The Regulation sets up a new common organisation of the market in milk and milk products. The provisions on the internal market continue to be based on intervention and public storage of butter and skimmed-milk powder, aid schemes, and specific marketing measures. The intervention agency designated by each Member State must buy in skimmed-milk powder at the intervention price. Aid for the private storage of milk products may be granted in particular if trends in prices and stocks indicate a serious imbalance on the market which could be averted or reduced by seasonal storage. The amount of private storage aid is to be set on the basis of storage costs and the likely trend of market prices.
Direct aid is concentrated on producers rather than on quota holders.
Member States will make additional payments to their producers on a yearly basis. The management method adopted must give due weight to supply requirements on the Community market and the need to safeguard its equilibrium, without prejudice to rights arising from agreements concluded in the framework of the Uruguay Round trade negotiations. Refunds are the same for the whole Community. They may be varied according to destination where the world market situation makes this necessary. In implementing the Regulation, the Commission is assisted by a committee made up of representatives of Member States and chaired by a representative of the Commission.