PURPOSE: to increase Member States’ milk quotas by 2% as from 1 April 2008..

LEGISLATIVE ACT: Council Regulation (EC) No 248/2008 amending Regulation (EC) No 1234/2007 as regards the national quotas for milk.

BACKGROUND: the single CMO Regulation (Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and specific provisions for certain agricultural products. See CNS/2007/0281 ) sets out the national milk quotas for seven 12 month periods commencing on 1 April 2008 within the milk quota system for production limitation. It also provides that those quotas are fixed without prejudice to possible review in the light of the general market conditions as well as the situation in the different EU Member States. A market outlook report, requested by the Council, concluded that an additional increase in the quota by 2%, in order to facilitate milk production and to help satisfy emerging market requirements, was justified.

CONTENT: the purpose of this Regulation, therefore, is to amend Regulation (EC) No 1234/2008 in order to increase all national milk quotas by 2% as from 1 April 2008.

ENTRY INTO FORCE: 20 March 2008.

The European Parliament adopted, by 541 votes to 103 with 22 abstentions, a legislative resolution amending the proposal for a Council regulation amending Regulation (EC) N° 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (single CMO Regulation) as regards the national quotas for milk.

The report had been tabled for consideration in plenary by Elisabeth JEGGLE (EPP-ED, DE), on behalf of the Committee on Agriculture and Development.

The main amendments - adopted under the consultation procedure - were as follows:

-in order to respond to the growing demand in the EU and global markets, the European Commission proposed increasing quotas for milk by 2% in all Member States from 1 April 2008. While agreeing on the principle of an increase to enable the European dairy sector to take advantage of new global opportunities, Parliament stated that national quotas can be voluntarily raised by 2% from 1 April 2008.

-in addition, for the quota year 2008/2009, a surplus levy shall be payable on milk and other milk products marketed in excess of the national quota, as established in accordance with the Regulation, if, after EU-wide balancing out, a surplus still exists;

-before 1 January 2009, the Commission shall submit:

a study on the economic, social and environmental impact of the increase in milk quotas, paying particular attention to mountainous regions and other regions with comparably difficult production conditions; a report on consumer behaviour with regard to the milk market and to the specific circumstances of milk production in disadvantaged regions.

The Committee on Agriculture and Development adopted the consultation report by Elisabeth JEGGLE (EPP-ED, DE), approving, with amendments, the proposal for a Council regulation amending Regulation (EC) No 1234/2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (single CMO Regulation) as regards the national quotas for milk.

In order to respond to the growing demand in the EU and global markets, the European Commission proposed increasing quotas for milk by 2% in all Member States from 1 April 2008. While agreeing on the principle of an increase to enable the European dairy sector to take advantage of new global opportunities, the Committee on Agriculture suggests that national quotas can be voluntarily raised by 2% from 1 April 2008.

In addition, for the quota year 2008/2009, a surplus levy shall be payable on milk and other milk products marketed in excess of the national quota, as established in accordance with the Regulation, if, after EU-wide balancing out, a surplus still exists.

Before 1 January 2009, the Commission shall submit:

· a study on the economic, social and environmental impact of the increase in milk quotas, paying particular attention to mountainous regions and other regions with comparably difficult production conditions;

· a report on consumer behaviour with regard to the milk market and to the specific circumstances of milk production in disadvantaged regions.

PURPOSE: to amend provision regarding national milk quotas.

PROPOSED ACT: Council Regulation.

BACKGROUND: to recall, in 2003 the Council reached an agreement on a number of changes to the EU dairy policy as part of the 2003 Reform of the CAP. The Commissions' original proposal for the 2003 Reform included an increase in quota of 2% in addition to the increases already agreed in Agenda 2000. In the June 2003 compromise, however, the Council declared that a decision regarding the quota increase for 2007 and 2008 should be based on a Commission proposal following an analysis of market conditions; to be prepared once the reform has been fully implemented.

The Market Outlook Report for the Dairy Sector, accompanying this proposal, contains this analysis. In effect, the report addresses the question of whether the market offers enough opportunities for additional quantities of milk to be supplied, without leading to increased public support in the short and/or medium term, if the national quotas were to be expanded for all 27 Member States. The report concludes that both the EU and world market outlooks are positive and the analysis made for a 2% increase in milk production in the EU shows that the market readily offers opportunities for these additional quantities.

CONTENT: g iven the dynamic developments which have taken place this year on dairy markets, and given that the only part of the 2003 reform remaining to be implemented is a quota increase on 1 April 2008 of 0.5% in 11 Member States, the Commission proposes that the 2% increase, originally proposed as part of the 2003 Reform, may be implemented as from the 2008/2009 milk quota period.

PURPOSE: to amend provision regarding national milk quotas.

PROPOSED ACT: Council Regulation.

BACKGROUND: to recall, in 2003 the Council reached an agreement on a number of changes to the EU dairy policy as part of the 2003 Reform of the CAP. The Commissions' original proposal for the 2003 Reform included an increase in quota of 2% in addition to the increases already agreed in Agenda 2000. In the June 2003 compromise, however, the Council declared that a decision regarding the quota increase for 2007 and 2008 should be based on a Commission proposal following an analysis of market conditions; to be prepared once the reform has been fully implemented.

The Market Outlook Report for the Dairy Sector, accompanying this proposal, contains this analysis. In effect, the report addresses the question of whether the market offers enough opportunities for additional quantities of milk to be supplied, without leading to increased public support in the short and/or medium term, if the national quotas were to be expanded for all 27 Member States. The report concludes that both the EU and world market outlooks are positive and the analysis made for a 2% increase in milk production in the EU shows that the market readily offers opportunities for these additional quantities.

CONTENT: g iven the dynamic developments which have taken place this year on dairy markets, and given that the only part of the 2003 reform remaining to be implemented is a quota increase on 1 April 2008 of 0.5% in 11 Member States, the Commission proposes that the 2% increase, originally proposed as part of the 2003 Reform, may be implemented as from the 2008/2009 milk quota period.