The European Commission has ruled out triggering the crisis reserve for the dairy sector, opting instead to rely on recently agreed structural reforms to strengthen farmers' bargaining power. In a response to a parliamentary question from PPE MEP Daniel Buda, Commissioner Christophe Hansen acknowledged the sharp decline in milk prices and the financial strain on producers, but stressed that the current situation does not warrant emergency market intervention. The Commission contrasts the present conditions with the 2016 milk crisis, arguing that closer monitoring—rather than direct spending—is appropriate for now.
This stance follows a series of prior developments. On April 19, the European Parliament's AGRI committee endorsed a trilogue agreement on targeted amendments to the EU's Common Market Organisation rules, which include mandatory written milk supply contracts, broader collective bargaining rights, and stronger democratic control within dairy producer organisations. That agreement is expected to proceed to a plenary vote and formal Council adoption in the summer. Commissioner Hansen's answer explicitly references these legislative advances as the primary tool to address power imbalances in the supply chain, rather than immediate financial rescue.
The Commission's cautious approach echoes earlier signals. On April 15, Commissioner Ursula von der Leyen, in a reply to MEP Luke Ming Flanagan, avoided commitments to reintroduce voluntary milk production reduction schemes, noting that the 2016 crisis management tool is not currently under consideration. That same day, a separate parliamentary exchange saw Commissioner Albuquerque defend the functioning of cash-settled butter futures on the EEX market, calling for ESMA oversight to balance transparency and liquidity—a response to concerns over plunging butter prices.
For dairy farmers, the Commission's message translates into stronger contractual security but no immediate financial relief. Processors and retailers may face increased administrative and compliance obligations under the new contract rules. National authorities will be key actors in overseeing implementation. The Commission leaves the door open for tailored responses if market conditions deteriorate further, but for now, the emphasis is on regulatory strengthening over market bailouts. Taxpayers avoid immediate financial burdens, while the sector awaits the full effect of the legislative package.