Judgment — ECLI:EU:C:1999:29
Date: 1999-01-28
Language of the case: German
Court formation: Second Chamber
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Agriculture and Fisheries;Milk products
Concepts: Co-responsibility levy and additional levy on milk
Procedure: Reference for a preliminary ruling
Origin: Germany

Summary of the Judgmen t 
Agriculture — Common organisation of the markets — Milk and milk products — Additional 
milk levy — Allocation of reference quantities exempt from the levy — Producers who suspended 
deliveries under the non-marketing and conversion premium scheme — Failure to fulfil obliga­
tions under the undertaking given — Consequences as regards the award of special reference 
quantities 
(Council Regulations Nos 1078/77 and 857/84, Art. 3a(1), second subpara., as amended by Regu-
lation No 1639/91) 
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SUMMARY — CASE C-181/96 
Breach of the obligation not to market, in 
accordance with the undertaking given by a 
producer under Regulation N o 1078/77 intro­
ducing a system of premiums for the non-
marketing of milk and milk products and for 
the conversion of dairy herds, entails the loss 
of the premium granted under that Regula­
tion and also precludes allocation of a special 
reference quantity under the second subpara­
graph of Article 3a(1) of Regulation N o 857/84 
adopting general rules for the application of 
the additional milk levy. 
By contrast, breach of one or more other 
obligations connected with the non-marketing 
or conversion scheme and entailing loss of 
the premium cannot affect a producer's entitle-
ment to a special reference quantity if he has 
in fact ceased marketing under that scheme. 
If only some of the milk was marketed in 
breach of the undertaking given, the producer 
forfeits entitlement to the premium but retains 
the right to a special reference quantity if he 
may rely on a legitimate expectation, that is 
to say, only in so far as he has complied with 
the undertaking not to market. Excluding the 
allocation of a special reference quantity to 
the producer in due proportion to the extent 
of the breach is in any event compatible with 
the principle of proportionality, inasmuch as 
it does not appear to be manifestly inappro­
priate in view of the purpose of the relevant 
provision in Regulation N o 857/84, as 
amended by Regulation N o 1639/91, which is 
to enable farmers who have suspended mar­
keting in accordance with the undertaking 
given under Regulation N o 1078/77 to resume 
production. 
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