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

Background

Milk production

Global demand

Direct Payments

Single CMO

Rural Development

CAP Instruments

9

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

• Safety net• Exceptional measures

• Milk Package

• School milk scheme

• Milk Market Observatory

Single Common Market Organization

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

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

• 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

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

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 !