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COM (76)533
Vol.1976/0163

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\
COMMISSION OFTHEEUROPEAN COMMUNITIES
:
COM(76)533 final
Ν /
^Brussels ,8thOctober1976
</
Λ·
PROPOSAL FORACOUNCIL REGULATION
/
onacoresponsibility levyandmeasuresforexpanding
marketsinthemilkandmilkproducts sector *
(Submitted bytheCommission totheCouncil)
COM(76)533final

PROPOSAL FORA
COUNCILKSGUIATION (EEC)Bo /?6
onacoresponsibility levyandmeasuresforexpanding marketsinthe
milkandmilkproduotssector
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Eoonomio Community ,
andinparticular Article43thereof,
HavingregardtotheproposalfromtheCommission ^
(2)HavingregardtotheopinionoftheEuropeanParliament ,
WhereastheCommunity marketinmilkproductsismarkedbystructural
surpluses arisingfromanimbaianoe betweensupplyanddemandinproduots
governedbyCouncilRegulation (EEC).No804/68of27June1968onthe
oommonorganization ofthemarketinmilkandmilkproduots^^,aslast
amendedbyRegulation (EEC)No559/76^^;
Whereasamoredirectlinkshouldbeestablished betweenproduction and
outletsforEdlkproducts inordergradually torestoreequilibrium
betweenproduction andmarketrequirements andtoreducethehea-vyburden
ontheCommunity resulting fromthepresentsituation ;whereasittherefore
appearsnecessazy tointroduoa auniformooresponsibility levyforseveral
yearsonallmilkdelivered todairiesandcertainfarmsalesofmilk
products :
(1)OJNoC
(2)OJNoC
(3)OJNoL148,28»6,1968,pa13
(4)OJNoL67»15®3«1976,p,9

-2-
Whersas,inordertoobservetheobjectives ofCouncilDirective 75/268/EEC
of28April3-975onmountain and.hillfarmingandfarmingincertainless-
favouredaraas^,asamendedbyDirective 76/400/EEC^,themountainandhill
regionsliftedpursuanttoArticle 3(3)ofthatDirective shouldbeexempted
fromthelevy;
Whereas,inviewofthecontrolfacilities fapplication ofthelevytofarm
salesshouldhelimitedtotheamounts ofmilkusedonthefarminthemanu­
factureofbutterandcreamandgivingentitlement ,underArticle2(l)(b)
ofCouncilRegulation (ESC)No986/68of15July1968layingdowngeneral
rulesforgrantingaidforskimmedmilka»d.ekitoedmilkpowderforuseas
feed^^,aslastamendedbyRegulation (EEC)No796/76^\toaidforthe
skimmedmilkarisingfroathisuse;
Whereas,foradministrative rra&sons ,provision shouldbemadeforthelevies,
wherever possible ,tobededucted bythedairiesfromtheirpaymentsto
producers ;whereasitisalsodesire-tola tomakeprovision forcompensation
ifthefirasorproducers whoshouldpaythele^areentitled tocertainaid,
provided thatthiscompensation doesrothaverepersuasions ontheaccounting
fortheamountsconcerned ;
Whereasitappearsdesirable toenvisageatthesametimespecific measures
toencourage theexpansion ofmarketsa»dthedisposal ofsurpluses onthe
Community andworldmarketsandgivingrisetoexpenditure equaltotheamount
oflevycollected ,
HASADOPTED THISKBGUIA'?ICH :
1OJKoL123,19»5.1975(iP-1
OJNoL108,26,4.»1976,p,21
OJNoX,169,13.7.1968 *P*4
OJNoh6?,15.3-1976»P*22

-3-
Article 1
1.Duringtheperiodfrom1April1977 "to"theendofthe1979/80milkyear
acoresponsibility levyshallbepaidbyallmilkproducers onallmilksupplied
toanundertaking treatingorprocessing milkand,intheoasesdefinedin
Article3(2),onallmilksoldbytheproduoerintheformofothermilk
produots.
2.Thislevyshallnotapplytothemountain andhillregionslistedpursuant
toArtiole3(3)ofDireotive 75/268/EEC.
Article 2
1.Theamountofthelevyshallbefixedinaccordance withtheprooedure
laiddowninArtiole43(2)oftheTreatybefore1Novemberforthefollowing
milkyear.
2.Thelevyshallbeatleast2/6butnotmorethan4%ofthetargetpriceformilk
inthemilkyearinquestion *
3.Fortheperiodfrom1April1977 "totheendofthe1977/78milkyear,thelety
shallbe2.5$ofthetargetpriceformilk*
4*Ifthereisaconsiderable changeinthemarketsituation duringamilkyear
theCouncil,acting«nsproposal fromtheCommission byaqualified majority ,
mayaltertheamountofthelevy,keepingwithinthelimitslaiddowninpara­
graph2*However,thedifference betweenthelevyfixedunderparagraph 1and
thenewlevymaynotexoeed1$ofthetargetpriceformilk*
Article 3
1*Intheoaseofdeliveries toafirmtreatingorprocessing milk,thelevy
shallbededucted bythefirmbuyingthemilkfromthepayment madetothe
producer andtransferred monthlyforthepreoeding monthtothecompetent
agencysetupforthispurposeineaohMemberState.
/.

- 4-
2. Ifamilk producer sells intheform ofother milk products ,thelevy
shall "bepaid tothecompetent agency bytheproducer inrespect of
thequantities ofmilk used inthemanufacture onthefarm ofbutter
andcream qualifying foraidunder Article 2(l)(b )ofRegulation (EEC)
No986/68.
Article 4
Provisions maybemade forthelevy toqualify onpayment forcompensatory
aidunder Articles 10and26ofRegulation (EEC)ITo804/68.
Article 5
1. Measures toexpand outlets formilk products ontheCommunity and
world markets shall "betaken inaccordance with theprocedure
referred toinArticle 7,sofarasthey donotentail forthe
Community expenditure exceeding theincome fromthelevies payable ;,
under this Regulation . • ■ :?' ■• .
2. Themeasures provided forinparagraph 1shall bethemeasures
concerning ; " ■ : ■
(a)theexpansion ofmarkets within theCbmwnvty by:
- increasing theaidgranted tosupplementary quantities
ofskimmed milk .returned .bythedairies tothefarmers ,
- thesale ofmilk atreduced prices inschools ,
specific measures increasing theuseofbutterfats ;
(b)theexpansion ofmarkets outside theCommunity by,inter alia :
- thegranting ofcontributions toprogrammes encouraging
~'-7 -thesupply ofmilk products todeveloping countries ;■7
(c)thesearch fornewoutlets andimproved products ,the
investigation ofnewmarkets andother measures toencourage
theuseofmilk products .
./.

-5-
Article 6
1,Withregardtothefinancing ofthecommonagricultural polioy,the
ooreaponsibility leviesandthemeasureslistedinArtiole 5shallbe
considered aspartofthemeasures toregularize agricultural markets *
2*Bywayofderogation fromArtiole3(l)ofRegulation (EEC)No729/70»
thefinancing ofthemeasureslistedinArticle 5maybelimitedtoa
portionoftheexpenditure concerned .
3.Rulesfortheapplication ofparagraph 1maybeadoptedinaooordanoe
withtheprocedurelaiddowninArtiole13ofRegulation (EEC)Ho729/70*
Article 7
Rulesfortheapplication ofthisRegulation shallbeadoptedinaocordanoe
withtheprocedurelaiddowninArtiole30ofRegulation (EEC)No804/68.
ThisRegulation shallbebindinginitsentirety anddireotly applicable in
allMemberStates *
DoneatBrussels . FortheCounoil

6-
Financial implications ofthecorresponsibility levyandmeasures for
expanding marketsinthemilkproducts sector
1.Asnotedinsection 38ofthe1977–80actionprogramme for
progressively bringing themilktaarketbackintobalance,theCommission
considers theproceeds ofthecorresponsibility levyshouldcomeunderthe
intervention arrangements inconnection withtheorganization ofthemilk
andmilkproducts markets.
TheCommission accordingly proposes inArticle 6oftheattached
thatthecorresponsibility leviesshouldbeconsidered asfinancially part
ofthemarketregularization measures .
2.Fromtheforecasts ofmilkproduction upto31December 1977»
havingregardtothemeasures proposed ,thequantity ofmilksoleviable
from1Aprilto31December 1977workaoutat62milliontonnes.
Calculated attheproposed2.5$,payablemonthbymonth,andgiven
thepresenttargetpriceformilkof167.60u.a.pertonne,theproceedsof
thelevyforthebudgetyear1977workoutasfollows :
62milliontonnesx2.5$x8/9*167.60u.a./tonne«230millionu.a.
Forthemilkyear1977/78thequantityleviable maybeestimated
at79.5milliontonnes,givingaproceedsfigureof79.5milliontonnes
x2.5x167.60u.a./tonne=»333millionu.a.
3.Thestandard financial annexwiththeusualparticulars isattached .

7
FINANCIAL ANNEX Date :30.9.76
1.Relevant budget line :Chapter 62,Article 629
2.Title ofmeasure :Proposal for aCouncil Regulation onacoresponsibility
levy andmeasures forexpanding markets inthemilk
•and milk products sectors
3.Legal basis :Article *+3oftheTreaty
h.Purpose ofmeasure :Tointroduce acoresponsibility levy forming part
ofthe1977-80 action programme forprogressively
bringing themilk market back into balance
(COM (76)300 final )
5.Financial implications During Current Next
farm year financial year financial year
(76) (77)
5.0 Expenditure
-chargeable to
CtyBudget * - 2
(intervention ) 333mua - 230
5.0.1 Year 78 Year 79 Year 80
Expenditure
multiannual 103
schedule
5.2 Mode ofcalculation
Budget year 1977 :$uantity leviable *62million tonnes ,less
approx .3million tonnes from hill farming
Calculation :62m .tonnes x2.5% x8/9(payment period )x167 .60u.a./
tonne =230 mua'
ÎJilk year 1977/78:quantity ,79-5m .tonnes
Calculation :79»5m «tonnes x2.5% x167.60 u.a./tonne =333mua
These figures donot allow for the effect ofthe double rate ,which
amounts to-k2mua fortheyear 1977/78and -29mua for theyear 1977.
2Measure begins 1April 1977
^Minus levies tobefixed forfollowing farm years ,percentage for
which has still tobedecided .According aschosen within bracket
of2.5-^# ,proceeds peryear would work out atbetween 333and533
mua .