Threat to co-ops if EU milk package derogation changed

EU moves to re-write provisions for mandatory milk contracts and milk producer organisations, which could remove derogations and exemptions for co-operatives, have been condemned by Irish Dairy Industries Association director Michael Barry.

He warned of a “terrible own goal”, if the security and ability of a co-operative to protect its members and suppliers is removed.

The dairy industry spokesman said the threat to co-ops arises in the EU Milk Package which has been fully applicable since Oct 3, and will apply until mid-2020.

It includes measures to boost the position of dairy farmers in the dairy supply chain, allowing member states to make written contracts between farmers and processors compulsory, and allowing farmers to negotiate contract terms collectively within certain limits.

The package had an exemption for co-operatives, because there is a different rule for how co-operatives deal with their individual members, said Mr Barry. But he told the Oireachtas Committee on Agriculture the CAP is trying to change the derogations.