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Vol. 1983/0 016 
  
 
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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 openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic 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, 
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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 198 3 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 
COM(83) 45 final 
Brussels,  7th March 1983 
COMMISSION REPORT  TO THE COUNCIL 
ON AID FOR SMALL-SCALE MILK PRODUCERS 
COM(83) 45 final 

COMMISSION REPORT TO THE COUNCIL 
ON AID FOR  SMALL-SCALE  MILK PRODUCERS 
Council Regulation  (EEC) Mo  1190/82  provided that  the income of small-scale 
producers  was to be  supported  by dividing  an amount of 120  million  ECU between 
the Member  States, taking  into acount  the quantity  of milk supplied  in 1981 to 
undertakings  treating  milk by all producers,  up to a  limit of 60 000 kg per 
producer. 
Commission  Regulation  (EEC) No  1759/82  specified  that the amount was to be 
divided by the Member  State amongst  small-scale milk  producers  on the  basis of 
the quantity  of milk supplied  to dairies  and other processing centres,  up to a 
maximum  quantity  per producer. 
When fixing  prices  for the  1982/83  marketing  year the Council  took note of a 
Commission  statement  that it  would monitor  the implementation  of the 
provisions  relating  to the  distribution  of 120  million  ECU between  small-scale 
milk producers  and would examine  other methods  of helping small-scale  
producers  in an  equivalent  manner  and present  to the  Council before  31 January  
1983 a report  accompanied  if necessary  by proposals. 
x 
X X 
The first  section  of the  report below  sets out the  various  arrangements 
adopted by the Member  States and approved  by the  Commission. 
The second  section contains  a critical  assessment  of those arrangements  and 
suggests  certain  improvements  that could  be made  without  changing  their  basic 
nature. 

- 2 -
DESCRIPTION  OF METHODS  PROPOSED  FOR GRANTING  AID TO SMALL-SCALE  MILK PRODUCERS 
IRELAND : 6.5 million  ECU 
Producers  supplying milk  to dairies  in June 1982 are eligible  for the aid. 
The amount  of the aid is  distributed  as follows  on the  basis of deliveries  in 
1981: 
producers who  supplied  less than 10 000  gallons  (46 800  kg) receive 
1.5 P per  gallon,  i.e. 0.-46 ECU per  100 kg; 
the maximum  aid is  215 ECU per producer; 
producers who  supplied  between  10 000  and 20 000  gallons  (between  46 800 
and 93 600  kg) receive  a lump sum of IRL  100, i.e. 178 ECU; 
producers who  supplied  between  20 000  and 25 000  gallons  (between  93 600 
and 117 000  kg) receive  a lump sum of IRL  50, i.e. 89 ECU ; 
producers who  supplied  more than 25 000  gallons  do not  qualify  for the aid. 
DENMARK  : 4-8 million  ECU 
Producers who  supplied milk  to dairies  in 1982 will receive  aid amounting  to 
DKR 0.93/100  kg, i.e.  0.113 ECU/100  kg, for the  first 250 000  kg of  milk 
supplied. 
. producers who supply  less than 32 000  kg (which corresponds to aid of 
DKR 300) receive  no aid  since the income  derived  from milk is considères  to 
represent  only a very  small part  of their  total income. 
FRMICE: 39-6 million  ECU 
Aid is granted, in respect of the  first 60 000  kg supplied,  to all 
producers who  have delivered  not more than 250 000  kg. 
In lovlar.d  areas formers who  have previously  retired  from agricultural  or 
non-agricultural  employment  and farmers  engaging  in several  activities  do 
not qualify  for aid. 

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The amount per  kilogram  is calculated  by dividing  the total amount 
available  by the  total quantity  of milk eligible  for aid. The amount  will 
be approximately  FF 1.80 per 100 kg,  i.e. 0.27 ECU per 100 kg, and the 
maximum  will be about 162 ECU. 
FEDERAL REPUBLIC OF  GERMANY : 34.9 million  ECU 
Each producer  will receive  aid for the  first 60 000 kg  milk supplied.  Tha aid, 
amounting  to DM 0.59 per 100 kg,  i.e. 0.25 ECU/100 kg, is  deducted from  the 
co-responsibility  levy. The maximum  amount  deducted  is calculated 
provisionally  at 150 ECU.  Further  deductions  may be  made after 31 March 1983 
when the  exact deliveries  are known. 
UNITED KINGDOM : 7 million  ECU 
Producers  who supplied  not more  than 240 000  litres  (i.e.  250 000 kg or, 
approximately,  the output og 50 cows)  qualify  for aid. 
Around 32 000  producers  receive  aid. Each receives  the same lump sum 
payment of about 219 ECU. 
LUXEMBOURG ; 0.3 million  ECU 
Aid is granted  only to producers  who have  supplied less  than 80 000 kg of  milk 
per year.  They receive  aid for the  first 60 000 kg of  milk at the  rate of LFR 
31.1 per 100 kg,  i.e. 0.69 ECU per 100 kg. 
The maximum  amount of aid  granted  is 415 ECU (LFR 18 698). 
BELGIUM: 4-7  million  ECU 
All producers  qualify  for a  reduction  in the  rate cf the  co-responsibility 
levy of 0.5$ for the  first 60 000 kg of  milk supplied. 
The balance  is distributed  among producers  supplying  more than 90 00>' kg 
annually. 
The maximum  aid is  about 150 ECU. 

- 4 -
GREECE:  0.8 million  ECU 
The Community aid of DR 53.3  million  is supplemented by DR 171.7  million  from 
national  funds. 
The aid is  limited  to the  first 60 000 kg of  milk for all producers  and is 
distributed  as follows: 
DR 0.6 per kg for  winter milk  (l January  to 31 March and 1  October  to 
31 December) 
DR 0.3 per kg for  summer  milk (l April to 30  September). 
NETHERLANDS:  8 million  ECU 
The distribution  of the aid  lias been made subject  in the  Netherlands  to 
certain  conditions  imposed on  farmers  and to  certain  adjustments  and 
investments which  do not  increase milk output.  (This system  was accepted  by 
the Commission  only for one  year). 
Conditions  imposed on  producers 
They must not be  more than 65 years old; 
They must  practise  farming  as their main occupation (they  must keep 
accounts  for tax  purposes); 
They must not have  more than: 
24 cows if 60% of the SBE (l) is  derived from milk 
29 cows if 60% of the SBE is  derived from milk  and the  total of the 
remaining  SBE is  less than 40 SBE; 
They must have  supplied  milk to a dairy. 
Adjustments  and investments required 
The adjustments  must have been  completed  between 30 December 1981 and 1 
April 1903-
The types of investment  eligible  are listed  (Article  7(3)) - upkeep of 
enclosures  - purchase  of tanks for storage  on the  farm and in the  fields  -
upkeep of  drains  and roads,  improvement of  management. 
- Aid  ceili ng: 
(a) 30/fc  for an  investment  not exceeding  HPL 10 000; 
(b) provisional  maximum  of HFL 1 500  (533.10  ECU). 
The coiling  may be  increased  if there are available  funds. 
A payment on  account  of HFL 750 (267 ECU) may be  made. 
(l) SBE =  standard  • urnt unit in the  Netherlands. 

- 5 -
ITALY: 13.4 million  ECU 
Producers  owning between  5 and 20 cows who are  subject  to the 
co-responsibility  levy qualify  for the  measure. 
The aid will be paid to producers  by the AIMA  intervention  agency,  which 
is to lay down the  conditions  and procedure  for submitting applications. 
The amount  provided  for is 13«37 ECU/cow. 
II. EXAMINATION OF  METHODS 
De£inition_qf  _smal_l-s_ca_le_  producer 
1. Four Member  States  have allowed all  producers  to qualify  for the aid 
irrespective  of the  quantity  of milk supplied.  The aid, however,  rises 
gradually  up to 60 000 kg and  remains  at this level for producers 
supplying milk  in excess of that quantity. 
The other Member  States  have fixed a maximum  quantity  and have thus 
paid the aid  only to producers  whose  deliveries  in 1981 or 1982 did not 
exceed that quantity,  or who owned a  certain  number of cows  only. 
2. Comparing  the minimum  quantities  or the maximum number of cows  laid 
down reveals considerable differences  among Member  States in their 
interpretation  of "small-scale milk  producer". 
Luxembourg  and Ireland  have fixed an upper  limit of 80 000 and 
117 000 kg  respectively.  Italy has stipulated  a maximum  dairy herd of 
20 cows,  equivalent  to an  output of around 60 000 kg of  milk. 

- 6 -
Prance and the  United Kingdom,  on the  other hand, have  fixed a limit of 
250 000 kg. The  Netherlands  has disqualified  owners of  more than 29 
cows and thus imposed a  ceiling  of around 150 000 kg (see Graph I). 
3. These differences  can be  explained  by the  considerable  structural  and 
income differences  between  Member  States.  A milk producer  who is 
regarded  as small in the  United Kingdom,  the Netherlands  or Denmark  is 
considered  very large in Greece and  Italy. 
Apart from France,  the Member  States  which have  fixed an upper  limit 
have taken as their basis average  national  output  and have  seen to it 
that the aid can be  granted  solely  to producers supplying  less than the 
average.  It might have been  fairer to distinguish  between  production 
regions  within  a Member  State: production  structures  in the Po  Valley 
are closer to those in the  Netherlands  or Brittany  than to those in the 
Mezzogiorno. 
4. The majority  of the Member  States  have not  taken income as  criterion. 
The Netherlands  - which has a major  accountancy  network - and  France  -
marginally  and on an  across-the-board  basis - are the  only ones which 
have attempted  to include  other farm resources  - whether it be income 
derived  from products other than milk  or supplementary  income  provided 
by earnings  or a pension. 
5· This omission  is regrettable.  However,  research  carried  out within the 
context of the  IADN (1), based on accounts representing  a good sample of 
EEC regions,  has in most  cases disclosed  a positive  relationship  between 
the number  of cows and the  total farm income of  producers,  whether  they 
specialize  in dairy farming  or are engaged in mixed  farming. 
(1) See Table II. 

- 7 -
The majority  of small-scale  milk producers belong  to the  low-income 
category.  This makes sense since,  with few exceptions, farmers with  an 
adequate  income  will not accept the daily bind of milking  and feeding  a 
small herd which does not justify  milking  machines  or relief  staff. 
6. Nonetheless,  Denmark and  Italy regard owners of  less than 7 and 5 cows 
respectively  as marginal producers  and have disqualified  them from the 
aid, thereby  establishing  a lower limit.  This provision  has a  distinct 
administrative  advantage:  in Italy it disqualifies  76$ of producers  and 
in Denmark  13$. 
_Leve_l of aid: 
Distribution  of aid to  small-scale  producers 
Milk producers  in rec eipt of aid : Limits :Maximum aid per farm 
000 % of total : Cows/deliveries : ECU obtained  at 
: minimum  maximum 
Germany 430 100 : 0 : 150 60.000 kg 
France 454 a) 99 : 0 250.000  kg : 162 60.000 kg 
Italy 113 24 : 5 cows 20 cows 267 20 cows 
Netherlands 32 b) 48 0 29  cows 533 c) 
Belgium 53 100 0 kg 150 60.000 kg 
Luxembourg 1 45 0 80.000  kg 415 60.000 kg 
Unied Kingdom 32 55 : 0 248.000  kg : 219 d) 
Ireland 93 88 : 0 117.000  kg : 215 46.800 kg 
Denmark 35 87 32.000 kg : 282 250.000 kg 
Greece 94 100 : 0 60.000  kg : 
TOTAL 1.337 75 : 
(a) Including farmers engaging  in several  activities 
(b) All farms with  less than 29 cows.  Includes farmers engaging  in several 
activities. 
(c) The maximum  aid may not  exceed 30% of an  investment  of less than HFL 
10 000 on a  farm with  not more  than 29 cows. 
(d) The amount  fixed is the  same for all producers with  less than 50 cows. 
(e) The aid is  payable  per kg of  milk and there is no upper limii on total 
production. 

- 8 -
7. The table above,  which summarizes  the arrangements  adopted  by the 
Member States,  shows the great disparity  in the  percentage  of 
recipients  and the maximum  level of aid, the extremes  being represented 
by Belgium  and Germany,  (around  150'ECU),  the Netherlands  (533 ECU) and 
Luxembourg  (415 ECU). 
8. These  differences,  which are particularly  perceptible  for producers  in . 
geographically  neighbouring regions,  are undoubtedly excessive  and a 
means must be found of reducing  them in the  future. 
9. Payment  procedures 
Two Member  States,  Germany  and Belgium,  have replaced  payment  of the 
aid by a reduction  in the  co-responsibility  levy to be charged  for the 
1982/83  marketing year.  > 
This method  appears  intially  to have certain  administrative  advantages, 
but may be  difficult  to apply and could entail a further  distribution 
to use up the  entire amount  granted  to the Member  State or else result 
in the amount  available  being exceeded. 
The other  Member  States  have made provision  for the payment  of direct 
aid. It should  also be noted that in Germany  producers  who are  exempt 
from the levy do not  qualify for aid. \ 


- ÎO -
TABLE II 
Labour income  per AVU of  farms producing milk  
Breakdown  of farms into size classes  according  to the  quantity  of milk produced 
Accounting year  1979/80 
ECU 
: Milk Production 
: <'000 1) : Germany France Italy Belg ium : Luxembourg  : Nether­
lands : Denmark Ireland United 
Kingdom : EUR - 9 : 
: 0 - 20 3 572 3 605 2 533 5 . 442 : (1) : 7 .234 : 2 755 : 1 283 3 .085 : 2 661 : 
: 20 - 40 : 4 050 3 002 4 190 6 . 162 : (1) : (1) : 3 546 : 2 601 (1) : 3 702 : 
: 40 - 60 : 4 20i : 3 992 5 445 6 . 348 : (1) : 3 . 902 : 5 594 : 3 800 1 . 386 : 4 415 : 
: 60 - 80 5 325 4 910 6 713 8 . 181 : (1) : 7 .273 : 5 991 : 4 379 (1) : 5 342 : 
: 80 - 100 6 450 : 5 327 7 673 9 .436 : 4.142 : 5 .094 : 5 677 : 4 292 2 . 260 : 5 970 : 
: 100 - 120 : 6 850 : 6 377 9 052 10 .922 : 12.721  : .625 : 7 264 : 4 912 3 . 250 : 6 748 : 
: 120 - 150 : 7 332 : 7 127 10 334 11 .947 7.410 : 7 . 598 : 8 360 : 7 335 2 .106 : 7 337 : 
: 150 - 200 : 8 311 : 9 529 10 966 13 .684 : 9.157 : 6 .387 : 8 227 6 285 4 .159 : 8 235 : 
: 200 - 250 : 8 600 : 9 482 12 553 16 .246 : 10.215  : 11 .671 8 648 : 9 473 6 . 470 : 8 802 : 
: General average : 5. 9 : 4 747 : 3 . 934 8 .574 : 6.854 : 8 . 132 6 521 : 3 468 5 .077 : 4 835 : 
Source: FADN -  Weighted  averages 
(1) Groups of less than 10 farms