Academy of Economic Studies Bucharest Faculty of Agro-food and Environmental Economics

COMMON MARKET ORGANISATION in MILK AND MILK PRODUCTS

Students: Bracaci Florentina Sandu Alina Scrimint Gabriela Cristiana Serbu Natalia Gabriela Sima Andrada Luminita Year: III Group: 1335 Series: C Group PAC: 1

Universitary year -2009-

Summary

Chapter I
1.1 1.2

Common Market Organization in milk and milk products in

the European Union
Act and scope of the Common Market Organization in milk and milk products The main instruments that regulate the market in milk and milk products

Chapter II Common Market Organization in milk and milk products in Romania
2.1 2.2 2.3 2.4 Romania’s position Romania’s demands Overview of the Romanian milk sector Negotiation results

Chapter III Conclusions

.

starting with the first Regulation of 1968.80. The butter bought in must have certain characteristics and meet certain requirements.Chapter I Common market organization in milk and milk products in the European Union The common organisation of the market in milk and milk products enables prices to be stabilised and farmers guaranteed a fair standard of living through the implementation of systems of intervention. The intervention price for 100 kg of skimmed milk powder is EUR 169. The intervention prices for 100 kg of butter are: • EUR 328. • preparations used as animal feed. 1. • whey. • buttermilk. • butter and other fats. Intervention and private-storage arrangements Intervention agencies in each Member State buy in butter at 90% of the intervention price during the period 1 March to 31 August of any year. The Commission may suspend intervention if the quantities offered exceed 30 000 tonnes in 2008 and subsequent years. yoghourt and kephir. marketing and trade with Non-EU Member Countries. on the basis of specifications to be determined. • lactose and lactose syrups.39 as from 1 July 2007. legislation for these products. was fragmented. Before the adoption of this Regulation. • EUR 259. • EUR 246.52 from 1 July 2006 to 30 June 2007. Private storage aid may be granted for salted or unsalted butter produced from cream or milk. This Regulation contains a comprehensive legislative framework for the common organisation of the market in milk and milk products. • EUR 305. Butter bought in by the intervention agencies is to be . 1. • cheese and curd. Scope The Common Market Organisation for milk covers: • milk and creams.23 from 1 July 2004 to 30 June 2005.44 from 1 July 2005 to 30 June 2006.20 from 1 July 2000 to 30 June 2004. • EUR 282.1 Act Act and scop of the common market organisation of milk Council Regulation (EC) No 1255/1999 of 17 May 1999 on the common organisation of the market in milk and milk products. The aid amount is determined in the light of storage costs and the likely trend in prices for fresh butter and butter from stocks. This CMO provides for a system of intervention within the framework of the internal market and certain support measures for European products when they are traded on the world markets.2 The main instruments that regulate the market Internal market This is to run annually from 1 July to 30 June.

taxes having equivalent effect to customs duty and the application of quantitative restrictions or measures of equivalent effect are prohibited. With effect from 1 April 2004. under certain circumstances. In certain cases. The Community aid is EUR 18. the Commission is assisted by a Management Committee for Milk and Milk Products ( FR ). That milk must comply with certain composition characteristics. School milk aid In order to encourage children to drink milk. additional duty may be charged under the conditions set out in the agriculture agreement of the World Trade Organisation (WTO). The aid amount is determined in the light of storage costs and the likely trend in prices. butter and concentrated butter by non-profit bodies. tariff quotas may be awarded using the first come/first served principle. aid for the supply of 0. These are awarded using the method considered the most suitable and creating the lightest administrative burden. Parmigiano Reggiano. Provolone. In general. or other nondiscriminatory methods. the Community may fully or partially suspend import duties and even collect export levies. the difference between prices on the world market and Community prices may be covered by export refunds. In the case of exports. for eleven consecutive periods of twelve months. However. as well as long-keeping cheeses. The intervention agencies of the Member States buy in skimmed milk powder at the intervention price between 1 March and 31 August. The Community informs the WTO of the trigger prices below which additional duty may be charged. the Commission may decide to remarket the various cheeses stored. Milk quotas Council Regulation (EC) No 1788/2003 of 29 September 2003 establishing a levy in the milk and milk products sector. comprising representatives of the Member States and chaired by a representative of the Commission. The Commission may suspend intervention if the quantities offered exceed 109 000 tonnes. Committee procedures In implementing the Regulation. Member States may grant additional aid. the Member States collect a levy from farmers on quantities of cow's milk or other milk . milk and milk products are subject to the rates of duty in the common customs tariff. Special marketing aid Aid is available for: • producers of skimmed milk and skimmed milk powder (including buttermilk and buttermilk powder) used for animals. Where the market situation so requires. under certain circumstances. In addition. which must be 34% of the non-fat dry matter. the simultaneous examination method. sheep's and goat's milk cheese. In addition. • skimmed milk processed into casein and caseinates. recourse to inward processing arrangements may be prohibited. in trade with Non-EU Member Countries.15 for 100 kg of all types of milk. the traditional importers/new arrivals method. such as the price of the milk and the costs of marketing. by manufacturers of certain food products and for direct consumption. particularly as regards minimum protein content. Private-storage aid is granted for certain cheeses. provided that these products meet certain conditions. • the purchase of cream. Trade with Non-EU Member Countries Imports and exports may be subject to issue by the Member States of an import/export licence.25 l of milk equivalent per pupil and per day is paid to educational establishments. Safeguard measures may be taken if the Community market is threatened with serious disturbance by reason of imports or exports. such as where the free-atfrontier price significantly exceeds the Community price and threatens to cause long-term disruption to the proper functioning of the Community market. The refund amount established takes into account a series of factors. such as Grana Padano.disposed of in such a way as to avoid disturbing the balance on the market.

780 278 545.680 2 029 861.960 11 465 630.products marketed during the relevant twelve-month period in excess of the maximum reference quantities allocated to each Member State.200 148 104.620 4 612 619.710 3 419 595.000 25 091 321.520 28 847 420.200 49 671.740 998 580.940 .760 1 061 603. National quotas Member State Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom Quantities (tonnes) 3 427 288.900 15 125 168.000 588 170.469 9 567 745.700 10 740 661.000 3 118 140.760 2 491 930.280 2 847 478.260 6 239 289.000 743 220.280 836 923.000 2 792 689.860 1 987 521.391 659 295.960 1 738 935.360 5 503 679.

Chapter IV . R 1254-99) Romania will not later than 31. In accordance with R 1255-99. Romania require a rate of production of milk 7500 tons in 2007. about 5500 thousand tons. The calculations regarding the EU direct support reveal that Romania will need additional funding sources in order to cover the needs in relation to the allocated milk quota. to grant financial incentives for increasing efficiency of cattle (first / liter of milk delivered to processing in compliance with conditions imposed by the quality. Romania takes note of the fact that. especially in terms of improved genetically will lead to the production of 7500 thousand tonnes in 2007 (excluding the technology for calves and autoproducers). Unlike the 1996. require Romania The annual award. in force on 31 December 2000 and will be able to apply the acquis on its accession to the European Union. the overall amounts totaling additional fees will be awarded from the date of accession (R 1255-99. starting with the date of accession. 2004.). and stimulating and full recovery of natural conditions and possibilities of human power and the existing tradition of cattle raising in general and dairy cows. 1255/99 on the common market organization of milk and dairy products and other relevant regulations for implementation) Acceptance of the acquis Romania accept the acquis in the field and does not require the transition period. sector revamping until the accession moment represent a priority objective of the domestic agricultural policy. In the period 2002 . starting with the date of accession. According to R 1255-99.1 Romania’s position Romania fully supports the EU acquis on Chapter 7 .400lei/litru in 2002.2006. reorganization holdings specializing in restructuring and product chain. in 2000 the production of cow milk has decreased by 8%. the additional payments in the form of:  additional premiums (Article 18)  area payments (Article 19. Period 1990-2001 . In 1996 production of cow milk has reached the highest level in the period 1989 2000.. Milk and milk products (regulation EC no. Article 17). Romania has a herd of 1600 head thousand cows milk.direct payments. the creation and operation of certain specific market structures.direct payments. 2. Chapter IV . in conjunction with Article 15 (3). first for heifers at first calving. the Romanian dairy sector will have to comply with the EU norms and standards. per hectare of permanent pasture. etc.Agriculture. 16. with the exceptions listed in this position. Institutional capacity building.12. Article 17. national producers will be included in the criteria Community award the first milk set per calendar year per holding and per tonne of individual reference quantity eligible and available at first at the farm.Chapter II Common Market Organization in milk and milk products in Romania In the perspective of accession to the EU. value 1. Chapter IV-direct payments.

Of the total production of milk. 4% to 35% heads and 3% with 6 to 15 head. 5500 thousand tons. During 1993-1997. it is situated around the value of 193 l / head / year. Between 1989 to 2000 (except the years 1990 and 1992). total milk production has increased steadily.307/2001 of the minister of agriculture. modernization activities of milk collection. The main tasks of the Bureau milk will be: implementation of monitoring of livestock. which provides a minimum of 15 head for business holdings. It was adopted Emergency Ordinance of the Romanian Government nr. Average production per cow in the period 1990 . Approximately 95% of the total production of milk is obtained in the private sector.4 heads / farm average. bonuses. representing 15% in 1999. and 42% represents autoproducers. 20% milk raw materials supplied by the population for specialized processing units. milk quality on the consumer (the default raw milk).2000 was between 2000 3100 liters / cow / year. provides: Develop surveys and pilot studies performed between 2002 . which contains provisions relating to growth and improvement animal. 80% of the herd of cows and heifers is increased peasant households with 1-2 heads. on the areas of milk production. In the last period recorded an annual decline of 1% which means reducing the decline. 10-15% of total annual production of milk by 2007.  Support formation of inter-professional organizations on the product.108/2001 on agricultural holdings.2004. production of cow milk has decreased by 8%. food and forests was held in the MAAP Office milk in the Directorate General Strategies and Policies in Zootechy. circulation and use of feed. It was developed and is currently in approval Animal Industries Act. in order to improve performances of the production of biological material and establishment of effective livestock farms. production and market development and policy implementation in the production and processing of milk. Sector development strategy provides the following objectives:  Increase by 5% -6 annual herd of dairy cows and heifers by 2007. allowances. Unlike the 1996. Total Consumption of milk and milk products in milk equivalent was relatively constant. 25% delivered directly to consumers on the free market.Number of dairy cows.  Growth with approx. upgrading of laboratories for analysis. reduced taxes. Milk is one of the important products of the Romanian agriculture. the sector contributed to total value of agricultural production. Law will be adopted in 2002. and improve pastoral fund operation.  Supporting private keeprs by providing subsidies on the product of low interest credits. held today in the vast majority privately owned (98%) decreased by 24% in 2000 compared with 1989. the evolution of milk production was determined by the support of the state milk and milk products by: coupon scheme value and the premium for milk delivered for processing. production of cow milk has reached the highest level in the period 1989 – 2000. Farm size of dairy cows is 1. in Romania. supplying the largest quantity of milk for processing. The calendar of adopting European requirements. organization and functioning of monitoring systems to producers of milk and processing of milk Results will be materialized in: . insurance and reproductive material feed. 13% represents consumer technology (feeding calves). in 2000. Adopt and implement the acquis By Order nr. production. In 1996.

and partially requirements regarding the determination of the freezing point and the protein content. it should be possible to continue trading on the market for a period of 3 years after the accession of raw milk with a content of 400 000 plate 500 000 somatic cells per ml. . Agency for Payments and Intervention will take. providing aid for dairy products in schools) c. butter and concentrated butter for the non-profit organizations. and methods for the analysis. nr. which will be completed in 2006.2005. pastries shop and the ice cream manufacturers. the requirements for fat content and density. necessary for the administration of: a.409 sheep. The intervention (intervention butter for public aid for private storage of cream and butter intervention for skimmed milk powder. in milk and milk products. density and protein content)  assessment costs of the reference laboratories of producers associations.1602/1999 and 2597/1997). front plate 100 000 respectively as 400 000 cells provides directives.661 farms and cattle BUFFALO farms and about 898. Raw milk obtained from farms and other large units organized maximun represents 20% of total quantity of milk. update the database on milk quality parameters of raw materials. In these circumstances. aid for skimmed milk processed into casein and caseinates. food and forests to approve the rule on Trade names and conditions quality of milk sold for human consumption (EC Regulations no. modernize the system of milk collection. upgrading of laboratories (for quick determination of the freezing point. of which 11 meet the standards of hygiene required by EU legislation for the production of milk powder. aid for private storage of skimmed milk powder and cheese) b. Food and Forestry to approve Rules for the protection of trade names and conditions of quality dairy products. fat. in the period 2003 to 2007. Since 2003.2006. there are 2 units (not milk powder factory and feed). aids for the purchase price reduced cream. according to European and determination of freezing point average area of origin for proper appreciation of counterfeit milk  setting options and measures to improve milk quality raw materials and the current system of collecting milk  assessing the costs needed to ensure quality.  Evaluating the costs for the organization and functioning of an effective system of monitoring and reporting data on quality of milk and dairy products to the authorities concerned. Dairy products are produced in 374 units.2007. Develop. Measures marketing (aid for skimmed milk powder and skimmed milk used for feeding animals. Develop in 2002-an order of the minister of agriculture. the peasant household has no potential for financial provision and implementation of measures which ensure obtaining milk from the parameters as required by EU legislation. In these farms have a numer of 2-10 animals producing milk. manufacturers of feed and direct consumption of concentrated butter. the reference for determining the parameters for quality milk and milk products and to determine tracers. a national association of employers and industry associations milk to livestock farmers in the implementation of national legislation harmonized with EU legislation in this area. Implementation will be gradual. military units or similar. Orders of the Minister of Agriculture. in the period 2002 . In this context. During 2004 . Quotas for milk d. Direct payment system In 2002. raw milk for processing and consumption is obtained from households spread over 284. Involvement in the period 2002 .

2014 for the removal of a living culture of hybrid direct producers (regulation 1493/99)  A transition period of 3 years. designation and presentation of butter and fats of animal origin. for vineyard inventory and organizing a Community register of them (Regulation 2392/86 and Regulation 649/87). definition. for modernization and technology units cutting and processing meat.  A transition period of 8 years. On milk and milk products.6% • protection of Romanian food. according to the requirements of the Community (Directive 92/46/CE. according to the requirements of the Community (Directive 64/433/CEE. and not including the cows and autoproducers.2009. definition. up to date from 31.12. Directive 94/65/CE. up to date 31. food and forests minister and health and family standards.  A transition period of 4 years.12. which can adopt safeguard measures on imports of agricultural products or from one or more Member States. on the difficulties that may arise in the transposition of the new acquis. 2. if necessary. up to date 31.2009. if such imports cause or threaten to produce disturbance of the Romanian market of agricultural products.2 Romania’s demands Romania is ready to examine the development of legislation which came into force after 31 December 2000 and to systematically inform Accession Conference for the Association or the Council on legislation and implementation measures implementing the new acquis or. • taking into account the fat content of a reference of cow milk by 3. their list will be presented the European Union in 2003. until the date of 31.3 Overview of the Romanian milk and milk products sector In its effort to integrate into the European Union agro-food system.12. Directive 91/495/CE Directive 92/45/CE). to comply with EU requirements on animal farms and milk quality of raw milk obtained (CE Directive 92/46 and Council Decision 89/362 CEE).12. until on 31. 2009.2009. Directive 92/118/CE Directive 71/118/CEE. Regarding requirements Regulation Regulation 2991/94 and 577/97 on the fats in 2002 will be adopted common order minister of agriculture.2. until the date of 31. until the date of 31. 95/342/CEE Decision)  a period of 3 years of transition. Implementation will be made during 2003 to 2004. Romania requested: • a share of milk production of 7.12. by registering them in accordance with EEC regulation nr. including traditional. we find the milk and milk products sector highly relevant. which was revised to 5 million tons.1107/96 on registration of geographical indications and designations of origin for agricultural products and foodstuffs. Directive 77/99/CEE.12.5 million tons for 2007. to modernize technology and processing units for milk and for the collection centers and the standardization of milk.2010.12.  A transition period of 3 years. the rate was only in production of milk cow and buffaloes without milk sheep and goat. in order to implement national policy for vaccination for classical swine fever (Directive 80/217 CEE)  A transitional period of 3 years.2011. Romania require:  A transition period of 5 years. The Romanian agriculture is defined by self-consumption and atomized agricultural structures and this aspect affects its economic . designation and presentation of vegetable oils and fats and standards.

semi-official or estimated data | F = FAO estimate FAOSTAT | © FAO Statistics Division 2009 | 27 February 2009 Milk Animals (Head) 9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 1998 2005 2006 heads Cow milk. Land fund (thousand hectares) 2004 Total area of the 23839. however. Romania hopes to fallow the same rules and adopt the same legislation as the European Union.performance. fresh Milk. whole. fresh Romania Milk. Growing cattle is a mean of using the potential of natural pasture and hayfields. The collecting process is difficult due to the large numbers of exploitations which provide only small quantities of milk. whole. whole. fresh Sheep milk. In this respect. Milk production varies from season to season (the production is highest during summer time when grass availability increases). whole. Milk Animals (Head) year country item Romania Cow milk. The numbers show a decrease with almost 10% by 2007. proving a an increasing demand for cow milk instead of sheep milk.1 2006 23839. Now there are approximately 1 400 000 holdings grows 1 700 000 cattle. While the number of cows used for the production of milk remains relatively the same. fresh Romania Sheep milk.1 2005 23839. the number of sheep has reduced up to 12% since 1998 to 2007. The demand for milk.Total + 2007 The total amont of producing animals (heads) has dropt significantly since 1998. remains the same for the whole year. Milk is a perishable product that demands the consolidation of a logistical system.1 . hence a farm generally grows 1 or 2 heads.Total + 1998 168000 0 619800 0 2005 159200 0 544550 0 2006 165800 0 2007 166900 0 544550 545000 F F 0 0 787800 703750 710350 711900 A A A A 0 0 0 0 A = May include official.

In 2007 the proportions remain the same.land fund Pastures Hayfields 3346. while the hayfields represent only 6.0 1514.3%.7 3334. we have the total area of land fund and the pastures and hayfields which represent the means of growing cattle.9 Source: National Institute of Statistic. 14% of the total area of land fund. Livestock per 100 hectares of land Romania Cattle Sheep and goats 1996 24.7 67.4 1524.9 1498.2 Source: National Institute of Statistic. Romania 2009 Land fund 30000 thousand hectares 25000 20000 15000 10000 5000 0 2004 2005 2006 Total area of the land fund Pastures Hayfields In this table.6 1997 22. Pastures represented in 2004.1 1998 22. Romania 2009 .1 63.2 72.4 3364.

1998 451192 4 354000 486592 4 A 2005 500780 0 544400 555220 0 A 2006 601145 2 650790 666224 2 A 2007 544113 9 484578 592571 7 A Romania Milk.2 The number of cattle.6 67. Due to the scarce resources.Rom ania 80 70 60 50 40 30 20 10 0 1996 1997 1998 24. Production (tonnes) year country item Romania Cow milk. fresh Romania Sheep fresh milk. sheep and goats per 100 hectares of land has decreased gradually from 1996 to 1998.Livestock per 100 hectares of land . only 24 000 000 hectoliters of milk are actually sold and thus represent only 47% of the potential. Production of milk has increased.1 63. the milk production obtained from the farms should enable the food industry to have raw material. semi-official or estimated data | F = FAO estimate . Romania is recording productions of up to 54 000 000 hectoliters. The privatization process in Romania. whole. annually. has begun in 1999 and has gathered by now. Some only reach 35% of their total capacity.1 C attle Sheep and goats 72.Total + FAOSTAT | © FAO Statistics Division 2009 | 27 February 2009 A = May include official. Out of this total amount. Half of the milk production is directed towards selfconsumption.2 22. Normally. over 800 private factories of milk processing. Most of these exploitations use the milk production for self-consumption.7 22. the total capacity for production in these factories is not entirely used. whole. The biggest decrease was that of goats and sheep. their number dropped 13%.

fresh ilk. Sheep m whole.Milkproduction 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 Cow m whole. fresh ilk.Dry + 6700 A 7800 A 7800 A 7800 A . despite the fact that the number of sheep heads had reduced in 2007 compared to 1998. the largest production registered so far being that of 2006.Total + 1998 4511924 354000 4865924 2005 5007800 544400 5552200 2006 6011452 650790 6662242 2007 5441139 484578 5925717 The total milk production in Romania has increased in 2007 since 1998 with up to 22%. Sheep milk production registered an increase in 2007 of almost 36%. Milk products Production (tonnes) year country Romania Romania item Butter and Ghee + Cheese (All Kinds) + 1998 2003 2004 2005 6355 A 6000 A 7154 A 8000 A 4782 4900 5300 6100 A A A A 0 0 0 0 485 A 485 A 625 A 1445 A Romania Evaporat&Condensed Milk + A = May include official. Cow milk production may very well be responsible for the growth recorded in the milk sector. semi-official or estimated data FAOSTAT | © FAO Statistics Division 2009 | 27 February 2009 Romania Skim Milk&Buttermilk. Milk. as it also registered an increase in 2007 with up to 20%.

Yield (Hg/year) year country item Romania Cow milk. whole. Butter and Ghee production has increased since 1998 with almost 26%.T otal + .062 l/head). whole. fresh Milk. The most shocking increase is that of the evaporate and condensed milk production with almost 200% from 1998 to 2005. w hole. Although the yield has registered rising values over the past years. whole. Cheese production has increased with almost 28% and skim milk and buttermilk has registered a growth of 16%. fresh Romania Romania F = FAO estimate 1998 2685 6 571 2005 2006 2007 3145 3625 3260 F F F 6 7 1 999 F 1195 F 889 F Sheep milk. fresh Milk.Rom ilk ania Production (tonnes) 70000 60000 50000 40000 30000 20000 10000 0 1998 Butter and G hee + Ev aporat&Condensed Milk + 2003 2004 Cheese (All Kinds) + Skim Milk&Buttermilk. fresh Sheep milk. it has yet managed to reach the average imposed by the European Union (6.Total + 6176 F 7889 F 9378 F 8323 F FAOSTAT | © FAO Statistics Division 2009 | 27 February 2009 Yield (Hg/year) 40000 35000 30000 25000 20000 15000 10000 5000 0 1998 2005 2006 2007 Cow milk.M products .Dry + 2005 Analyzing the data for milk products we can observe that a considerable increase has been registered in almost all the fields.

9 2005 239.Total Caw cheese Sheep cheese 100.5% fat (butter excluded) This table gladly shows us that the average consumption per inhabitant has grown in 2006 and with 3.70 119.5% fat (butter excluded) 2004 238.Milk and dairy products’ consumption in Romania is 246. After its liberalization.06 December 2007 108.Prices for milk have been controlled by the state on the local market until 1997. there has been recorded a drop in milk and dairy products. In recent years however. the prices grew rapidly.6 Source: National Institute of Statistic.93 102.77 120.29 120. Romania 2009 Yearly average consumption per inhabitant 248 246 244 litres 242 240 238 236 234 2004 2005 2006 Milk and dairy products in equiv alent litres (milk 3.00 121.6 kg/capita which is a value close to the European Union’s value of 255.11 kg/capita.Total Cow milk Cheese .2%.27 .02 101.Statistics prove that milk and dairy products consumption varies according to the type of occupation and the origin (urba/rural). Consumer price indeces November 2008 Milk . Yearly average consumption per inhabitant (liters) Year Milk and dairy products in equivalent litres (milk 3.2 2006 246.70 101.56 102.

29 105. they risk to loose these quotas. cow cheese of 17% and sheep cheese of 13%. but was granted a quota of 3 million tonnes of milk. Transitional periods and other arrangements obtained by Romania: 1. as well as for the organizing the milk collecting and standardization centers in compliance with the Community requirements. etc). for modernizing and re-vamping the milk processing units (28 units). In the case when in two consecutive years they do not produce at the level of the negotiated quotas. In this sector we negotiated a quota of over 3 million tons. Romania requested a quota of 5 million tonnes for the production of milk cow and buffaloes.400 tons. I must draw the attention of the producers from both sugar and milk industry that they have to focus on productivity in order to be competitive. Romania 2009 Consumer price indeces 140 120 100 80 60 40 20 0 Milk Total Cow milk Cheese Total Caw cheese Sheep cheese Butter November 2008 December 2007 Analyzing this table we find that the prices for each milk product have dropt considerably from 2007 to 2008. until 31. 2. in Romania.84 Source: National Institute of Statistic. somatic cells. until 31.Butter 100. except milk for calves and autoproducers. Romania requested and obtained a transitional period of 3 years. Romania requested and obtained a transitional period of 3 years. out of which more than 1 million for deliveries to processing units and almost 2 million for direct sales to consumers as well as a restructuring quota (own consumption in households) of 188. for complying with the Community structural requirements regarding cow milk farms and the quality of raw milk obtained. is in line with the Community quality parameters (germs. 2.2009. 3. Regarding the share of milk.2009.12. cow milk having registered decrease of 14%.12.4 Negotiation results In the milk sector the negotiations were tough because barely 40% of the milk produced in the reference period. Quote (t) Yield Necessary for Current .

starting with 25% of the level of direct payments allocated to the 15 member states of the EU. taking into account that the prices for agricultural products are. Farmers producing milk have to apply for a milk quota according to Order 1388/2005. establishment and management of the milk quota system. For agriculture. higher in the European Union than on the world market.000 Staff 1. cereals. the payments will be gradually introduced during 10 years.On June 28th. beef meat.7 effective. sugar products. This type of financial support does not require co-financing from the national budget. Austria and Poland. The export refunds represent the allocation for certain exported products (such as milk and dairy products.446. which comprise the market intervention and the export refunding. 2006. in general. negotiated rates or ceilings (head) 826. 897. does not require co-financing. fruits and vegetables. Under supervision of the Romanian Ministry of Agriculture a Milk Quota office is established at ANARZ (The National Agency for improvement of Reproduction of Livestock).31 March 2006. The financial support proposed for the direct payments for Romania during the three years is of 881 million Euro.100 7. Evaluation on request for milk quota system by .057. This order concerns the establishment of the conditions for the approval of the cow purchasers and the application form for the approval and registration in the Purchasers register. The amount of 732 million Euro proposed for the market measures.861 The financial support obtained within the negotiations for Chapter 7 – “Agriculture” is of approximately 4. 741. dairy products. So support the development.921 milliard Euro are allocated for the mechanisms of the Common Agricultural Policy and rural development (Chapter Agriculture) and around 0. etc) of the difference between the export price and the world price. The reference year for the fat production is 2004. which includes the financial support for the products or sectors where quotas.(t/year) Cow milk Cattle Sheep 3. This gradual introduction of the direct payments is based on the same principles as applied in the case of the 10 new member states. etc) are under a certain level affecting the market and the incomes of farmers.721 milliard Euro for the period 2007 – 2009. reference areas or national ceilings are established. This financial support will be allocated starting with 2007. processed products.551 2.00 0 3.8 milliard Euro are estimated to be allocated for projects financed from structural funds (EAGGF – Guidance). out of which 3.000 5. when prices for certain products (as for example cereals. technical assistance is provided by the PHARE Twinning programme.835. as well as the allocation and reestablishment of the national milk reserve. The market intervention is the instrument for stabilization of the market prices by buying the production in surplus and stocking it in public or private stocks.880. The reference period for the volume is 1 April 2005 . The individual quota will be allocated in 2006. This Agency has 42 regional offices to supervise the milk quota system. 852-2006 was made on the approval of the Methodology for the establishment of the individual milk quota allocation. Decision no. This support will be provided by experts from The Netherlands.216 1.

Request for allocation 2.001 – 50.9 5.493 holdings (farms) applied for quota for direct delivery to milk processing facilities.9s 16. However. on basis of the application made. allocation of quota is still under discussion and will be subject to changes.8 10.Request for allocation 1.National allocation 1.000 tons .924.000 % 66.000 5.4 3.001 – 10.720 tons .1st April 2007.140 tons .000 5. Volume in Kg < 5.4 17. These requests can be divided in the following quantities.186.National allocation 1.Available for allocation 1.2% is made available 1.8 19.860 tons ---------------------------------------.000 50.002.001 – 10.985 tons is reserved for farm extensions and new investments Direct Sales quota .7 14.431 tons .001 – 50.622.000 tons .504 holdings (farms/individuals) applied for quota for direct sales.001 % 40.071.9 13.68.022. 2007 a milk quota system was in place and since than allocations have been made to those who applied for and are eligible for obtaining milk quota.0 7.000 10. the following things were concluded at the beginning of the quota year: Delivery quota . In short. due to many circumstances.000 > 100.8 In terms of farm size the request for delivery quota the breakdown is: Number of cows/applicant <2 3 to 5 6 to 10 11 to 50 51 to 100 > 101 % 43.4 16.155 tons 250.0 .000 10.964.280 tons ---------------------------------------. These requests can be divided in the following quantities: Volume in Kg < 5.3 .6 18.Available for allocation 1.Of which reserve 21. By April 1st.001 – 100.093.Of which reserve 39.607 tons .

2005 modified by HG 258/02. Government Decision 108/2006 modifying Government Decision 1557/2002. for the approval of the methodological norms regarding the organization and functioning of the Informational System for the food and agricultural products market and for the methodology of collection. 925.001 – 1.001 5. 852-2006 approval of the Methodology for the establishment of the individual milk quota allocation.  Order 1388/2005 establishment of the conditions for the approval of the cow purchasers and the application form for the approval and registration in the Purchasers register.50.985 tons . evaluation and distribution of statistic data.233 . approved with amendments and completions by the Law 72/2006. Order 1106/2003 (Ministry of Agriculture) to meet these criteria in three steps  Government Decision 1853/12.1 0.Available for extensions and new holdings 68.Quantity of milk requested 181.000 > 1.000.4 Only four farms do have a quota more than 1 million kg.Number of applications 1. processing.588 tons . 954.Estimation of the allocation % 38% Current laws related to milk  Order 445/4 July 2008.  Government Decision 1557/2002 concerning the approval for the mechanism of providing financial support for The Programme of Enhancing competitively of food products. establishing the European Food Safety Authority and laying down procedures in matters of food safety  Government Ordinance 48/2005 organisation of the cow milk market. .000. as well as the allocation and re-establishment of the national milk reserve. 955/2002 is incorporating the EU 178/2002 laying down the general principle and requirements of food law.2006 is determinating the subsidies for milk deliveries to processing plants. Allocation of quota for extensions and new holdings .  Order 389/2002 is incorporating Council Directive 92/46/EEC.  Decision no. completed by Government Decision 2206/2004.  Order 468/2006 concerning the approval of the form for milk quota request as well as the procedure for giving the quota and registering in the Quota register  Governmental Decision HG 924.

a transition period of 8 years. a transition period of 3 . the sector has a major contribution to the total value of agricultural production. a transition period of 4 years. Milk is one of the most important products of the Romanian agriculture. Our country accepted the acquis in the field and does not require the transition period. for the removal of a living culture of hybrid direct producers. Romania requires a period of 5 years to adopt safeguard measures on imports of agricultural products or from one or more Member States. for vineyard inventory and organizing a Community register of them.Chapter III Conclusions Milk and dairy products are extremely important for the food sector.

Romania also requested and obtained a transitional period of 3 years. according to the requirements of the Community and a period of 3 years of transition. for modernization and technology units cutting and processing meat.fao.insse.maap.years. Therefore Romania requested and obtained a transitional period of 3 years. The financial support proposed for the direct payments for Romania during the three years is of 881 million Euro. Bibliography * * * www. for modernizing and re-vamping the milk processing units (28 units).eu * * * www. but was granted a quota of 3 million tonnes of milk. Regarding the share of milk. The financial support obtained within the negotiations for Chapter 7 – “Agriculture” is of approximately 4. which includes the financial support for the products or sectors where quotas. for complying with the Community structural requirements regarding cow milk farms and the quality of raw milk obtained. Romania requirea a quota of 5 million tonnes for the production of milk cow and buffaloes. in order to implement national policy for vaccination for classical swine fever. according to the requirements of the Community.ro * * * www.europa. a transitional period of 3 years.ro .721 milliard Euro for the period 2007 – 2009.org * * * www. except milk for calves and autoproducers. reference areas or national ceilings are established. a transition period of 3 years. to comply with EU requirements on animal farms and milk quality of raw milk obtained. to modernize technology and processing units for milk and for the collection centers and the standardization of milk. as well as for the organizing the milk collecting and standardization centers in compliance with the Community requirements.