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HiiÉe COMVIISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 169 final 
Brussels, 21 April 1993 
SUPPLEMENTARY REPORT TO THE 
REPORT COM(93)109 FINAL FROM THE COMMISSION TO THE 
COUNCIL ON THE PROGRESS MADE BY 
SPAIN, GREECE AND ITALY 
IN THE EFFECTIVE APPLICATION OF THE 
MILK QUOTA SCHEME 
(at 16 April 1993) 
(presented by the Coewlssion) 
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INTRODUCTION 
in document COM (93) 109 (final), dated 9 March 1993, the commission 
presented its report on the progress made by Greece, Spain and Italy in 
the application of the milk quota scheme at 5 March 1993, in which it 
concluded that, whereas Spain had made all the progress which could 
reasonably be expected towards fulfilling the conditions of the 
Council's agreement of 21 May 1992 concerning an increase in the 
guaranteed total quantities, further progress was required of Greece 
and Italy, particularly in view of the short time which had been 
available to the latter since the Council's agreement in its respect on 
16 December 1992. 
During its meeting of 17 March 1993, the Council adopted the statement 
attached in annex 1. 
This document presents a report on the progress made by Greece and 
Italy at 16 April 1993 towards fulfilling the remaining conditions set 
out in the conclusions to document COM (93) 109 final. This report is 
based on the documents communicated by the two Member States and on the 
visits made to their central and regional authorities by Commission 
departments between 30 March and 16 April 1993 (annex 2). 
GREECE 
The progress made by Greece since 5 March 1993 regarding each condition 
is the following : 
a) individual reference quantities have to be calculated on the basis 
of deliveries to purchasers in 1991/92, and individual fat reference 
quantities established. 
Following the Commission's remarks, the Greek authorities have 
modified their procedure for establishing the individual reference 
quantities and fat contents, which are now based on the dairies' 
records of the actual deliveries and their fat content for the 
1991/92 year. The 120 dairies concerned sent this information to 
the Regional Agricultural Directorates by 10 April 1993, and at the 
same time informed each producer. 
b) individual reference quantities have to be notified to each 
producer, and cnmminicated to the purchasers. 
By 10 April 1993, each of the 30,000 producers was notified of his 
individual reference quantity and fat content by the purchasers 
valid for the 1992/93 year. The Milk Board referred to in the 
following paragraph will notify increased quantities for the 1993/94 
year once the increase in quota is granted by the Council. 
Notification concerns only deliveries to the milk industry, and not 
sales direct to consumers, which are officially discouraged. 
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c) a central agency must be established and equipped to verify the 
production records and the collection of levies due. 
The law establishing the Milk Board (ELOG) was adopted by Parliament 
on 17 March 1993. Its composition includes representatives of the 
Agricultural and Finance Ministries, as required by the Council's 
conditions, and it has amongst its competences the management of the 
quota system. Its starting capital of 55 mio DRA is granted by the 
Ministry of Agriculture. Its chairman has been appointed, and a 
staff complement of 14 authorised. The Board commenced operations 
on 1 April 1993 in Thessaloniki. 
d) an adequate record of production must be established both locally 
and centrally. 
The constitution of a central record is the responsibility of the 
newly created Milk Board, which receives copies of the declarations 
of deliveries from the milk industry, and a contract has been signed 
with an external body for the development of a computerised 
monitoring system. The Regional Directorates continue their role of 
supervision and control. 
ITALY 
The progress made by Italy since 5 March 1993 regarding each condition 
is the following : 
a) adoption of the implementing regulations. 
The Minister of Agriculture published in the Italian Official 
Journal on 29 March 1993 instructions which contain the essential 
implementing measures required for the milk quota scheme to be 
applied from 1 April 1993, in particular concerning the fat content, 
the accounting requirements in respect of purchasers and producers, 
and the procedures regarding producers who sell to more than one 
purchaser, or who pass on their title to the quota, the recognition 
of purchasers and the control over the transport of milk. The 
implementing regulation will replace these instructions once they 
are adopted by the Council of State. 
b) notification to each producer of the individual reference 
quantities and communication of these to the purchasers. 
The definitive individual reference quantities were fixed by AIMA on 
31 March 1993 and communicated to the Regional authorities who 
publish them in regional "bollettini". Each of the 170,000 
producers is being informed of his quotas, for both deliveries and 
direct sales, by registered letter. The posting of these 
communications was completed on 16 April 1993. 
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The purchasers receive copies of the "bollettini" containing the 
quota information. 
c) establishment of a central agency for the effective verification of 
the quantities declared and of the quantities on which levies are 
charged. 
on 16 April 1993, the existing central paying agency, AIMA, was 
given by the Minister of Agriculture the responsibility and 
authority for monitoring the production and delivery of milk, for 
ensuring the coordination of the controls delegated to the regional 
authorities, and for verifying that thesecontrols are properly 
executed. The terms of this decision are those proposed by the 
Commission departments. 
AIMA has instructed a computer consultant to develop a control 
system for recording and cross-checking the information on 
production and deliveries, to be accessible both centrally and by 
the regional authorities. 
AIMA has also instructed an external agency, that responsible for 
the verification of the Integrated control System, to assist it in 
its task of monitoring the implementation of the quota scheme. 
Recourse by AIMA to such external agencies has in recent years 
successfully reinforced controls over EAGGF subsidy claims in the 
sectors of arable crops and tobacco. 
CONCLUSIONS AND PROPOSAL 
Greece and Italy have, like Spain, now adopted the measures necessary 
for the milk quota scheme to be applied, having fully collaborated in 
meeting the Commission's requirements. 
The commission considers that it has now sufficient evidence that the 
conditions laid down in the council's agreements of 21 May and 
16 December 1992 for a proper application of the scheme in the 1993/94 
marketing year by all three of these Member States are satisfied, 
It is however important that the measures are applied in practice. The 
Commission will closely monitor the implementation during the 1993/94 
marketing year of the measures adopted in order to verify that they 
operate as intended, that all the detailed undertakings mentioned in 
the earlier report are completed, and in particular that all levies due 
are indeed collected. It will submit, as proposed, a further report to 
the Council in March 1994. 
Consequently, the Commission concludes that the envisaged increases in 
guaranteed quantities concerning milk deliveries should be 
provisionally granted to each of the three Member States concerned for 
the 1993/94 marketing year, and will propose in March 1994 whether the 
increased quotas should be continued in 1994/95 and subsequent years. 
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In light of the above conclusions, the second paragraph of article 3 in 
the amended proposal for a Council Regulation establishing an 
additional levy in the milk products sector (Doc. COM (93) 109 Final 
p. 16), should be replaced by the following x 
'2. The guaranteed total quantities shall be as set out below, without 
prejudice to any revision in the light of the overall market 
situation and the particular situation in certain Member states t 
Member States Deliveries (tonnes) Direct Sales (t) 
Belgium 2 919 720 373 193 
Denmark 4 427 830 951 
Germany (1) 27 549 481 150 038 
Greece 625 985 4 528 
Spain 5 200 000 366 950 
France 23 362 797 732 824 
Ireland 5 199 358 15 210 
Italy 9 212 190 717 870 
Luxembourg 266 499 951 
Netherlands 10 906 664 102 307 
Portugal 1 743 420 118 580 
United Kingdom 14 112 504 392 868 
(1) of which 6 157 620 tonnes covers deliveries to purchasers 
established in the territory of the new Lander and 58 801 tonnes 
covers direct sales in the new Lander. 
The increases in the total quantities granted for Greece, Spain 
and Italy are hereby fixed for the 1993/94 period. " 
AiNfMty: I 
COUNCIL STATEMENT 
The Council declares, that when taking a final decision on .the 
quotas for 1993/1994, a decision, respecting the conclusion of 
the Council of 21 May 1992, will also be taken on the 
/•"A Commission proposal on the additional quota for Spain 
(doc. COM(93) 109 final). 
The Council will, whilst respecting the Council conclusion of 
21 May 1992 and 17 December 1992, also take a decision on an 
additional quota for Italy and Greece, based on a report and 
proposals from the Commission, as well as on other questions 
already raised by delegations.. 
C 
•»«. — -. / « ••> 
ANNEX 2 
MISSIONS CONDUCTED IN GREECE AND ITALY 
SINCE 5 MARCH 1993 
GREECE : 
1 and 2 April 1993 : Athens 
14 to 16 April 1993 : Athens 
ITALY : Ministry of Agriculture and 
DIDAGEP 
: Ministry of Agriculture 
Thessaloniki : Regional Directorate, ELOG, 
dairy 
30-31 March 1993 
13-16 April 1993 Rome 
Milano and 
Bergamo 
Rome Ministry of Agriculture, AIMA 
Regional and provincial 
authorities, 2 dairies 
Ministry of Agriculture, AIMA, 
producers 
T-

ISSN 0254-1475 
COM (93) 169 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-93-200-EN-C 
ISBN 92-77-55087-2 
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