Activities of Wojciech Michał OLEJNICZAK related to 2010/0362(COD)
Plenary speeches (1)
Contractual relations in the milk and milk products sector (debate)
Amendments (26)
Amendment 48 #
Proposal for a regulation
Recital 2
Recital 2
(2) In 2007-2009, exceptional developments took place in milk and milk products sector markets. 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, 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 lower 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 preventing demand for them tofrom adjusting to low commodity prices, slowing down price recovery and exacerbating the impact of low prices on milk producers.
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 80 #
Proposal for a regulation
Recital 8
Recital 8
(8) TWhile the use of formalised, written contracts even containing basic elements made in advance of delivery is not widespread. However, they could increase awareness andmay somewhat help to reinforce the responsibility of the operators in the dairy chain and increase awareness of the need to better take into account the signals of the market, improve price transmission and adapt supply to demand, asit weill as help avoid certain unfair commercial practicesnot make it possible to face any further serious market crises that could once again affect the whole European dairy industry and especially producers, who are heavily in debt partly as a result of investing in modernisation.
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 85 #
Proposal for a regulation
Recital 8 b (new)
Recital 8 b (new)
(8b) It would be desirable for dairies to undertake not to process milk from third countries.
Amendment 88 #
Proposal for a regulation
Recital 9
Recital 9
(9) In the absence ofThere needs to be EU legislation on such contracts, Member States may, 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 situations across the EU in this context, in the interests of subsidiarity, such a decision should remain wit to ensure that they can be made compulsory in each Member States. Howev in order, to ensure appropriate minimum standards for such contracts and good funcavoid distortioning of the internal market and the common market organisation, some basic conditions for the use of such contracts should be laid down at EU level. Sincecompetition between Member States or regions. Even if some dairy co-operatives may have rules with similar effect in their statutes, in the interests of simplicity they should thennot 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 95 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to ensure the rational development ofcontrol the volume productioned and so to ensure a fair standard of living for dairy farmers, their bargaining power vis-à-vis processors 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. However, it is understood that existing producer organisations should be recognised de facto by the new legislation.
Amendment 99 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) To stabilise the milk market as much as possible raw milk producers should be encouraged to invest in producer organisations, so as to greatly reduce the risk of losing the large number of independent dairy farms that would not be sufficiently attractive to private buyers, mainly because their production volume is too low.
Amendment 103 #
Proposal for a regulation
Recital 11 b (new)
Recital 11 b (new)
(11b) It would be desirable for the Commission to provide for the establishment of a European Public Agency for the Observation of Prices and Margins, whose duties would include calculating the full costs of milk production in Europe so as to make it mandatory to take into account the average production costs of 1kg of milk when setting the price of raw milk in contracts, and in order to prevent price dumping. This calculation would have to take the following into account: cost of labour, energy, inputs, veterinary costs, certification costs, investments and costs of compliance with environmental standards. Once signed, contracts would have to be registered with the European Public Agency for the Observation of Prices and Margins, in the interest of transparency of information transfer particularly on prices and volumes, but also in the interest of monitoring.
Amendment 104 #
Proposal for a regulation
Recital 11 c (new)
Recital 11 c (new)
(11c) It should be recalled that the 2001 Göteborg summit assigned to European agriculture the objective of sustainability, implying that the effectiveness of agriculture is not confined to its economic competitiveness but also takes into account its environmental, territorial and social effectiveness as well as the objective of equity.
Amendment 105 #
Proposal for a regulation
Recital 12
Recital 12
(12) Rules have been introduced at EU level for interbranch organisations in some sectors. TWhile these organisations can play useful roles in allowing dialogue between actors in the supply chain, and in promoting best practice and market transparency, inter-branch organisations are not market stabilisation agents. Indeed, experience from the fruit and vegetable sector shows that prices continue to fluctuate considerably owing to the meagre influence that producers are able to bring to bear within such structures. Only when they come together in an organisation of their own and are able to manage milk volumes upstream of processing is it possible for producers to improve their position within the dairy chain and ensure they receive a fair income. 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 110 #
Proposal for a regulation
Recital 13
Recital 13
(13) In order to follow developments in the market, the Commission needs to be aware, at any given time, of what is happening on milk market, and to that end needs timely information on volumes of raw milk delivered. Article 192 of Regulation (EC) No 1234/2007 provides a basis for the exchange of information between the Member States and the Commission. However, provision should be made to ensure that processors deliver such information to the Member States on a regular basis. The Commission should be empowered to adopt delegated acts in accordance with Article 290 TFEU in respect of the scope, content, format and timing of such declarations.
Amendment 114 #
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 review to see how they have operated and whether they should continue to apply. 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 December0 June 20186.
Amendment 128 #
1a) The following Article 113da is inserted: Article 113da Specific provisions applicable to quality dairy products In order to improve and stabilise the operation of the market in dairy products with a protected designation of origin or a protected geographical indication in accordance with Regulation (EC) No 510/2006, and of the market in milk produced in mountainous and semi- mountainous areas, the Member State in question may lay down rules to bring volumes in line with demand, particularly by way of decisions taken by inter-branch organisations. Such rules shall be proportionate to the objective pursued and: (a) may only cover the regulation of supply and shall aim to bring the supply of the product in line with demand; (b) may not be made binding for more than five years of marketing; (c) shall not cause any damage to other producers in the Member State concerned or in the Community; (d) shall not relate to any transaction after the first marketing of the product concerned; (e) shall not allow for price fixing, including where prices are set for guidance or recommendation; (f) shall not render unavailable an excessive proportion of the product concerned that would otherwise be available; g) shall not have the effect of preventing an operator from starting production of the product concerned;
Amendment 137 #
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 representatives of economic activities linked to the production of, trade in, or processing of products of the milk and milk products sectoragricultural organisations, the dairy industry, cooperatives, distributors and consumer protection associations;
Amendment 187 #
Proposal for a regulation - amending act
Article 1 – point 4
Article 1 – point 4
Regulation (EC) 1234/2007
Article 126 a – paragraph 2 – point (c) – subpoint i
Article 126 a – paragraph 2 – point (c) – subpoint i
i) 3.517% of total Union production, and
Amendment 194 #
Proposal for a regulation - amending act
Article 1 – point 4
Article 1 – point 4
Regulation (EC) 1234/2007
Article 126 a – paragraph 2 – point (c) – subpoint ii
Article 126 a – paragraph 2 – point (c) – subpoint ii
ii) 3349% of the total national production of any particular Member State covered by such negotiations by that producer organisation, and
Amendment 201 #
Proposal for a regulation - amending act
Article 1 – point 4
Article 1 – point 4
Regulation (EC) 1234/2007
Article 126 a – paragraph 2 – point (c) – subpoint iii
Article 126 a – paragraph 2 – point (c) – subpoint iii
(iii) 3349% of the total combined national production of all the Member States covered by such negotiations by that producer organisation,
Amendment 220 #
Proposal for a regulation - amending act
Article 1 – point 4
Article 1 – point 4
Regulation (EC) 1234/2007
Article 126 a – paragraph 5 – subparagraph 1
Article 126 a – paragraph 5 – subparagraph 1
5. By way of derogation from paragraph 2(c)(ii) and (iii), even where the threshold of 3349% 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 place 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 236 #
Proposal for a regulation - amending act
Article 1 – point 8
Article 1 – point 8
Regulation (EC) 1234/2007
Article 184 – paragraph 10
Article 184 – paragraph 10
10) to the European Parliament and the Council by 30 June 2014 and by 31 December0 June 20186 on the development of the market situation in the milk and milk products sector and in particular on the operation of point (iiia) of the first paragraph of Article 122 and of Articles 123(4), 126a, 177a, 185e and 185f, covering in particular potential incentives to encourage farmers to enter into joint production agreements together with any appropriate proposals." The report shall be accompanied by any appropriate proposals.
Amendment 248 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) 1234/2007
Article 185 f – paragraph 1 – subparagraph 1
Article 185 f – paragraph 1 – subparagraph 1
Amendment 255 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) 1234/2007
Article 185 f – paragraph 1 – subparagraph 2
Article 185 f – paragraph 1 – subparagraph 2
Amendment 272 #
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 i – indent 2
Article 185 f – paragraph 2 – point c – subpoint i – indent 2
Amendment 295 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) 1234/2007
Article 185 f – paragraph 3
Article 185 f – paragraph 3
3. By way of derogation from paragraph 1, a contract shall not be required wWhere raw milk is delivered by a farmer to a processor of raw milk where the processor is a co-operative of which the farmer is a member if its statutes, they should not be exempted from the obligation to conclude a contract even if the statutes of the co- operative contain provisions having similar effects as those set out in points (a), (b) and (c) of paragraph 2.
Amendment 299 #
Proposal for a regulation - amending act
Article 1 – point 9
Article 1 – point 9
Regulation (EC) 1234/2007
Article 185 f – paragraph 4
Article 185 f – paragraph 4
4. All elements of contracts for the delivery of raw milk concluded by farmers, collectors or processors of raw milk, including those elements referred to in paragraph 2(c), shall be freely negotiated between the parties, with the exception of the price per litre of raw milk, which must take into account the full costs of production.
Amendment 307 #
Proposal for a regulation - amending act
Article 1 – point 11
Article 1 – point 11
Regulation (EC) 1234/2007
Article 204
Article 204