Common Market Organisation în Milk and Milk Products

Chapter I

Common market organization in milk and milk products in the European Union

The common organisation of the market in milk and milk products enables prices to be stabilised and farmers guaranteed a fair standard of living through the implementation of systems of intervention, marketing and trade with Non-EU Member Countries.

1.1 Act and scop of the common market organisation of milk

Act

Council Regulation (EC) No 1255/1999 of 17 May 1999 on the common organisation of the market in milk and milk products.

This Regulation contains a comprehensive legislative framework for the common organisation of the market in milk and milk products. Before the adoption of this Regulation, legislation for these products, starting with the first Regulation of 1968, was fragmented.

This CMO provides for a system of intervention within the framework of the internal market and certain support measures for European products when they are traded on the world markets.

Scope

The Common Market Organisation for milk covers:

- milk and creams;

- buttermilk, yoghourt and kephir;

- whey;

- butter and other fats;

- cheese and curd;

- lactose and lactose syrups;

- preparations used as animal feed.

1.2 The main instruments that regulate the market

Internal market

This is to run annually from 1 July to 30 June. The intervention prices for 100 kg of butter are:

- EUR 328.20 from 1 July 2000 to 30 June 2004,

- EUR 305.23 from 1 July 2004 to 30 June 2005,

- EUR 282.44 from 1 July 2005 to 30 June 2006,

- EUR 259.52 from 1 July 2006 to 30 June 2007,

- EUR 246.39 as from 1 July 2007.

The intervention price for 100 kg of skimmed milk powder is EUR 169.80. Intervention and private-storage arrangements

Intervention agencies in each Member State buy in butter at 90% of the intervention price during the period 1 March to 31 August of any year, on the basis of specifications to be determined.

The Commission may suspend intervention if the quantities offered exceed 30 000 tonnes in 2008 and subsequent years. The butter bought in must have certain characteristics and meet certain requirements. Private storage aid may be granted for salted or unsalted butter produced from cream or milk.

The aid amount is determined in the light of storage costs and the likely trend in prices for fresh butter and butter from stocks. Butter bought in by the intervention agencies is to be

disposed of in such a way as to avoid disturbing the balance on the market.

The intervention agencies of the Member States buy in skimmed milk powder at the intervention price between 1 March and 31 August. That milk must comply with certain composition characteristics, particularly as regards minimum protein content, which must be 34% of the non-fat dry matter. The Commission may suspend intervention if the quantities offered exceed 109 000 tonnes.

Private-storage aid is granted for certain cheeses, such as Grana Padano, Parmigiano Reggiano, Provolone, sheep's and goat's milk cheese, as well as long-keeping cheeses. The aid amount is determined in the light of storage costs and the likely trend in prices. Where the market situation so requires, the Commission may decide to remarket the various cheeses stored.

Special marketing aid

Aid is available for:

- producers of skimmed milk and skimmed milk powder (including buttermilk and buttermilk powder) used for animals, provided that these products meet certain conditions;

- skimmed milk processed into casein and caseinates;

- the purchase of cream, butter and concentrated butter by non-profit bodies, by manufacturers of certain food products and for direct consumption.

School milk aid

In order to encourage children to drink milk, aid for the supply of 0.25 l of milk equivalent per pupil and per day is paid to educational establishments. The Community aid is EUR 18.15 for 100 kg of all types of milk. Member States may grant additional aid.

Trade with Non-EU Member Countries