We have done everything we could, we brought the two sides - milk farmers and dairy companies - to sit at the negotiating table and reach a good agreement, Agriculture Minister Tihomir Jakovina said commenting on the agreement on a model for a milk purchase price of HRK 2.43 per kilogramme which several associations of milk farmers and dairy companies reached on Thursday evening.
There was no need at all for tractors on roads and for radicalising the situation. However, the previous model, a memorandum with the price calculated according to prices in all 27 EU countries, was no longer viable. We have now found a model for the price from five EU countries: Germany, France, Hungary, Slovenia and Romania, with a three-month average of their prices and the mid-point exchange rate of the Croatian National Bank to get the price for the purchase of milk in a given month, the minster said on Friday.
The new model will be in place in the next three months and the responsible council, farmers' representatives and the dairy industry will monitor price trends to establish whether it is necessary to change the purchase price again or whether it is necessary to amend the model for determining the purchase price.
We also hold that an earlier proposal, to have individual milk farmers negotiating with the industry on the market basis, would have pushed farmers into an unequal and weaker position. However, the latest agreement is a compromise, Jakovina told reporters in the national parliament.
In light of the fact that the council of experts was constantly doing its job and that we were close to a solution, there was no need for protests, he added.
Jakovina said that those who wanted to make the situation more radical would not be satisfied with any agreement.
The average purchase price of milk in the European Union last December was slightly over 0.34 euros per kilogramme, according to figures from the European Commission. In November, this price was higher by 0.01 euro. In December 2011, the average purchase price of milk went up by 6.2% compared to December 2010.