The Ministry of Agriculture (MAGRAMA) has published the first report monitoring the agreement for the stability and sustainability of the value chain of milk veal, signed by the agents of this sector last September 23. The report indicated that while the agreement has already had some effect on the markets, their effects will be more visible in the medium and long term. The following report quarterly monitoring of the Agreement will be published in late March 2016.
The MAGRAMA said that there is a proactive and constructive work environment in which, progressively, results are obtained whose effects will be lasting and positive for the sector in both the reports received from different stakeholders that have signed the agreement, for their participation in the follow-up meetings and working groups.
In this regard, the Ministry underlines the commitment of the Inter-Way (INLAC), within which agreements have been reached in the last quarter, unprecedented in the industry. Also significant is the work of the associations representing the distribution, which has been proactive approach at all times, along with the work of associations of producers and industry.
The report focuses its content in evaluating compliance with the commitments made by the signatory agents of the agreement, based on the information provided by each of them and the information available to the Ministry itself. The report also includes the status of implementation of the tasks entrusted to the Ministry to carry them out.
The short-term actions promoted by the Magrama focused on the processing, management and payment (directly or through autonomous communities) of 45.5 million euros in aid liquidity. In most cases, the aid has already been made effective to farmers, along with most of the amounts of direct aid from the CAP, to a figure close to 300 million euros for the whole of dairy farmers.
COAG rejected the latest contract proposal-type approved for dairy sector
The Coordinator of Organizations of Farmers and Ranchers (COAG) rejected the latest proposal approved standard contract for the supply of raw cow’s milk because it strengthens the bargaining position of farmers or offer price guarantees and collection. “There will be room for negotiation. The industry will impose their conditions because the contract it was so easy, “stressed Anabitarte Gaspar, head of the dairy sector of COAG.
It says that “unfortunately, time has proven us right and the agreement for the sustainability of the value chain in the dairy sector,” which COAG did not sign, “is not serving to guarantee a remunerative price for farmers that at least covers production costs. According to official data, the average price in our country is located in October by 0.30 € / l, well below costs (0.34 € / l) “.
The agricultural organization argues again that the signed text does not offer legal certainty to producers because it is a mere declaration of intent, general and vague, leaving the willingness of industries and distribution chains fulfilling commitments.
Source: MAGRAMA, COAG
