CELEX: 51991PC0454
Language: en
Date: 1991-11-20
Title: Proposal for a COUNCIL REGULATION ( EEC ) amending Regulation ( EEC ) No 1411/71 laying down additional rules on the common market organization in milk and milk products for drinking milk

COMMISSION OF THE EUROPEAN COMMUNITIES
                                              C0MC91) 454 final
                                              Brussels, 20 November 1991
                REPORT FROM THE COMMISSION TO THE COUNCIL
   Pursuant to Article 2 of Council Regulation (EEC) No 1027/91,
              on certain Community rules governing the
          production and marketing of whole drinking milk
                               Proposal for a
                         COUNCIL REGULATION (EEC)
       amending Regulation (EEC) No 1411/71 laying down additional
           rules on the common market organization In milk and
                      milk products for drinking milk
                       (presented by the Commission)
 ---pagebreak---                    COMMISSION REPORT TO THE COUNCIL
    Pursuant to Article 2 of Council Regulation (EEC) No 1027/91,
               on certain Community rules governing the
           production and marketing of whole drinking milk.
1. Introduction and background
   Regulation (EEC) No 1411/71 lays down rules governing the production
   and marketing of drinking milk.   When this Regulation was adopted
   there were a number of difficulties with regard to setting the
   minimum fat content of whole milk at 3.5 % and therefore the date of
   expiry of the transitional period for meeting the requirement
   indicated in Article 6(2) of the Regulation was postponed
   from 31.12.73 to 31.03.76.
   In addition to the fears of certain Member States that demand for
   whole milk with a 3.5 % fat content would go down for dietetic
   reasons and because of the presumed increase in retail price that
   would be involved, objections were raised by the United Kingdom and
   Ireland where standardization of whole milk was practically unknown
   There was a risk that the high and very stable demand for this milk
    in both Member States would be affected if standardization were to
   be introduced.
   The Council therefore, in adopting Regulation (EEC) No 566/76
   accepted that Member States should be able to choose between
   standardized and non-standardized milk.   Since this option covers
   both the preparation and marketing of whole milk, it implies
    inevitably restrictions in the trade of whole milk between Member
   States having opted for a different formula of whole milk.
 ---pagebreak---                                   - 2 -
    However, Article 3 (6) of the Regulation provides for two exceptions
    on this rule :
    a Member State having opted for the formula of non-standardized
    whole milk shall not prohibit
    a) The preparation within its territory of standardized whole milk
        for sale within the territory of another Member State which has
        opted for the latter formula,
    b) The marketing within its territory of standardized whole milk
        coming from another Member State, when the fat content of such
        milk is not less than a guideline figure fixed by the Council.
    As a consequence the Council has fixed, from the marketing
    year 1976/77 on, yearly guideline figures for Ireland and the United
    Kingdom, the two Member States having opted for non-standardized
    mi Ik.
2.  Trends in liquid milk consumption and trade
2.1 Consumption
    Liquid milk consumption absorbs nearly 25 % of the Community's milk
    production.   Over the period 1970-1990 consumption per head of the
    population declined slightly, but has been remarkably stable during
    recent years.
 ---pagebreak---                                     - 3 -
     As can be noticed from the figures indicated below, the existence of
     a Common market for milk and dairy products hardly affected the
     different consumption pattern in individual Member States.
Table 1 : total consumption of liquid milk (kg/head)
                                  1978         1983       1988
  Be I g i um/Luxembourg                72        75         81
  Denmark                             131        137        127
  Germany                               70        72         75
  Greece                                          59         55
  Spain                                 95        99        105
  France                                74        72         75
  Ireland                             186        183        184
  Italy                                 93       100         80
  Netherlands                           97        96         94
  Portugal                                                   77
  United Kingdom                       137       128        123
      However, within the global quantity of liquid milk consumed there
      has been a continuing shift from whole milk to semi-skimmed and
      skimmed milk.   For the Community as a whole (E.C 10) the share of
      whole milk decreased from 68 % in 1984 to 56 % in 1989.   In the case
      of the United Kingdom these figure are 92 % and 71 % respectively,
      and for Ireland 100 % and 91 % respectively.
      As regards the United Kingdom it should further be noted that the
      milkman's share of volume in liquid milk distribution has declined
      from 83 % in 1984 to 73 % in 1989.   Supermarket share has risen from
      9 % tot 18 %.
 ---pagebreak---                                     4 -
2.2 Trade
    Intra-Community trade in packaged liquid milk covers not more 2 % of
    total consumption; only the three Benelux countries have a
    relatively high level of imports of packaged consumption milk.
    In the case of the United Kingdom, where liquid consumption
    corresponds to 45 % of the total milk production, total imports of
    packaged liquid milk amount to 0.3 X only.   These imports mainly
    (90 %) consist of semi-skimmed and skimmed milk.
    In its report to the Council on the application of Regulation (EEC)
    No 1411/71 the Commission notes in 1978 that "it is impossible to
    assess the effectiveness of the prescriptions of Article 3(6) since
    the Council has not proceeded with the originally envisaged
    programme for liberalizing intra-Community trade in whole milk".
    With the coming into force of Council Directive 85/397/EEC on Heat
    Treated milk, technical barriers against the free circulation of
    drinking milk disappeared from 1 January 1989 on.
3.1 Cone Ius Ion-proposaI
    The Commission's conclusions are as follows :
    -  over the past decade the global consumption of liquid milk has
       been fairly stable; this general trend is noticed both in Member
       States having opted for standardized whole milk as in the Member
       countries who opted for non-standardized milk;
    -   as regards the United Kingdom liquid milk market it was noted
        that, in recent years, a major shift occurred toward semi-skimmed
       and skimmed milk; as a result, the market share of whole milk is
       now closer to the average figure for the Community as a whole
        than ever before-,
        intra-Community trade in heat treated milk has been liberalized,
        as regards possible technical barriers, following the coming into
        force of Council Directive 85/397/EEC.
 ---pagebreak---                               - 5 -
The Commission believes that, in view of the preceding elements, it
is no longer Justified to maintain measures which result in the
partition of the Community market for whole milk intended for human
consumption.   On the other hand, the Commission does not want to
impose a single standard for whole milk applicable throughout the
Community.   Firstly, because this could have a negative impact on
consumption of whole milk in Member States where this harmonisation
would imply changes vis-à-vis the present situation.    Secondly,
because the Commission believes it should be left to consumers to
make a choice between two products with different characteristics.
Therefore the Commission proposes to amend Regulation (EEC)
No 1411/71 so as to allow the production and marketing of both
 formulas of whole milk in all Member States.   In order to avoid
possible distorting effects on the market, it proposed to increase
 the minimum fat content of non-standardized whole milk from 3.0 to
 3.5 %.
 Finally, provision should be made to avoid that the authorization to
 produce and market standardized whole milk in the United Kingdom
would interfere with Community rules on the operation of the Milk
Market ing Boards.
 ---pagebreak---                                           é
                                   Proposa I for
                        COUNCIL REGULATION (EEC) No      /91
                                         Of
            amending Regulation (EEC) No 1411/71 laying down additional
                rules on the common market organization in milk and
                          milk products for drinking milk
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community, and in
particular Articles 42 and 43 thereof,
Having regard to the Act of Accession of Spain and Portugal, and in particular
Articles 234(5) and 310(1) thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas under Article 3(5) of Council Regulation (EEC) No 1411/71 of
29 June 1971<1>, as last amended by Regulation (EEC) No 222/88<2>, Member
States have, as regards whole milk produced and marketed in their territory, had
to opt for either of the formulae set out in the second indent of paragraph 1(b)
of that Article; whereas under paragraphs 6 and 7 of the said Article trade in
whole milk between Member States that have not opted for the same formulae is
subject to certain restrictions;
Whereas, in line with the trend of consumption and of intra-community trade in
the various categories of drinking milk and also with the elimination of
restrictions on health grounds to free trade in these products, all restrictions
on intra-Community trade under the abovementioned Regulation should be
abolished; whereas this should be done with due respect for milk production and
distribution practices in the Member States;     whereas production and marketing
 (1) OJ No L 148, 3.7.1971, p. 4
 (2) OJ No L 28, 1.2.1988, p. 1.
 ---pagebreak---                                        -¥-
of both types of whole milk should therefore be permitted in each Member State
but under separate commercial names; whereas in order to prevent distortion of
the market the minimum fat content of non-standardized whole milk must be
adjusted;
Whereas under Article 6(2) of the same Regulation Member States can provide for
an additional whole milk category with a fat content fixed by them of not less
than 3.8%; whereas given the proposed changes in the arrangements for whole milk
and to make the distinct nature of this category clear this minimum should be
raised;
Whereas under Article 25(1) of Regulation (EEC) No 804/68 a Member State can be
authorized to grant a producer organization the exclusive right to buy from
producers in the area concerned the milk that they produce and market without
processing; whereas it should be specified in clarification that standardized
whole milk is to be treated as unprocessed milk for the purpose of that
provision,
HAS ADOPTED THIS REGULATION:
                                     Article 1
Regulation (EEC) No 1411/71 is hereby amended as follows:
 1. Article 3 is amended as follows:
     (a) In paragraph K b )
           in the second indent "3%" is replaced by "3.5%";
 ---pagebreak---                                        - 8-
    (b) The following subparagraph is added to paragraph 2:
        "The name "whole milk" must be followed by either of the following
        indicat ions:
        - "natural fat contant"
        - "adjusted fat content"."
    (c) Paragraphs 5 to 8 are deleted.
2.  Article 6 is amended as follows:
    (a) In paragraph 2 "3.8%" is replaced by "4.00%".
    (b) The following paragraph 6 is added:
        "6.  For the purpose of Article 25(1) of Regulation (EEC) No 804/68
             standardized whole milk shall be regarded as unprocessed milk."
                                     Article 2
This Regulation shall enter into force on the third day following its publication
in the Official Journal of the European Communities.
It shall be applicable from the 1992/93 milk year.
This Regulation shall be binding in its entirety and directly applicable in all
Member States.
Done at Brussels,                                For the Council
 ---pagebreak---                                                     9-
    FINANCIAL                       STATEMENT
                                                                       DATE:
1. BUDGET HEADING: Chapter 20                                          APPROPRIATIONS: ECU 5 695 mi 11 ion
                                                                                       (draft budget 1992)
2. TITLE:
   Draft Council Regulation amending Regulation (EEC) Kb 1411/71 laying down additional rules on the camrri
   market organization in mi Ik and mi Ik products for drinking mi Ik
3. LEGAL BASIS:
   Articles 42 and 43 of the Treaty
4. AIMS OF PROJECT:
   Removal of obstacles to free intra-Camunity trade in different types of drinking milk as well as
   adjusting the provisions on whole mi Ik and semi-skinmed mi Ik
                                   Period of 12 months    Current Financial Year    Following Financial Year
5. FINANCIAL IMPLICATIONS                                          1991                      1992
5.0 EXPENDITURE
    - CHARGED TO THE EC BUDGET
    - (REFUNDS/INTERVENTION)               p.m.                                                p.m.
    - NATIONAL ADMINISTRATION
    -OTHER
5.1 REVENUE
    - OWN RESOURCES OF THE EC
       (LEVIES/CUSTGMS DUTIES)
    -NATIONAL
                                          1993                1994                 1995                1996
5.0.1 ESTIMATED EXPENDITURE               p.m.                p.m.                  p.m.                p.m.
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                          YES/ND
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                          YES/ND
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                          YES/ND
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                          YES/ND
OBSERVATIONS:
The financial impact is nil or negligible.
 ---pagebreak---                                        . 1o.
                                                                     ISSN 0254-1475
                                                              C0M(91) 454 final
                                                      DOCUMENTS
EN                                                                              03
                                 Catalogue number : CB-CO-91-504-EN-C
                                                             ISBN 92-77-77474-6
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