New EU Rules for Voluntary Limits on Milk Production Finalised

EU - New EU rules providing the opportunity for farmers to jointly and voluntarily limit milk production have now been finalised and published.
calendar icon 14 April 2016
clock icon 2 minute read

As announced by Commissioner Hogan in March in response to the difficult milk market situation, the Commission is open to allowing agreements between recognised Producer Organisations, their associations and recognised Interbranch Organisations to plan milk production for a temporary period of 6 months.

This option is provided in the context of Article 222 of the CAP Market Regulation, which was introduced for the first time in the 2013 CAP Reform. A separate regulation, also published today, extends the measure to cooperatives and other forms of Producer Organisations.

Addressing the European Parliament Plenary Session in Strasbourg today, EU Agriculture Commissioner Phil Hogan stated: "The responsibility for the speedy implementation [of these rules] is now with the co-legislators and I call on you to seize that responsibility, with a view to ensuring that this measure is used as an effective contribution towards greater market balance in the dairy sector."

The new regulation will allow the planning of production during spring and summer to coincide with the high production season in the milk sector, which the Commission hopes will have a more significant impact.

This authorisation covers all Member States given that the severe market imbalance is common to the whole European Union. Notifications should allow the Member State competent authorities to assess the measures and ensure their compatibility with the proper functioning of the internal market and their effectiveness in stabilising the milk market.

This series of measures announced last month flows on from the solidarity package for farmers facing persistent market difficulties that was announced last autumn.

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