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Producer Organisations EU law & Supports
Enhancing farmers' bargaining power:
The strength of the bargaining power of milk purchasers makes it difficult for farmers to defend their interests when negotiating with other actors in the supply chain. To strengthen farmers' collective bargaining power, the EU supports farmers who wish to work together in producer organisations
Producer Organisations
Producer organisations (POs) or associations of producer organisations (APOs) help farmers reduce transaction costs and collaborate when processing and marketing their products. Producer organisations strengthen the collective bargaining power of farmers by:
- concentrating supply
- improving marketing
- providing technical and logistical assistance to their members
- helping with quality management
- transferring knowledge.
EU Acknowlegement
The EU acknowledges the special role played by producer organisations and as a result, they can ask for recognition from the EU country they are based in. POs can take different legal forms, including agricultural cooperatives. Recognised POs can benefit from:
- exceptions from EU competition rules for certain activities, such as collective negotiations on behalf of their members, planning of production or certain supply management measures;
- access to EU funding within 'operational programmes' in the fruit and vegetables sector, such as those to support collective investment in logistics for the benefit of their members.
Partnering with MDPO offers dairy producers numerous advantages, including expert advocacy, cutting-edge training, and access to vital resources. Our services enhance quality, promote sustainability, and support economic growth. By joining MDPO, members gain valuable market insights, legal support, and networking opportunities, ensuring a competitive edge and a prosperous future.