Cow in the milking parlour
Photo: Roland Weihrauch/ dpa
A financing model for milk producers for cost-covering prices fell flat with the cartel office.
The concept developed by the Agrardialog Milch in favor of raw milk producers is "not permissible under antitrust law", said the President of the Cartel Office, Andreas Mundt.
"In essence, it's about agreeing on price surcharges that are passed through the supply chain to the milk shelf," he explained.
In the opinion of the milk producers, the price surcharges are necessary because the milk prices are not reasonable and do not cover costs.
"Basically, we encourage and support agricultural producers who want to strengthen their position through cooperation or who are pursuing sustainability goals," said Mundt.
German and European antitrust law only opposes this in the rarest of cases.
»If, on the other hand, price components are agreed, the limits of antitrust law are clearly exceeded.«
Specifically, the agricultural dialogue model envisaged subsequent price stabilization of the contractual “milk price” for agricultural producers.
For this purpose, the average costs of milk production for farms should be determined across the industry and form the starting point for uniform surcharges on the basic milk price.
As a binding component in the contracts between producers, dairies and food retailers, the surcharges should be continuously adjusted
Sustainability aspect is neglected
However, the Bundeskartellamt clearly went too far.
The competition authorities expressly criticized the fact that sustainability aspects played no role in the concept of the milk producers.
»Public welfare goals such as sustainability are legally recognised.
But the economic interest in higher income levels cannot in itself justify an exemption from such an agreement,” Mundt said.
The concept does not provide for specific production criteria for the raw milk with a view to sustainability aspects.
Due to the industry-wide validity of the project, the model presented would have resulted in a nationwide increase in milk prices, according to the assessment of the competition watchdog.
As a result, in future consumers who buy milk and milk products in food retailing would lose the opportunity to switch to cheaper alternative offers.
Farmers' organizations such as the Federal Association of German Dairy Farmers (BDM) have repeatedly complained about the ruinous income situation of smaller dairy farms in particular.
Representatives of the German milk producers had now presented the financing concept to the Cartel Office.
It was drawn up as part of the agricultural dialogue on milk.
This discussion forum was launched last year by agricultural interest groups and food retailers.
The aim is to show farmers a sustainable economic perspective.
So far, however, no significant successes or agreements have been reached.
While the relatively young agricultural movement Land creates connection (LsV) and the Federal Association of German Dairy Farmers (BDM) joined the agricultural dialogue, the German Farmers' Association did not take part.
With a view to the agricultural dialogue, the Cartel Office has now declared that the body could present a new model "that does not fall back on price fixing at the expense of consumers".
mmq/dpa/Reuters