Proposal for a Council Regulation (EC) laying down additional general rules on the common organization of the market in milk and milk products for drinking milk
Date: 1997-07-16
Institutions: European Commission
Subjects: common organisation of markets, marketing standard, milk, milk fat, milk protein

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  16.07.1997 
COM(97)  133  final 

97/0114  (CNS) 

Proposal  for a 

COUNCIL  REGULATION (EC) 

laying down additional general rules on the common organization of the market in 
milk and milk products for drinking milk 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Introduction 

1. 

2. 

Regulation (EEC) No  1411/71 lays down additional general rules on the common 
market organization in milk and milk products for drinking milk.  Since  its entry 
into force,  it has been amended on numerous occasions and other Regulations and 
Directives touching on its field of application have been adopted. 

The  validity  of  the  provisions  in  force  should  therefore  be  verified  and  the 
Regulation consolidated. That is the first aim of this proposal. 

Furthermore,  under  the  Act  of  Accession,  Finland  and  Sweden  may  derogate, 
until 31 December  1997,  from the requirements on the minimum fat content laid 
down in Article 3(l)(b) of Regulation (EEC) No  1411/71.  Under the terms of the 
Act  of  Accession,  "during  the  said  period  the  classification  of  milk  for  human 
consumption laid down in the Regulation shall be reviewed". 

This document also aims to fulfil  that requirement. 

The importance of drinking milk for the milk market 

3. 

4. 

According  to  latest  estimates,  total  production  of  drinking  milk  in  the  fifteen 
countries  of  the  European  Union  in  1995  was  almost  30 million  tonnes.  This 
means  that  around  26%  of  milk  delivered  to  processing  establishments  is 
processed  into  drinking  milk.  There  can  therefore  be  no  doubt  about  the 
importance  of  drinking  milk  in maintaining  balance  on the  milk  market  and  its 
influence  on  the  income  of  producers.  Consequently,  steps  must  be  taken  to 
ensure the stable development of production of this key product. 

Over recent years,  total production of drinking milk has increased fairly  steadily 
at between 0.5% and 1.0% per year. There has been a more noticeable change in 
consumer  preferences  among  the  range  of  products  on  offer,  based  on  their  fat 
content, heat treatment and packaging. 

Table  1 shows that the market share of semi-skimmed milk is rapidly approaching 
that of whole milk. 

Table  l:the market share of different  types of drinking milk (%  of total sales) 

Whole milk 
Semi-skimmed  milk 
Skimmed milk 

1986 

65.4 
28.6 
6.0 

1995 

47.8 
44.3 
7.9 

*L 

As regards thermal treatment, there has been a large increase in the share of UHT 
milk at the expense of pasteurized and sterilized milk.  This  is shown in Table 2. 
Finally,  consumers  are  moving  towards  tetrapacks  and recyclable  plastic  bottles 
and away from glass bottles. 

Table 2: market share of drinking milk according to heat treatment (%  of total sales) 

Pasteurized milk 
Sterilized milk 
UHT milk 

1986 

56 
11 
33 

1995 

52 
6 
43 

The special situation in Finland and Sweden 

5. 

The market for drinking milk in these two countries differs  from that in the other 
Member  States  in  that  the  range  of  products  on  offer  is  greater  and  consumers 
prefer products with a lower fat content. 

In Finland,  whole milk accounts for only  18% of  sales,  while semi-skimmed and 
skimmed  milk  take  62%  and  20%  respectively  of  the  market.  Among  semi-
skimmed milk products, a drinking milk with a 1 %  fat content has a market share 
of around 8%. 

In  Sweden,  semi-skimmed  and  skimmed  milk  account  for  37%  and  24% 
respectively  of the market. Whole milk represents 39% of sales of drinking milk, 
but this is made up almost exclusively of a milk with a fat content of only 3 %. 

6. 

The Act of Accession of  1994 lays down that products not meeting the fat-content 
requirements  set out  in Article 3(l)(b)  of  Regulation  (EEC)  No  1411/71  may be 
marketed  in  the  country  of  production,  i.e.  in  Finland  and  Sweden.  That 
derogation expires on 31 December 1997. 

In  accordance  with  the  Act  of  Accession,  the  Commission  has  examined  the 
classification  laid down in the abovementioned Regulation and considered whether 
it  should  be  amended  to  take  account  of  the  special  situation  in  Finland  and 
Sweden.  Either the classification  can be amended to include the milk consumed in 
those  countries  or  those  two  Member  States  can be  obliged  to comply  with the 
classification  in force in the rest of the Community. 

The first option  has  the  advantage  of  respecting  consumption  patterns  in  those 
countries  and avoiding  the risk  of  milk consumption being  seriously  affected  by 
the disappearance of products which are well-known and enjoyed by consumers. 

2 

However,  this  would  mean  that  the  same  range  of  drinking  milks  would  be 
available  throughout  the Community,  with the risk of confusion  for  both  industry 
and consumers, who are used to their existing ranges and have shown no desire to 
change them. 

The  Commission  therefore  considers  that  the  derogation  provided  for  in  the  Act 
of  Accession  could  be  extended  temporarily  so  as  to  maintain  the  existing 
situation throughout the Community.  The Commission therefore  proposes that the 
derogation be extended until 31 December  1999. 

The protein content of drinking milk 

7. 

Regulation (EEC) No  1411/71 prohibits any modification of the protein content of 
drinking  milk.  There  have  recently  been discussions  within the  sector,  which  are 
still  continuing,  about  this provision  and  the  Commission  has  received  a  request 
that  the  standardization  of  protein  content  be  allowed.  After  examining  the 
question,  the  Commission  takes  the  view  that  the  situation  should  remain  as  it 
stands. 

Standardization  of  protein  content  involves  numerous  risks  and  could  distort  the 
market.  For  example,  if  it  were decided  to  move  towards  a  single  figure  for  the 
whole  Community,  too  low  a  figure  would  lead  to  additional  surpluses  of  milk 
proteins  which  would  have  to  be  disposed  of  on  a  market  on  which  there  is 
already a large surplus. 

On the other  hand,  given the principle of a single market,  it would be difficult  to 
justify  fixing  a  minimum  figure  for  each  Member  State  and  this  would  risk 
distorting  competition. 

Furthermore,  it  cannot  be  denied  that  consumers  are  becoming  more  and  more 
aware  of  the  nutritional  value  of  milk  protein  and  it  is  therefore  important  that 
they  be  guaranteed  drinking  milk  with  a  protein  content  which  fulfils  their 
expectations. In addition,  steps should be taken to facilitate  the sale of milk with a 
protein  content  higher  than  the  natural  content.  To  that  end,  the  Commission 
proposes  that  the  possibility  of  protein  enrichment  of  drinking  milk,  already 
provided  for  by Regulation (EEC) No  1411/71, be maintained. 

8. 

Experience  has  shown  that  special  provisions  need  to  be  adopted  to  improve  the 
monitoring  of  compliance  with  the  prohibition  on  the  standardization  of  protein 
content.  This  can  be  achieved,  and  excessively  onerous  checking  procedures 
avoided,  by  basing  checks  on  a  comparison  of  the  protein  contents  of  drinking 
milk and  raw milk. 

As  regards  checks  on  compliance  with  marketing  rules 
the 
Commission  takes  the  view  that  the  Member  States  should  lay  down  appropriate 
rules and penalties  in the event of  infringements. 

in  general, 

4 

Drinking  milk  and health  standards 

9. 

There  are several  references  in Regulation  (EEC)  No  1411/71  to milk quality  and 
public  health standards.  In particular,  Articles 4  and 5 provide  for the adoption by 
the  Council  of  rules  of  application  on  these  questions.  Since  1 January  1994,  the 
health  and  quality  aspects  of  drinking  milk  have  been  covered  by 
Directive  92/46/EEC,  which  is  directly  based  on  Article 43  of  the  Treaty  since  it 
concerns  all milk  products.  The abovementioned  Articles 4  and 5 should  therefore 
be examined  and amended to prevent any overlap with the Directive. 

Moreover,  the  Directive  lays  down  a  number  of  provisions  on  drinking  milk 
which concern product composition  rather than health.  These  include  rules on the 
freezing  point  and  minimum  protein  and  fat-free  dried  ingredient  contents.  It  is 
in  the  marketing  standards 
therefore  proposed  to 
Regulation  in  accordance  with  what  the  Council  itself  requested  when  adopting 
Directive  92/46/EEC.  On  the  basis  of  experience,  it  is  proposed  to  amend  the 
provision concerning  the freezing  point and to provide for the possibility  of  laying 
down  additional  rules  on  heat  treatment  to  prevent,  in particular,  a  deterioration 
in milk quality. 

insert  these  provisions 

.r 

Proposal for 

COUNCIL REGULATION (EC) No 

of 

laying down additional general rules on the common organization of the market in 
milk and milk products for drinking milk 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in .particular 
Articles 42 and 43 thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Having regard to the opinion of the Economic and Social Committee3, 

Whereas the aim of Council Regulation (EEC) No  1411/71 of 29 June  1971 laying down 
additional  rules  on  the  common  market  organization  in  milk  and  milk  products  for 
drinking  milk4,  as  last  amended  by  Regulation  (EEC)  No 2138/925,  is  to  increase  the 
market  for  products  falling  within  CN  code 0401  as  much  as  possible  by  providing  a 
guarantee of quality and products which fulfil  consumers'  needs and wishes; whereas the 
establishment  of marketing  standards  for  the milk products  concerned  helps  stabilize  the 
market  and  therefore  ensures  a  fair  standard  of  living  for  farmers;  whereas  it  is 
consequently  in  the  interests  of  both  milk  producers  and  consumers  to  maintain  such 
rules; 

Whereas,  in  order to profit  from experience  and to simplify  and clarify  the  rules  so  as 
better to guarantee the legal security of those concerned, a number of amendments should 
be made to the said Regulation and its provisions brought together in a new Regulation; 

Whereas,  in order to meet the wishes of consumers, who attach increasing importance to 
the  nutritional  value  of  milk  proteins,  rules  should  be  laid  down  to  ensure  that  milk 
products contain at least the natural protein content of milk and to permit the enrichment 
of drinking milk with fat-free dried milk ingredients; 

1 OJ No C 
2 OJ No C 
3 OJ No C 
4OJNoL148,  3.7.1971, p. 4. 
5 OJ No L 214, 30.7.1992, p. 6. 

Whereas; with regard to the fat content of  milk,  account should be taken of  the  special 
situation  in Finland  and Sweden which,  under the Act of  Accession,  have  a derogation 
which  expires  on  31 December  1997;  whereas  that  derogation  should  be  extended 
temporarily  to permit the two Member States concerned to adjust to the arrangements  in 
force in the rest of the Community; 

Whereas  Article 5(9)  of  Council  Directive  92/46/EEC  of  16 June  1992 laying  down the 
health rules  for the production and placing on the market of raw milk,  heat-treated milk 
and  milk-based  products6,  as  last  amended  by  Directive 96/23/EC7,  lays  down  certain 
requirements  concerning  the  composition  of  drinking  milk;  whereas,  in the  interests  of 
consistency,  those  provisions  should  be  included  in  the  Regulation  on  marketing 
standards and at the same time amended to take account of experience; 

Whereas  Directive 79/112/EEC on the approximation of  the  laws  of  the Member States 
relating  to the  labelling,  presentation and advertising  of  foodstuffs8,  as  last amended by 
Directive 97/4/EC9,  and  Directive 90/496/EEC  on  nutrition  labelling  for  foodstuffs10 
apply; 

Whereas,  in order to ensure consistency,  products  imported from third countries  should 
be subject to the same rules; 

Whereas  it should be laid down that the Member States  must determine  the checks and 
penalties to be applied in the event of infringement of this Regulation, 

HAS ADOPTED THIS REGULATION: 

Article 1 

1. 

This  Regulation  lays  down  standards  for  products  falling  with  CN  code 0401 
intended for human consumption within the Community. 

2. 

For the purposes of this Regulation: 

(a) 
(b) 

(c) 

"milk" shall mean the produce of the milking of one or more cows, 
"drinking milk"  shall mean the products  referred  to  in Article 3  intended 
for delivery unprocessed to the consumer, 
"fat  content"  shall  mean  the  ratio  by  weight  of  parts  of  milk  fat  per 
hundred parts of milk in the milk concerned. 

6OJNoL268,  14.9.1992, p. 1. 
7OJNoL125,  23.5.1996, p. 10. 
8 OJ No L 33, 8.2.1979,  p.  1. 
9O J N o L 4 3,  14.2.1997,  p. 21. 
10 OJ No L 276, 6.10.1990,  p. 40. 

^ 

Article 2 

1. 

2. 

3. 

Only  milk  complying  with the  requirements  laid  down  for  drinking  milk  may  be 
delivered  or  sold  without  processing  to  the  final  consumer,  either  directly  or 
through  the  intermediary  of  restaurants,  hospitals,  canteens  or  other  similar 
establishments. 

The  sales  descriptions  to  be  used  for  those  products  shall  be  those  given  in 
Article 3.  Those  descriptions  shall  only  be  used  for  the  products  referred  to  in 
that Article,  without prejudice to their use in composite descriptions. 

Member  States  shall  adopt  measures  to  inform  consumers  of  the  nature  and 
composition  of  the products  concerned  where  the absence  of  such  information  is 
likely to cause  confusion. 

1. 

The following  products shall be considered  as drinking milk: 

Article 3 

(a) 

(b) 

raw  milk:  milk  which  has  not  been  heated  above  40°C  or  subjected  to 
treatment having the same  effect; 
whole  milk:  heat-treated  milk  which,  with  respect  to  fat  content,  meets 
one of the following  requirements: 

standardized  whole  milk  :  milk  with  a  fat  content  of  at  least 
3.50%.  However,  Member  States  may  provide  for  an  additional 
category  of whole milk with a fat content of 4.00%  or above, 
non-standardized  whole milk  : milk with  a fat  content  that has  not 
been  altered  since  the  milking  stage  either  by  the  addition  or 
removal  of  milk  fats  or  by  mixture  with  milk  the  natural  fat 
content  of  which  has  been  altered.  However,  the  fat  content  may 
not be less than 3.50  %; 

(c) 

(d) 

semi-skimmed  milk:  heat-treated  milk  whose fat  content  has been brought 
to at least  1.50 % and at most  1.80  %; 
skimmed  milk: heat-treated  milk whose fat content has been brought to not 
more than 0,30  %. 

2. 

Notwithstanding  paragraph  1,  the  requirements  on  fat  content  shall  not  apply  to 
milk  intended  for  human  consumption  produced  in  Finland  and  Sweden  for  a 
period  of  two  years  from  the  entry  into  force  of  this  Regulation.  Drinking  milk 
produced  in those  two  Member  States  to which  this derogation  applies  may  only 
be marketed  in the country of production or exported  to third countries. 

C 

3. 

Without  prejudice  to  the  second  indent  of  paragraph  1(b),  only  the  following 
modifications  shall be allowed. 

(a) 

(b) 

in order  to meet  the minimum  fat  content  for  drinking  milk,  modification 
of the natural  fat content by the removal of cream or the addition of whole 
milk,  semi-skimmed  milk or skimmed milk, 
the  addition  of  proteins  derived  from  milk,  mineral  salts  and  vitamins, 
provided  this  is  indelibly  indicated  at  an  obvious  place  on  the  packing  of 
the  product  so  that  it  can  be  easily  seen  and  read.  However,  such 
indication  shall  not  remove  the  obligation  as  regards  nutrition  labelling 
laid  down  by  Directive 90/496/EEC.  Where  proteins  are  added,  the 
protein content of the enriched  milk must be 4.00%  or more. 

Without prejudice  to Directive 92/46/EEC, drinking milk must: 

Article 4 

(a) 

(b) 

(c) 

(d) 
(e) 

have  a  freezing  point  close  to  the  average  freezing  point  for  raw  milk 
recorded  in the region of production of the drinking milk, 
have  a  weight  of  not  less  than  1  028 grams  per  litre  for  whole  milk  at 
20°C or the equivalent weight per litre for totally defatted  milk at 20°C, 
contain  a  minimum  of  28 grams  of  protein  per  litre,  obtained  by 
multiplying  the  total  nitrogen  content  of  the  milk  expressed  as  a 
percentage by 6.38, 
have a fat-free  dried  ingredient content of 8.50%  or more, 
for  heat-treated  milk,  have  been  subjected  to  a  heat  treatment  which 
permits compliance with quality requirements to be determined. 

Article 5 

Products  imported  into  the  Community  for  sale  as drinking  milk  must  comply  with  this 
Regulation. 

Article 6 

Directive 79/112/EEC  shall  apply,  in  particular  as  regards  national  provisions  on  the 
labelling of drinking milk. 

? 

Article 7 

1. 

Member  States  shall  adopt  all  appropriate  measures  to  monitor  the  application  of 
this Regulation,  penalize  infringements  and prevent and repress  fraud. 

Such  measures  and  any  amendments  shall  be  notified  to  the  Commission  during 
the month following  their adoption. 

2. 

The  Commission  shall  adopt  detailed  rules  for  the  application  of  this  Regulation 
in  accordance  with  the  procedure  laid  down  in  Article 30  of  Regulation  (EEC) 
No  804/68. 

Regulation (EEC)  No  1411/71  is hereby  repealed. 

Article  8 

References  to  Regulation  (EEC)  No  1411/71  shall  be  understood  to  apply  to  this 
Regulation. 

This Regulation  shall  enter  into force  on  1 January  1998. 

Article  9 

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

Done  at... 

For the Council 

/o 

FINANCIAL  STATEMENT 

DATE: i 

1. 

BUDGET  HEADING:  Chapter  B1-20 

APPROPRIATIONS:  ECU  3 632m 

TITLE: 
Proposal  for  a Council  Regulation  laying  down  additional  general  rules  on the  common  market  organization  in milk anc 
milk  products  for  drinking  milk 

LEGAL  BASIS: Articles 42  and 43  of the  Treaty 

AIMS OF  PROJECT: 
To  consolidate  Regulation  (EEC) No  1411/71 and to  extend  the  exemption  from  the requirements  respecting  the 
minimum  fat  content  granted  to  Finaland  and  Sweden  in the  Act  of  Accession. 

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/CUSTOMS  DUTIES) 

-  NATIONAL 

5.0.1. 
5.1.1. 

ESTIMATED  EXPENDITURE 
ESTIMATED  REVENUE 

5.2. 

METHOD  OF  CALCULATION: 

PERIOD OF 
12 MONTHS 

ECUm 

p.m. 

CURRENT 
FINANCIAL 
YEAR  (97) 
ECUm 

FOLLOWING 
FINANCIAL 
YEAR  (98) 
ECUm 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

1999 
ECUm 

p.m. 

2000 
ECUm 

p.m. 

2001 
ECUm 

p.m. 

2002 
ECUm 

p.m. 

6.0. 

6.1. 

6.2. 

6.3. 

CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  ENTERED  IN THE  RELEVANT 
CHAPTER  OF THE  CURRENT  BUDGET? 

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

IS A SUPPLEMENTARY  BUDGET  NECESSARY? 

WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

YES/NO 

YES/NO 

YES/NO 

YES/NO 

OBSERVATIONS: 

The  consolidation  of  Regulation  (EEC) No  1411/71 has  no  financial  implications.  It  is hard  to  put a 
figure  on the  financial  impact  of extending the  exemption  from  the  requirements  in  respect  of  minimum 
fat  content. 

/i 

ISSN 0254-1475 

COM(97) 133 final 

DOCUMENTS 

EN 

03  02  01  10 

Catalogue  number  :  CB-CO-97-126-EN-C 

ISBN 92-78-17582-X 

Office  for Official  Publications of the I'.uropean Communities 

L-2985  Luxembourg 

it