The regulation aimed to improve the functioning of the EU milk sector has been adopted by the Council. With the new rules, the milk producers will increase their bargaining power by allowing them to set up producer organisations that on their behalf negotiate collectively contracts for the deliveries of milk. The new measures should be also seen in the context of abolition of the milk quotas regime from 2015.

Following an agreement reached between the Council and the European Parliament and after having been voted by this latest, the Council formally adopted the regulation to improve the functioning of the EU milk sector. The new rules represent a reinforcement of the bargaining power of milk producers by allowing them to set up producer organisations that on their behalf negotiate collectively contracts for the deliveries of milk. In addition, Member States will have the possibility to introduce on their territory an obligation for formal written contracts for the supply of milk and/or for the first purchaser of milk to present a written contract offer to the producer. The regulation will apply until June 2020.

Furthermore, the new rules state that Member States may determine the minimum duration of contracts between the first purchasers and the producers on their territory. The producer, on the other hand, may reject such a minimum duration (at least 6 months) and negotiate freely all elements of the contract.

The regulation now adopted is aimed at improving transparency on the EU milk production market by introducing an obligation for first purchase to send monthly declarations on the quantities of milk bought by them. It also introduces the possibility for Member States to recognise inter-branch organisations on the milk market, bringing together representatives of producers, processors and traders, and the possibility under specific conditions to lay down binding rules on supply management of cheeses with Protected designation of origin and/or Protected geographical indication.