Brussels is debating how to tackle price volatility and its effects. Peter Dawson looks at some of the options. The new age of price volatility in the dairy sector has resulted in an ever widening search for policy solutions. The Commission's dairy package, which would permit the creation of producer organisations in the dairy sector and give Member States the option of legislating to make contract mandatory, is the principle means by which the Commission wants to address the challenges facing dairy farmers in a post quota environment. However, whilst it may strengthen the bargaining power of producers, it will not address the underlying causes of volatility. Other proposals are being floated to tackle this.
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