Brussels, 20/11/2009 (Agence Europe) - As expected, on Friday 20 November, the EU Council of Ministers adopted, without debate, a regulation amending regulation 1234/2007 on the Common Market Organisation (CMO) in the agricultural sector (the single CMO regulation, see EUROPE 10019) to help milk and dairy products producers. Only the United Kingdom abstained. The Commission made this proposal in early October and the European Parliament delivered its favourable opinion under the emergency procedure.
Article 186 of regulation 1234/2007 states that the Commission may take measures in the event of disturbances of the market in certain agricultural products when prices in the internal market rise or fall sharply. Until now, milk and dairy products have not fallen within the said Article. Given the “serious difficulties and increasing price volatility” being experienced by the dairy sector in Europe, the new provisions extend the scope of Article 186 to this sector.
The new regulation also seeks to help member states finance the restructuring process of the milk and dairy products sector by means of a quota buy-back system (Article 75 of the single CMO regulation). This Article allows member states to provide compensation to producers who agree to give up definitively some or all of their milk production.
Modifications to the quota purchase system by member states allow a quota bought and kept in the national reserve to no longer be taken into account in the national quota when it is a matter of determining whether an additional payment is due (in the event of the said quota being exceeded). Thus, in the case where additional levy is necessary, the part corresponding to the quota bought may be used by member states for the purposes of restructuring the sector. This measure will be temporarily valid for the years 2009/2010 and 2010/2011. (L.C./transl.fl)