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EU Milk Policies after End of Quotas

EU Milk Policies after End of Quotas. Carlos MARTÍN ÓVILO DG Agriculture and Rural Development European Commission Value Chain in Milk Production and Consumption Ankara 20 .05.2014. Background Market perspectives CAP instruments. Background. Background Market perspectives

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EU Milk Policies after End of Quotas

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  1. EU Milk Policies after End of Quotas Carlos MARTÍN ÓVILO DG Agriculture and Rural Development European Commission Value Chain in Milk Production and Consumption Ankara 20.05.2014

  2. Background • Market perspectives • CAP instruments

  3. Background

  4. Background • Market perspectives • CAP instruments

  5. Milk production

  6. Global demand

  7. Background • Market perspectives • CAP instruments

  8. CAP Instruments Direct Payments Single CMO Rural Development

  9. Direct Payments (+) • Compulsory schemes: • Basic payment scheme • ‘Green’ payment • Young farmers scheme • Voluntary schemes (MS choice): • Redistributive payment • Support in areas with natural constraints • Coupled support All payments subject to cross compliance All farmers will have access to the Farm Advisory System OR Simplified scheme forsmall farmers (voluntary for MS)

  10. Single Common Market Organization • Safety net • Exceptional measures • Milk Package • School milk scheme • Milk Market Observatory

  11. sCMO Instruments Commission direct action Commission empowering stakeholders Exceptional Measures Market Disturbance (Art. 219) Threats of market disturbance Significant price rises or falls Other disturbing/threatening circumstances If other sCMO measures appear insufficient 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 measuresalreadytaken Animal diseases, consumer confidence (Art. 220) Trade restrictions (measures against animal diseases) Market disturbance (loss in consumer confidence) Co-financed, at MS request Safety Net Public Intervention 50 000 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 Specific problems (Art. 221) Immediately applicable implementing acts Rapid deterioration of production/market conditions If Arts. 219 & 220 measures not possible Aid for Private Storage Butter, SMP and PDO/PGI cheeses

  12. 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

  13. School Milk Scheme • 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)

  14. 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. Market data dissemination Short-term analysis Data collection Stakeholders Dialogue MMO webpage Experts Support DG AGRI

  15. 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 !

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