The Government proposes to improve the draft Milk Act

The Government is proposing to refine the amendments to the so-called Milk Act initiated by a group of MPs, although it has endorsed the proposal to regulate the basic principles of milk pricing.

This conclusion, which was approved on Wednesday, will be submitted to the Seimas. 

According to the Ministry of Agriculture, the proposal is to retain pricing exemptions for cooperatives, milk producers and auctions, whilst maintaining the requirements for general contractual relations and milk quality.

Furthermore, it is proposed to define more clearly the rights and functions of the supervisory authorities – the Agricultural Agency and the State Food and Veterinary Service.

Through amendments to the Law on the Prohibition of Unfair Trading Practices in the Dairy Sector, a group of Members of the Seimas proposes to regulate the fundamental principles of milk pricing, restrict unfair practices when concluding milk purchase&– and sales contracts, and to establish a list of prohibited actions and the procedure for imposing sanctions.

The Act would apply to milk collection and processing companies and milk producers, but would not apply to transactions between milk processing companies.