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

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 Intervention t Butter (221,8 €/100 kg) t SMP (169,8 €/100 kg) From 01/03 to 30/09. Automatic tendering if ceilings reached Aid for Private Storage Butter, 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 conditions If Arts. 219 & 220 measures not possible Market Disturbance (Art. 219) Threats of market disturbance Significant price rises or falls Other disturbing/threatening circumstances If other sCMO measures appear insufficient Commission direct actionCommission 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 AGRI

Information on milk market: PAC 2020: Milk Market Observatory: observatory/index_en.htm Thank you for your attention !