(1)

Article 1(4) of Regulation (EC) No 1788/2003 provides for a special restructuring reserve for the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia, to be released as from 1 April 2006 to the extent that the on-farm consumption of milk and milk products in each of these countries has decreased from 1998 or 2000, depending on the country.

(2)

In accordance with Article 1(4) of Regulation (EC) No 1788/2003, the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia have submitted to the Commission a report detailing the results and trends of the actual restructuring process in those countries’ dairy sectors, and in particular the shift from production for on-farm consumption to production for the market.

(3)

According to those reports, all those Member States have shown a decrease in the on-farm consumption of milk and milk products.

(4)

Available production statistics indicate an increasing part of the milk production being marketed under deliveries and a decreasing part under direct sales.

(5)

It is therefore appropriate to release the special restructuring reserve for the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia, and to provide for the allocation of the resulting quantities to the deliveries part of their national reference quantity.

(6)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Milk and Milk Products,