31 DECEMBER 1978 AT LIT 260 PER LITRE INCLUSIVE OF VAT .
3 BEFORE THE COURT EXAMINES THE ACTUAL TERMS AND PURPORT OF THE QUESTION RAISED IT IS APPROPRIATE TO RECAPITULATE THE ESSENTIAL FEATURES OF , FIRST , THE COMMUNITY REGULATIONS AND , SECONDLY , THE NATIONAL RULES ON THE SUBJECT .
4 ACCORDING TO ARTICLE 3 ( 1 ) OF REGULATION NO 804/68 A TARGET PRICE FOR MILK IS FIXED FOR THE COMMUNITY BEFORE 1 AUGUST OF EACH YEAR IN RESPECT OF THE MILK YEAR BEGINNING IN THE FOLLOWING CALENDAR YEAR . THIS TARGET PRICE IS , ACCORDING TO ARTICLE 3 ( 2 ), THE PRICE FOR MILK WHICH IT IS AIMED TO OBTAIN FOR THE AGGREGATE OF PRODUCERS ' MILK SALES ON THE COMMUNITY MARKET AND ON EXTERNAL MARKETS DURING THE MILK YEAR . IN ACCORDANCE WITH THE PROCEDURE LAID DOWN IN ARTICLE 43 ( 2 ) OF THE TREATY IT IS APPLICABLE TO MILK CONTAINING 3.7% FAT , DELIVERED TO DAIRY ( ARTICLE 3 , ( 3 ) AND ( 4 ).
5 SINCE THERE ARE NO DIRECT INTERVENTION MEASURES IN RELATION TO MILK THE PRINCIPAL MEANS OF SUPPORTING THE PRICE FOR THIS PRODUCT IS A SYSTEM OF INTERVENTION PRICES , INTRODUCED BY ARTICLE 5 , FOR CERTAIN DERIVED PRODUCTS , NAMELY BUTTER , SKIMMED-MILK POWDER AND GRANA PADANO AND PARMIGIANO REGGIANO CHEESES . THE AIM OF THESE INTERVENTION PRICES IS TO ENSURE THAT THE TARGET PRICE FOR MILK IS ATTAINED UNDER THE CONDITIONS SET OUT IN ARTICLE 3 , THAT IS TO SAY , ESSENTIALLY , AS DICTATED BY MARKET FORCES WITHIN THE COMMUNITY . TO THAT END THE REGULATION INCLUDES ALSO A SYSTEM OF PROTECTIVE MEASURES AT COMMUNITY FRONTIERS , COMPRISING IN THE MAIN LEVIES INTENDED TO COMPENSATE FOR THE DIFFERENCE BETWEEN THE THRESHOLD PRICE AND THE FREE-AT-FRONTIER PRICE FOR ANY PARTICULAR MILK PRODUCT . THESE PRICES ARE FIXED FOR EACH OF THE ' ' PILOT PRODUCTS ' ' REFERRED TO IN ARTICLE 14 OF REGULATION NO 804/68 AND LISTED IN ANNEX I TO REGULATION NO 823/68 OF THE COUNCIL OF 28 JUNE 1968 DETERMINING THE GROUPS OF PRODUCTS AND THE SPECIAL PROVISIONS FOR CALCULATING LEVIES ON MILK AND MILK PRODUCTS ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1968 ( I ), P . 199 ). IT SHOULD ALSO BE MENTIONED THAT REGULATION NO 804/68 ALLOWS FOR THE GRANTING OF EXPORT REFUNDS WHICH ARE UNIFORM FOR THE WHOLE COMMUNITY BUT VARY ACCORDING TO DESTINATION IN THE CASE OF NON-MEMBER COUNTRIES .
6 FOR THE MILK YEAR WHICH IS CONCERNED IN THE MAIN ACTION THE TARGET PRICE FOR MILK WAS FIXED BY COUNCIL REGULATION NO 998/78 OF 12 MAY 1978 ( OFFICIAL JOURNAL NO L 130 OF 18 MAY 1978 , P . 5 ) AS FROM 22 MAY 1978 AT 17.70 UNITS OF ACCOUNT PER 100 KG ( LIT 204.26 PER KG ), AND THIS WAS AFTER THE 1977/1978 MILK YEAR HAD BEEN EXTENDED UNTIL 21 MAY 1978 BY COUNCIL REGULATION NO 910/78 OF 27