Category Archives: Markets for Agricultural Products

EU legislation supports the production and marketing of agricultural products, taking into account the specific nature of the individual products. 2007/2008 will see a period of transition from the sectoral approach, where each category of products is governed by its own common organisation of the market (CMO), to the single CMO, a new, unified, approach covering all products. Despite this technical revolution, the principles adopted under the common agricultural policy (CAP) will continue to apply. This new unified framework will be applied gradually to the relevant sectors in the course of 2008.

Common organisation of the fruit and vegetable markets –

Common organisation of the fruit and vegetable markets

Outline of the Community (European Union) legislation about Common organisation of the fruit and vegetable markets

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Common organisation of the fruit and vegetable markets

The common organisation of the fruit and vegetables market was radically changed in a 2007 reform. The reform also combined this sector with that of processed fruit and vegetables.

Document or Iniciative

Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables [See amending acts].

Summary

From 2008, the reform of the common organisation of markets in fruit and vegetables will replace the system under the current Regulation.

Scope

The products concerned are: fresh fruit and vegetables and certain types of dried fruit. The exceptions or products not covered by this regime are potatoes, grapes, bananas, sweetcorn, peas, fodder beans and olives.

The marketing years can be set by the Commission based on the opinion of the Management Committee for Fresh Fruit and Vegetables.

Grading of products

To facilitate trade and increase the profitability of production, products are graded and subject to standards. The product holder is responsible for compliance with the standards. In order to be marketed, products must comply with the standards. The various items of information and in particular the product’s origin, variety and grade should be displayed legibly at retail sale. These standards take account of those recommended by the United Nations Economic Commission for Europe (UNECE) Working Party on Agricultural Quality Standards.

Standards are not enforced before products are packaged or prepared, nor for products that will be processed. The same is true for products sold directly by the grower and for certain named local products. Special measures can also be taken in the event of shortages or exceptional surpluses.

Controls are carried out in order to monitor compliance with standards at all stages of marketing.

Products imported from non-EU countries must comply with these standards or with at least equivalent standards. Similarly, Community products intended for export to non-EU countries have to comply with Community standards.

Producer organisations

From 2008, a new system governs producer organisations and producer organisation associations. However, organisations and associations recognised as such under the current Regulation will retain their status. Where necessary, they will have to adapt to the requirements of this Regulation by 31 December 2010.

Producer organisations are legal entities recognised by the Member States and set up on the initiative of producers. Minimum recognition criteria are set, particularly as regards the number of members and turnover.

There are several categories of organisation, namely: fruit and/or vegetables, citrus fruits, nuts, mushrooms and products intended for processing, as well as other organisations covering several products. These organisations, recognised by the Member States, contribute mainly to facilitating the production and marketing of products, helping producers to develop their production and encouraging the application of agri-environmental measures.

Member producers have to apply the rules adopted by their organisation and sell, save in exceptional cases, all their production through their intermediary. They also contribute financially to the operational fund.

The operational fund established by producer organisations is financed in equal parts by the producers and the European Community. In regions where the level of producer organisations is insufficient, the Member States may allocate complementary aid.

Where less than 15% of the production of the Member State is marketed by the producer organisations and where fruit and vegetable production represents 15% of the total agricultural production, this complementary aid can be reimbursed by the Community.

The funds are meant to finance both market withdrawals and operational programmes approved by national authorities or action plans presented by pre-recognised producer organisations. The proportion of the operational fund earmarked for withdrawals is a maximum of 30%. Financial assistance may not exceed 4.1% of the value of the products marketed by the organisation.

Operational programmes are meant to help producers to improve production and the marketing of products and to encourage the application of agri-environmental measures and phytosanitary standards and rules. The multi-annual operational programmes are accepted or refused by the Member States. A national set of requirements, approved by the European Commission, lays down the criteria for the acceptance of agri-environmental measures.

Following the reform of the common organisation of markets for fruit and vegetables, the operational programmes approved under this Regulation must meet the new conditions which will apply from 2008.

Producer organisations or associations of producer organisations functioning in an economic region, representative of producers and production, can ask the Member State to extend the rules adopted by the organisation or association to other producers established in the region. These producers must, under certain conditions, contribute 50% of the financing for the functioning of the organisation and to measures meant to ensure better marketing of fruit and vegetables.

The other half of the financing is covered by the European Union (EU), which limits this funding to no more than 4.1% of the value of the products marketed by the producer organisation (a change introduced by Regulation (EC) No 2699/2000).

This single ceiling of 4.1% signifies a major change to the market-organisation regime, increasing aid for the producer organisation’s operational funds. The single ceiling has replaced the previous ceiling, which had been set per producer organisation at 4.5% of the value of the products they market and for all producer organisations a maximum amount of 2.5% of the total combined turnover of the organisations.

The European Commission may ask the Member States not to authorise the extension where it contravenes European competition rules or where provisions concerning the common organisation of the market in fruit and vegetables are not complied with.

Inter-trade organisations and agreements

The inter-trade organisations are composed of representatives of economic operators active in the fruit and vegetable sector and/or in several regions of the European Community. The objective of the inter-trade organisations, recognised by the Member States under the control of the European Commission, is to promote the production and marketing of fruit and vegetables and to encourage their members to implement environmental measures. Though they may clash with Community provisions on competition, business agreements are sometimes authorised within such organisations.

Intervention arrangements

From time to time, producer organisations may decide not to place some of their products (see Annex II to the Regulation) on the market, provided that the use of the products does not undermine the normal disposal of products or harm the environment. For the quantities they withdraw from the market, they receive Community withdrawal compensation, a single amount valid throughout the Community (see Annex V to Regulation (EC) No 2200/96).

The compensation may not cover more than 5% of the marketed quantity for citrus fruit, 8.5% for apples and pears and 10% for the other products in question. Growers who are not members of producer organisations also have access to this intervention mechanism via a producer organisation, but the Community withdrawal compensation they receive is reduced by 10%.

Free distribution and withdrawn products

Withdrawal procedures are supervised by the Member States and the Commission. Unsold withdrawn products can under no circumstances return to the market. They have to be distributed free of charge for social and charity purposes, distilled, used for animal feed or for non-food purposes, or finally destroyed in an environmentally sound manner. The Community will bear the cost of free distribution, including, in this case, sorting and packaging costs.

Reforms to market-organisation regimes to include the new Member States

The regime for fruit and vegetables was also amended by the agriculture chapter of the Act of Accession, in particular as regards Cyprus and Malta. Malta was granted special temporary assistance for producers of fresh fruit and vegetables, scheduled to last for 11 years from the date of accession and declining gradually over that period. Cyprus was granted withdrawal compensation for apples, pears, peaches, table grapes and citrus fruit, to last for five years following the date of accession.

Trade with third countries

This system will be replaced by a new system for trade with third countries as from 2008.

Imports and exports may be subject to the issuing of an import or export licence.

The Common Customs Tariff rates of duties apply to products in the fruit and vegetable sector.

All tariff quotas for fruit and vegetables are allocated on a ‘first come, first served’ basis, except for the quota for garlic, bound within the WTO, for which a ‘traditional/new arrivals’ method has been introduced.

Where imports are likely to threaten the stability of the Community market, safeguard measures may be introduced with respect to the international obligations of the Community.

Export refunds may be granted for various fresh fruit and vegetables: apples, lemons, oranges, peaches, nectarines, table grapes, tomatoes and some nuts. Some of the refunds are granted on the basis of an amount and quantity which are set periodically and others are awarded on the basis of requests from operators and the quantities available.

When trading with third countries, it is normally forbidden to impose charges having equivalent effect to customs duties or to apply any quantitative import restrictions or measures having the same effect.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 2200/96 21.11.1996 OJ L 297, 21.11.1996
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 2520/97 1.1.1998 OJ L 346, 17.12.1997
Regulation (EC) No 857/1999 27.4.1999 OJ L 108, 27.4.1999
Regulation (EC) No 1257/1999 2.7.1999 OJ L 160, 26.6.1999
Regulation (EC) No 2699/2000 15.12.2000 OJ L 311, 12.12.2000
Regulation (EC) No 2826/2000 26.12.2000 OJ L 328, 19.12.2000
Regulation (EC) No 718/2001 18.4.2001 OJ L 100, 11.4.2001
Regulation (EC) No 911/2001 18.5.2001 OJ L 129, 11.5.2001
Regulation (EC) No 545/2002 31.3.2002 OJ L 84, 28.3.2002
Regulation (EC) No 1881/2002 12.11.2002 OJ L 285, 23.10.2002
Regulation (EC) No 47/2003 31.1.2003 OJ L 7, 11.1.2003
Regulation (EC) No 1182/2007 6.11.2007 OJ L 273, 17.10.2007

Successive amendments and corrections to Regulation (EC) No 2200/96 have been incorporated into the basic text. This consolidated version (PDF ) is for reference purposes only.

Related Acts

Detailed implementing rules

Regulation (EC) No 1580/2007 [Official Journal L 350 of 31.12.2007].
Following the adoption of the Regulation governing the fruit and vegetable sector, this Regulation will integrate and reorganise the detailed rules concerning this sector. It will regulate the classification of products, producer organisations and trade with third countries. It also includes, in its Annexes, the details of the official authorities and monitoring organisations, and models for certain certificates and documents needed for trade in these products to take place.

Regulation (EC) No 103/2004 [Official Journal L 16 of 23.1.2004].
Commission Regulation of 21 January 2004 laying down detailed rules for implementing Council Regulation (EC) No 2200/96 as regards intervention arrangements and market withdrawals in the fruit and vegetable sector.

Regulation (EC) No 1535/2003 [Official Journal L 218 of 30.8.2003].
Commission Regulation of 29 August 2003 laying down detailed rules for applying Council Regulation (EC) No 2201/96 as regards the aid scheme for products processed from fruit and vegetables.
See consolidated version (PDF )

Aid for organisations

Regulation (EEC) No 790/89 [Official Journal L 85 of 30.3.1989]

This Regulation sets the level of additional flat-rate aid for the formation of producer organisations and the maximum amount applied to aid for quality and marketing improvement in the nut and locust bean-growing sector.
See consolidated version (PDF )

Producer organisations

Extension of the rules governing producer organisations in the fresh fruit and vegetable sector [Official Journal C 301 of 5.12.2002].
Communication made under Article 18(5) of Council Regulation (EC) No 2200/96.

Reports

Report from the Commission to the Council of 24 January 2001 on the state of implementation of Regulation (EC) No 2200/96 on the common organisation of the market in fruit and vegetables [COM (2001) 36 final – not published in the Official Journal].
On the basis of this report and the ensuing discussions under the Spanish Presidency of the Council in 2002, in 2003 the Commission launched a work programme to make the Regulations governing this market-organisation regime simpler and clearer.


Another Normative about Common organisation of the fruit and vegetable markets –

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Agriculture > Markets for agricultural products

Common organisation of the fruit and vegetable markets – (2007 reform)

Common organisation of agricultural markets

Common organisation of agricultural markets

Outline of the Community (European Union) legislation about Common organisation of agricultural markets

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Common organisation of agricultural markets

Document or Iniciative

Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) [See amending acts].

Summary

The common organisation of agricultural markets refers to the legal framework established at European level for certain agricultural sectors. The agricultural sectors concerned are listed in Annexes I and II to the Regulation.

The European Union (EU) therefore provides common rules for managing agricultural markets, standards for marketing agricultural products and for importing and exporting them to/from the European Union.

INTERNAL MARKET

Market intervention

In order to ensure stability in the markets and a satisfactory standard of living for the agricultural community, a system of price support has been developed in parallel to the introduction of direct support schemes.

The price support system takes account of the needs of each agricultural sector and their interdependence. The measures take the form of:

  • public intervention in the markets for agricultural products;
  • the payment of aid for the private storage of cereals, rice, sugar, olive oil and table olives, beef and veal, milk and milk products, pigmeat, sheepmeat and goatmeat.

Special intervention measures

The EU may take exceptional measures in order to support markets in crisis. For example, these measures may be necessary in the case of the spread of animal diseases or natural disasters which have repercussions for agricultural markets.

Quota schemes

National production quotas are fixed for sugar and milk. Member States then distribute these between the producing undertakings. This Regulation particularly specifies the methods of transfer for quotas between several undertakings and management of surplus production. This includes producer assessments by Member States.

Aid schemes

Aid is also provided for the following sectors:

  • sugar (production refund measures);
  • milk and milk products, olive oil and table olives, fruits and vegetables, and apiculture products;
  • programmes promoting the consumption of fruit and milk in schools;
  • wine and hops sectors;
  • silkworm rearing.

MARKETING AND PRODUCTION

The Commission may impose marketing standards for certain agricultural products. For example, these standards may relate to the quality of the products, their labelling, storage or even their transport.

This Regulation imposes additional rules for the production and marketing of products which have a protection label in the wine sector. These labels are the recognised designations of origin, geographical indications and the term ‘traditional’. The Regulation describes the application process for producers wishing to obtain one of these labels.

Producer and interbranch organisations

This Regulation sets the rules concerning the recognition and operation of producer and interbranch organisations.

In particular, producer organisations must develop a joint programme of production and be able to adapt to demand.

Interbranch organisations do not only consist of producers. They may include representatives from the economic sectors connected with the production, trade or processing of agricultural products. In particular, interbranch organisations aim to optimise the product production and processing costs.

TRADE WITH THIRD COUNTRIES

In principle, the levying of any charge having equivalent effect to a customs duty and the application of any quantitative restriction or measure having equivalent effect are prohibited in trade with third countries.

Imports

The Commission can require the presentation of import licences for products from certain sectors: cereals, rice, sugar, seed, olive oil and table olives, flax and hemp, bananas, wine, live plants, beef and veal, pigmeat, sheepmeat and goatmeat, poultry, milk and milk products, eggs and agricultural ethyl alcohol.

The import duties in the Common Customs Tariff apply to these products, although specific provisions are provided for some of them. In certain cases, these import duties may be suspended or additional duties may be applied.

These particular provisions apply specifically to imports of mixtures of cereals, rice or cereals and rice. The import duty depends on the composition of the mixture. In addition, preferential arrangements are established for sugar and specific import conditions are set for hemp and hops.

Furthermore, the Commission may provide import tariff quotas, specifically limits on the volume of goods which may be imported with a reduced customs duty. The tariff quotas are managed by the Commission and administered so as to avoid any discrimination.

Exports

The Commission may require the presentation of export licences for products in the sectors pertaining to cereals, rice, sugar, olive oil and table olives, fresh and processed fruits and vegetables, wine, beef and veal, pigmeat, sheepmeat and goatmeat, poultry, milk and milk products, eggs and agricultural ethyl alcohol.

The export of certain products may be supported by export refunds which cover the difference between global and EU market prices. These may be differentiated according to the destination and are fixed periodically by the Commission, taking account of developments in the Union’s markets and global market developments. Specific provisions govern export refunds for malt in storage, cereals and beef and veal.

Management of export quotas in the milk and milk products sector and special import treatment by third countries are also regulated.

Competition

European competition law is applicable. There are however exceptions provided for by Article 176 of the Regulation for which the Commission allows agreements and concerted practices. The Regulation also provides for this type of exception in the fruit and vegetable and tobacco sectors.

Furthermore, the European system of State aid applies, in principle, to the agricultural sectors. However, the Regulation provides specific provisions for State aid in the milk and wine sectors.

Committee procedure

The Commission is assisted by the Management Committee for the Common Organisation of Agricultural Markets.

Context

Before this Regulation was adopted, each agricultural sector had its own common market organisation. At European level there was a multitude of organisations of agricultural markets. This legal framework simplifies and unifies the different regulations which existed previously.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 1234/2007

23.11.2007

OJ L 299 of 16.11.2007

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 247/2008

26.3.2008

OJ L 76 of 19.3.2008

Regulation (EC) No 248/2008

20.3.2008

OJ L 76 of 19.3.2008

Regulation (EC) No 361/2008

14.5.2008

OJ L 121 of 7.5.2008

Regulation (EC) No 470/2008

6.6.2008

OJ L 140 of 30.5.2008

Regulation (EC) No 13/2009

16.1.2009

OJ L 5 of 9.1.2009

Regulation (EC) No 72/2009

7.2.2009

OJ L 30 of 31.1.2009

Regulation (EC) No 491/2009

24.6.2009

OJ L 154 of 17.6.2009

Regulation (EC) No 1140/2009

30.11.2009

OJ L 312 of 27.11.2009

Regulation (EU) No 1234/2010

1.1.2011

OJ L 346 of 30.12.2010

Additional levy in the milk and milk products sector

Additional levy in the milk and milk products sector

Outline of the Community (European Union) legislation about Additional levy in the milk and milk products sector

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Additional levy in the milk and milk products sector (milk quotas)

The additional milk levy scheme, introduced in 1984, is designed to reduce the imbalance between supply and demand for milk and milk products and consequently the resulting structural surpluses. Member States pay the levy to the European Agricultural Guarantee Fund (EAGF) when they exceed their national reference quantity or national quota.

Document or Iniciative

Council Regulation (EC) No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products sector [See amending acts].

Summary

Cow’s milk and other milk products marketed as of 1 April 2008 are governed by the common organisation of agricultural markets.

Reference quantities

For each Member State, the Regulation sets reference quantities for the production of cow’s milk and other milk products for 11 consecutive periods of twelve months, starting on 1 April 2004. These quantities are then allocated among the producers in each Member State.

Principle of the levy

Each year, where the quantities of cow’s milk or other marketed products exceed the reference quantities, Member States collect a levy from farmers on the additional quantities produced.

The levy for 100 kilograms of milk is set at EUR 33.27 for the period 2004/05, EUR 30.91 for 2005/06, EUR 28.54 for 2006/07 and EUR 27.83 for 2007/08 and periods thereafter.

If a producer exceeds the quantity allocated by the Member State, he/she then pays his/her contribution to the levy. The Member States transfer these levies to the European Agricultural Guarantee Fund (EAGF).

Member States, which are the bodies deemed to be primarily liable to the Community, are obliged to pay 99% of the amount due to the EAGF in the course of a period between 16 October and 30 November following the twelve-month period in question.

Producers may have one individual reference quantity, or two individual reference quantities – one for direct sales to consumers and one for deliveries. The Member States established before 1 June 2004 the individual quantities (quotas) allocated to each producer on the basis of his/her production between 1 April 2003 and 31 March 2004. For Finnish producers this reference quantity may be increased up to a maximum national quantity of 200 000 tonnes. In the case of the Member States which joined the European Union in 2004 and 2007, the twelve-month periods for establishing the reference quantities vary depending on the country and lie between 1 April 2004 and 31 March 2007.

Management and calculation of the levy

The levy is managed separately for deliveries and for direct sales. For milk deliveries, each producer is assigned a reference fat content for his/her quota. Where the real fat content differs from the reference content, the deliveries are adjusted accordingly. The contribution of producers to payment of the levy is established by decision of the Member State after any unused part of the national quota allocated to deliveries has or has not been re-allocated. The processing undertaking collects the levies from the producers and pays them to the competent body in the Member State. In the case of direct sales, the producers pay the levy directly to the bodies in the Member States. In all cases, where the contribution collected from the producers is greater than that due by the Member State to the EAGF, the Member State may reimburse the amount collected in excess or allocate it for the restructuring of the sector or environmental improvement.

National reserve

Each Member State establishes a national reserve made up of quotas consisting mainly of those released as a result of inactivity on the part of producers and retaining part of transfers between producers. The Member States may then re-allocate these unused quantities to producers of their choice on the basis of objective criteria.

Inactivity

Where a producer fails to produce milk during a twelve-month period and does not prepare to produce again, his/her quantities revert to the national reserve before 1 April of the following calendar year. Where the producer once again becomes a producer before the end of the following twelve-month period, all or part of the individual reference quantity will be returned to him/her. Where producers do not market at least 70% of their reference quantity during a twelve-month period, the Member State may decide to return all or part of the unused quantities to the national reserve.

Temporary transfers

The Member States may agree in accordance with rules adopted by them to temporary transfers of quotas between producers.

Transfers of quotas with land

Reference quantities are transferred by sale, inheritance or any other means in accordance with rules to be laid down by the Member States, account being taken of the areas used for milk production. Where transfer takes place by lease or any comparable means, the Member State may decide that the quotas will be allocated exclusively to producers and refuse to transfer them at the same time as the holding. Where a transfer is made to the public authorities or for non-agricultural purposes, the Member State must ensure that steps are taken to protect the interests of the parties, including the right of the producer to continue production.

Special transfer measures

To facilitate the restructuring of the sector and protect the environment, the Member States may provide, among other things, for transfers without land by granting an allowance to producers who give up all or part of their production, by centralising and supervising offers and requests for transfers without land, or by determining, on the basis of objective criteria, the regions and collection areas within which transfers of reference quantities without land are authorised, with the aim of improving the structure of production.

Committee

The Commission is assisted by the Management Committee for Milk and Milk Products (FR), comprising a representative of the European Commission and representatives of the Member States.

Background

Since 2 April 1984, a national production threshold for milk has been imposed on all Member States under a Community quota system. The system also introduced a levy to be paid on the quantities of milk collected or directly sold over and above the guarantee threshold. The regime has been extended several times, in particular by Regulation (EEC) No 3950/92 and Regulation (EC) No 1255/1999. Regulation (EC) No 1788/2003 introduced a simplified procedure consolidating the experience gained.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1788/2003 28.10.2003 OJ L 270 of 21.10.2003
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 2217/2004 23.12.2004 OJ L 375 of 23.12.2004
Protocol concerning the conditions and arrangements for admission of the Republic of Bulgaria and Romania to the European Union 1.1.2007 OJ L 157 of 21.06.2005
Regulation (EC) No 1406/2006 27.9.2006 OJ L 265 of 26.09.2006
Regulation (EC) No 336/2007 1.4.2007 OJ L 88 of 29.03.2007
Regulation (EC) No 1186/2007 14.11.2007 OJ L 265 of 11.10.2007

The successive amendments and corrections to Regulation (EC) No 1788/2003 have been incorporated into the basic text. This consolidated version (PDF ) is for reference only.

 related Acts

Commission Regulation (EC) No 607/2007 of 1 June 2007 on the division between deliveries and direct sales of national reference quantities fixed for 2006/2007 in Annex I to Council Regulation (EC) No 1788/2003 [Official Journal L 141 of 02.06.2007].

Commission Regulation (EC) No 927/2006 of 22 June 2006 on the release of the special restructuring reserve provided for in Article 1(4) of Council Regulation (EC) No 1788/2003 [Official Journal L 170 of 23.06.2006].

Commission Regulation (EC) No 595/2004 of 30 March 2004 laying down detailed rules for applying Council Regulation (EC) No 1788/2003 establishing a levy in the milk and milk products sector [Official Journal L 94 of 31.03.2004].
See consolidated version (PDF ).

 

Common organisation of the market in milk and milk products

Common organisation of the market in milk and milk products

Outline of the Community (European Union) legislation about Common organisation of the market in milk and milk products

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Common organisation of the market in milk and milk products

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.

Document or Iniciative

Council Regulation (EC) No 1255/1999 of 17 May 1999 on the common organisation of the market in milk and milk products [See amending acts]

Summary

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 CMO 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.

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

Imports and exports may be subject to issue by the Member States of an import/export licence.

In general, in trade with Non-EU Member Countries, milk and milk products are subject to the rates of duty in the common customs tariff; taxes having equivalent effect to customs duty and the application of quantitative restrictions or measures of equivalent effect are prohibited.

However, additional duty may be charged under the conditions set out in the agriculture agreement (pdf ) of the World Trade Organisation (WTO). The Community informs the WTO of the trigger prices below which additional duty may be charged. In addition, under certain circumstances, tariff quotas may be awarded using the first come/first served principle, the simultaneous examination method, the traditional importers/new arrivals method, or other non-discriminatory methods.

In the case of exports, the difference between prices on the world market and Community prices may be covered by export refunds. These are awarded using the method considered the most suitable and creating the lightest administrative burden. The refund amount established takes into account a series of factors, such as the price of the milk and the costs of marketing. In certain cases, such as where the free-at-frontier price significantly exceeds the Community price and threatens to cause long-term disruption to the proper functioning of the Community market, the Community may fully or partially suspend import duties and even collect export levies.

Safeguard measures may be taken if the Community market is threatened with serious disturbance by reason of imports or exports. In addition, under certain circumstances, recourse to inward processing arrangements may be prohibited.

Committee procedures

In implementing the Regulation, the Commission is assisted by a Management Committee for Milk and Milk Products (FR), comprising representatives of the Member States and chaired by a representative of the Commission.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1255/1999 26.6.1999 OL 160 of 26.06.1999
Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1040/2000 26.5.2000 OJ L 118 of 19.05.2000
Regulation (EC) No 1526/2000 15.7.2000 OJ L 175 of 14.07.2000
Regulation (EC) No 1670/2000 29.7.2000 OJ L 193 of 29.07.2000
Regulation (EC) No 509/2002 23.3.2002 OJ L 79 of 22.03.2002
Regulation (EC) No 1787/2003 24.10.2003 1.4.2004 (partial application) OJ L 270 of 21.10.2003
Regulation (EC) No 186/2004 4.2.2004 OJ L 29 of 03.02.2004
Regulation (EC) No 1913/2005 2.12.2005 OJ L 307 of 25.11.2005
Regulation (EC) No 1152/2007 7.10.2007 OJ L 258 of 04.10.2007

Successive amendments and corrections to Regulation (EC) No 1255/1999 have been incorporated into the basic text. This consolidated version (pdf ) is for reference purposes only.

Related Acts

Detailed implementing rules

Commission Regulation (EC) No 2771/1999 of 16 December 1999 laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards intervention on the market in butter and cream [Official Journal L 333, 24.12.1999].
See consolidated version (pdf
)

Commission Regulation (EC) No 2799/1999 of 17 December 1999 laying down detailed rules for applying Regulation (EC) No 1255/1999 as regards the grant of aid for skimmed milk and skimmed-milk powder intended for animal feed and the sale of such skimmed-milk powder [Official Journal L 340, 31.12.1999].
See consolidated version (pdf
)

Commission Regulation (EC) No 2707/2000 of 11 December 2000 laying down rules for applying Council Regulation (EC) No 1255/1999 as regards Community aid for supplying milk and certain milk products to pupils in educational establishments [Official Journal L 311, 12.12.2000].
See consolidated version (pdf
)

Commission Regulation (EC) No 214/2001 of 12 January 2001 laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards intervention on the market in skimmed-milk powder [Official Journal L 37, 7.2.2001].
See consolidated version (pdf
)

Commission Regulation (EC) No 2535/2001 of 14 December 2001 laying down detailed rules for applying Council Regulation (EC) No 1255/1999 as regards the import arrangements for milk and milk products and opening tariff quotas [Official Journal L 341, 22.12.2001].
See consolidated version (pdf
)

Commission Regulation (EC) No 1244/2004 of 6 July 2004 laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards the granting of private storage aid for certain cheeses in the 2004/05 storage period [Official Journal L 236, 7.7.2004].

Commission Regulation (EC) No 562/2005 of 5 April 2005 laying down rules for the implementation of Council Regulation (EC) No 1255/1999 as regards communications between the Member States and the Commission in the milk and milk products sector [Official Journal L 95, 14.4.2005].

Commission Regulation (EC) No 1898/2005 of 9 November 2005 laying down detailed rules for implementing Council Regulation (EC) No 1255/1999 as regards measures for the disposal of cream, butter and concentrated butter on the Community market [Official Journal L 308, 25.11.2005].
See consolidated version (pdf
)

Commission Regulation (EC) No 734/2006 of 16 May 2006 laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards the granting of private storage aid for certain cheeses in the 2006/2007 storage period [Official Journal L 129, 17.05.2006].

Commission Regulation (EC) No 1282/2006 of 17 August 2006 laying down special detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards export licences and export refunds for milk and milk products [Official Journal L 234, 29.8.2006].
See consolidated version (pdf
)

Commission Regulation (EC) No 587/2007 of 30 May 2007 laying down detailed rules for the application of Council Regulation (EC) No 1255/1999 as regards the granting of private storage aid for certain cheeses in the 2007/2008 storage period [Official Journal L 139, 31.05.2007].

Milk quotas

of 29 September 2003 establishing a levy in the milk and milk products sector [Official Journal L 270, 21.10.2003].
With effect from 1 April 2004, for eleven consecutive periods of twelve months, the Member States collect a levy from farmers on quantities of cow’s milk or other milk products marketed during the relevant twelve-month period in excess of the maximum reference quantities allocated to each Member State.

 

Cotton

Cotton

Outline of the Community (European Union) legislation about Cotton

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Cotton

Document or Iniciative

Council Regulation (EC) No 864/2004 of 29 April 2004 amending Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers, and adapting it by reason of the accession of the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia to the European Union.

Summary

Decoupling

Extensive changes have been made to the aid arrangements for cotton, with a partial move to a system of single farm payments. The move is only partial in that 35% of aid will continue to be provided in the form of an area payment (direct aid), with the remaining 65% being provided as a single farm payment.

There has been only a partial move to the new aid arrangements so as to protect certain areas in which production would cease if the new arrangements were fully applied.

Under the previous arrangements, growers did not benefit from direct aid for cotton but rather from indirect aid paid to ginners. The total aid available per hectare in each Member State is fixed at 35% of the national allocation that producers received indirectly.

Direct aid

As in the case of other direct aid to producers, farmers must fulfil certain obligations: cross-compliance, modulation and financial discipline.

National base area

Maximum area (total)
440 000 ha
Greece Spain Portugal
National base area 370 000 ha 70 000 ha 360 ha
Aid in euros per eligible hectare 300 000 ha > 594/ha
70 000 ha > 342.85/ha
1 039/ha 556/ha

Additional support: restructuring

Reforming this sector requires financial assistance of EUR 22 million for adjustments. This expenditure will be entered in the 2007 budget.

This assistance, for restructuring programmes in production regions, will be financed by the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section as part of rural development policy.

Background

The reform of agricultural aid for cotton, tobacco, hops and olive oil and table olives was negotiated together and included in the same Regulation in what was know as the “Mediterranean package”.

All these products were subsequently included (April 2004) in the comprehensive reform of the common agricultural policy (CAP) of June 2003, with the approval of the move from direct aid (aid paid by hectare, unit of output or livestock unit) to a system of single farm payments.

Cotton, tobacco, yeast, olive oil and table oils are grown in certain regions whose development is lagging behind. The reform aims to safeguard production in those regions by according priority to farmers’ incomes rather than to providing aid for production. Coupled aid is to be provided for tobacco and cotton to permit adjustment to the new arrangements. Coupled aid may be paid for hops to take account of particular market situations or structural situations within a region.

The current reform affecting “Mediterranean products” is based on the Commission communication to the Council and to the European Parliament “Accomplishing a sustainable agricultural model for Europe through the reformed CAP – the tobacco, olive oil, cotton and sugar sectors “.

The current forms of aid for cotton will be abolished from 1 January 2006.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 864/2004 1.5.2004 1.1.2006 (regarding cotton) OJ L 161 of 30.4.2004

 

Beef and veal

Beef and veal

Outline of the Community (European Union) legislation about Beef and veal

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Beef and veal

The common organisation of the market in beef and veal governs the granting of aid to stock-farmers and trade with third countries.

Document or Iniciative

Council Regulation (EC) No 1254/1999 of 17 May 1999 on the common organisation of the market in beef and veal [See Amending Acts].

Summary

From 1 July 2008, products falling within the scope of this Regulation will be covered by the common organisation of agricultural markets (CMO).

Scope

The products covered are live bovine animals and the meat, offal, meat meal and fat of bovine animals.

Internal market

Community measures to encourage action by trade and intertrade organisations may be taken to improve:

  • stock breeding;
  • the organisation of production, processing and marketing;
  • quality;
  • forecasting;
  • the recording of market price movements.

The 2003 reform of the common agricultural policy severed the link between headage and payments and replaced it with a single income payment per farm based on historical entitlements. As part of this new legislative framework, Regulation (EC) No 1782/2003 establishing common rules for direct support schemes abolishes the direct payments provided for in this Regulation. It lays down that the amounts received by farmers as direct payments in 2000, 2001 and 2002 are one of the factors used to calculate aid under the new scheme. A system of premiums (special, deseasonalisation, suckler cow and slaughter premiums) and extensification payments remains in force, subject to certain conditions, in the form of additional payments to the farmer.

Since 1 July 2002 private storage aid has been granted where the average Community market price recorded is less than 103% of the basic price, set at €2 224 per tonne for male bovine animal carcases. The Council may adjust that price. From the same date, public intervention is triggered if the average market price in a Member State or region of a Member State falls below €1 560 per tonne for two consecutive weeks. In that event, the buying-in price and the quantities involved are determined by invitation to tender.

Trade with third countries

Import licences issued by Member States are required for imports into the Community of live bovine animals other than pure-bred breeding animals, meat and uncooked preserved or prepared products. No certificate is required for exports. For other products export/import licences are not compulsory, but can be provided for.

The Common Customs Tariff rates of duties apply to products in the beef and veal sector. In certain circumstances additional import duties may be levied on these products to protect the Community market. The tariff quotas which allocate a customs duty are administered on the basis of a number of methods established under this Regulation.

In order to enable products in this sector to be exported, the difference between the price in the Community and prices on the world market may be covered by export refunds. They are fixed at regular intervals and for given quantities by invitation to tender taking account of developments on the market.

Use of inward and outward processing arrangements may be prohibited where the smooth operation of the common market organisation so requires or in the event of a risk of disturbance on the Community market.

When trading with third countries, it is normally forbidden to impose charges having equivalent effect to customs duties or to apply any quantitative import restrictions or measures having the same effect.

Protective measures may be taken if the market may be disturbed as a result of imports or exports.

Other provisions

The Member States must monitor prices for bovine animals and beef and veal in accordance with the detailed rules laid down by the Commission.

Exceptional market-support measures may be taken where there is a sustained rise or fall in prices or when outbreaks of animal diseases occur. This support is given provided that the requesting Member State has taken suitable veterinary and health measures. The Community contribution to funding these exceptional measures varies depending on the disease in question.

The Commission is assisted by the Management Committee for Beef and Veal, composed of representatives of Member States and chaired by a representative of the Commission.

Outermost regions

The outermost regions of the European Union (Guadeloupe, Martinique, French Guiana, Réunion, the Canary Islands, Madeira and the Azores) have specific measures, laid down by Regulation (EC) No 1455/2001, introducing specific limits for:

  • the number of animals eligible for special premiums;
  • maintaining suckler cow herds;
  • slaughter premiums.

Acceding countries

For more information on the changes to this common market organisation as a result of the entry of the new Member States, please consult the Act of Accession.

References

Act

Entry into force

Deadline for transposition in the Member States

Official Journal

Regulation (EC) No 1254/1999 26.6.1999 1.1.2000 OJ L 160, 26.6.1999

Amending Act(s)

Entry into force

Deadline for transposition in the Member States

Official Journal

Regulation (EC) No 1455/2001 24.7.2001 OJ L 198, 21.7.2001
Regulation (EC) No 1512/2001 26.7.2001 26.7.2001 OJ L 201, 26.7.2001
Regulation (EC) No 2345/2001 4.12.2001 OJ L 315, 01.12.2001
Acts concerning the accession of the Czech Republic, Republic of Estonia, Republic of Cyprus, Republic of Latvia, Republic of Lithuania, Republic of Hungary, Republic of Malta, Republic of Poland, Republic of Slovenia and Slovak Republic to the EU. 1.5.2004 OJ L 236, 23.9.2003
Regulation (EC) No 1782/2003 28.10.2003 Application from 2005, except for some partial implementation in 2003 and 2004. OJ L 270, 21.10.2003
Regulation (EC) No 1913/2005 2.12.2005 OJ L 307, 25.11.2005

Successive amendments and corrections to Regulation (EC) No 1254/1999 have been incorporated in the basic text. The consolidated version available here (pdf ) is intended purely as a documentation tool.

Related Acts

Classification

Regulation (EC) No1183/2006 [Official Journal L 214, 4.8.2006].

Community scale for the classification of carcases of adult bovine animals.

Regulation (EEC) No1186/90 [Official Journal L 119, 11.5.1990].
Extension of the scope of the Community scale for the classification of carcases of adult bovine animals.
See consolidated version (pdf ).

Labelling

Regulation (EC) No1760/2000 [Official Journal L 204, 11.8.2000].
Bovine animal identification and registration system.
See consolidated version (pdf ).

Animal-health measures

Decision64/432/EEC [Official Journal L 121, 29.7.1964].
Health problems affecting intra-Community trade in bovine animals and swine.
See consolidated version (pdf ).

Decision80/1025/EEC [Official Journal L 304, 13.11.1980].
On-the-spot monitoring of the application of national plans for the eradication of brucellosis, tuberculosis and leucosis in cattle.

Regulation (EC) No639/2003 [Official Journal L 93, 10.4.2003].
Requirements for the granting of export refunds related to the welfare of live bovine animals during transport.
See consolidated version (pdf ).

Support measures

Regulation (EC) No690/2001 [Official Journal L 95, 5.4.2001].
Special support measures in the beef sector.


Amended by:
Regulation (EC) No
1592/2001 [Official Journal L 210, 3.8.2001].
Regulation (EC) No
1648/2001 [Official Journal L 219, 14.8.2001].
Regulation (EC) No
2155/2001 [Official Journal L 289, 6.11.2001].
Regulation (EC) No
2595/2001 [Official Journal L 345, 29.12.2001].
Regulation (EC) No
1757/2005 [Official Journal L 285, 28.10.2005].

Storage

Regulation (EEC) No1805/77 [Official Journal L 198, 5.8.1977].
Storage and movement of products bought in by an intervention agency.

Intervention

Regulation (EC) No2561/2000 [Official Journal L 293, 22.11.2000].
Special provisions for the granting of private storage aid for cows.

Regulation (EC) No907/2000 [Official Journal L 105, 3.5.2000].
Private storage aid in the beef and veal sector.
See consolidated version (pdf ).

Regulation (EC) No1669/2006 [Official Journal L 312, 11.11.2006].
Buying-in of beef.

See consolidated version (pdf )

Exports

Regulation (EC) No800/99 [Official Journal L 102, 17.4.1999].
Export refunds on agricultural products.
See consolidated version (pdf ).

Regulation (EC) No433/2007 [Official Journal L 104, 21.4.2007].
Conditions for granting special export refunds for beef and veal.

Regulation (EC) No 1359/2007 [Official Journal L 304, 22.11.2007];

Conditions for granting special export refunds on certain cuts of boned meat of bovine animals.

Regulation (EC) No 376/2008 [Official Journal L 114, 26.04.2008];

Application of the system of import and export licences and advance fixing certificates for agricultural products.

Imports

Regulation (EC) No2249/99 [Official Journal L 275, 26.10.1999].
Opening of a Community tariff quota for the import of meat of bovine animals, boneless and dried.

Regulation (EC) No 659/2007 [Official Journal L 155, 15.06.2007];

Opening and administration of tariff quotas for imports of bulls, cows and heifers other than for slaughter for certain Alpine and mountain breeds.

Regulation (EC) No 1528/2007 [Official Journal L 348, 31.12.2007];

Regulation applicable to products originating in certain states which are part of the African, Caribbean and Pacific (ACP) Group of States, laying down the arrangements provided for in the agreements establishing, or leading to the establishment of, Economic Partnership Agreements.

Regulation (EC) No 382/2008 [Official Journal 29.04.2008];

System of import and exports licences for beef and veal.

Decision 2008/155/EC [Official Journal 23.02.2008].

Approved list of embryo collection and production teams in third countries for the import of bovine embryos into the Community.

Common organisation of the sugar market

Common organisation of the sugar market

Outline of the Community (European Union) legislation about Common organisation of the sugar market

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Common organisation of the sugar market

The common organisation of the market in sugar improves the competitiveness of the sector, thereby ensuring its long-term sustainability. It will remain in place until 30 September 2008.

Document or Iniciative

Council Regulation (EC) No 318/2006 of 20 February 2006 on the common organisation of the markets in the sugar sector [See amending acts].

Summary

From 1 October 2008, products falling within the scope of this Regulation will be covered by the common organisation of agricultural markets (CMO).

This Regulation introduces a substantial reform of the common organisation of the sugar market, which was previously governed by Regulation (EC) No 1260/2001.

This common organisation of the market provides for intervention on the internal market, including the fixing of reference prices and production quotas, and for certain support measures for European products when they are traded on international markets.

Scope

The common organisation of the sugar market applies to:

  • sugar beet;
  • sugar cane;
  • cane sugar, beet sugar and sugar from other origins;
  • syrup, including sugar syrup, maple syrup, inulin syrup and isoglucose syrup;
  • molasses.

INTERNAL MARKET

Prices

The reference prices for white sugar are as follows:

  • 631.90 per tonne for the 2006/07 and 2007/08 marketing years;
  • 541.50 per tonne for the 2008/09 marketing year;
  • 404.40 per tonne from the 2009/10 marketing year onwards.

The reference prices for raw sugar are as follows:

  • 496.80 per tonne for the 2006/07 and 2007/08 marketing years;
  • 448.80 per tonne for the 2008/09 marketing year;
  • 335.20 per tonne from the 2009/10 marketing year onwards.

Price levels for the sugar market will be publicised by means of an information system via which data provided by operators in the sector are collected and processed.

The minimum price for quota beet is set at:

  • 32.86 per tonne for the 2006/07 marketing year;
  • 29.78 per tonne for the 2007/08 marketing year;
  • 27.83 per tonne for the 2008/09 marketing year;
  • 26.29 per tonne from the 2009/10 marketing year onwards.

Interprofessional agreements

Community growers and Community sugar undertakings set the terms for buying sugar beet and sugar cane by concluding agreements within the trade. Delivery contracts have to draw a distinction between beets used to manufacture quota sugar and beets used to manufacture out-of-quota sugar. Each sugar undertaking must provide the Member State in which it produces sugar with information on quantities of beet and yield. If no agreements within the trade exist, the Member State concerned will take the necessary steps to protect the interests of the parties concerned.

Quota production

National and regional production quotas for sugar, isoglucose and inulin syrup are laid down for each marketing year (for the 2007/08 marketing year, see Regulation (EC) No 247/2007). A production quota is then allocated to each sugar-producing undertaking which may, by 30 September 2007 at the latest, request an additional quota from the Member State in which it is established. In this way, the Member State decides on the quantities acceptable to it and collects a single amount of 730 for each tonne of additional quota allocated.

In each of the marketing years 2007/08 and 2008/09, a further isoglucose quota of 100 000 tonnes will be added to the quota of the preceding marketing year (this increase does not involve either Romania or Bulgaria).

Following the implementation of Regulation (EC) No 320/2006 establishing a temporary scheme for the restructuring of the sugar industry in the European Community, the Commission has reduced the existing quotas for sugar, isoglucose and inulin syrup on two occasions (by Regulations (EC) Nos 2011/2006 and 247/2007). The Member States have adjusted the quotas allocated to their undertakings accordingly.

In some circumstances (the conditions to be satisfied are laid down in Annex V to this Regulation) a Member State may reduce the sugar or isoglucose quota allocated to undertakings established on its national territory and transfer quotas between undertakings.

Out-of-quota production

The sugar, isoglucose or inulin syrup produced during a marketing year in excess of the quota may be:

  • used in the manufacture of certain products such as bioethanol, alcohol, rum or specific pharmaceutical products;
  • carried forward to the next marketing year. In such cases, the undertakings must inform the Member State and also undertake to store at their own cost the quantities carried forward;
  • used for the specific supply arrangements for the outermost regions;
  • exported, within the established quantitative limits and in compliance with the commitments resulting from international agreements;
  • subjected to a surplus-amount levy by Member States.

Market management

From the 2007/08 marketing year onwards, Member States will levy a production charge on sugar-producing undertakings. This charge is set at 12 per tonne of sugar and inulin syrup. For isoglucose, the production charge is set at 50% of the charge applicable to sugar.

The Member States must grant an approval to producers or processors of sugar, isoglucose or inulin syrup, provided they meet certain conditions, such as proving their professional capacity. These undertakings are to provide the Member State with information about provisional and actual sales of their sugar products.

Private storage aid for white sugar may be granted to undertakings which are allocated a sugar quota if the market price falls below the reference price for a representative period and if it is likely to remain at that level. Up until the 2010 marketing year, the intervention agency will buy in up to 600 000 tonnes of sugar per marketing year provided that the sugar has been produced under quota and manufactured from beet or cane harvested in the Community. In addition, it must have formed the subject of a storage contract concluded between the seller and the intervention agency. Generally speaking, the intervention agency may only sell the sugar at a price higher than the reference price set for the marketing year in question. However, in some circumstances, it may be permissible to sell the sugar at a price lower than or equal to the reference price.

A percentage of sugar, isoglucose or inulin syrup under quota may be withdrawn from the market up to the start of the following marketing year in order to maintain the structural balance of the market at a price level that is close to the reference price. The quantities of sugar in question will be stored by undertakings that have been allocated a quota. If the sugar supply in the Community is inadequate, it may be decided that a certain quantity of these products may be sold on the Community market before the end of the withdrawal period. The sugar withdrawn from the market may be treated as the first sugar production of the following marketing year – in this case, beet growers will receive the minimum price set for the marketing year in question.

TRADE WITH NON-EU MEMBER COUNTRIES

Common provisions on imports and exports

As a general rule, in trade with Non-EU Member Countries, the levying of any charge having equivalent effect to a customs duty and the application of any quantitative restriction or measure having equivalent effect are prohibited.

Imports and exports of sugar products (except for the waste produced by sugar undertakings) are subject to presentation of an import or export licence. The licence is issued by the Member States and is valid throughout the European Community.

In certain circumstances, the use of inward processing arrangements for sugar products may be prohibited.

Safeguard measures may be applied in cases where trade with Non-EU Member Countries threatens to disrupt the balance on the Community market. The Commission, acting at the request of a Member State or on its own initiative, will decide on the necessary measures, which will remain in place until the threat has subsided.

Provisions applicable to imports

The rates of import duty in the Common Customs Tariff apply to sugar products. However, in order to ensure that the Community market is adequately supplied, the Commission may suspend in whole or in part for certain quantities the application of import duties on certain products.

Imports of products covered by this Regulation may be subject to an additional import duty to protect the Community market against possible adverse effects. This duty may be imposed during a year in which the Community market is likely to experience such effects or when imports are made at a price below the level notified by the Community to the WTO.

The Commission opens and manages tariff quotas for sugar products in a way that avoids any discrimination between the operators concerned. To achieve this, various methods are applied, such as processing applications in chronological order (“first come, first served”), or distributing quotas in proportion to the quantities requested in applications.

The refining sector’s traditional supply need for sugar, expressed in white sugar, is set for the Community as a whole at 2 324 735 tonnes per marketing year and is distributed among the Member States. During the 2006/07, 2007/08 and 2008/09 marketing years, this need is distributed as follows (tonnes):

  • Bulgaria: 198 748
  • France: 296 627
  • Portugal: 291 633
  • Romania: 329 636
  • Slovenia: 19 585
  • Finland: 59 925
  • United Kingdom: 1 128 581

Guaranteed prices set for sugar originating in the African, Caribbean and Pacific (ACP) countries and India apply to imports of standard quality raw sugar and white sugar originating in certain countries (listed in Annex VI to this Regulation and in Regulation (EC) No 980/2005). These countries must certify that the products covered by the guaranteed price comply with the rules laid down in the relevant international agreements.

Measures may be taken to ensure that imports of sugar into the Community from the ACP countries and India are carried out under the conditions laid down in the Protocol to the ACP-EC Partnership Agreement and in the Agreement on cane sugar between the European Community and the Republic of India.

Provisions applicable to exports

Export refunds may be granted to cover the difference between sugar prices on the world market and sugar prices in the Community. The quantities of sugar benefiting from these refunds are set using various methods which take into account the nature of the product, the situation on the market and administrative efficiency. Export refunds may be set at regular intervals or by invitation to tender.

Export restrictions may be applied when the quotations or prices of a product reach a level which threatens to disrupt supplies on the Community market, and where this situation is likely to deteriorate.

Other provisions

Further measures may be taken if there is a significant change in prices on the Community market and if all measures laid down by this Regulation have been exhausted and the situation is likely to continue to disrupt the market.

The Management Committee for Sugar assists the Commission in dealing with administrative aspects of the common organisation of the sugar market.

Background

The first common organisation of the sugar market was established by Council Regulation No 44/67/EEC in 1967. Since entering into force it has been reformed on several occasions, in 1974, 1981, 1999 and 2001. The reform introduced by the current Regulation in 2006 reduces the minimum guaranteed price and encourages unprofitable growers to cease farming. It also includes Council Regulations (EC) Nos 319/2006 and 320/2006, both adopted on the same day as the current Regulation, which establish the temporary restructuring fund.

References

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EC) No 318/2006 3.3.2006 OJ L 58, 28.2.2006
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1585/2006 28.10.2006 OJ L 294, 25.10.2006
Regulation (EC) No 2011/2006 1.1.2007 OJ L 384, 29.12.2006
Regulation (EC) No 247/2007 12.3.2007 OJ L 69, 9.3.2007
Regulation (EC) No 1182/2007 6.11.2007 OJ L 273, 17.10.2007
Regulation (EC) No 1260/2007 30.10.2007 OJ L 283, 27.10.2007

Successive amendments and corrections to Regulation (EC) No 318/2006 have been incorporated into the basic text. This consolidated version (pdf ) is intended purely as a documentation tool.

Related Acts

Detailed implementing rules

Commission Regulation (EC) No 950/2006 of 28 June 2006 laying down detailed rules of application for the 2006/2007, 2007/2008 and 2008/2009 marketing years for the import and refining of sugar products under certain tariff quotas and preferential agreements [Official Journal L 178, 1.7.2006].
See consolidated version (pdf ).

Commission Regulation (EC) No 951/2006 of 30 June 2006 laying down detailed rules for the implementation of Council Regulation (EC) No 318/2006 as regards trade with Non-EU Member Countries in the sugar sector [Official Journal L 178, 1.7.2006].
See consolidated version (pdf ).

Commission Regulation (EC) No 952/2006 of 29 June 2006 laying down detailed rules for the application of Council Regulation (EC) No 318/2006 as regards the management of the Community market in sugar and the quota system [Official Journal L 178, 1.7.2006].
See consolidated version (pdf ).

Commission Regulation (EC) No 967/2006 of 29 June 2006 laying down detailed rules for the application of Council Regulation (EC) No 318/2006 as regards sugar production in excess of the quota [Official Journal L 176, 30.6.2006].
See consolidated version (pdf ).

Regulations complementing the 2006 reform of the common organisation of the sugar market

Regulation(EC) No 320/2006 [Official Journal L 58, 28.2.2006].

This Regulation establishes a temporary restructuring fund to finance restructuring and diversification measures in the sugar industry. It lays down the requirements which undertakings in this sector must satisfy in order to qualify for aid under this fund.
See consolidated version (pdf ).

Regulation(EC) No 319/2006 [Official Journal L 58, 28.2.2006].
This Regulation lays down rules for granting Community aid to sugar beet and cane growers in Member States eligible for restructuring aid under Regulation No 320/2006. It amends the rules laid down in Regulation No 1782/2003 in relation to support schemes in the sugar sector.
See consolidated version (FR ) (pdf).

International context

International Sugar Agreement 1992 [Official Journal L 379, 23.12.1992].
This Agreement lays down rules for the operation of the International Sugar Organisation, of which the European Community is one of the main members. In April 2007, the Council of the European Union agreed to vote in favour of extending this Agreement (Decision 2007/316/EC).

Hops

Hops

Outline of the Community (European Union) legislation about Hops

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Hops

This Regulation establishes a common organisation of the market (CMO) in hops. It includes rules on marketing, producer groups and trade with third countries. The aid scheme for this product is governed by the Mediterranean package which complements the major reform of the Common Agricultural Policy (CAP) in June 2003 by laying down provisions relating to the hops, cotton, olive groves and tobacco sectors. The CMO will remain in force until 30 June 2008.

Document or Iniciative

Council Regulation (EC) No 1952/2005 of 23 November 2005 concerning the common organisation of the market in hops and repealing Regulations (EEC) No 1696/71, (EEC) No 1037/72, (EEC) No 879/73 and (EEC) No 1981/82.

Summary

From 1 July 2008 products falling within the scope of this Regulation will be governed by the common organisation of agricultural markets.

This Regulation lays down rules on marketing, producer groups and trade with third countries in the hops sector. The ‘Mediterranean package’ provides for specific aid measures for this sector.

This Regulation covers the dried inflorescences – cones – of the (female) climbing hop plant, hop powder, hop powder with higher lupulin content, vegetable saps and extracts of hops.

Marketing

Hops harvested or prepared within the Community are subject to a certification procedure. The certificate, indicating at least the place of production of the hops, the year of harvesting and the variety, may be issued only for products having the minimum quality characteristics appropriate to a specific stage of marketing. Products may be marketed and exported only by those in possession of a certificate.

Producer Groups

Producers may form a group to achieve one of the following objectives:

  • concentrating supply and helping to stabilise the market by marketing all the produce of the members or, if necessary, by purchasing hops at a higher price;
  • adapting such production jointly to the requirements of the market and improving the product;
  • promoting the rationalisation and mechanisation of cultivation and harvesting operations in order to render production more profitable and better protect the environment;
  • deciding what varieties of hops may be grown by its members and adopting common rules on production.

The Member State within whose territory the producer group has its registered office is responsible for recognising producer groups which request recognition and fulfil a number of conditions. To be recognised, a group must, for instance, have legal personality or sufficient legal capacity to be subject, under national legislation, to rights and obligations, provide proof of economically viable activity and not hold a dominant position in the Community.

Trade with third countries

The rates of import duty in the common customs tariff apply to the products covered by this Regulation. These may be imported only if their quality standards are at least equivalent to those adopted for like products harvested within the Community or made from such products. Only in this case do products receive an attestation issued by the authorities of the country of origin which has the same value as the Community certificate.

The general rules for the interpretation of the Combined Nomenclature and the detailed rules for its implementation apply to the tariff classification of products covered by this Regulation.

In trade with third countries, the levying of any charge having equivalent effect to a customs duty and the application of any quantitative restriction or measure having equivalent effect are prohibited.

Safeguard

If, by reason of imports or exports, the Community market in one or more of the products covered by this Regulation is affected by, or is threatened with, serious disturbance, appropriate measures may be applied in trade with non-member countries of the World Trade Organisation (WTO) until such disturbance or threat of it has ceased. In this case the Commission, at the request of a Member State or on its own initiative, decides upon the necessary measures. If a Member State refers these measures to the Council, it must meet immediately and may amend or repeal them.

In cases where there is a danger of creating surpluses or of a disturbance in the supply structure of the market, the Council, acting by a qualified majority on a proposal from the Commission, may take appropriate measures to prevent market imbalance. Such measures may take the form of action affecting the production potential, the volume of supply and the marketing conditions.

Supply contracts

Any contract to supply hops produced within the Community concluded between one or more producers and a buyer is to be registered by the bodies designated for that purpose by each producer Member State concerned. The data on which registration is based may be used only for the purposes of this Regulation.

The Commission is to be assisted by a Management Committee for Hops [FR].

References

Act


Entry into force
Deadline for transposition in the Member States
Official Journal
Regulation (EC) No 1952/2005 7.12.2005 OJ L 314, 30.11.2005

Related Acts

Commission Regulation (EC) No 1299/2007 of 6 November 2007 on the recognition of producer groups for hops (Codified version) [Official Journal L 289 of 7.11.2007].

Commission Regulation (EC) No 1557/2006 of 18 October 2006 laying down detailed rules for implementing Council Regulation (EC) No 1952/2005 as regards registration of contracts and the communication of data concerning hops [Official Journal L 288 of 19.10.2006].

Commission Regulation (EC) No 1850/2006 of 14 December 2006 laying down detailed rules for the certification of hops and hop products [Official Journal L 355 of 15.12.2006].

Seeds

Seeds

Outline of the Community (European Union) legislation about Seeds

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Seeds

This Regulation establishes a common organisation of the market (CMO) in seeds. It includes rules on the marketing of seeds and on trade with third countries. The CMO will operate until 30 June 2008.

Document or Iniciative

Council Regulation (EC) No 1947/2005 of 23 November 2005 on the common organisation of the market in seeds and repealing Regulations (EEC) No 2358/71 and (EEC) No 1674/72.

Summary

From 1 July 2008 products falling within the scope of this Regulation will be governed by the common organisation of agricultural markets.

This Regulation defines the conditions for the marketing of, and trade with third countries in, sweetcorn hybrids, peas and chickpeas, beans, lentils, broad beans and other leguminous vegetables, spelt, hybrid maize, rice in the husk, sorghum, soya beans, groundnuts, linseed, rape or colza seeds, sunflower seeds, other oil seeds and oleaginous fruits, and seeds, fruit and spores, of a kind used for sowing.

TRADE WITH THIRD COUNTRIES

Imports of seeds may be subject to the presentation of an import licence. Import licences are to be issued by the Member States to any persons who so request, irrespective of their place of establishment in the Community. Licences will be valid for imports carried out anywhere in the Community and their issue will be subject to the lodging of a security guaranteeing that the products are imported during the validity period of the licence.

The rates of import duty in the Common Customs Tariff are to apply to the products covered by this Regulation.

The general rules for the interpretation of the Combined Nomenclature and the detailed rules for its implementation are to apply to the tariff classification of products covered by this Regulation.

In trade with third countries, the levying of any charge having equivalent effect to a customs duty and the application of any quantitative restriction or measure having equivalent effect are prohibited.

Safeguard

If, by reason of imports or exports, the Community market in one or more of the products listed in this Regulation is affected by, or is threatened with, serious disturbance, appropriate measures may be applied in trade with non-member countries of the World Trade Organisation (WTO) until such disturbance or threat of it has ceased. In such cases, the Commission, at the request of a Member State or on its own initiative, is to decide upon the necessary measures. Where a Member State refers such measures to the Council, it is to meet immediately and may amend or repeal the measures in question.

The Treaty’s provisions on state aid are to apply to seeds. However, Finland may, subject to authorisation by the Commission, grant aid respectively for certain quantities of seeds and for certain quantities of cereal seed.

The Commission is to be assisted by the Management Committee for Seeds [FR].

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1947/2005 Applicable from 1 July 2006 OJ L 312 of 29.11.2005

Related Act

Commission Regulation (EC) No 491/2007 of 3 May 2007 laying down detailed rules for implementing Council Regulation (EC) No 1947/2005 as regards the communication of data concerning seeds [Official Journal L 116, 4.5.2007].

Towards a sustainable wine sector

Towards a sustainable wine sector

Outline of the Community (European Union) legislation about Towards a sustainable wine sector

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > Markets for agricultural products

Towards a sustainable wine sector

The detailed analysis of the common market organisation (CMO) in wine will prepare the ground for far-reaching reform in the sector. This communication takes stock of the current situation and sets out objectives for the upcoming reform.

Document or Iniciative

Communication from the Commission to the Council and the European Parliament of 22 June 2006: “Towards a sustainable European wine sector” [COM(2006) 319 final – Not published in the Official Journal].

Summary

With this Communication, the Commission kicked off discussions on the future common market organisation (CMO) in wine, a debate culminating in the legislative proposal on the wine CMO which the Commission presented in July 2007 (see “Related Act” below).

CURRENT POSITION

At present, the aim of the CMO in wine is to restrict production potential by:

  • limiting planting rights, the benefits of which are determined by granting additional rights and by increasing yield in certain Member States;
  • permanent grubbing-up, which has almost ceased since 1996;
  • restructuring and reconversion programmes focusing on adapting quality and quantity to consumer demand. These programmes encourage the production of quality wine, but may also trigger an increase in overall production.

There are also other brakes on competitiveness, in particular:

  • crisis distillation of wine surpluses, now used as a structural measure, also covering quality wines. This procedure does not guarantee wine growers an adequate income and at the same time fails to limit the production of unmarketable surpluses;
  • private storage aid, which has become a structural measure, the costs of which should be borne by the industry;
  • the rigidity of procedures for adopting and adapting wine-making practices;
  • consumer confusion caused by wine labels resulting from a complex legal system that differs from international classifications;
  • additional national and regional regulations which make the situation even more complex.

THE EU’S NEW WINE POLICY

The aim of new European guidelines in the wine sector is to make the most of the EU’s huge potential and to react to developments in Europe and worldwide.

Potential and weaknesses at European level

The European Union is the world’s leading producer and exporter of wine. It is also the biggest consumer and importer. Moreover, in terms of quality, the EU’s reputation is recognised worldwide. The wine sector therefore represents a vital economic activity in terms of employment and export revenue.

However, wine imports into the EU are now growing faster than exports, so much so that they may soon overtake exports. Due to the increase in production and sales of new world wine, European producers must boost their competitiveness.

Objectives

The EU aims to increase the competitiveness of European wine producers and the reputation of their wine to recover old markets and win new ones. To this end, wine policy must be underpinned by clear, effective rules that balance supply and demand. In addition, it should preserve the best traditions of European wine production, reinforce the social fabric of many rural areas and ensure that all production is environmentally-friendly.

Options for reforming the CMO in wine

The Commission has examined the following possible options for reforming the CMO in wine:

  • maintaining the status quo, with possibly some limited adjustments;
  • reforming the CMO in wine along the lines of the general reform of the CAP;
  • completely deregulating the wine sector.

It concluded that none of these options would provide adequate answers to the problems, needs and particularities of the wine sector.

THE ONLY POSSIBLE OPTION: MAJOR REFORM OF THE CMO IN WINE

The Commission considers this option as the most appropriate response given the particularities of the sector. The regulatory framework and the production structure will be adapted in order to give the EU a sustainable and competitive wine sector.

TWO VARIANTS

Two possible reform scenarios have been looked at:

  • Variant A (one-step). In this case, planting rights and the grubbing-up scheme would be abolished at the same time, either immediately or on 1 August 2010 at the latest. This would provide quick answers to the present difficulties but would require a rapid and demanding adjustment of the sector.
  • Variant B (two-step). This approach is based on a period of structural adjustment, including temporarily reactivating the grubbing-up scheme. The first stage would restore the market balance and the second stage would increase competitiveness, in particular by abolishing planting rights. The system of restrictions on planting rights would be extended until 2013. The least competitive producers would be encouraged to sell their planting rights swiftly, since the grubbing-up premium would be set at an attractive level for the first year and a decreasing scale would be set for following years. Competitive producers would be able to extend their production.

The agricultural area formerly used for wine production, once grubbed up, would qualify as an eligible area under the single payment scheme (SPS) and, under variant B, would be granted the average regional decoupled direct payment.

COMMON FEATURES OF VARIANTS A AND B

Abolishing market management measures

Market management measures such as crisis distillation, private storage aid and must aid would be abolished. The crisis distillation measure would be dropped or replaced by an alternative safety net mechanism using the national envelope, making way for the introduction of more forward-looking measures.

Budget envelope for wine-producing Member States

Member States would be able to use the funds granted to finance measures selected from a given menu, for example to implement certain crisis management measures such as insurance against natural disasters or to provide basic cover against income crises.

Rural development

Preferably structural initiatives should be encouraged in the wine sector. To this end, a transfer of funds to rural development would be earmarked for the wine producing regions. Early retirement and agri-environment support schemes are examples of the many measures which could be part of rural development plans adopted by the Member States and that could benefit the wine sector.

Quality policy/geographical indications

The following measures should be taken to make the quality policy clearer, simpler and more transparent:

  • substantially revising the current regulatory framework to align it with international rules, in particular the provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The Commission proposes to establish two categories of wines: wine without a geographical indication (GI) and wine with a GI; the latter would be further divided into two sub-categories: wine with a protected geographical indication (PGI) and wine with a protected designation of origin (PDO);
  • the concept of quality wine based on a geographical origin should be confirmed, adapted, promoted and enhanced worldwide;
  • the role of interbranch organisations must be expanded to enable them to control and manage the quality of the wine produced in their territories.

Wine-making practices

The Commission proposes, regarding wine-making practices:

  • to take on the responsibility, hitherto the task of the Council, for approving new or modifying existing wine-making practices;
  • to recognise International Organisation of Vine and Wine (OIV) wine-making practices and assess how they can be incorporated into a Commission regulation;
  • to authorise use in the EU of wine-making practices already agreed internationally for making wine to export to the destinations in question;
  • to abolish the minimum natural alcohol requirement of wine which becomes redundant due to the proposed limitation on enrichment;
  • to ensure a minimum level of environmental protection in the wine-making process.

Enrichment

A decision must be taken on must aid following the recent reform of the sugar sector, which accentuates the problem of using sugar instead of must to increase the alcohol content of wine. Completely abolishing the aid whilst banning the use of sucrose appears to be the best solution.

Labelling

The Commission proposes to simplify labelling rules by setting up a single legal framework for all the different categories of wine and the particularities relating to them. In particular, it would be possible, even for table wines without GIs, to indicate the name of the variety and the year of production on the label. This framework would be tailored to the expressed needs of consumers and be more consistent with the wine quality policy.

Promotion and information

The Commission is committed to a promotion and information policy for European wine in third country markets. Within the EU, information campaigns on responsible/moderate wine consumption could also be considered.

Environment

The Commission intends to include basic environmental requirements for the wine sector. Vine growing and wine-making practices can pose problems as regards soil erosion and contamination, the use of plant health products and waste management.

WTO

The new CMO in wine should be compatible with World Trade Organisation (WTO) rules. Thus, current trade-distorting (“Amber Box”) intervention measures will be eliminated and preference will be given to “Green Box” measures. The present ban on the vinification of imported must and on blending of Community wines with non-EU wines will be examined in the same spirit.

Related Act

Proposal for a Council Regulation on the common organisation of the market in wine and amending certain Regulations [COM(2007) 372 final – Not published in the Official Journal].