Report from the Commission to the European Parliament and the Council on the implementation of Directive 96/16/EC on statistical surveys of milk and milk products (pursuant to Article 8 of Directive 96/16/EC)
Date: 2003-04-02
Institutions: European Commission
Subjects: agricultural statistics, exchange of information, milk, milk product, statistics

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.4.2003
COM(2003) 159 final

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT
AND THE COUNCIL

on the implementation of Directive 96/16/EC
on statistical surveys of milk and milk products
(pursuant to Article 8 of Directive 96/16/EC)

CONTENTS

Introduction ................................................................................................................................ 3

1.

Implementation of the legislation................................................................................. 4

1.1.

Overview ...................................................................................................................... 4

1.1.1.

Progress achieved......................................................................................................... 4

1.1.2.

Problems of implementation ........................................................................................ 5

1.2.

Analysis of the main issues .......................................................................................... 6

1.2.1.

Protein in the main milk products ................................................................................ 6

1.2.2.

Transmission deadlines ................................................................................................ 7

1.2.3.

"Gross/net" approach.................................................................................................... 7

1.2.4.

Triennial statistics ........................................................................................................ 8

2.

Some statistical conclusions......................................................................................... 9

2

INTRODUCTION

The  Commission  has  drawn  up  this  report  pursuant  to  Article  8  of  Council  Directive
96/16/EC of 19 March 1996 on statistical surveys of milk and milk products1, which stipulates
that  "No  later  than  1  July  1999,  the  Commission  shall  submit  to  the  Council  a  report  on
experience  acquired  in  implementing  this  Directive.  At  the  same  time  it  shall  submit,  in
particular,  the  results  of  the  analysis  referred  to  in  Article  4(2)  accompanied,  where
appropriate, by proposals regarding the definitive period."

This  final  report  follows  on  from  an  initial  interim  report  of  27 September  2000  [ref.
COM(2000)600 final] covering the whole context of  the  drawing-up  and  implementation  of
the present legislation.

This report was to have been forwarded to the Council by 1 July 1999. However, it was not
forwarded by that date, mainly for the two reasons set out below:

– 

– 

on  that  date  the  Commission  did  not  have  any  data  on  the  third  year  of
implementation of the legislation concerned, since this legislation lays down that the
Member  States  should  transmit  to  Eurostat  annual  data  for  the  year  just  ended  by
30 June 1999;

in addition, in July 1999 a special meeting of the Working Party for Milk Statistics
was  held  to  examine  the  main  problems  encountered  in  implementing  Decision
97/80/EC,  and  this  might  have  influenced  certain  aspects  to  be  dealt  with  in  the
report to be submitted to the Council.

1

OJ L 78, 28.3.1996

3

                                                
1.

IMPLEMENTATION OF THE LEGISLATION

1.1.

Overview

1.1.1.

Progress achieved

Some of the differences between the former legislation2 and the new legislation  3 are set out
below:

Former legislation
of 
classification 

cheese: 

*  The 
the
Commission  classifies  the  types  of  cheese
supplied  by  the  Member  States  according  to
the fat content in the dry matter.
*  The  breakdown  of  butter  and  other  fats:
mainly comprises two categories.

* Treatment of cross-border production: under
availabilities  and  utilisations,  imports  and
exports are entered under different headings.

* The treatment of the difference is the subject
the  other
of  a  specific  heading,  while 
utilisations  heading  is  broken  down  into  two
separate headings.

* Milk  production  on  farms:  application  of
Table 5 of the implementing decision.

New legislation

* Cheese is classified by type of milk and by
categories according to softness/hardness.

the 

*  Butter  is  broken  down  into  four  categories.
initial  breakdown  was  subsequently
The 
amended by a breakdown into nine categories,
five  of  which  involve  the  optional  collection
and submission of data.
* Apart  from  a  few  differences  concerning
product  specifications, 
treatment  of
information  on  imports  and  exports  is  to  be
found  under  different  headings  for  both
availabilities  and  utilisations.  The  accuracy
regarding  the  origin  of  the  milk  must  be
improved.
* The  treatment  of  the  differences  is  the
subject of a specific heading; it concerns only
fat  and  inputs  of  whole  and  skimmed  milk.
The  utilisations  are  spelled  out  in  less  detail
than  in  the  previous  regulation  but  leave  the
field of response open.
* In the new implementing decision it is, apart
from a few differences, Table C which covers
this question. The methodological information
on  the  compilation  of  statistics  on  milk
production  on  farms  shows 
that  various
methods are used to implement the legislation:
monthly declarations, estimates or sampling. It
should  be  noted  that  the  figures  provided  by
the  statistics  on  the  regional  production  of
cow's milk tally with those provided by Table
C of the Decision.

2

3

Council Directive 72/280/EEC and Commission Decision 72/356/EEC
Council Directive 96/16/EC and Commission Decision 97/80/EC

4

                                                
The following are the main differences and progress to which priority has been given during
the years in which the new legislation has been in force:

– 

– 

– 

Statistical information on the protein content of the main milk products is central to
the  assessment  of  the  implementation  of  the  legislation  on  milk  statistics.  Various
meetings  of  the  Working  Party  for  Milk  Statistics  gradually  led  to  an  agreement
between  the  Member  States  and  the  Commission  on  the  possibility  of  compiling
information on this subject which meets statistical quality criteria.  The  methods for
measuring  and/or  estimating  the  protein  content  of  the  main  milk  products  were
analysed,  compared  and  summarised.  The  Member  States  agreed,  on  the  basis  of  a
gentleman’s  agreement,  to  provide  the  data  concerned  annually,  measured  or
estimated by the method which they deem to be the most appropriate.

Directive 96/16/EC (hereinafter referred  to as "the new legislation")  lays down that
the  Member  States  should  submit  an  annual  methodological  report  on  the
implementation of the legislation on milk statistics. The Member States supplied the
necessary  information  and  a  number  of  bilateral  contacts  supplemented  the
methodological reports submitted in accordance with Article 5 of the said Directive.
In addition,  a methodological questionnaire covering the key  issues involved  in  the
implementation of the legislation on milk statistics was distributed. The replies were
used  to  highlight  the  similarities  and  differences  in  interpreting  the  legislation  and
provided further information on which to base this report.

Regional  statistics  on  the  production  of  cow's  milk.  The  compulsory  forwarding  of
these data by the Member States, provided for by the previous legislation (Directive
72/280/EC,  repealed  by  Directive  96/16/EC),  has  been  abolished  by  the  current
legislation.  However,  the  Member  States  agreed,  on  the  basis  of  a  gentleman’s
agreement,  to  transmit  these  data  at  the  Commission's  request.  This  information  is
particularly important for analysing and projecting trends in the milk sector. Since it
is  not  directly  available  in  all  the  Member  States,  Eurostat  proposed  the  use  of
estimating methods which produce statistically satisfactory, reliable and comparable
results. As a result, a database containing the regional production of cow's milk was
compiled and made available to users from the first half of 2002, which represents a
significant step forward.

1.1.2.

Problems of implementation

The main difficulties encountered in the application of the legislation concerned by this report
can  be  divided  into  two  types:  those  involved  in  the  transmission  of  data  and  the
methodological difficulties.

With  regard  to  the  difficulties  involved  in  transmitting  data,  Eurostat  singles  out  two  main
points: transmission deadlines and confidentiality.

On the subject of transmission deadlines, it should be stressed that the new legislation on milk
statistics  abolished  the  transmission  of  weekly  statistics  in  order  to  make  it  easier  for  the
Member States to transmit mainly the monthly and annual statistics within the strict deadlines.

The late transmission of data by some Member States leads to  delays  in  the  updating  of  the
Eurostat databases and detracts from the general interest of milk statistics for the main users
(see Annex 1).

5

With regard to confidentiality, it should be noted that data subject to statistical confidentiality
has  increased  considerably  since  the  entry  into  force  of  the  new  legislation  (see  Annex  2).
This obliges Eurostat to publish some of the data only as aggregated EU15 totals. The detailed
level of the information available in most of the Member States is therefore lost, resulting in
the  general  impoverishment  of  the  database  available  to  users.  If  the  survey  units  were
included  at  "local  production  unit"4  (and  not  "enterprise")  level,  this  would  increase  their
number  and  thus  avoid  their  falling  below  the  confidentiality  threshold  of  three  production
units. Such a shift from "enterprise" to "local production unit" would also help to better define
the  information  needed  for  the  triennial  statistics  on  the  structure  of  the  milk  industry  (see
below).

As  for  the  methodological  difficulties  in  implementing  the  legislation,  there  are  two  main
issues: a) the problem of the re-use of intermediate milk products and b) the triennial statistics
on the structure of milk enterprises.

The  re-use  of  intermediate  milk  products  deserves  special  attention  for  two  reasons.  First,
information on re-use makes it possible to increase our knowledge of the milk sector. Second,
knowledge  of  re-use  makes  it  possible  to  avoid  double  counting,  which  is,  furthermore,  a
requirement clearly set out in Directive 96/16/EC.

Whether  or  not  triennial  statistics  on  the  structure  of  milk  undertakings  can  be  compiled
depends  directly  on  a  clear  definition  of  the  milk-producing  establishments  concerned:  are
they "enterprises" or "local production units"?

In  practice,  confusion  between  these  two  approaches  makes  it  difficult  to  compile  reliable
statistics on the structure of establishments and again highlights the problem of the re-use of
intermediate milk products.

One  of  the  issues  to  which  increased  attention  should  be  paid  is  maintaining  consistency
between  the  list  of  definitions  in  the  milk  legislation,  which  has  remained  unchanged  since
that  legislation  came  into  force,  and  the  various  product  nomenclatures  and  classifications
which are regularly revised (Combined Nomenclature, Prodcom and Nace).

1.2.

Analysis of the main issues

1.2.1.

Protein in the main milk products

Article  4(2)  of  Directive  96/16/EC  calls  for  an  analysis  of  the  possibility  of  extending  the
annual statistical information to include the protein content of the main milk products. To this
end, the Member States conducted, during the three years following the entry into force of the
Directive, pilot surveys or studies on achieving that objective. The same article states that the
Commission shall draw up a work programme for each of these three years.

At the end of the trial period, the Member States continued to transmit, on a voluntary basis,
the data required to calculate the protein content of milk products.

4

Within the meaning of Council Regulation (EEC) No 696/93 on the statistical units for the observation
and analysis of the production system in the Community (OJ L 76, 30.3.1993, p.1)

6

                                                
In  this  context,  the  Commission  has  drawn  up  a  summary  of  the  various  methods  for
measuring  and  evaluating5  the  protein  content  of  the  main  milk  products.  The  methods  fall
into  two  broad  groups:  the  first  based  on  measuring  or  estimating  the  protein  in  the  end
product  ("in  output")  and  the  second  based  on  the  protein  content  of  the  products  used  in
input. These measurements provide a satisfactory estimate of the protein content of the main
milk  products  at  European  level.  In  the  light  of  the  cost-effectiveness  criterion  and  of  the
burden involved in additional statistical investigations, this solution seems the most effective.

1.2.2.

Transmission deadlines

The legislation stipulates that the monthly milk statistics must be sent within 45 days of the
end  of  the  reference  month.  The  annual  and  triennial  data  should  be  sent  in  the  June  and
September following the reference year. The aim is to be able to update the databases rapidly
and provide as soon as possible reliable, rapid and harmonised information at European level.

Annex 1 to this report shows the delays in transmitting the annual and monthly statistical data
from  1997  to  2000  (and/or  2001).  Some  Member  States  are  still  behind  with  their  returns.
Almost two-thirds of the Member States are behind with the annual statistics. During the five
years  in  which  the  legislation  has  been  in  force,  the  average  delay  in  the  transmission  of
annual statistics has been anything up to five or six months beyond the deadline.

Furthermore,  the  monthly  statistics  of  two-thirds  of  the  Member  States  are  overdue.  During
the five years in which the legislation concerned has been in force, three Member States have
been  behind  with  their  returns  for  an  average  of  two  months  or  more  beyond  the  45-day
deadline following the reference month.  These  delays  prevent  the compilation of the  EU-15
totals and compromise the efficient use of statistical data for market analysis and forecasting.

Eurostat  has  regularly  stressed  to  the  Member  States  the  need  to  send  the  data  within  the
deadlines, including provisional data, with the definitive data being submitted in the course of
the year.

1.2.3.

"Gross/net" approach

The  current  approach  to  measuring  the  production  of  the  main  milk  products  is  a  net
approach,  i.e.  it  excludes  re-use  within  the  milk  sector.  It  provides  the  basis  for  a  simple
measurement  of  the  quantities  intended  for  direct  consumption  and  export  for  each  of  the
Member  States.  Since  the  raw  material  entering  the  manufacturing  process  is  estimated  in
terms  of  whole  milk/skimmed  milk,  this  solution  seems  the  simplest  for  drawing  up  the
utilisation  balances  for  this  raw  material.  The  "net"  approach  should  be  retained  for  the
compilation of the milk statistics.

However, in the light of the experience acquired, and in view of the profound changes which
have  taken  place  in  the  manufacturing  process  of  milk  products  and  which  lead  to  the  ever
increasing use of intermediate milk products, measuring re-use would extend the range of the
statistical information, particularly with regard to the use of milk products outside the sector.
Nevertheless,  the  legislation  as  it  stands  does  not  require  data  on  the  use  of  milk  products
outside the milk sector. In view of the extent of such uses, accurate information on them (for
all the Member States) would improve the quality of the statistics.

5

Presented to the meeting of the Working Party for Milk Statistics of 14-15 November 2001.

7

                                                
1.2.4.

Triennial statistics

Article 4(1)(c) of Directive 96/16/EC lays down that the number of survey units, broken down
by  certain  size  classes,  must  be  reported  triennially.  The  application  of  this  provision  has
caused a number of problems. On the one hand, the rapid changes in the structure of the milk
industry have rendered the size classes defined by the implementing decision obsolete. Thus,
of the sixteen tables required by the previous legislation, eight have been retained, of which
six in their original 1972 form and two with different classes (two further classes added). The
milk industry has changed considerably over the past thirty years. A reliable indicator of this
is  the  steep  rise  (almost  tenfold  between  1995  and  2000,  see  Annex  2)  in  the  number  of
confidential  codes,  which  is  in  direct  proportion  to  the  concentration  of  enterprises.  On  the
other hand, the units observed have been defined as "enterprises". Consequently the changes
that  have  taken  place  affect  both  restructuring  in  the  milk  industry  and  changes  in  the
technical structures of production.

8

2.

SOME STATISTICAL CONCLUSIONS

In the light of the assessment factors in this report and on the basis of the experience acquired
in the application of the legislation on milk statistics, various improvements will be made to
Directive 96/16/EC by means of amendments concerning:

– 

– 

– 

– 

the protein content of the main milk products;

the attention paid to the problem of confidentiality, by adopting the local unit as the
survey unit and, if possible, gaining the approval of the undertakings concerned for
the dissemination of data deemed confidential within the meaning of the Regulation;

the methodological reports;

the regional statistics on the production of cow's milk.

These improvements will be made by presenting to the European Parliament and the Council
a proposal amending Council Directive 96/16/EC.

9

ANNEX 1

Delays in the transmission of milk statistics

1. Average number of days overdue
Annual return of milk collected by dairies
Table B of Decision 97/80/EC
1997-2000

1997

1998

1999

2000

Average 1997-2000

B

DK

D

EL

E

F

IRL

I

L

NL

A

P

FIN

S

UK

Average EU-15

20

2

1

6

-9

-43

-46

9

-67

-1

-128

-65

142

170

182

227

-1

-11

62

-7

77

104

27

15

1

-12

2

24

12

-5

6

0

20

-3

100

221

198

132

122

98

-9

47

6

33

1

-16

63

96

40

13

0

-1

0

38

37

66

20

82

62

30

352

-10

-1

63

-8

-7

-65

180

9

-5

145

78

65

68

44

16

97

-6

-4

40

10

2. Average number of days overdue

Annual milk production on farms
Table C of Decision 97/80/EC

1997-2000

1997

1998

1999

2000

Average 1997-2000

-48

-98

-20

74

24

-94

53

-14

14

-24

-50

-76

12

-102

-42

-22

B

DK

D

EL

E

F

IRL

I

L

NL

A

P

FIN

S

UK

-63

-91

72

-109

-86

-86

-138

-83

-159

50

20

-1

82

63

39

90

3

40

11

-103

-85

-92

-95

-30

-99

-14

8

40

6

129

106

30

-26

135

-72

12

-101

4

-10

-65

-52

-52

-30

-77

-86

-79

-62

-91

-91

-92

322

-104

-107

-93

-102

-90

-30

-44

Average EU-15

-60

-35

-6

-5

-8

11

3. Average number of days overdue

Monthly return of milk collected by dairies
Table A of Decision 97/80/EC

1997-2001

1997

1998

1999

2000

2001 Average 1997-2001

75

-3

15

58

14

7

-4

28

61

19

7

13

-5

-5

-11

18

B

DK

D

EL

E

F

IRL

I

L

NL

A

P

FIN

S

UK

51

1

16

47

11

18

2

49

26

-17

1

11

52

103

0

14

50

7

3

-2

16

71

10

5

-10

-10

41

46

30

8

12

-15

-10

-3

-4

-30

-25

18

98

66

11

15

4

-4

3

71

-6

14

65

17

3

2

22

43

28

4

19

0

-9

1

100

-7

17

58

25

3

-5

10

91

-10

10

9

-5

-5

-1

Average EU-15

11

14

27

18

19

12

ANNEX 2

Number of confidential codes per country, 1995-2000

Year

1995 1996 1997 1998 1999 2000

16

0

3

3

7

1

3

3

14

13

1

3

3

1

3

0

12

12

15

13

Trends in the number of confidential
codes per country, 1995-2000 -
Total EU-15

0

0

1

3

0

0

0

0

B

DK

D

EL

E

F

IRL

I

L

NL

A

P

FIN

S

UK

0

0

1

3

0

0

0

0

0

1

0

0

0

5

7

0

0

0

0

0

0

20

33

64

1

0

0

8

8

7

3

0

0

17

11

7

3

4

0

17

10

7

0

0

10

64

11

4

14

17

10

7

0

1

9

65

13

4

15

17

17

8

Total
EU-15

17

48

105

131

173

179

%

100

182

518

671

918

953

13