WRITTEN QUESTION E-2868/00

by Camilo Nogueira Román (Verts/ALE) to the Commission

(14 September 2000)

Subject: Payment of the surtax or fine in respect of milk production

There is great concern in rural milieux in Galicia over the Commission's intention to impose a surtax or fine in respect of milk production for 1999-2000. These plans could affect 20 000 agricultural households and could involve the highest fines ever levied, according to the Galician farmers' union (the Sindicato Labrego Galego). In view of the unacceptable passivity of the Galician regional government, whose competences include agriculture, this union, along with the other farmers' unions and, indeed, Galician society as a whole, believes that it is totally unfair to impose such a fine on households who are at this time making a historic effort to modernise their activity while being obliged to sell their milk at the lowest prices in Europe, with the dairy industries taking advantage of the farmers' need to find outlets for what they produce in excess of the minimal quotas allocated to Galicia. Since Galician agriculture is a special case in Europe, even though the Union has to date never considered it to be such, does the Commission intend, at last, to take the necessary action to raise the milk quotas to a sufficient level, thus enabling Galicia's agricultural households to survive and complete the modernisation of their activity which they have so visibly embarked on at great sacrifice?

Answer given by Mr Fischler on behalf of the Commission

(25 October 2000)

The Honourable Member is wrong in ascribing to the Commission an intention to impose a fine on milk producers. Under Council Regulation (EEC) No 3950/92 establishing an additional levy in the milk and milk products sector(1) an additional levy is automatically due from all producers in excess when the deliveries of a particular year exceed the national reference quantity (quota). Since 1992 the levy rate has been 115 % of the milk target price. The amount of the levy depends solely on the quantity in surplus and not on the Commission. According to the Agriculture Ministry's annual statement the national quota was exceeded in Spain in 1999/2000, but by less than in 1995/96.

The Council has been setting quotas since 1984 and under Agenda 2000 has adjusted them for the period to 2008 in line with the Community's internal consumption, its international commitments and historic data for each Member State. Hence Member States' modernisation of the sector can be undertaken only within the limit of the national quota set. Reallocation to certain producers of individual quotas freed by others is permitted.

The Council has over time substantially increased the reference quantities assigned to Spain. For the period 1986-2008 the rise has been 29 %. This contrasts with the European average of a 2 % fall for that period. The Galician production situation was an important factor leading to this difference. Quota distribution between regions and producers is decided by each Member State, using objective criteria. In Spain the regions have been involved in this.

Regional production surpluses explain the comparatively low prices paid to Galician producers. To increase the available quantity for the region without prior commercial rationalisation by the industry would merely worsen the situation. To achieve a modern and profitable industry it would be helpful, rather than increasing quotas, to include it in a rural development plan as provided for in Council Regulation (EC) No 1257/1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and repealing certain Regulations(2).

(1) OJ L 405, 31.12.1992.

(2) OJ L 160, 26.6.1999.