eu milk policies after end of quotas carlos martÍn Óvilo dg agriculture and rural development...
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EU Milk Policies after End of Quotas
Carlos MARTÍN ÓVILO
DG Agriculture and Rural Development
European Commission
Value Chain in Milk Production and ConsumptionAnkara 20.05.2014
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Background
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Milk production
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Global demand
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Direct Payments
Single CMO
Rural Development
CAP Instruments
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Compulsory schemes:• Basic payment scheme• ‘Green’ payment• Young farmers scheme
Voluntary schemes (MS choice):• Redistributive payment• Support in areas with natural
constraints• Coupled support
OR
Simplified scheme for small farmers (voluntary for MS)
(+)
All payments subject to cross compliance
All farmers will have access to the Farm Advisory System
Direct Payments
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• Safety net• Exceptional measures
• Milk Package
• School milk scheme
• Milk Market Observatory
Single Common Market Organization
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sCMO Instruments
Public Intervention50 000 t Butter (221,8 €/100 kg)109 000 t SMP (169,8 €/100 kg)
From 01/03 to 30/09. Automatic tendering if ceilings reached
Aid for Private StorageButter, SMP and PDO/PGI cheeses
Severe Imbalance in Markets(Art. 222)
PO, APO, IBO joint decisions on:• market withdrawal / free distribution
• transformation / processing• private storage• joint promotion
quality requirements• joint purchasing of inputs
• temporary planning of production
If market intervention / emergency measures already taken
Animal diseases, consumer confidence (Art. 220)Trade restrictions (measures against animal diseases)
Market disturbance (loss in consumer confidence)Co-financed, at MS request
Specific problems (Art. 221)Immediately applicable implementing acts
Rapid deterioration of production/market conditionsIf Arts. 219 & 220 measures not possible
Market Disturbance (Art. 219)Threats of market disturbanceSignificant price rises or falls
Other disturbing/threatening circumstancesIf other sCMO measures appear insufficient
Commission direct action Commission empowering stakeholders
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Milk Package
• Negotiating power (up to 33% of national milk production and 3.5% of EU milk production per PO)
• Contractual relations (contracts can be made compulsory by MS)
• Inter-branch organisations (IBOs)
• Supply management for PDO/PGI cheeses
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• Objectives• Increase milk consumption by offering milk products
to pupils at reduced prices (balance market)
• Focus on health and educational aspects and fight against obesity
• Eligible products• milk products, possibly fermented or added with
fruit/ fruit juice or chocolate
• Cheeses
• Level of aid• 18.15€/100kg for all types of drinking milk.
• Maximum subsidized quantity: 0.25 litre milk per pupil per school day.
• Additional MSs top up (voluntary)
School Milk Scheme
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Milk Market Observatory
Dissemination of market data and short-term analysis for the dairy market, with the involvement of producers and dairies as well as national authorities and experts, and the ambition of addressing the growing need for transparency through more detailed and more frequent information.
DG AGRIDG AGRI
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Information on milk market:
http://ec.europa.eu/agriculture/milk/index_en.htm
PAC 2020:http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm
Milk Market Observatory:
http://ec.europa.eu/agriculture/milk-market-observatory/index_en.htm
Thank you for your attention !