COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC91) 454 final 
Brussels, 20 November 1991 
REPORT FROM THE COMMISSION TO THE COUNCIL 
Pursuant to Article 2 of Council Regulation (EEC) No 1027/91, 
on certain Community rules governing the 
production and marketing of whole drinking milk 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1411/71 laying down additional 
rules on the common market organization In milk and 
milk products for drinking milk 
(presented by the Commission) 
COMMISSION REPORT TO THE COUNCIL 
Pursuant to Article 2 of Council Regulation (EEC) No 1027/91, 
on certain Community rules governing the 
production and marketing of whole drinking milk. 
1. Introduction and background 
Regulation (EEC) No 1411/71 lays down rules governing the production 
and marketing of drinking milk. When this Regulation was adopted 
there were a number of difficulties with regard to setting the 
minimum fat content of whole milk at 3.5 % and therefore the date of 
expiry of the transitional period for meeting the requirement 
indicated in Article 6(2) of the Regulation was postponed 
from 31.12.73 to 31.03.76. 
In addition to the fears of certain Member States that demand for 
whole milk with a 3.5 % fat content would go down for dietetic 
reasons and because of the presumed increase in retail price that 
would be involved, objections were raised by the United Kingdom and 
Ireland where standardization of whole milk was practically unknown 
There was a risk that the high and very stable demand for this milk 
in both Member States would be affected if standardization were to 
be introduced. 
The Council therefore, in adopting Regulation (EEC) No 566/76 
accepted that Member States should be able to choose between 
standardized and non-standardized milk. Since this option covers 
both the preparation and marketing of whole milk, it implies 
inevitably restrictions in the trade of whole milk between Member 
States having opted for a different formula of whole milk. 
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However, Article 3 (6) of the Regulation provides for two exceptions 
on this rule : 
a Member State having opted for the formula of non-standardized 
whole milk shall not prohibit 
a) The preparation within its territory of standardized whole milk 
for sale within the territory of another Member State which has 
opted for the latter formula, 
b) The marketing within its territory of standardized whole milk 
coming from another Member State, when the fat content of such 
milk is not less than a guideline figure fixed by the Council. 
As a consequence the Council has fixed, from the marketing 
year 1976/77 on, yearly guideline figures for Ireland and the United 
Kingdom, the two Member States having opted for non-standardized 
mi Ik. 
2. Trends in liquid milk consumption and trade 
2.1 Consumption 
Liquid milk consumption absorbs nearly 25 % of the Community's milk 
production. Over the period 1970-1990 consumption per head of the 
population declined slightly, but has been remarkably stable during 
recent years. 
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As can be noticed from the figures indicated below, the existence of 
a Common market for milk and dairy products hardly affected the 
different consumption pattern in individual Member States. 
Table 1 : total consumption of liquid milk (kg/head) 
Be I g i um/Luxembourg 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Netherlands 
Portugal 
United Kingdom 1978 
72 
131 
70 
95 
74 
186 
93 
97 
137 1983 
75 
137 
72 
59 
99 
72 
183 
100 
96 
128 1988 
81 
127 
75 
55 
105 
75 
184 
80 
94 
77 
123 
However, within the global quantity of liquid milk consumed there 
has been a continuing shift from whole milk to semi-skimmed and 
skimmed milk. For the Community as a whole (E.C 10) the share of 
whole milk decreased from 68 % in 1984 to 56 % in 1989. In the case 
of the United Kingdom these figure are 92 % and 71 % respectively, 
and for Ireland 100 % and 91 % respectively. 
As regards the United Kingdom it should further be noted that the 
milkman's share of volume in liquid milk distribution has declined 
from 83 % in 1984 to 73 % in 1989. Supermarket share has risen from 
9 % tot 18 %. 
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2.2 Trade 
Intra-Community trade in packaged liquid milk covers not more 2 % of 
total consumption; only the three Benelux countries have a 
relatively high level of imports of packaged consumption milk. 
In the case of the United Kingdom, where liquid consumption 
corresponds to 45 % of the total milk production, total imports of 
packaged liquid milk amount to 0.3 X only. These imports mainly 
(90 %) consist of semi-skimmed and skimmed milk. 
In its report to the Council on the application of Regulation (EEC) 
No 1411/71 the Commission notes in 1978 that "it is impossible to 
assess the effectiveness of the prescriptions of Article 3(6) since 
the Council has not proceeded with the originally envisaged 
programme for liberalizing intra-Community trade in whole milk". 
With the coming into force of Council Directive 85/397/EEC on Heat 
Treated milk, technical barriers against the free circulation of 
drinking milk disappeared from 1 January 1989 on. 
3.1 Cone Ius Ion-proposaI 
The Commission's conclusions are as follows : 
- over the past decade the global consumption of liquid milk has 
been fairly stable; this general trend is noticed both in Member 
States having opted for standardized whole milk as in the Member 
countries who opted for non-standardized milk; 
- as regards the United Kingdom liquid milk market it was noted 
that, in recent years, a major shift occurred toward semi-skimmed 
and skimmed milk; as a result, the market share of whole milk is 
now closer to the average figure for the Community as a whole 
than ever before-, 
intra-Community trade in heat treated milk has been liberalized, 
as regards possible technical barriers, following the coming into 
force of Council Directive 85/397/EEC. 
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The Commission believes that, in view of the preceding elements, it 
is no longer Justified to maintain measures which result in the 
partition of the Community market for whole milk intended for human 
consumption. On the other hand, the Commission does not want to 
impose a single standard for whole milk applicable throughout the 
Community. Firstly, because this could have a negative impact on 
consumption of whole milk in Member States where this harmonisation 
would imply changes vis-à-vis the present situation. Secondly, 
because the Commission believes it should be left to consumers to 
make a choice between two products with different characteristics. 
Therefore the Commission proposes to amend Regulation (EEC) 
No 1411/71 so as to allow the production and marketing of both 
formulas of whole milk in all Member States. In order to avoid 
possible distorting effects on the market, it proposed to increase 
the minimum fat content of non-standardized whole milk from 3.0 to 
3.5 %. 
Finally, provision should be made to avoid that the authorization to 
produce and market standardized whole milk in the United Kingdom 
would interfere with Community rules on the operation of the Milk 
Market ing Boards. 
é 
Proposa I for 
COUNCIL REGULATION (EEC) No /91 
Of 
amending Regulation (EEC) No 1411/71 laying down additional 
rules on the common market organization in milk and 
milk products for drinking milk 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Articles 42 and 43 thereof, 
Having regard to the Act of Accession of Spain and Portugal, and in particular 
Articles 234(5) and 310(1) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Whereas under Article 3(5) of Council Regulation (EEC) No 1411/71 of 
29 June 1971<1>, as last amended by Regulation (EEC) No 222/88<2>, Member 
States have, as regards whole milk produced and marketed in their territory, had 
to opt for either of the formulae set out in the second indent of paragraph 1(b) 
of that Article; whereas under paragraphs 6 and 7 of the said Article trade in 
whole milk between Member States that have not opted for the same formulae is 
subject to certain restrictions; 
Whereas, in line with the trend of consumption and of intra-community trade in 
the various categories of drinking milk and also with the elimination of 
restrictions on health grounds to free trade in these products, all restrictions 
on intra-Community trade under the abovementioned Regulation should be 
abolished; whereas this should be done with due respect for milk production and 
distribution practices in the Member States; whereas production and marketing 
(1) OJ No L 148, 3.7.1971, p. 4 
(2) OJ No L 28, 1.2.1988, p. 1. 
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of both types of whole milk should therefore be permitted in each Member State 
but under separate commercial names; whereas in order to prevent distortion of 
the market the minimum fat content of non-standardized whole milk must be 
adjusted; 
Whereas under Article 6(2) of the same Regulation Member States can provide for 
an additional whole milk category with a fat content fixed by them of not less 
than 3.8%; whereas given the proposed changes in the arrangements for whole milk 
and to make the distinct nature of this category clear this minimum should be 
raised; 
Whereas under Article 25(1) of Regulation (EEC) No 804/68 a Member State can be 
authorized to grant a producer organization the exclusive right to buy from 
producers in the area concerned the milk that they produce and market without 
processing; whereas it should be specified in clarification that standardized 
whole milk is to be treated as unprocessed milk for the purpose of that 
provision, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 1411/71 is hereby amended as follows: 
1. Article 3 is amended as follows: 
(a) In paragraph Kb) 
in the second indent "3%" is replaced by "3.5%"; 
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(b) The following subparagraph is added to paragraph 2: 
"The name "whole milk" must be followed by either of the following 
indicat ions: 
- "natural fat contant" 
- "adjusted fat content"." 
(c) Paragraphs 5 to 8 are deleted. 
2. Article 6 is amended as follows: 
(a) In paragraph 2 "3.8%" is replaced by "4.00%". 
(b) The following paragraph 6 is added: 
"6. For the purpose of Article 25(1) of Regulation (EEC) No 804/68 
standardized whole milk shall be regarded as unprocessed milk." 
Article 2 
This Regulation shall enter into force on the third day following its publication 
in the Official Journal of the European Communities. 
It shall be applicable from the 1992/93 milk year. 
This Regulation shall be binding in its entirety and directly applicable in all 
Member States. 
Done at Brussels, For the Council 
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FINANCIAL STATEMENT 
DATE: 
1. BUDGET HEADING: Chapter 20 APPROPRIATIONS: ECU 5 695 mi 11 ion 
(draft budget 1992) 
2. TITLE: 
Draft Council Regulation amending Regulation (EEC) Kb 1411/71 laying down additional rules on the camrri 
market organization in mi Ik and mi Ik products for drinking mi Ik 
3. LEGAL BASIS: 
Articles 42 and 43 of the Treaty 
4. AIMS OF PROJECT: 
Removal of obstacles to free intra-Camunity trade in different types of drinking milk as well as 
adjusting the provisions on whole mi Ik and semi-skinmed mi Ik 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTGMS DUTIES) 
-NATIONAL Period of 12 months 
p.m. Current Financial Year 
1991 Following Financial Year 
1992 
p.m. 
1993 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE p.m. 1994 
p.m. 1995 
p.m. 1996 
p.m. 
5.2 METHOD OF CALCULATION: 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES/ND 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YES/ND 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
YES/ND 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YES/ND 
OBSERVATIONS: 
The financial impact is nil or negligible. 
. 1o. 
C0M(91) 454 final ISSN 0254-1475 
DOCUMENTS 
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Catalogue number : CB-CO-91-504-EN-C 
ISBN 92-77-77474-6 
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