EU countries should have more flexibility on deciding whether or not to mandate agri-food processors to provide farmers with a contract before agri foods are delivered to the processor, the Joint Oireachtas Committee on Agriculture has said.
Last year, the European Commission proposed an update to EU common market rules that would legally compel processors to provide contracts to farmers outlining the price they will pay for farmgate produce before the goods are delivered.
In practical terms, the plans would mean that a farmer is informed in writing how much they are being offered by a processor for their beef, sheep, pigs, grain or milk before the goods have been delivered.
The Commission had proposed that the legal requirement for providing these contracts should kick in when the value of the farm goods concerned exceeded €10,000.
Higher threshold
However, in its opinion on the proposed change to EU regulations, TDs and senators on the joint committee have recommended that member states should be allowed to increase this threshold to €100,000.
The committee has sought clarification on “what the definition of a contract is” in relation to farmers and the buyers of farmgate goods, for such as whether an invoice or receipt would constitute a written contract.
Its members want any funding needed to implement the proposals taken from source outside of CAP funding and they want “simpler and clearer” language used to describe the difference between farmers and farmer producer organisations.
A hearing on the proposals found the committee to be “supportive” of its objectives in seeking to strengthen farmers’ standing in the agri-food supply chain.
The support was particularly concerned that the contracts would have to be provided to farmers “in advance of delivery, made in writing and include information such as price for delivery, price calculators using various factors, products delivered and the duration of the contract”.
The committee’s opinion has now been sent to Commission president Ursula von der Leyen, president of the European Parliament Roberta Metsola and the Council of the European Union.
Dairy split
The Commission's moves on mandatory price contracts somewhat split the dairy sector's representative organisations.
While the Irish Creamery Milk Suppliers' Association sees the proposals as a welcome development in strengthening dairy farmers' position in the supply chain, the Irish Co-operative Organisation Society warned that the plans fail to recognise the relationship between farmers and their co-ops.
Read more
EU milk contract moves stir unease
ICMSA backs EU milk contract proposals
EU countries should have more flexibility on deciding whether or not to mandate agri-food processors to provide farmers with a contract before agri foods are delivered to the processor, the Joint Oireachtas Committee on Agriculture has said.
Last year, the European Commission proposed an update to EU common market rules that would legally compel processors to provide contracts to farmers outlining the price they will pay for farmgate produce before the goods are delivered.
In practical terms, the plans would mean that a farmer is informed in writing how much they are being offered by a processor for their beef, sheep, pigs, grain or milk before the goods have been delivered.
The Commission had proposed that the legal requirement for providing these contracts should kick in when the value of the farm goods concerned exceeded €10,000.
Higher threshold
However, in its opinion on the proposed change to EU regulations, TDs and senators on the joint committee have recommended that member states should be allowed to increase this threshold to €100,000.
The committee has sought clarification on “what the definition of a contract is” in relation to farmers and the buyers of farmgate goods, for such as whether an invoice or receipt would constitute a written contract.
Its members want any funding needed to implement the proposals taken from source outside of CAP funding and they want “simpler and clearer” language used to describe the difference between farmers and farmer producer organisations.
A hearing on the proposals found the committee to be “supportive” of its objectives in seeking to strengthen farmers’ standing in the agri-food supply chain.
The support was particularly concerned that the contracts would have to be provided to farmers “in advance of delivery, made in writing and include information such as price for delivery, price calculators using various factors, products delivered and the duration of the contract”.
The committee’s opinion has now been sent to Commission president Ursula von der Leyen, president of the European Parliament Roberta Metsola and the Council of the European Union.
Dairy split
The Commission's moves on mandatory price contracts somewhat split the dairy sector's representative organisations.
While the Irish Creamery Milk Suppliers' Association sees the proposals as a welcome development in strengthening dairy farmers' position in the supply chain, the Irish Co-operative Organisation Society warned that the plans fail to recognise the relationship between farmers and their co-ops.
Read more
EU milk contract moves stir unease
ICMSA backs EU milk contract proposals
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