EU high level group on dairy must target price volatility

Excessive price volatility, which can damage confidence, should be the main focus of the new EU High Level Group on the dairy sector, Dairy UK said today after the group’s first meeting on Tuesday.

Dairy UK Director General Jim Begg said: "The High Level Group is all about what happens post 2015 when quotas go from EU dairy markets. It is right that the EU Commission should engage the industry now to develop ideas which might limit excessive volatility.

"The time is right for a broad discussion on conditions in the EU dairy market. It is clear that we need a better balance of milk supply and demand in the EU, and the debate around contracts is likely to be focused on this issue. Beyond that, it would be extremely difficult to envisage the Commission becoming involved in setting down acceptable commercial terms along the dairy supply chain."