Common organisation of agricultural markets (CMO)

In the early days of the common agricultural policy (CAP), so-called common market organisations (CMOs) were created. These were designed to manage the production and trade of most of the EU's agricultural sector. Their purpose was to ensure steady incomes for farmers and a continued supply for European consumers. Until 2007, when a single CMO was created, there were 21 CMOs, each with its own rules. Article 40 of the Treaty on the Functioning of the European Union underpins the establishment of CMOs.

In 2013, the CAP was further reformed. The main purposes of the new CMO regulation are to provide a safety net to agricultural markets through the use of market-support tools, exceptional measures and aid schemes for certain sectors (in particular fruit and vegetables, and wine), to encourage producer cooperation through producer organisations and specific rules on competition and to lay down marketing standards for certain products.

The most recent CAP reform provides the Commission with exceptional measures to address severe market disruption (by means of, for instance, market-support measures in the event of animal disease outbreaks or a loss of consumer confidence owing to public, animal or plant health risks).

SEE ALSO

• Common agricultural policy (CAP)
• The common organisation of agricultural markets in the EU (summary)
• Committee for the Common Organisation of the Agricultural Markets (European Commission).