn up before delivery and must state the price, payments periods and arrangements for collecting and delivering the milk. They may also stipulate a minimum duration for these contracts of at least six months and MEPs strongly recommend that they do so.

The new regulation also refers to the quality cheese supply management. MEPs inserted a provision in the text for a supply management system, which Member States may establish provided that it in no way harms competition or leads to small cheese producers being adversely affected, in order to improve the working of the market for cheeses registered under a protected designation of origin (PDO) or protected geographical indication (PGI) and to improve their quality.