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COM (86) 019 
 
 
 
Vol. 1986/0 008 
  
 
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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, 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening 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), t his 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. 
Februa r 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  
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COMMISSION OF THE EUROPEAN COMMUNITIES
C0MC86) 19 final  
Brussels, 24 January 1986
TENTH COMMUNICATION FROM THE COMMISSION TO THE COUNCIL
concerning the programme for the utilization of co-responsibility levy funds  
in the milk sector for the 1986/87 milk year
C0MC86) 19 final

Tenth Communication to the Council concerning the programme 
for the utilization of co-responsibility levy funds in the 
milk sector for the 1986/87 milk year
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 1986/87 milk year. By 
Regulation (EEC) No 1302/85 the Council has fixed the levy at 2 X of the 
target price as from 1 April 1985 on. In its price decisions for the 
1985/86 campaign the Council also made the statement that the disposal of 
supplementary quantities resulting from its decisions should be financed by 
increased contribution from co-responsibility levy funds.
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 support programme, the 
Community now has a stock situation, especially in butter, 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.

-  2 -
3.  The 1985/86 milk year
In the Ninth Communication (COH(84) 675 final of 4 December 1984) to the 
Council, the estimated revenue available from the 1984/85 milk year was 
545 million ECU. The proposed measures for the 1985/86 milk year amounted 
to 545 MECU, thus matching the available revenue.
4. The .Commission has stated in the Seventh Communication (COM(83) 33 final of 
9 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".  Due to increased disposal 
measures and a reduction in production, stocks have reached a normal level; 
hence those measures can be suspended.
5. Stocks of skimmed milk powder in public1  storage fell to 391 000 tonnes in
July 1985 and now stand at 493 462 tonnes (10 October 1985). Public and 
private stocks of butter have again surpassed 1 million tonnes, as 
indicated below: *
Intervention stocks
J - Skimmed milk butter :
Date powder public private :
(tonnes) (tonnes) (tonnes) :
: 11Oct.1984 885 630 1 031 683 214 957 :
:  10Oct.1985 493 462 980 319 217 613 :
Under the schemes of aid for the disposal of skimmed milk powder from 
public storage for pig and poultry feed (Regulation 368/77 and 443/77)
451 000 tonnes were sold in the calendar year 1983 and 563 000 tonnes in 
1984 and a further 258 422 tonnes were sold from 1st January to 
31 July 1985. The average selling price was between 20 - 28 ECU/100 kg, 
compared with the intervention price of 174,04 ECU/100 kg.  An additional 
83 704 tonnes of fresh skimmed milk powder were subsidised under Regulation 
1844/77 from June 1983 When the scheme was reintroduced to July 1984. The 
level of aid ranged from 115 - 131 ECU/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 
and 152 500 tonnes in 1984. Additional 132 000 tonnes have been sold up to 
the end of June 1985. Butter sales to the bakery industry have been 
encouraging under this scheme.  The uptake has been slower for the 
ice-cream industry where sales totalled 47 000 tonnes in 1983 and 34 000 
tonnes in 1984. The uptake for 1985 up to June was 33 765 tonnes.  In 
1984, the levels of aid under Regulation (EEC) No 1932/81 were 
190 ECU/100 kg and 105 ECU/100 kg for the bakery and ice-cream industries 
respectively,  in June 1985 these aid levels were fixed at 
178.50 ECU/100 kg and 118.50 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 butter stocks makes it necessary to continue the 
special disposal schemes for butterfat. Slightly higher quantities are 
estimated to be sold in 1985 and a lower level of aid for butter resulting 
from the second re-alignment of intervention prices at the beginning of the 
1985/86 milk year.
6. The programme of expenditure for the 1986/87 milk year
(i) Sales promotion and publicity within the Community
There is widespread support among producers and processors for 
sales promotion in order to maximise in particular human 
consumption of dairy products. To finance the continuation of 
these measures in the 1986/87 milk year and cognisant of the 
overall budget situation in the dairy sector, it is proposed that 
25 million ECU should be allocated. It should be recognised that 
Spain participates from the new milk year on.
Of the sum of 25 million ECU at least 25 % should be used for 
promotion of butter.*) The Council decided to reduce the price of 
butter in 1985 again and every effort should be made to maximise 
from this reduction.
(ii) Measures for launching the concentrated butter scheme
It is proposed to allocate a sum of 5 MECU to help launch the 
revised scheme for cooking butter throughout the Community.
(ili) Research within the EEC
In the light of experience it is deemed appropriate to reinstate 
these measures for research work within the Community in respect of 
milk and milk products. Accordingly it is proposed to allocate the 
sum of 10 million ECU.
*) xhe representatives of the producers and processors regret that, in view of 
the Council decisions, the Commission has proposed an allocation amounting 
to only 25 million ECU for promotional measures within the Community. This 
amounts to a nominal reduction of 28,6 % compared with the funds allocated 
in the preceding communication. This reduction is further accentuated by 
the fact that Spain is participating in this programme. In real terms the 
reduction will therefore be around 35 % in the various Member States-.
The representatives of the producers and processors are convinced that the 
maintenance of internal consumption of milk and milk products calls for a 
constant effort as regards promotion and publicity, and assess that the 
reduction of funds allocated in thé programme to promotion and publicity 
reduce the effectiveness of these measures.

- ,  4 -
Civ) Improvement of Milk Quality
It is proposed to allocate a further 5 MECU for the improvement of 
milk quality for the 1986/87 milk year to be applied on the same 
basis as under Regulation (EEC) N° 283/84. It is agreed that this 
measure will terminate the milk quality programme.
(v) School milk
By the 1986/87 milk year, the full impact of the new school milk 
scheme should be evident and milk deliveries to schools are 
estimated to be ever 300 000 tonnes.  At a level of aid of 
34.80 BCU/100 kg whale milk the total cost would be 105 million 
ECU.  As in certain Member States semi-skimmed milk is distributed 
to schools, the financial contribution of 75 % from 
co-responsibility levy funds requrires that 75 MECU should he 
allocated for this measure.
(vi) Butterfat for ice-cream
The estimated quantity to be used in the 1986/87 milk year will 
increase to 63 000 tonnes. It is proposed that 50 million ECU be 
allocated for this measure.
(vii) Butterfat for pastry and bakery products
In 1984, sales of butter for patisseries under Regulations (EEC) 
Nos 1932/81 and 262/79 totalled 152 500 tonnes. Since June 1985 
the level of aid is 178,50 ECU/100 kg. It is proposed to finance 
half of the aid on an additional quantity of 135 000 tonnes from 
levy funds. A sum of 125 MECU should therefore be allocated for 
this.
(viii) Concentrated butter
The amount of intervention butter to be sold for processing to 
concentrated butter for cooking is estimated at 40 000 tonnes in 
the first'year. The total cost will be about 90 million ECU, of 
which, two-thirds are to be financed from levy funds. A sum of 
60 million ECU should therefore be allocated for this purpose.
(ix) Other destocking measures
The annual cost of these measures is estimated at more than 
650 million ECU of Which 140 million ECU should come from levy 
funds.
(x) Reserve
It is proposed to hold, 15 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.

- 5 -
7. The programme of specific measures proposed for the 1986/87 milk year, 
therefore, is as follows:
Proposed measures and allocations for the 1986/87 milk year
Measures Allocations 
million ECU
1. Promotional measures within the Community
2. Measures for launching the concentrated 
butter scheme 7
3. Research measures within the Community
4. Improvement of Milk Quality
5. School milk
6. Butterfat for ice-cream
7. Butterfat for pastry and bakery products
8. Concentrated butter
9. Other butter destocking measures 
10. Reserve25.0
5.0
10.0
5.0
75.0
50.0
125.0
60.0
140.0 
15.0
T O T  A L 510.0
This programme should be compared with the revenue available from the 
1985/86 milk year of 510 million ECU.
8. 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
of the Ni Ik and MUk Products Advisory Committee  
(given at its meeting of 26 November 1985)
1
The Committee approves the text of the Communication in its entirety and makes
th# foilowing comments :
1) The agricultural producers <COPA) ask that the last sentence in the footnote  
to paragraph 6 Ci) reads as follows ;
"The representatives of the producers and processors, in the conviction  
that the maintenance of internal consumption for milk and milk products  
requires a continuous effort in the fields of promotion and publicity,  
are of the opinion that a maintenance of funds allocated to the promo­
tion and publicity programme at a level comparable to that of the previous  
communication would have permitted these measures to be more efficient".
2) The Retail Trade CUNECOLAIT) considers that the 5 mi IE on ECU allocated for  
launching the concentrated butter scheme are insufficient.
3) The Consumers’  representatives, present at the meeting, asked to be disasso­
ciated from the opinion as they had hot been consulted a priori.

ANNEX II
R>v»iu» from tha co-rasponslblIItv law on milk and allocation 
of broc— d» «mono various schamas
m  E C U
Maasura1977
(from)
16.91978'  /1979 I960198119821983198416.9.77
to
31.12.84
A. Ravanua from co- 
rasponslbl IIty lavy
<D_______ :241
36,194,2222,9478,5537,3527,4699,72.740,2
B. Total axpandltura
a) achool mlIk 
(R/1080/77)
b) buttar.for tha 
manufactura of 
Ica-craam 
(R/232/75,
R/262/79, R/1932/81)
c) butter for paltry 
manufactura 
(R/262/79,
R/1932/81, R/442/84)
■  4)  concantratad 
buttar for dlr. 
coniumptlon 
(R/349/73, R/649/78)
a) promotion,
advartlslng and 
markat rasaarch
1» tba Community 
(R/723/78)
f) markat raaaarck 
autilda tka 
Cammunlty
(R/l»V78fR/l024/78)
fl) Improvamant of
tka quai Ity of
ml Ik (R/1271/78)
h) disposai for
p|g and poultry 
food
(R. 368/77, 
443/77, 1844/77)
i) financing of  
priority measures7,5
7.353.4 
10,3
2)
28.5110,3
3 0 ,-
2)
23,8109,4
45,7
24,-
2)
3,65,1
37,42)
26,6
15,52)
8,-117,1
41,4
24,4
7,3
35,2
8,8197,7
49,1
22,6335,1
59,8
30,9550,6
88,3
28,4
3,7125,7
5,4 :  7,4
6,3
5,218,6
I
2)
168,4U,7
237,5
2): 2) 
16,6-.102,71.4SI,I  
324,6
190,1
125,7
39,-
)
)
)
)
)  ·
)
) 387,6
)
)
)
>
>
)
)
494,1
*  * · ■ ï 2) î S
U 16,1i 113,5 i 361,4 |339,6 i 193,2 i 149,1 ; 1.259,1
(I) Exeludlnfl appropriations carrlad ovar from ona yaar to tka naxt.
TZT~~~Tevr~
Source: COM (85) 492 fin. (supplemented)