ALYN Smith MEP and member of the European Parliament's Agriculture Committee has dismissed the "fine words and flannel" of a long-awaited EU report on the food chain.

While milk prices continue to barely cover the cost of production, the High Level Forum for a Better Functioning Food Supply Chain report glosses over major challenges faced by farmers, such as the unfair bargaining power of retailers and processors, volatile market prices, and the growing burden of input costs.

In the wake of falling milk prices, estimated at an average of €30 per 100kg, Mr Smith declared that more needed to be done to help farmers in Europe.

Mr Smith spoke to agriculture commissioner Phil Hogan and secured his promise to look at reviewing competition law to allow fair bargaining power for producers and ensure a fair price for products, including milk.

Mr Smith said: "This report is as damp a squib as I've seen in a long time.

"High-level forums, market studies and voluntary initiatives are all very well, but if they don't deliver for farmers the real policy changes needed to improve their market position then producers can be forgiven for feeling a little cynical - as I am.

"The elephant in the room is food chain bargaining power and competition law.

"Yet the Commission refuses to contemplate legal action or take real steps to reduce reliance on inputs whose prices will only increase."

Mr Smith expressed his disappointment that after several years of talk the commission's attempt to bring stakeholders together has produced so little in the way of action, beyond warm words about further study and continued partnership.

"Our indigenous food production infrastructure in Europe is a real asset which relentless squeezing of suppliers has put under threat, and which is not replaceable once gone.

"Commissioner Hogan and his colleagues need to act to give our producers a fair shot to get the price they deserve. They need to do better than the last commission has done with this empty report," Mr Smith added.

Market round-up

United Auctions sold 688 store heifers at Stirling on Wednesday to a top of 266p per kg and an average of 213p (+1.2p on the week), while 858 store, beef-bred bullocks peaked at 279.9p and levelled at 224.6p (+4.1p). One-hundred-and-seventy-three store, B&W bullocks sold to 203.3p and averaged 152.9p (+13.6p). The firm also had 3227 store lambs forward. Top prices and averages: Suffolks to £63.50 and averaged £60.05 (-£3.04 on the week); Texels £68 and £60.08 (+£1.97); Mules £62 and £57.39 (+£3.73); Blackfaces £55.50 and £42.99 (-£2.47).