WRITTEN QUESTION E-1111/96 by Gerardo Fernández-Albor (PPE) to the Commission (13 May 1996)

Subject: Increase in the Spanish milk quota

The Spanish Government has recently proposed that its Community milk quota be increased because, among other reasons, it considers it insufficient to meet internal consumption. With internal consumption needs amounting to seven million tonnes, Spain entered the European Union with 4.6 million tonnes, an amount which was subsequently increased to the current level of 5.4 million tonnes.

The Spanish request mainly concerns a one million tonne increase in the quota to bring it into line with demand. The Spanish authorities have argued that Spain is virtually the only Community country with a quota which is lower than its requirements.

Can the Commission say whether it considers the Spanish request to be justified, bearing in mind the statements by the Spanish authorities, which are backed up by the views of Spanish farmers, particularly in the region of Galicia, one of the main milk-producing regions in the country whose milk sector, one of its main sources of wealth, has been unfairly made to suffer the consequences of Spain's entry into the European Union?

Answer given by Mr Fischler on behalf of the Commission (30 May 1996)

The allocation of reference quantities to each Member State under the additional milk levy system is based on historical reference production levels. Reference quantities are set without taking account of other factors in each Member State's milk sector, including consumption.

This has led to a situation in which there are several Member States in which the total guaranteed quantity is less than domestic consumption. This is the situation in Spain - but also in Italy, Greece and the United Kingdom.

The total quantity guaranteed for Spain in the course of accession negotiations was 4 650 000 tonnes for deliveries to dairies and 750 000 tonnes for direct sales by producers. In 1987/88 and subsequent years Spain was allocated an additional 50 000 tonnes from the Community reserve. Subsequent adjustments to the Member States' total quantities have raised Spain's net total quantity to 4 458 250 tonnes for deliveries to dairies and 516 950 tonnes for direct sales.

The additional levy scheme for milk production was codified and simplified in 1992 with the total quantities based on historic production adjusted in the case of some Member States to take account either of mistakes in working out the original quantity or of market conditions. Spain was allocated an additional 591 750 tonnes. Permission to transfer 150 000 tonnes from direct sales to deliveries also helped to smooth the introduction of the scheme in Spain.

Spain has also had the benefit of Community financing, specifically for restructuring production including, from 1989, a total of ECU 42 million for restructuring in Galicia and, from 1992, approximately ECU 120 million in total for Spain as a whole.

The trend of milk production in Spain since it acceded shows that the country, unlike most Member States, has increased its deliveries to dairies: from 4 639 000 tonnes in 1986/87 to 5 325 768 tonnes in 1994/95, a 15% increase. This is unique in the Community and amply demonstrates how Spain has been able to reap the benefit of Community rules since its accession. In those circumstances it seems pointless to reopen a difficult debate on increasing the total quantity for Spain at the very time when developments on the market show that there is an ever-present risk of the situation falling apart, with a build-up in stocks and a drop in prices.