A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Milk post-quota era: The Commission opts for patience

June 23, 2014

Preparing the European dairy sector for the post-quota era is going forward, but not without difficulty. The disagreements between member states are real due to the differences in production methods and the organizational choices they generate (dairy farmers’ associations, binding contracts and collective bargaining among others).

On June 13, 2014, the European Commission released its report on the fluctuations of the dairy market and the implementation of the “Milk Package”, which was brought into force during the fall of 2012. For the Commission, there is no doubt that patience is the mother of all virtues. With this in mind, it feels premature to propose final solutions regarding the “Milk Package”.

The discussions are thus ongoing regarding the implementation of additional measures before the next report due to be issued in 2018. Yet, while no concrete solution is currently considered, the Commission is making small steps and is not hesitating to bring forward various tools:

  • On one hand, the European Milk Market Observatory that was announced during the conference on the milk post-quota era in September 2013, and which has been operating since April 16, 2014. The Observatory’s objective will be to meet the need for transparency as well as more detailed and timely information, so that safety nets can be adopted in a proactive manner.

  • On the other hand, the new CAP contains a safety net for the dairy sector that includes exceptional counter-cyclical payments.

Yet, as the Commission itself admits it, the CAP regulatory framework if far from addressing the issues presented by the extreme market volatility, or by a crisis situation after the elimination of quotas. The ongoing negotiations on possible additional tools to confront such situations is all the more required, since the Commission is reporting that more frequent episodes of extreme price volatility are expected.

Let us hope that stimulating further thinking will lead to the implementation of an effective market management system, which is a requisite for the post-2015 dairy sector.

The recent studies conducted by momagri are showing the economic and budgetary relevance of counter-cyclical aid coupled with specific and non-automatic mechanisms to manage markets––long-lasting stabilization of sales, effectual action to fight volatility and the crises it generates, as well as a better use of budget resources and a long-term strategy that benefits the agricultural economy.

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Paris, 17 June 2019