TREATY FULFILLED , AS THE COMMISSION AGREED IN ITS DECISION , BUT THAT THE THIRD AND FOURTH CONDITIONS OF THAT PROVISION ARE FULFILLED AS WELL . THE EXCLUSIVE PURCHASING OBLIGATION AND THE OBLIGATION TO PAY A SUM IN THE EVENT OF RESIGNATION ARE INDISPENSABLE MEASURES FOR THE ATTAINMENT OF THE ADVANTAGES ACKNOWLEDGED BY THE COMMISSION IN ITS DECISION AND THEY DO NOT AFFORD THE COOPERATIVE THE POSSIBILITY OF ELIMINATING COMPETITION ON A SUBSTANTIAL PART OF THE COMMON MARKET .
18 IN THIS REGARD IT IS NECESSARY TO RECALL ONCE AGAIN THE FACTOR OF ASSESSMENT CONTRIBUTED BY THE COOPERATIVE ' S POSITION ON THE NETHERLANDS MARKET IN THE PRODUCTS IN QUESTION . IT IS ACCEPTED THAT THE MEMBERS OF THE COOPERATIVE ACCOUNT FOR MORE THAN 90% OF CHEESE OUTPUT IN THE NETHERLANDS AND THAT NON-MEMBER NETHERLANDS PRODUCERS ALSO BUY VIRTUALLY ALL THE RENNET WHICH THEY NEED FROM THE COOPERATIVE . IN THOSE CIRCUMSTANCES PROVISIONS OF SUCH A CONSTRAINING NATURE AS A 100% PURCHASING OBLIGATION , REINFORCED BY AN OBLIGATION TO PAY A NOT INCONSIDERABLE SUM IN THE EVENT OF A RESIGNATION OR EXPULSION , ARE NOT INDISPENSABLE FOR THE ATTAINMENT OF THE OBJECTS REFERRED TO IN ARTICLE 85 ( 3 ). WHAT IS MORE , IT FOLLOWS FROM THE FOREGOING THAT THOSE PROVISIONS IN ANY EVENT CONTRIBUTE TO MAINTAINING A SITUATION IN WHICH COMPETITION IS ELIMINATED IN RESPECT OF A SUBSTANTIAL PART OF THE PRODUCTS IN QUESTION . THE COMMISSION WAS THEREFORE RIGHT TO FIND THAT THE LAST TWO CONDITIONS FOR THE APPLICATION OF ARTICLE 85 ( 3 ) ARE NOT FULFILLED .
THE APPLICABILITY OF REGULATION NO 26/62
19 THE COOPERATIVE ' S FIFTH SUBMISSION IS TO THE EFFECT THAT BY VIRTUE OF REGULATION NO 26/62 ARTICLE 85 ( 1 ) OF THE TREATY DOES NOT APPLY IN THIS CASE BECAUSE ANIMAL RENNET COMES UNDER HEADING 05.04 OR HEADING 05.15 OF THE CUSTOMS COOPERATION COUNCIL NOMENCLATURE , WHICH ARE CITED IN ANNEX II TO THE TREATY , AND NOT UNDER HEADING 35.07 UNDER WHICH , ACCORDING TO THE EXPLANATORY NOTES ON THE CUSTOMS COOPERATION COUNCIL NOMENCLATURE , THAT PRODUCT IS WRONGLY CLASSIFIED . FURTHERMORE THE COOPERATIVE STRESSES THE POINT THAT ARTICLE 38 ( 1 ) OF THE TREATY PROVIDES THAT ' ' AGRICULTURAL PRODUCTS ' ' MEANS NOT ONLY THE PRODUCTS OF STOCKFARMING BUT ALSO PRODUCTS OF FIRST-STAGE PROCESSING DIRECTLY RELATED TO THOSE PRODUCTS . EVEN IF ANIMAL RENNET DOES NOT FALL UNDER ANNEX II TO THE TREATY IT STILL COMES UNDER REGULATION NO 26/62 BECAUSE THE PRODUCTION IN QUESTION IS NECESSARY TO ATTAIN THE OBJECTIVES STATED IN ARTICLE 39 OF THE TREATY AND BECAUSE THE COOPERATIVE MUST BE REGARDED AS A COLLECTIVE ORGANIZATION FOR THE PROCESSING OF AGRICULTURAL PRODUCTS WITHIN THE MEANING OF ARTICLE 2 OF THAT REGULATION .
20 SINCE THERE ARE NO COMMUNITY PROVISIONS EXPLAINING THE CONCEPTS CONTAINED IN ANNEX II TO THE TREATY AND THAT ANNEX ADOPTS WORD FOR WORD CERTAIN HEADINGS OF THE CUSTOMS COOPERATION COUNCIL NOMENCLATURE , IT IS APPROPRIATE TO REFER TO THE