Proposal for a Council Regulation amending Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (single CMO Regulation) as regards the national quotas for milk
Date: 2007-12-12
Institutions: European Commission
Subjects: EU Member State, agricultural quota, common organisation of markets, single market

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.12.2007 
COM(2007) 802 final 

2007/0281 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1234/2007 establishing a common organisation of 
agricultural markets and on specific provisions for certain agricultural products 
(single CMO Regulation) as regards the national quotas for milk 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

In  June  2003  the  Council  reached  an  agreement  on  a  number  of  changes  to  the  EU  dairy 
policy as part of the 2003 Reform of the CAP. This reform re-enforced the changes which had 
been agreed in Agenda 2000, and was to be implemented over a number of years.  

The Commissions' original proposal for the 2003 Reform included an increase in quota of 2% 
in  addition  to  the  increases  already  agreed  in  Agenda  2000.  In  the  June  2003  compromise, 
however, the Council declared that "No additional quota increase in 2007 and 2008 will be 
decided now. The Commission will present a market outlook report once the reform is fully 
implemented on the basis of which a decision will be taken."  

Given the dynamic developments which have taken place this year on dairy markets, and that 
the  only  part  of  the  2003  reform  remaining  to  be  implemented  is  a  quota  increase  on 
1 April 2008 of 0.5% in 11 Member States, it is considered appropriate to provide the market 
analysis  requested  by  the  Council  at  this  time.  The  Market  Outlook  Report  for  the  Dairy 
Sector which accompanies this proposal contains this analysis. In effect, the report addresses 
the  question  of  whether  the  market  offers  enough  opportunities  for  additional  quantities  of 
milk to be supplied, without leading to increased public support in the short and/or medium 
term, if the national quotas were to be expanded for all 27 Member States. 

The report concludes that both the EU and world market outlooks are positive and the analysis 
made  for  a  2%  increase  in  milk  production  in  the  EU  shows  that  the  market  readily  offers 
opportunities for these additional quantities.  

The Commission, in fulfilling the request of Council to provide a basis on which a decision 
can  be  taken  regarding  an  increase  in  quotas,  concludes  that  the  2%  increase,  originally 
proposed as part of the 2003 Reform, may be implemented as from the 2008/2009 milk quota 
period. Accordingly a proposal for such an increase is set out below. 

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2007/0281 (CNS) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 1234/2007 establishing a common organisation of 
agricultural markets and on specific provisions for certain agricultural products 
(single CMO Regulation) as regards the national quotas for milk 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 37 thereof, 
Having regard to the proposal from the Commission1, 
Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Annex IX to Council Regulation (EC) No 1234/20073 (single CMO Regulation) sets 
down the national milk quotas for the seven 12-month periods commencing on 1 April 
2008 within the milk quota system for production limitation. 

Article  66(3)  of  Regulation  (EC)  No  1234/2007  provides  that  those  quotas  are  fixed 
without prejudice to possible review in the light of the general market conditions and 
particular conditions in certain Member States. 

The Council requested that the Commission undertake a market outlook report when 
the 2003 reforms of the common market organisation in milk and milk products had 
been  fully  implemented  with  a  view  to  assessing  the  appropriateness  of  allocating 
additional quotas. 
This report has been conducted4 and concluded the current situation of the Community 
and  world  markets  and  their  projected  situation  in  the  period  to  2014,  warrant  an 
additional increase in quota by 2% to facilitate the production of more milk within the 
Community to help satisfy emerging market requirements for dairy products. 

(5) 

Therefore it is appropriate to increase all Member State quotas as shown in Annex IX 
of Regulation (EC) No 1234/2007 by 2% from 1 April 2008. 

(6) 

Regulation (EC) No 1234/2007 should therefore be amended accordingly, 

1 
2 
3 
4 

OJ C …, …, p. …. 
OJ C …, …, p. …. 
OJ L 299, 16.11.2007, p. 1. 
COM(2007) …. 

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HAS ADOPTED THIS REGULATION: 

Article 1 

Point 1 of Annex IX to Regulation (EC) No 1234/2007 is replaced by the text in the Annex to 
this Regulation. 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 2 

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

Done at Brussels,  

For the Council 
The President 

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1. 

National quotas 

ANNEX 

Member State 

Quantities (tonnes) 

Belgium 

Bulgaria 

Czech Republic 

Denmark 

Germany 

Estonia 

Ireland 

Greece 

Spain 

France 

Italy 

Cyprus 

Latvia 

Lithuania 

Luxembourg 

Hungary 

Malta 

Netherlands 

Austria 

Poland 

Portugal 

Romania 

Slovenia 

Slovakia 

Finland 

Sweden 

3 427 288,740 

998 580,000 

2 792 689,620 

4 612 619,520 

28 847 420,391 

659 295,360 

5 503 679,280 

836 923,260 

6 239 289,000 

25 091 321,700 

10 740 661,200 

148 104,000 

743 220,960 

1 738 935,780 

278 545,680 

2 029 861,200 

49 671,960 

11 465 630,280 

2 847 478,469 

9 567 745,860 

1 987 521,000 

3 118 140,000 

588 170,760 

1 061 603,760 

2 491 930,710 

3 419 595,900 

United Kingdom 

15 125 168,940 

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FINANCIAL STATEMENT 

1. 

2. 

3. 

4. 

5. 

APPROPRIATIONS: 
EUR 167 000 000. 

BUDGET HEADING: 
05 02 12 
TITLE: 
Proposal  for  a  Council  Regulation  amending  Regulation  (EC)  No  1234/2007  establishing  a  common 
organisation of agricultural markets and on specific provisions for certain agricultural products (single 
CMO Regulation) as regards the National quotas for milk. 
LEGAL BASIS: 
Art. 37 of the Treaty. 
AIMS: 
Increase of the milk quota by 2% on 1 April 2008 to facilitate the production of sufficient milk within 
the European Union. 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

(EUR million) 
p.m. 

CURRENT 
FINANCIAL 
YEAR 
2008 
(EUR million) 
p.m. 

FOLLOWING 
FINANCIAL 
YEAR 
2009 
(EUR million) 
p.m. 

– 

– 

– 

5.0 

EXPENDITURE 
– 
(REFUNDS/INTERVENTIONS) 

CHARGED TO THE EC BUDGET 

5.1  REVENUE 

OWN RESOURCES OF THE EC  

– 
(LEVIES/CUSTOMS DUTIES) 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: – 
6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

2010 
p.m. 
– 

2011 
p.m. 
– 

2012 
p.m. 
– 

2013 
p.m. 
– 

YES NO 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

YES NO 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 

YES NO 
YES NO 

OBSERVATIONS: 
The proposal has no impact on administrative expenditure. 
1) 
2) 
Analysing the impact of a 2% dairy quota increase by using the OECD AGLINK model, the increased 
dairy production will to a large degree be consumed on the internal markets, and EU market prices will stay 
above intervention price levels. Therefore there will be no need to reintroduce internal market disposals aids. 
On the export side, the AGLINK model estimates that the EU could regain some quantities on the third country 
export markets following the quota increase. These increased quantities are not expected to influence the world 
market price in such a way, that the need for export refund to be reintroduced would be necessary. 
Furthermore, it has been assumed that the full quota increase will be produced. In the case that this would not 
be  the  result,  the  change  in  exported  quantities  will  be  less  than  the  result  from  the  model,  as  indicated  in 
Annex II to the dairy market outlook report. 

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