Explanatory Memorandum to COM(2007)802 - Amendment of Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (single CMO Regulation) as regards the national quotas for milk

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dossier COM(2007)802 - Amendment of Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific ...
source COM(2007)802 EN
date 12-12-2007
In June 2003 the Council reached an agreement on a number of changes to the EU dairy policy as part of the 2003 Reform of the CAP. This reform re-enforced the changes which had been agreed in Agenda 2000, and was to be implemented over a number of years.

The Commissions' original proposal for the 2003 Reform included an increase in quota of 2% in addition to the increases already agreed in Agenda 2000. In the June 2003 compromise, however, the Council declared that ' No additional quota increase in 2007 and 2008 will be decided now. The Commission will present a market outlook report once the reform is fully implemented on the basis of which a decision will be taken. '

Given the dynamic developments which have taken place this year on dairy markets, and that the only part of the 2003 reform remaining to be implemented is a quota increase on 1 April 2008 of 0.5% in 11 Member States, it is considered appropriate to provide the market analysis requested by the Council at this time. The Market Outlook Report for the Dairy Sector which accompanies this proposal contains this analysis. In effect, the report addresses the question of whether the market offers enough opportunities for additional quantities of milk to be supplied, without leading to increased public support in the short and/or medium term, if the national quotas were to be expanded for all 27 Member States.

The report concludes that both the EU and world market outlooks are positive and the analysis made for a 2% increase in milk production in the EU shows that the market readily offers opportunities for these additional quantities.

The Commission, in fulfilling the request of Council to provide a basis on which a decision can be taken regarding an increase in quotas, concludes that the 2% increase, originally proposed as part of the 2003 Reform, may be implemented as from the 2008/2009 milk quota period. Accordingly a proposal for such an increase is set out below.