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COM (84) 675 
 
 
 
Vol. 1984/0 247 
  
 
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concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the open ing to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom  27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
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der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
COM (84) 675 final
Brussels, 4 December 1984
NINTH COMMUNICATION BY THE COMMISSION TO THE COUNCIL
concerning the programme for the utilization of co-responsibility levy  
funds in the milk sector for the 1985/86 milk year
COM(84) 675 final

&vn b ']· f
Ninth Communication to the Council concerning the programme  
for the utilisation of co—responsibility levy fund· In the milk; sector
for the 1985/86 milk y«tr
1. Article 4(3) of Council Regulation (EEC) No 1079/77 requires the Commission  
to inform the Council of the programme of measures it proposes to implement  
for the use of co-responsibility levy funds. Accordingly, this document  
contains the Commission's proposals for the allocation of co-responsibility  
levy funds of 2% of the target price for the 1985/86 milk year. The  
additional 1% has been destined to cover the cost of the supplementary  
reference quantity for the 1984/85 milk year. Therefore, these funds will  
be collected for a specified purpose in the course of the same year.
2. General orientation
Council Regulation (EEC) No 1079/77 states that provision should be made  
for specific measures linked to the co—responsibility levy to encourage the  
expansion of markets inside and outside the Community and the search for  
new outlets and improved products. Those measures have been considered by  
the representatives of producers and processors as necessary for market  
development in the long term. Moreover, taking account of the current  
market situation, other measures were foreseen to encourage, in particular,  
the disposal of stocks. Here also, the representatives of producers and  
processors have made an important contribution in suggesting and  
formulating priorities. The measures financed to date have been successful  
in maintaining the market for milk and dairy products within the Community  
and in providing an opportunity for the Community industry to exploit  
market possibilities externally.

In addition to maintaining a long-term market aupport programme, the  
Community now has a stock situation which suggests continuation of the  
current disposal measures. Producers and processors will continue to have  
an important input in establishing priority measures within the framework  
of co—responsibility and, while taking account of the disposal measures,  
they re-iterate the need for market expansion measures.
3. The 1984/85 milk year
In the Eighth Communication (COM<83) 687 final of 23rd November 1983) to  
the Council, the estimated revenue available from the 1983/84 milk year was  
432 million ECU, to which was added 104 million ECU, the revenue accruing  
in the period 1st April to 31st May 1983, which was not covered in the  
Seventh Communication. The proposed measures for the 1984/85 milk year  
amounted to 535,5 MBCU, thus matching the available revenue.
4. The Commission has stated in the Seventh Communication, COM(83) 33 final of  
9th February 1983, that it is imperative "to continue and intensify the  
Community's disposal measures within the Community by introducing special  
sales of skimmed milk powder into sectors other than for calf feed, if the  
development of stocks makes it necessary".
5. Stocks of skimmed milk powder in public storage reached the 1 million  
tonnes mark in September 1983 and now stand at 885,630 tonnes (11 October  
1984). Public stocks of butter have now also surpassed 1 million tonnes,  
as indicated below:
Intervention stocks (tonnes)  
Skimmed milk
powder ButterPrivate
Butter
11th October 1984  
13th October 1983885,630
1,037,6381,031,683
628,648214,957
250,085
Under the schemes of aid for the disposal of skimmed milk powder from  
public storage for pig and poultry feed (Regulations 368/77 and 443/77)
451,000 tonnes were sold in the calendar year 1983 and a further 380,410  
tonnes were sold from 1st January to 30th September 1984. The average_  2 -

- 3 -
sailing price was between 20 - 28 BCU/100 kg, compared with the intervention  
price of 149.64 BCU/100 kg. An additional 83,704 tonnes of fresh skimmed milk  
powder were sold under Regulation 1844/77 from June 1983 (when the scheme was  
re-introduced) to July 1984. The level of aid ranged from 115 - 131 BCU/100  
kg. This scheme has not been applied since July 1984.
Additional sales of butter are also being encouraged through special disposal  
schemes at reduced prices. These include reduced—price sales to the  
patisserie and ice-cream industries. In 1983 sales of butter for patisseries  
under Regulation (EEC) No 1932/81 (market butter) and Regulation (EEC) No  
262/79 (intervention butter) totalled 135,250 tonnes. An additional  
111,149 tonnes have been sold up to the end of September 1984. Butter sales  
to the bakery industry have been encouraging under this scheme but the uptake  
has been slower for the ice cream industry where sales totalled 47,000 tonnes  
in 1983 and 22,236 tonnes in the first 9 months of 1984. In 1983, the levels 
of aid under Regulation (EEC) No 1932/81 were 235 ECU/100 kg and 150 BCU/100  
kg for the bakery and ice cream industries respectively. In June 1984 these 
aid levels were fixed at 190 ECU/100 kg and 105 ECU/100 kg respectively.
Other measures operate for the sale of butterfat at reduced prices, for  
example, sales to the armed forces, social security recipients and non-profit  
making organizations, but these schemes are not financed from  
co-responsibility.
Thus, the present level of stocks makes it necessary to continue the special  
disposal schemes for butterfat and skimmed milk powder. Similar quantities  
are estimated to be sold in 1984 but at a slightly higher amount of aid for  
skimmed milk powder and a lower level of aid for butter resulting from the 
re-alignment of intervention prices at the beginning of the 1984/85 milk year.
6·  The programme of expenditure for the 1983/86 milk year
(i)  Sales promotion and publicity within the Community
There is widespread support among producers and processors for the sales  
promotion programme in order to maximise in particular human consumption  
d*iry products. To finance the continuation of these measures in the  
1985/86 milk year and cognisant of the overall budget situation in the  
dairy sector, it is proposed that 35 million ECU should be allocated.

-  A -
(  i i)  Assessment of promotion awa»ur»g ■  especially for butter.,— 1 n the  
Community
Tha sum of 35 million ECU foraaaen in paragraph (1) should hava a  
priority allocation for buttar. Tha Council dacidad to raduca the  
price of butter In 198A and evary effort should be made to maximise  
from this reduction. In order to ensure tha effective use of funds  
for promotion measures it is proposed to allocate 2.5 MECU for the  
purpose of showing the effectiveness of the different measures for  
increasing the consumption of dairy products, especially butter.
(iii) School milk
By the 1985/86 milk year, the full impact of the new school milk  
scheme should be evident and milk deliveries to schools are estimated  
to be over 400,000 tonnes. At a level of aid of 34.29 BCU/100 kg the  
total cost would be 137 million ECU. As in certain Member States  
semi-skimmed milk is distributed to schools, the financial  
contribution of 75% from co-responsibility levy funds requires that  
95 MECU should be allocated for this measure.
(iv) Butterfat for ice cream
The estimated quantity to be used in the 1985/86 milk year is again
40,000 tonnes. It is proposed that 35 million ECU be allocated for  
this measure.
(v) Butterfat for pastry and bakery products
In 1983, sales of butter for patisseries under Regulations (EEC) Nos  
1932/81 and 262/79 totalled 135,250 tonnes. In May 1983 the level of  
aid was fixed at 235 ECU/100 kg. Since June 1984 the level of aid is  
190 ECU/100 kg. It is proposed to finance half of the aid on an  
additional quantity of 90,000 tonnes from levy funds. A sum of 90  
MECU should therefore be allocated for this.

- 5 -
(vi) Concentrated butter
The amount to be sold for processing to concentrated butter is  
estimated at 5,000 tonnes. The total cost »rill be about 8 million  
ECU, of which two-thirds are to be financed from levy funds. A sum  
of 5 million BCU should therefore be allocated for this purpose.
(vii) Promotion outside the Community
It is proposed that a sum of 15 MBCU should be allocated for this.
(viil) Improvement of MlIk Quality
It is proposed to allocate a further 6 MBCU for the improvement of;  
milk quality for the 1985/86 milk year, to be applied on the same  
basis as under Regulation (BBC) No 283/84.
(
(ix) Skimmed milk powder
The Commission considers that provisions should be made for a  
programme of at least 350,000 tonnes of skimmed milk powder for pig  
and poultry feed for the period 1st April 1985 to 31st March 1986.  
The financial contribution of 50% from co-responsibility levy funds  
requires that 242 MBCU be allocated to this programme. If the  
improvement in the stock position of skimmed milk powder continues  
throughout the marketing year 1985/86, such that it will not be  
necessary to sell 350,000 tonnes of skimmed milk powder for pig and  
poultry feed, then the allocation of funds to this heading will be  
re-considered. Any funds made available from this re-assessment  
during the course of 1985, would be re-allocated, in an effort to  
enlarge the market for milk fat in the Community.

-  6 -
(x) Other measures
It ia proposed to hold 19.5 MECU in reserve to be allocated to  
specific programmes if developments in the markets require additional  
funds or for other needs which may become apparent during the period  
of the programme.
7.  The programme of specific measures proposed for the 1985/86 milk year,  
therefore, is as follows:
Proposed measures and allocations for the 1985/86 milk year
Measures Allocations  
million ECU
1.Promotional measures within the Community 35.0
2.Assessment of promotion measures ,  especially for
butter, in the Community 2.5
3.School milk95.0
4.Butterfat for ice cream 35.0
5 .Butterfat for pastry and bakery products 90.0
6.Concentrated butter 5.0
7.Promotion outside the Community 15.0
8.Improvement of milk quality 6.0
9.Skimmed milk powder programme 242.0
10.Other measures 19.5
TOTAL 545.0
This programme should be compared with the revenue available from the  
1984/85 milk year of 545 million ECU.
8.  Distribution of liquid milk to certain rations in Italy and Greece
The Commission considers that increasing the availability of liquid milk to  
schoolchildren in certain regions of Italy and Greece where milk is not  
traditionally consumed is an effective means of improving milk consumption,  
both in the short-term and in the longer term.

- 7 -
It therefore proposes to continue th· pilot project for Italy and Greece 
for one nora yaar in ordar to reinforca tha impact already created. For  
continuity, however, thia should take effect from September 1984 onwards.  
It is therefore proposed to finance it from the school milk allocation  
specified in the Eighth Communication. The costs are estimated at 5 MECU.
9. The implementation of the proposals contained in this communication will  
depend on both the evolution of the market and the budget situation and  
outlook.

ANNEX I
OPINION
of the Advisory Committee on Milk and Milk Products  
(delivered at the meeting held on 15 October 1984)
The Committee accepts the text of the Ninth Communication in its entirety  
and makes the following observations:
"The Advisory Committee for Milk and Milk Products underlines its great  
attachment to the promotion of milk products for human consumption. The  
importance of this action is the greater because of the growing percentage  
of consumption in this sector which is being taken by imitation and  
substitute products. The Advisory Committee invites the Commission and the  
Council to intensify their efforts in order to arrive at the most appropriate  
measures in this field. It considers, furthermore, that at least 25 % of  
the sum of 35 MECU foreseen for the promotion of sales and publicity should  
be used for the promotion of butterfats and more particularly butter."

ANNEX II
Revenue from the co-responsibility levy on milk and  
allocation of proceeds among various schemes
Measure1977
(from
16.9.)197819791980 I  1981i1982198316.9.77
to
31.12.83
A. Revenue from co-  
responsibility levy  
CD24,0156,194,2I
222,9 !478,5
i537,3527,42.040,4
B. Total expenditureI
a) School mi Ik  
(Reg. 1080/77)-10,330,045,7 41,4 49,159,8 236,3
b) Butter for the  
manufacture of  
i ce-cream  
(Reg. 262/79)7,528,225,924,0 ;  24,4
i
!22,630,9 163,5
c) Concentrated  
butter for dir.  
consumption  
(Reg. 649/78)4,71,55,1 7,3
i
»
i5,75/4 29,7
d) Promotion, ad­
vertising and  
market research  
in the Community  
(Reg. 723/78)
e) Market research  
outside the  
Communi ty  
(Reg. 1993/78)\ -/\
>10,137,4:
26,7 35,2
.
i
i
i25,660,0‘ 1
11
1
> 244,3
t
f) Improvement of  
the quality of  
milk (Reg.  
1271/78, 723/78)I
!
>/
15,57,9 8,8
.
Ji6,510,6
/
g) Disposal for  
pig and poultry  
feed
(Reg. 368/77  
and 443/77)1
i
!
•
»88,2133,9 222,1
h) Financing of  
priority 
measures (2)16,5102,8-16,1:
113,5 361,4 339,6226,81.144,5
CD Excluding appropriations carried over from one year to the next.
(2) - improvement of export arrangements for milk products
- measures for the disposal of butter
- aid for skimmed milk powder
N.B.; The figures in the table above relate to actual revenue and expenditures.  
rhe expenditures are not comparable with the amounts allocated in the  
programmes concerned.