Proposal for a COUNCIL REGULATION ( EEC ) amending Regulation ( EEC ) No 1411/71 laying down additional rules on the common market organization in milk and milk products for drinking milk
Date: 1991-11-20
Institutions: European Commission
Subjects: common organisation of markets, marketing standard, milk fat, whole milk

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0MC91) 454 final 

Brussels, 20  November  1991 

REPORT FROM THE COMMISSION  TO THE  COUNCIL 

Pursuant  to Article  2 of Council  Regulation  (EEC) No 1027/91, 
on certain Community  rules governing  the 
production and marketing of whole drinking milk 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

amending  Regulation  (EEC) No  1411/71  laying down additional 
rules on  the common market  organization  In milk and 
milk products  for  drinking milk 

(presented  by  the  Commission) 

COMMISSION REPORT TO THE COUNCIL 

Pursuant  to Article 2 of Council  Regulation  (EEC) No 1027/91, 
on certain Community  rules governing  the 
production and marketing of whole drinking milk. 

1. 

Introduction and  background 

Regulation  (EEC) No 1411/71  lays down  rules governing  the production 

and marketing of drinking milk.  When  this Regulation was  adopted 

there were a number  of difficulties with  regard  to setting  the 

minimum  fat  content  of whole milk at  3.5 % and  therefore  the date of 

expiry of  the transitional  period  for meeting  the  requirement 

indicated  in Article 6(2) of  the Regulation was postponed 

from  31.12.73  to 31.03.76. 

In addition  to the fears of certain Member  States  that  demand  for 

whole milk with  a 3.5  % fat content  would  go down  for  dietetic 

reasons and because of  the presumed  increase  in retail  price that 

would  be  involved, objections were  raised  by  the United  Kingdom  and 

Ireland where standardization of whole milk was practically  unknown 

There was a risk that  the high and very  stable demand  for  this milk 

in both Member  States would be affected  if standardization were to 

be  introduced. 

The Council  therefore,  in adopting  Regulation  (EEC) No 566/76 

accepted  that Member  States should  be able  to choose  between 

standardized  and non-standardized milk.  Since  this option  covers 

both  the preparation  and marketing  of whole milk,  it  implies 

inevitably  restrictions  in the trade of whole milk between  Member 

States having opted  for  a different  formula of whole milk. 

-  2 -

However, Article 3 (6) of  the Regulation  provides  for  two exceptions 

on  this rule : 

a Member  State having opted  for  the formula of non-standardized 

whole milk shall  not  prohibit 

a) The preparation within  its territory of standardized  whole milk 

for sale within  the territory of another  Member  State which  has 

opted  for  the  latter  formula, 

b) The marketing within  its territory of standardized  whole milk 

coming  from another Member  State, when  the fat  content  of such 

milk  is not  less than a guideline figure fixed  by  the Council. 

As a consequence  the Council  has fixed,  from  the marketing 

year  1976/77 on, yearly guideline  figures  for  Ireland and  the United 

Kingdom,  the two Member  States having opted  for non-standardized 

mi Ik. 

2. 

Trends  in  liquid milk consumption  and  trade 

2.1  Consumption 

Liquid milk consumption absorbs nearly 25 % of  the Community's milk 

production.  Over  the period  1970-1990 consumption  per  head of  the 

population declined slightly, but  has been  remarkably  stable during 

recent  years. 

-  3 -

As can be noticed  from  the figures  indicated  below,  the existence of 

a Common market  for milk and dairy  products hardly  affected  the 

different  consumption  pattern  in  individual  Member  States. 

Table 1  : total  consumption of  liquid milk  (kg/head) 

Be I g i um/Luxembourg 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Netherlands 
Portugal 
United Kingdom 

1978 

1983 

1988 

72 
131 
70 

95 
74 
186 
93 
97 

137 

75 
137 
72 
59 
99 
72 
183 
100 
96 

128 

81 
127 
75 
55 
105 
75 
184 
80 
94 
77 
123 

However, within  the global  quantity  of  liquid milk  consumed  there 

has been a continuing  shift  from whole milk  to semi-skimmed  and 

skimmed  milk.  For  the Community  as a whole  (E.C  10) the share of 

whole milk decreased  from 68 %  in 1984 to 56 %  in 1989.  In the case 

of  the United Kingdom  these figure are 92 % and 71 % respectively, 

and  for  Ireland  100 % and 91 % respectively. 

As  regards  the United Kingdom  it should  further  be noted  that  the 

milkman's  share of volume  in  liquid milk  distribution  has declined 

from 83  % in 1984 to 73  % in 1989.  Supermarket  share  has risen  from 

9 % tot 18 %. 

4 -

2.2  Trade 

Intra-Community  trade  in packaged  liquid milk covers not more 2 % of 

total  consumption; only  the three Benelux  countries  have a 

relatively  high  level of  imports of packaged  consumption  milk. 

In the case of  the United Kingdom, where  liquid  consumption 

corresponds  to 45 % of  the total  milk  production,  total  imports of 

packaged  liquid milk  amount  to 0.3 X only.  These  imports mainly 

(90 %) consist  of semi-skimmed  and skimmed  milk. 

In  its report  to the Council  on  the application of Regulation  (EEC) 

No 1411/71  the Commission  notes  in 1978 that  "it  is  impossible  to 

assess  the effectiveness of  the prescriptions of Article  3(6) since 

the Council  has not  proceeded with  the originally  envisaged 

programme  for  liberalizing  intra-Community  trade  in whole milk". 

With  the coming  into force of Council  Directive 85/397/EEC on Heat 

Treated milk, technical  barriers against  the free circulation of 

drinking milk disappeared  from  1 January  1989 on. 

3.1  Cone Ius Ion-proposaI 

The Commission's  conclusions are as follows : 

-  over  the past  decade  the global  consumption  of  liquid milk  has 

been  fairly stable; this general  trend  is noticed  both  in Member 

States having opted  for standardized  whole milk  as  in the Member 

countries who opted  for non-standardized milk; 

-  as regards  the United Kingdom  liquid milk market  it was noted 

that,  in recent  years, a major  shift  occurred  toward  semi-skimmed 

and  skimmed  milk; as a result,  the market  share of whole milk  is 

now closer  to the average  figure  for  the Community  as a whole 

than ever before-, 

intra-Community  trade  in heat  treated milk  has been  liberalized, 

as regards possible  technical  barriers, following  the coming  into 

force of Council  Directive  85/397/EEC. 

- 5 -

The Commission  believes  that,  in view of  the preceding  elements, it 

is no  longer  Justified  to maintain measures which  result  in the 

partition of  the Community  market  for whole milk  intended  for  human 

consumption.  On  the other  hand,  the Commission  does not  want  to 

impose a single standard  for whole milk  applicable  throughout  the 

Community.  Firstly, because this could  have a negative  impact  on 

consumption of whole milk  in Member  States where  this harmonisation 

would  imply changes vis-à-vis  the present  situation.  Secondly, 

because  the Commission  believes  it should  be  left  to consumers  to 

make a choice between  two products with  different  characteristics. 

Therefore  the Commission  proposes  to amend  Regulation  (EEC) 

No  1411/71  so as to allow the production  and marketing  of  both 

formulas of whole milk  in all Member  States.  In order  to avoid 

possible distorting  effects on  the market,  it proposed  to  increase 

the minimum  fat  content  of non-standardized whole milk  from  3.0 to 

3.5 %. 

Finally, provision  should  be made  to avoid  that  the authorization to 

produce and market  standardized  whole milk  in the United  Kingdom 

would  interfere with Community  rules on  the operation  of  the Milk 

Market ing Boards. 

é 

Proposa I for 

COUNCIL REGULATION (EEC) No 

/91 

Of 

amending Regulation  (EEC) No 1411/71  laying down additional 
rules on the common market  organization  in milk and 
milk products for drinking milk 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to the Treaty establishing  the European  Economic Community, and  in 

particular Articles 42 and 43 thereof, 

Having  regard  to the Act of Accession of Spain and Portugal, and  in particular 

Articles 234(5) and 310(1) thereof, 

Having  regard  to the proposal  from the Commission, 

Having  regard  to the opinion of  the European Parliament, 

Whereas under Article 3(5) of Council  Regulation  (EEC) No 1411/71 of 

29 June 1971<1>, as  last amended by Regulation  (EEC) No 222/88<2>, Member 

States have, as regards whole milk produced  and marketed  in their  territory, had 

to opt  for either of  the formulae set out  in the second  indent of paragraph  1(b) 

of that Article; whereas under paragraphs 6 and 7 of  the said Article  trade in 

whole milk between Member  States that have not opted  for  the same  formulae  is 

subject  to certain restrictions; 

Whereas,  in line with  the trend of consumption and of  intra-community  trade in 

the various categories of drinking milk and also with  the elimination of 

restrictions on health grounds to free trade  in these products, all  restrictions 

on  intra-Community trade under  the abovementioned Regulation should  be 

abolished; whereas this should be done with  due respect  for milk production and 

distribution practices  in the Member  States;  whereas production  and marketing 

(1) OJ  No L 148, 3.7.1971, p. 4 
(2) OJ  No L 28, 1.2.1988, p. 1. 

-¥-

of both  types of whole milk should  therefore be permitted  in each Member  State 

but  under  separate commercial  names; whereas  in order  to prevent  distortion of 

the market  the minimum  fat content of non-standardized whole milk must  be 

adjusted; 

Whereas under  Article 6(2) of  the same Regulation Member  States can provide for 

an additional  whole milk category with a fat  content  fixed by  them of  not  less 

than 3.8%; whereas given  the proposed  changes  in the arrangements  for whole milk 

and  to make  the distinct  nature of  this category  clear  this minimum  should be 

raised; 

Whereas under  Article  25(1) of Regulation  (EEC) No 804/68 a Member  State can be 

authorized  to grant  a producer organization  the exclusive  right  to buy  from 

producers  in the area concerned  the milk  that  they produce and market  without 

processing; whereas  it should be specified  in clarification  that  standardized 

whole milk  is to be treated as unprocessed  milk  for  the purpose of  that 

provision, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation  (EEC) No 1411/71  is hereby amended  as follows: 

1.  Article 3  is amended  as follows: 

(a)  In paragraph  K b) 

in the second  indent  "3%" is replaced  by  "3.5%"; 

- 8 -

(b) The following subparagraph  is added  to paragraph  2: 

"The name  "whole milk" must  be followed  by either  of  the  following 

indicat ions: 

-  "natural  fat contant" 

-  "adjusted  fat content"." 

(c) Paragraphs  5 to 8 are deleted. 

2.  Article 6  is amended  as follows: 

(a)  In paragraph  2 "3.8%"  is replaced  by  "4.00%". 

(b) The  following paragraph 6  is added: 

"6.  For  the purpose of Article 25(1) of Regulation  (EEC) No 804/68 

standardized whole milk shall  be regarded  as unprocessed  milk." 

Article 2 

This Regulation  shall  enter  into force on  the third day  following  its publication 

in the Official  Journal  of  the European  Communities. 

It shall  be applicable from  the 1992/93 milk  year. 

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

Member  States. 

Done at Brussels, 

For  the Council 

9-

FINANCIAL  STATEMENT 

1. BUDGET HEADING:  Chapter 20 

DATE: 

APPROPRIATIONS: ECU 5 695 mi 11 ion 

(draft budget  1992) 

2. TITLE: 

Draft Council Regulation amending Regulation (EEC) Kb 1411/71  laying down additional  rules on the camrri 
market organization  in mi Ik and mi Ik products for drinking mi Ik 

3. LEGAL BASIS: 

Articles 42 and 43 of the Treaty 

4. AIMS OF PROJECT: 

Removal of obstacles to free intra-Camunity trade  in different types of drinking milk as well as 
adjusting the provisions on whole mi Ik and semi-skinmed mi Ik 

5.  FINANCIAL  IMPLICATIONS 

5.0  EXPENDITURE 

- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
-OTHER 

5.1 REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTGMS DUTIES) 

-NATIONAL 

5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

Period  of  12 months 

Current Financial Year 
1991 

Following Financial Year 
1992 

p.m. 

p.m. 

1993 

p.m. 

1994 

p.m. 

1995 

p.m. 

1996 

p.m. 

6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES/ND 

6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2  IS A SUPPLEMENTARY BUDGET NECESSARY? 

6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSERVATIONS: 
The financial  impact  is nil or negligible. 

YES/ND 

YES/ND 

YES/ND 

.  1 o. 

ISSN 0254-1475 

C0M(91) 454 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-91-504-EN-C 

ISBN 92-77-77474-6 

Office for Official Publications of the European Communities 
L-2985 Luxembourg