MEP 'disappointed' with EU vote on mandatory co-op contracts
Fianna Fáil MEP for the Midlands North-West, Barry Cowen has expressed disappointment at the outcome of last night's (September 8) Agriculture and Rural Development Committee vote on its Common Markets Organisation (CMO) report.
The report, adopted by 33 votes to 10, with five abstentions, sets out new rules aimed at "strengthening the position of farmers in the food supply chain".
MEP Cowen believes that the text contains some positive measures, such as clear rules on fair and equitable labelling and stronger recognition of producer organisations,
However, he also believes that it fails to provide sufficient "legal clarity" for farmer-owned cooperatives.
The Fianna Fáil MEP’s primary concern centres on provisions for mandatory written contracts between farmers and processors.
In particular, he warned that the text does not properly safeguard the cooperative model that underpins the dairy sector in Ireland and a number of other member states.
Almost 98% of Ireland’s milk is processed through farmer-owned cooperatives, which already operate on the basis of long-standing supply agreements, according to the MEP.
Cowen argued that imposing additional contract requirements risks undermining these systems, creating legal ambiguity, and unnecessary bureaucracy.
Following the vote, the MEP confirmed that he and his colleagues will now draft amendments ahead of the October plenary vote on the report, to ensure national differences are respected, cooperatives are given clear exemptions, and that farmers’ "contractual freedom" is preserved.
He said: "This was not an easy file. The commission came forward with a proposal that, frankly, was half-baked.
"It lacked any proper consultation with the people most affected – namely farmers, cooperatives, producer organisations and processors. Crucially, it also had no impact assessment.
"As such, I am disappointed with large swathes of the eventual report and with the outcome of last night’s vote. Despite progress on labelling rules and sustainability exemptions, the report fails to provide the legal clarity that cooperatives urgently called for and needed.
"The idea of mandatory contracts may work in some member states, but in Ireland and many others the cooperative model has proven itself for generations. Forcing it into a one-size-fits-all contract regime makes no sense and risks doing real damage," the MEP added.
