(1)

In addition to a series of exceptional measures to address the difficult market situation in the milk and milk products sector on the basis of Article 219 of Regulation (EU) No 1308/2013, the Commission has authorised voluntary agreements and decisions on the planning of production in the milk and milk products sector for recognised producer organisations, their associations and recognised interbranch organisations by Commission Implementing Regulation (EU) 2016/559 (2) and for cooperatives and other forms of producer organisations in the milk and milk products sector by Commission Delegated Regulation (EU) 2016/558 (3) for a period of six months starting on 13 April 2016.

(2)

No joint agreement or decision has been reported so far, as the sector needs time to organise itself to use this new instrument, while the milk sector is still confronted with severe market imbalance due to worldwide supply-demand imbalance, in which the prolongation until the end of 2017 of the Russian ban on the import of agricultural products and foodstuffs originating in the Union plays a role.

(3)

Farm gate milk prices declined in 2015 by 8 % and by a further 15 % in the first five months of 2016. In May 2016, the average milk price in the Union was 22 % lower than the average of the last five years. In parallel, the gap between Member States further widened, with some Member States reporting prices 30 % lower than the Union average. On the basis of available market analysis, no significant decrease in production volumes is expected until the end of 2017.

(4)

In order to help the milk and milk products sector find a new balance under the prevailing severe market imbalance and accompany the necessary adjustments following the expiry of the milk quota, it is appropriate to authorise the voluntary agreements and decisions referred to in Implementing Regulation (EU) 2016/559 and Delegated Regulation (EU) 2016/558 for a further period of six months. As the conditions as well as the substantive and geographical scope referred to in Article 222(1) of Regulation (EU) No 1308/2013 and the relevant notification obligations have already been specified in Implementing Regulation (EU) 2016/559, it is appropriate to amend that Implementing Regulation.

(5)

Implementing Regulation (EU) 2016/559 should therefore be amended accordingly.

(6)

Given the severe market imbalance and the need to ensure continuity and legal certainty, this Regulation should enter into force on the day following that of its publication.

(7)

The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of the Agricultural Markets,

(1)

Article 1 is replaced by the following:

(2)

Article 4 is amended as follows: