The Association of Bavarian Private Dairies VBPM, with prominent members such as Müller, Ehrmann, Omira and many more, criticises the EU Parliament’s decision of 8 October. Among other things, mandatory requirements are to apply in future for the drafting of contracts between farmers and processing companies. These include a Europe-wide contractual obligation with price formulas based on production costs, revision clauses for terms of more than six months and an extension of the bundling limits for producer groups. The VBPM is also particularly critical of the planned introduction of a milk volume reduction programme in times of crisis. Such an instrument would override market mechanisms, significantly restrict the industry’s ability to adapt and weaken the competitiveness of the European dairy industry.

The result of the vote is problematic in several respects: according to the association, the mandatory requirements curtail entrepreneurial freedom and lead to a regression to planned economy structures. Farmers lose the opportunity to react flexibly to market developments.

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