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Summaries of EU Legislation

The common organisation of agricultural markets in the EU

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The common organisation of agricultural markets in the EU

 

SUMMARY OF:

Regulation (EU) No 1308/2013 — common organisation of the markets in agricultural products

WHAT IS THE AIM OF THE REGULATION?

  • It aims to provide a safety net to agricultural markets through the use of market support tools (for example public intervention and private storage), exceptional measures and aid to specific sectors (particularly fruit and vegetables, and wine).
  • It seeks to encourage cooperation through producer organisations and inter-branch organisations (organisations that represent activities involving the production of, trade in and/or processing of products in a number of sectors).
  • It also lays down minimum quality requirements (marketing standards) for a number of products, as well as rules on trade in agricultural products and specific rules on competition.

KEY POINTS

The main features of the common organisation of the markets (CMO) are:

Market intervention

The regulation lays down rules regarding:

  • public intervention, where products are purchased and stored by EU governments or their agencies until their disposal; and
  • aid granted for the storage of products by private-sector organisations.

It revises the existing systems of public intervention and aid for private storage making them more responsive and efficient. This is, for example, by means of technical adjustments for beef and dairy products, and certain cheeses with a protected designation of origin or a protected geographical indication.

Exceptional measures

  • The European Commission can take emergency measures against market disturbance caused by significant price fluctuations or when there are threats of significant price fluctuations. It may also take action to deal with the market impact of measures taken to combat the spread of animal diseases or serious market disturbances caused by a loss of consumer confidence as a result of public, animal or plant health and disease risks.
  • In the case of major market disruptions, the reserve for crises provides additional support to finance these measures.

Supply control measures

  • Milk and sugar quotas: the regulation brings these to an end in 2015 and in 2017 respectively, allowing EU producers to be more competitive both domestically and globally.
  • Regulation in the wine sector: in 2016, the regulation introduced a new system for authorising new vine planting rights to apply until 2030. This provides for an increase in the planted area of up to 1% per year.

Other measures

The annual budget for schemes promoting fruit and milk consumption in schools has increased (from €90 to €150 million).

Producer and inter-branch organisations

The regulation promotes the creation of producer organisations to strengthen their power in the food chain. It has been amended and supplemented by:

  • Regulation (EU) 2017/2393 which allows recognised producer organisations in all sectors in which a CMO has been introduced to carry out activities such as production planning, optimising production costs, marketing members’ products and contract negotiation. It also extends the aims of inter-branch organisations to preventing and managing risks relating to animal health, plant protection and the environment.
  • Regulations (EU) 2017/891 and (EU) 2017/892 which simplify and clarify the rules with regard to producer organisations in the fruit and vegetable sector.

Trade with non-EU countries

The import and export of certain products may require a licence.

Import duties in the Common Customs Tariff apply to agricultural products, although specific rules are laid down for certain products (e.g. hemp, hops, wine and sugar for refining). Moreover, the Commission may fix import tariff quotas, i.e. specific limits on the volume of goods which may be imported with a reduced customs duty.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 January 2014.

BACKGROUND

The regulation on the common organisation of markets in agricultural products is one of a package of CAP reform measures. The package also includes regulations on:

For more information, see:

MAIN DOCUMENT

Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L 347, 20.12.2013, pp. 671-854)

Successive amendments to Regulation (EU) No 1308/2013 have been incorporated into the original text. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Regulation (EU) 2017/2393 of the European Parliament and of the Council of 13 December 2017 amending Regulations (EU) No 1305/2013 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD), (EU) No 1306/2013 on the financing, management and monitoring of the common agricultural policy, (EU) No 1307/2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy, (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products and (EU) No 652/2014 laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material (OJ L 350, 29.12.2017, pp. 15-49)

Judgment of the Court (Seventh Chamber) of 14 June 2017. Verband Sozialer Wettbewerb eV v TofuTown.com GmbH. Request for a preliminary ruling from the Landgericht Trier. Reference for a preliminary ruling — Common organisation of the markets in agricultural products — Regulation (EU) No 1308/2013 — Article 78 and Annex VII, Part III — Decision 2010/791/EU — Definitions, designations and sales descriptions — ‘Milk’ and ‘milk products’ — Designations used for the promotion and marketing of purely plant-based products. Case C-422/16

Commission Delegated Regulation (EU) 2017/891 of 13 March 2017 supplementing Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the fruit and vegetables and processed fruit and vegetables sectors and supplementing Regulation (EU) No 1306/2013 of the European Parliament and of the Council with regard to penalties to be applied in those sectors and amending Commission Implementing Regulation (EU) No 543/2011 (OJ L 138, 25.5.2017, pp. 4-56)

See consolidated version.

Commission Implementing Regulation (EU) 2017/892 of 13 March 2017 laying down rules for the application of Regulation (EU) No 1308/2013 of the European Parliament and of the Council with regard to the fruit and vegetables and processed fruit and vegetables sectors (OJ L 138, 25.5.2017, pp. 57-91)

See consolidated version.

Council Regulation (EU) No 1370/2013 of 16 December 2013 determining measures on fixing certain aids and refunds related to the common organisation of the markets in agricultural products (OJ L 346, 20.12.2013, pp. 12-19)

See consolidated version.

Regulation (EU) No 1306/2013 of the European Parliament and of the Council of 17 December 2013 on the financing, management and monitoring of the common agricultural policy and repealing Council Regulations (EEC) No 352/78, (EC) No 165/94, (EC) No 2799/98, (EC) No 814/2000, (EC) No 1290/2005 and (EC) No 485/2008 (OJ L 347, 20.12.2013, pp. 549-607)

See consolidated version.

last update 18.09.2018

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