Explanatory Memorandum to COM(2009)539 - 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) - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2009)539 - Amendment of Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific ... |
|---|---|
| source | COM(2009)539  |
| date | 09-10-2009 |
In particular, it is provided that Member States may set up a national reserve as part of its national quota with a view to allocate further individual quotas to certain priority groups of milk producers, defined by the Member State concerned. The surplus levy is only liable for milk marketed in excess of the national quota incl. the national reserve. Where a surplus levy is found to be payable it shall be allocated among the producers who have overrun their individual quota.
Within the quota arrangements Member States have the possibility to encourage the restructuring process in the sector through a quota buy-out scheme (Article 75(1)(a) of the single CMO) where the quotas bought-out is subsequently placed in the national reserve. In order to help Member States financing that restructuring process it is proposed on a temporary basis to neutralise, for the purpose of establishing the national overrun, the quotas bought-out under the above mentioned Article.
As a consequence, the surplus levy will be triggered for milk marketed in excess of the national quota as reduced by the bought-out quantities. The supplementary levy generated in that way shall be retained by Member States for the purpose of financing the restructuring of the sector.
During the discussion at the Council meeting on 7 September 2009 concerning the Communication from the Commission to the Council on the dairy market situation 2009 (COM(2009) 385), Member States required the Commission to adapt market instruments or create new ones in order to be able to react effectively to the increasing price volatility in a swift and flexible manner.
It is proposed therefore to extend the scope of Article 186 of the single CMO Regulation to enable the Commission to take measures with regard also to the dairy sector in cases of market disturbances where internal market prices significantly rise or fall.