Proposal for a COUNCIL REGULATION (EC) No . . .

of . . .

amending Regulation (EEC) No 804/68 on the common organization of the market in milk and milk products (94/C 83/20)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas Article 6 of Council Regulation (EEC) No 804/68 (1), as last amended by Regulation (EC) No 230/94 (2), provides for an intervention system for butter; whereas this system must be implemented, in particular, in such a way as to maintain the competitive position of butter on the market and provide for the most efficient possible storage; whereas the quality requirements to be observed in respect of butter constitute a determining factor for the attainment of these objectives;

Whereas Council Regulation (EEC) No 985/68 of 15 July 1968 laying down general rules for intervention on the market in butter and cream (3), as last amended by Regulation (EEC) No 2045/91 (4), provides for control measures when butter enters into storage and after a certain storage period; whereas technical advances, both at international level and in the Community, have resulted in methods for determining the quality of butter; whereas it is appropriate, therefore, to recognize such methods and, for the purpose of implementing the intervention system more efficiently and simplifying the rules, to lay down a single definition for butter covered by the intervention system; whereas the adoption of such a definition, as referred to in Article 27 of Regulation (EEC) No 804/68, will accordingly enable the measure in question to be repealed;

Whereas it is not appropriate to deviate from the specification for butter stipulated hitherto under the intervention system; whereas, in particular, in the case of the private storage aid referred to in Article 6 (2) of Regulation (EEC) No 804/68, the derogation in respect of salted butter provided for in the second subparagraph of Article 8 (4) of Regulation (EEC) No 985/68 should continue to apply;

Whereas, in the interests of simplification and clarification, the other general rules laid down in Regulation (EEC) No 985/68 should be incorporated in Article 6 of Regulation (EEC) No 804/68 and Regulation (EEC) No 985/68 repealed accordingly;

Whereas Article 8 of Regulation (EEC) No 804/68 provides for an intervention system for certain types of cheeses; whereas experience has shown that the buying-in of such cheeses is not an appropriate means of stabilizing the market, given their limited preservation time and the absence of disposal opportunities; whereas, however, market stabilization may be achieved through private storage aid for such cheeses;

Whereas account should be taken also of trends in the milk products market and of changes in the intervention systems in force for several years for butter and skimmed-milk powder; whereas the system of buying-in in respect of Grana Padano and Parmigiano Reggiano cheeses should be abolished; whereas general rules concerning the granting of private storage aid should, moreover, be incorporated in Article 8 of Regulation (EEC) No 804/68;

Whereas it is therefore necessary to amend Article 5 of Regulation (EEC) No 804/68 and to repeal Council Regulation (EEC) No 971/68 of 15 July 1968 laying down general rules for intervention on the market in Grana Padano and Parmigiano Reggiano cheeses (5), as last amended by Regulation (EEC) No 473/75 (6),

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 804/68 is hereby amended as follows:

1. Article 5 is replaced by the following:

'Article 5

Each year at the same time as the target price for milk, and in accordance with the same procedure, an intervention price for butter and for skimmed-milk powder shall be fixed.`;

2. Article 6 is replaced by the following:

'Article 6

1. Under conditions to be determined, the intervention agency designated by each Member State shall buy in at the intervention price natural butter produced in the Community directly and exclusively from cream of cows' milk, of a mimimum fat content of 82 %, which is offered to it and which meets certain requirements.

The aforementioned intervention price shall be in force on the day of manufacture of the butter and shall apply to butter delivered to the cold store designated by the intervention agency and situated at a maximum distance to be determined from the place where the butter was in store.

2. Aid for the private storage of cream of cows' milk produced in the Community and of butter referred to in paragraph 1 shall be granted by the intervention agency of the Member State on whose territory the cream or butter in receipt of the aid are stored. However, aid may also be paid in respect of butter of a minimum fat content and a maximum salt content, by weight, of 80 % and 2 % respectively.

The amount of aid shall be fixed taking into account storage costs and the likely trend of the price of fresh butter. If, at the time of removal from storage, the market has altered adversely in a way which was unforeseeable at the time of entry into storage, the amount of aid may be increased.

The private storage aid shall be subject to the drawing-up of a storage contract concluded under conditions to be determined. If the market situation so requires, the Commission may decide, in accordance with the procedure laid down in Article 30, on the remarketing of some or all of the cream or butter under private storage contract.

3. Disposal of the butter bought in by the intervention agencies shall be effected at a minimum price and under conditions to be determined in such a way as to avoid disturbing the balance of the market and to ensure purchasers equal treatment and access to the butter for sale. Where the butter offered for sale is intended for export, special conditions may be laid down in order to ensure that the product is not diverted from its destination and to take account requirements specific to such sales.

Where the butter purchased by the intervention agencies cannot be marketed during a milk year under normal conditions, the Commission shall examine the situation and adopt appropriate measures in accordance with the procedure laid down in Article 30. In so far as may be warranted by the nature of such measures, special measures shall also be taken with a view to maintaining marketing opportunities for products in receipt of the private storage aid referred to in paragraph 2.

4. The intervention system shall be so applied that:

- the competitive position of butter on the market is maintained,

- the initial quality of butter is so far as possible preserved,

- stocks are held on the most rational possible basis.

5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure laid down in Article 30.`;

3. Article 8 is replaced by the following:

'Article 8

1. Under conditions to be determined, aid shall be granted for the private storage of:

(a) Grana Padano cheese at least nine months old,

(b) Parmigiano Reggiano cheese at least 15 months old,

(c) Provolone cheese at least three months old,

If these cheeses reach certain standards.

2. The amount of private storage aid shall be fixed taking account of storage costs and the likely trend of market prices.

3. The intervention agency designated by the Member State in which the said cheeses are produced and qualify to bear designation of origin shall implement the measures taken pursuant to paragraph 1.

The granting of private storage aid shall be subject to the conclusion of a storage contract with the intervention agency. The contract shall be drawn up under conditions to be determined.

Where the market situation so requires, the Commission may decide, in accordance with the procedure laid down in Article 30, that the intervention agency shall remarket some or all of the cheese stored.

4. Detailed rules for the application of this Article, and in particular the amount of aid and the provisions concerning the storage contract and inspection of storage operations, shall be adopted in accordance with the procedure laid down in Article 30.`;

4. Article 27 is hereby repealed.

Article 2

Regulation (EEC) No 971/68 is hereby repealed. However, it shall continue to apply in respect of the marketing of quantities purchased prior to the entry into force of this Regulation.

Regulation (EEC) No 985/68 shall be repealed with effect from 1 January 1995. However, it shall continue to apply to ensure fulfilment of obligations contracted prior to the aforementioned date.

Article 3

This Regulation shall enter into force on the third day following its publication in the Official Journal of European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at . . .

For the Council

. . .

(1) OJ No L 148, 28. 6. 1968, p. 13.

(2) OJ No L 30, 3. 2. 1994, p. 7.

(3) OJ No L 169, 18. 7. 1968, p. 1.

(4) OJ No L 187, 13. 7. 1991, p. 1.

(5) OJ No L 166, 17. 7. 1968, p. 8.

(6) OJ No L 52, 28. 2. 1975, p. 23.