ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)696
Vol.1979/0237

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COMMISSION OFTHEEURCPEAN COMMUNITIE
COM(79)696 final
Brussels .6th December 1979
FOURTH COMMUNICATION TOTHE COUNCIL
CONCERNING THE PROPOSED PROGRAMME FOR THE UTILISATION OF
CO-RESPONSIBILITY LEVY FUNDS INTHE MILK SECTOR
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COM (79)696 final

i
FourthCommunication totheCounciIconcerning theproposedprogrammeforthe
utilisation ofCo-responsibility levyfundsinthemilksector.
1.Article4(3)ofRegulation (EEC)No1079/77reauirestheCommission,prior
tothefixinqoftheperiodofapplication ofthelevy,toinformthe
Counciloftheprogrammeofmeasuresitproposestoimplementinthe
comingmilkyear.Th®opinionoftheAdvisoryCommitteeforMilkandMilk
Productshasbeenobtained,andtheiradviceonthisprogrammeiscommunicated
'totheCouncilintheAnnex.tothisdocument.
2.TheCommission'sThirdCommunication totheCouncil,dated16march1979,
estimatedtheamountofrevenuefromthelevyfortheperiod16September1977
to31.March1979at231MECU."'
Due,however,totheprolongation ofthe1978-79milkyearto1July1979,
therewillbearesultantincreaseintheamountofrevenuefromthelevy.
Thebestestimatenow.availableisthatthetotallevydue,fortheperiod
16September 1977-1July1979,willamountto260MECU
Thisshouldactuallybepaidinbefore31December1979andinmostcases
excludingtheItalianParmesanproducers-before1September1979.
3.Resumeofallocations madefromlevyfunds,16September ,1977-1July1979.
Apartfrommeasuresforpromotion andimprovementofmilkquality^, v
expenditure hasbeenlessthanoriginally estimated./
TABLE1ALLOCATION OFCO-RESPONSIBILITY FUNDS,COMMITTEDINTHE
PERIOD16September 1977-1JULY1979
Typeofmeasure Allocations mada
MECU
Promotional measures .
ResearchwithintheE.E.C.
ResearchoutsidetheE.E.C.
Improvement ofmilkquality
SchoolmiIk
Butterfatforicecream
Concentrated butterr65.3
40.5
59.9
9.930.24.7
6.5
TOTALAMOUNTALLOCATED 217
Thefigureof65.3MECU intheabovetablecomprisesboththe
.allocationsforthe1978-1979milkyearandtheallocationalreadymade
forthe1979-80milkyear.

Theallocationf6rthe1978-79milkyearwas32.6.MECU measures
contractedaccountingfor31.8.MZCU Theremaining0.8MECU
wereallocatedtotheButterInformation Councilforthe
1979-80milkyear,bringingthetotalamountallocatedfor1979-80to
33.4MECU About60%ofthisallocationwillbepaidoutin
advancesbefore31December1979.Itisenvisagedthat,inprinciple,
thefinaldateforcompletionofmeasurescontractedwillbe31March1980.
Proposalsfortheallocationoflevyfundsinthe1979-80milkyear
The1979-80milkyearistorunfrom2July1979to31March1980.
Article2(1)ofRegulation (EEC)No1271/79setstheamountofthe
levyat0.5%ofthetargetprice.Theincomefromthelevygenerated
frommilkdeliveredinthisperiodmaybeestimatedat66.5MECU
Theestimatedlevyyieldfortheperiod16September1977.to1July1979
is260nSCU butactualallocations madeinthatperiodtotalled
217MECU therebymaking42.9MECU availableforuse
inthe1979-80milkyear.Addingthis42.9MECU tothe66.5.MECU
•estimatedastherevenueforthe1979-80milkyeargivesa
totalof109.4 .MECU whichmaybeutilisedasfollows:.
Breakdownofproposedmeasures:
(a)ResearchwithintheE.E.C.
Itisproposedtoallocate4.84MECU .TheCommissionregards
thisassufficient,asmarketresearchhasbeenexhaustively covered
underRegulation (EEC)No723/78.Researchmeasuresshouldtherefore
beconfinedmainlytotechnicalresearch.Contractswillbeconcluded
inthecourseof1980,withcompletiondatesin1982.
(b)Technicaladvice/PromotionoutsidetheE.E.C.
The10.88MECU allocationestimatedintheCommission's
ThirdCommunication shouldbemaintained.Apartofthissum,
7.25MECU shouldbemadeavailableforgeneric
promotiononthirdcountrymarkets.Theremaining3.63MECU
w^uldbeutilisedintechnicalandcommercialassistancemeasures;
theCommissionwouldproposeconditionssimilartothoseapplicable
underRegulation (EEC)No1993/78.
Contractsconcludedinthecourseof1980willhavecompletion ■
datesin1982.

-3-
(c)Improvement ofmilkquality
Jtseemsappropriatetocontinuemeasuresinstigatedinthe1978-79
milkyear,'withcertainrestrictions .Theproposedallocationof.
10.88MECU shouldbedistributed onthesamebasisasthat
usedinthe1978-79milkyear..Contractsconcludedin1980will
havecompletiondatesin1982.
•> -
(d)Schoolmilk (the1979-80Schoolyear)
AltMemberStateshavenowimplementedthisscheme,witharesultant
riseinconsumption .Theaidhasbeenincreasedto100%ofthe
targetprice,and2/3ofthiscontribution willbepaidfromlevy
funds.Theestimatedexpenditure forthismeasureistherefore
27.93MECU ••- ,"
(e)Butterfatforicecream
Forthe9monthperiod2July1979-31March1980,itisestimated
thatthequantityt6beutilisedisabout29,000tons,2/3of
whichwillbefinanced,bylevyfunds.Itisthereforeproposedto
allocate26.23MECU. ., ...
(f)Concentrated butter
Thismeasure,introducedin1978,hasnotfulfilledexpectations .
In1978,only3,000ofthe,13,900tonsofbuttermadeavailable
wereused.Maximumuseinthe1979-80milkyearcanbeestimated
at5,000tons,2/3ofwhichwillbefinancedbylevyfunds.The
proposedallocation,thereforeis7.13MECU.
(g)Newmeasurestobedetermined
GiventheCommission'sproposalsasoutlinedabove,andtherelevant
proposedallocations,21.52MECU/isreservedasavailable
forneworimprovedmeasuresyettobedetermined.
TABLE2-BREAKDOWN OFPROPOSEDMEASURESFORTHE'.MILKYEAR1.979/80
ProposedmeasuresEstimated
Expenditurè
FieCU
ResearchwithintheEEC 4.84I
Technicaladvice/promotion
outsidetheEEC 10.88
Improvementofmilkquality 10.88
SchoolmiIk ''27.93
Butterfatforice-cream 26.23
Concentrated butter 7.13
Neworimprovedmeasurestobe
determined 21.52
TOTALESTIMATED EXPENDITURE 109.41

-L-
6.Thefollowingtableshowsacompositebreakdownofactualexpenditure
(16September 1977to1July1979)andtheproposedallocations forthe
1979-80milkyear.
TABLE3-SUMMARYOFACTUALANDPROPOSEDUSEOFTHEINCOMEFROMTHELEVY
MeasuresAllocations
Engaged
to1July1979
MECUAllocations
Proposedfor
79/80miIkyear
MECUTotal
Allocations
MECU
Prmotional measures
ResearchwithintheEEC
Research/technicaladvice/
promotionoutsidethe
E,EC
Improvement ofmilk
quality
SchoolmiIk
Butterfatforice-cream
Concentrated butter
Newmeasurestobe
determined
TOTALS65.3
4.7
6.5
30.2
40.5
59.9
9.9
217.04.84
10.88
10.88
27.93
26.23
7.13
21.52
109.4165.3
9.55
17.41
41.10
68.43
86.07
17.04
21.52
326.42
*While,asseenabove,fundshavealreadybeenallocatedtopromotional
measureswithintheCommunityfor1978/79and1979/80,nonehasyet
beenforeseenforexpenditure underthisheadinginthemilkyear1980/81.
Thereforeinordertopreserveacertaincontinuity,itwi11probablybe
necessarytoallocatesomeofthisreserveforpromotional programmes
duringthatperiod.

ANNEX
\
AdviceN°26oftheAdvisoryCommitteeforMilk&MilkProducts
The4thCommunication totheCouncilconcerning aprogrammeforthe,
utilisation ofCo-responsibility levyfunds,(Doc.CPL39-VI/4262/79),
waspresentedtotheAdvisoryCommitteeformilkandmilkproductsatits
meetingof25October1979,andgaverisetonoobjections .
However,certainprofessional organisations wishedtoputforward ,the
following comments:-
1.Theproducers andagricultural co-operatives emphasised
-theneedtopursue,in1980/81,thepromotioneffortsundertaken on
theEuropeanmilkmarket(15MUCwouldbenecessary),andthemeasures
undertakenfortheimprovement ofmilkquality(thissectorneedingto-
benefitfromadditionalappropriations );
;-theobligationtofavourtheuseofbutterfats (a.supplementary _
appropriation of2MUCshouldbemade); /
-theneedtoencouragesalesofmilkproductsoutsidetheEEC,this
attitude,however,tieingsubjecttocertainreservations (seefootnote.(1))
2.Themilkproductstradeinterests (wholesale andretail)renewed
theirdemandstobeinvolvedinthepreparation ofprogrammesforthe
utilisation ofCo-responsibility funds. •*
(1)N.B.TheDutchrepresentatives estimatethatthegrantingof
fundsforthepromotionofsalesoutside -theEEC,andwhich
~ wouldbeusedforpurposesotherthanforgeneric(neutral)
publicitycouldhaveseriousconsequences asregardsconditionsof
competition .