28. 2. 90 Official Journal of the European Communities No C 49/51 
Proposal for a 
COUNCIL REGULATION (EEC) No . . . 
of . . . 
amending Regulation (EEC) No 857/84 adopting general rules for the application of the levy 
referred to in Article 5c of Regulation (EEC) No 804/68 in the milk and milk products 
sector 
(90/C 49/37) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to Council Regulation (EEC) No 804/68 of 
27 June 1968 on the common organization of the market in 
milk and milk products (*), as last amended by Regulation 
(EEC) No 3879/89 (2), and in particular Article 5c (6) 
thereof, 
Having regard to the proposal from the Commission, 
Whereas the Commission report on the operation of the milk 
quotas scheme indicates that the structural development of 
agricultural holdings should continue; whereas, as a result of 
the 1 % increase in the Community reserve applicable for the 
sixth period of the scheme, certain quantities have been made 
available which are intended in principle for producers 
whose situation continues to give grounds for concern; 
whereas this measure should be supplemented as regards 
certain areas of the Community where production conditions 
are difficult and whose products deserve to be supported; 
Whereas production in those areas is located primarily on 
smallholdings to which new quantities should be granted in 
order to bring them as a whole to a level of production better 
adapted to market requirements; 
Whereas the objective of the measure can be achieved only if 
holdings continue to produce milk; 
Whereas, under the arrangements to curb production, 
additional quantities can be granted only if, in this particular 
case, they have first been released by other producers located 
in other regions of the Community; whereas a new 
Community programme for financing the cessation of milk 
production should therefore be established, for those 
Member States where the comparative situation of the 
various collection areas so warrants, whereby producers 
who fulfil certain eligibility requirements will be paid 
compensation following the total and definitive cessation of 
their activities; Whereas, account being taken of the various aspects of dairy 
farming today, the compensation should be fixed at ECU 36 
per 100 kilograms; whereas it may prove necessary in 
some Member States, however, to raise the level of the 
compensation; whereas the Member States concerned should 
therefore be authorized to provide additional financing, the 
amount of which can be adjusted in line with specific regional 
requirements; 
Whereas the compensation is granted in principle in respect 
of the total reference quantity; whereas for logical reasons 
there should be deducted from it those quantities which the 
producer has received pursuant to Article 3b of Regulation 
(EEC) No 857/84 (3), since this programme is not to apply 
to the producers referred to in Article 3a of that Regulation or 
to those who, prior to the entry into force of these provisions, 
have benefited under Article 4 (1) (a) in respect of all or part 
of their reference quantity, as the case may be, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 857/84 is hereby amended as 
follows: 
1. The following Article 3c is inserted: 
'Article 3c 
1. Reference quantities released under the conditions 
laid down in Article 4 (lb) shall be entered in the reserve 
referred to in Article 5 and granted to producers as 
defined in the third indent of Article 12 (c) provided 
that: 
(a) their holding is located in one of the areas defined in 
Article 3 (3), (4) and (5) of Council Directive 
75/268/EEC(*). 
Within those areas Member States shall select by 
priority holdings located in regions in which typical 
cheeses are manufactured with specific description 
corresponding to a particular production area; 
(') OJ No L 148, 28. 6. 1968, p. 13. 
(*) OJ No L 378, 11. 12. 1989. p. 1. (3) OJNoL90, 1.4. 1984, p. 13. 
No C 49/52 Official Journal of the European Communities 28. 2. 90 
(b) the actual individual reference quantity available to 
which each producer is entitled at the beginning of 
the seventh 12-month period of application of the 
scheme, less the quantities withdrawn pursuant to 
Council Regulation (EEC) No 775/87 (**), is less 
than 60 000 kg in the less-favoured areas defined in 
Article 3 (4) and (5) of Directive 75/268/EEC and 
less than 100 000 kg in the mountain areas defined 
in accordance with Article 3 (3) of that Directive. 
2. Producers may receive pursuant to this Article a 
quantity equal to the difference between 60 000 kg or 
100 000 kg, as the case may be, and the reference 
quantity referred to in point (b) of paragraph 1. 
They shall undertake not to seek to benefit under any 
programme for the cessation of milk production until the 
end of the additional levy arrangements either as regards 
the basic individual reference quantity or as regards the 
quantity received pursuant to the first subparagraph. 
3. The Commission, acting in accordance with 
Article 30 of Regulation (EEC) No 804/68, shall adopt 
rules for the application of this Article. 
OJNoL 128, 19. 5. 1975, p. 1. 
OJ No L 78, 20. 3. 1987, p. 5.' 
2. In Article 4: 
(a) paragraph 1 (a) is replaced by the following: 
'(a) — grant to producers undertaking to 
discontinue definitively all of their milk 
production compensation to be paid in one 
or more annual instalments, 
— grant to producers undertaking to 
discontinue definitively part of their milk 
production compensation to be paid in one 
or more annual instalments.' 
(b) the following paragraph lb is inserted: 
'lb. Member States shall grant to producers as 
defined in the first indent of Article 12 (c) or to 
each associated producer where the second 
indent of Article 12c applies, who undertake 
before 1 July 1990 to discontinue milk 
production totally and definitively before 
1 November 1990, compensation in the form 
of a single payment before 1 December 
1990. 
Member States need not, however, operate 
the milk production abandonment 
programme if the comparative situation of the 
various collection areas does not so 
warrant. 
Producers 
that: shall be eligible provided 
— they possess a reference quantity 
pursuant to Article 5c of Regulation (EEC) No 804/68 under 
either formula A or formula B, 
— their holding is located in an area 
other than those referred to in Article 
3c (1) (a). 
However, Member States: 
— may decide not to pay the 
compensation to producers 
possessing less than six dairy cows or 
whose actual individual reference 
quantity available is less than 25 000 
kg per year, 
— shall be authorized to take any steps 
necessary to ensure that the 
reductions in quantities applied 
under this paragraph are, as far as 
possible, evenly distributed among 
the regions and the collection areas. 
(b) The compensation shall be granted in 
respect of the reference quantity to which 
the producer is entitled on the entry into 
force of this Regulation, including the 
quantities suspended under Regulation 
(EEC) No 775/87 but excluding the 
quantities received under Article 3b of 
this Regulation. 
(c) In the case of agricultural leases, the 
application for compensation shall be 
submitted by the leaseholder. 
Member States may, however, determine 
the conditions under which a leaseholder 
may submit an application for 
compensation and the terms on which 
the compensation may be granted. 
(d) Community financing for this 
programme shall be limited to a quantity 
of 500 000 tonnes. Within that limit it 
shall be allocated among the Member 
States as and when applications are 
submitted to the Commission. 
The compensation shall be ECU 36 per 
100 kilograms of milk or milk 
equivalent. Member States may 
contribute to the Community financing 
by increasing the amount of the 
compensation. The level of the 
supplement may be adjusted within their 
territory to take account of local 
conditions regarding: 
— the trend of milk production, 
— the average level of deliveries per 
producer, 
— the need to ensure that the 
restructuring of milk production is 
not impeded, 
28. 2. 90 Official Journal of the European Communities No C 49/53 
(e) — the prospects for converting to other 
productive activities. 
the financing provided for in the first 
subparagraph shall be deemed to be 
intervention within the meaning of 
Article 3 of Council Regulation (EEC) 
No 729/70 (*). 
The Commission, acting in accordance 
with the procedure laid down in Article 30 of Regulation (EEC) No 
804/68, shall adopt measures for the 
implementation of this paragraph. 
(*) OJ No L 94, 28. 4. 1970, p. 13. 
Article 2 
This Regulation shall enter into force on the third day 
following its publication in the Official Journal of the 
European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member 
States. 
Done at Brussels, . . . 
For the Council