HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"L 94/38
EN
Official Journal of the European Union
30.3.2012
REGULATION (EU) No 261/2012 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 14 March 2012
amending Council Regulation (EC) No 1234/2007 as regards contractual relations in the milk and
milk products sector
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
(2) In
the
period
from
2007
to
2009,
exceptional
devel
EUROPEAN UNION,
opments took place in the milk and milk products
sector markets, which ultimately resulted in a price
collapse in 2008/09. Initially, extreme weather conditions
Having regard to the Treaty on the Functioning of the European
in Oceania brought about a significant decline in
Union, and in particular the first paragraph of Article 42 and
supplies, leading to a rapid and significant increase in
Article 43(2) thereof,
prices. Although world supplies started to recover and
prices started to return to more normal levels, the
subsequent financial and economic crisis negatively
Having regard to the proposal from the European Commission,
affected Union dairy producers, aggravating price vola
tility. Higher commodity prices resulted in a significant
increase in feed and other input costs including energy.
After transmission of the draft legislative act to the national
Subsequently, a drop in worldwide, as well as Union,
parliaments,
demand, including demand for milk and milk products,
during a period when Union production remained stable,
led Union prices to fall to the lower safety net level. This
Having regard to the opinion of the European Economic and
sharp decline in dairy commodity prices failed to fully
Social Committee ( 1 ),
translate into lower dairy prices at consumer levels,
generating, for downstream sectors, a widening in the
gross margin for most milk and milk sector products
Having regard to the opinion of the Committee of the
and countries, and preventing demand for them from
Regions ( 2 ),
adjusting to low commodity prices, slowing down price
recovery and exacerbating the impact of low prices on
milk producers, the viability of many of whom was put
Acting in accordance with the ordinary legislative procedure ( 3 ),
at serious risk.
Whereas:
(3) In
response
to
this
difficult
market
situation
for
milk,
a
High Level Expert Group on Milk (HLG) was set up in
(1) Successive
reforms
of
the
common
market
organisation
covering milk and milk products, now contained in
October 2009 with the purpose of discussing mid- and
Council Regulation (EC) No 1234/2007 of 22 October
long-term arrangements for the milk and milk products
2007 establishing a common organisation of agricultural
sector which, in the context of the end of dairy quotas in
markets and on specific provisions for certain agricultural
2015, would contribute to stabilising the market and
products (Single CMO Regulation) (
milk producers’ incomes and to enhancing transparency

4 ), have been aimed at
market orientation, that is, letting price signals guide the
in the sector.
decisions of farmers in terms of what and how much to
produce, so as to strengthen the competitive situation of
the dairy sector and its sustainability in the context of
globalised trade. It was therefore decided to increase
(4)
The HLG obtained oral and written input from major
quotas gradually, by adopting Council Regulation (EC)
European stakeholder groups in the dairy supply chain
No 72/2009 of 19 January 2009 on modifications to
representing farmers, dairy processors, dairy traders,
the Common Agricultural Policy by amending Regu
retailers and consumers. Furthermore, the HLG received
lations (EC) No 247/2006, (EC) No 320/2006, (EC) No
contributions from invited academic experts, third-
1405/2006, (EC) No 1234/2007, (EC) No 3/2008 and
country representatives, national competition authorities
(EC) No 479/2008 and repealing Regulations (EEC) No
and from the Commission’s services. A dairy stakeholder
1883/78, (EEC) No 1254/89, (EEC) No 2247/89, (EEC)
conference was also held on 26 March 2010 allowing a
No 2055/93, (EC) No 1868/94, (EC) No 2596/97, (EC)
wider range of actors in the supply chain to express their
No 1182/2005 and (EC) No 315/2007 ( 5 ) (the ‘Health
views. The HLG delivered its report on 15 June 2010.
Check’ reform of 2008-2009), in order to ensure a
The report contained an analysis of the current state of
smooth phasing out of the milk quota system by 2015.
the dairy sector and a number of recommendations
which focused on contractual relations, the bargaining
( 1 ) OJ C 218, 23.7.2011, p. 110.
power of producers, interprofessional/interbranch organi
( 2 ) OJ C 192, 1.7.2011, p. 36.
sations, transparency (including the further elaboration of
( 3 ) Position of the European Parliament of 15 February 2012 (not yet
the European Price Monitoring Tool), market measures
published in the Official Journal) and decision of the Council of
and futures, marketing standards and origin labelling, and
28 February 2012.
( 4 ) OJ L 299, 16.11.2007, p. 1.
innovation and research. As a first step, this Regulation
( 5 ) OJ L 30, 31.1.2009, p. 1.
addresses the first four of these issues.

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EN
30.3.2012 Official
Journal
of
the
European
Union L
94/39
(5) The
HLG
noted
that
the
dairy
producing
and
processing
organisation is respected. In view of the diversity of the
sectors are highly differentiated between Member States.
situations that exist across the Union in relation to
There is also a highly variable situation between
contract law, in the interests of subsidiarity, such a
operators and types of operators within individual
decision should remain with Member States. Equal
Member States. However, in many cases the concen
conditions should apply to all deliveries of raw milk
tration of supply is low, which results in an imbalance
on a given territory. Therefore, if a Member State
in bargaining power in the supply chain between farmers
decides that every delivery of raw milk in its territory
and dairies. This imbalance can lead to unfair commercial
to a processor by a farmer must be covered by a
practices; in particular, farmers may not know at the
written contract between the parties, this obligation
moment of delivery what price they will receive for
should also apply to deliveries of raw milk coming
their milk because frequently the price is fixed much
from other Member States, but it is not necessary for it
later by dairies on the basis of the added value
to apply to deliveries to other Member States. In
obtained, which is often beyond the farmer’s control.
accordance with the principle of subsidiarity it should
be left to Member States to decide whether to require a
first purchaser to make a written offer to a farmer for
such a contract.
(6)
There is thus a problem of price transmission along the
chain, in particular as regards farm-gate prices, the level
of which generally does not evolve in line with rising
production costs. Conversely, during 2009, the supply of
(10) In
order
to
ensure
appropriate
minimum
standards
for
milk did not adjust promptly to lower demand. Indeed,
such contracts and to ensure that the internal market and
in some large producer Member States, farmers reacted
the common market organisation function well, some
to lower prices by producing more than in the previous
basic conditions for the use of such contracts should
year. Value added in the dairy chain has become
be laid down at Union level. All such basic conditions
increasingly concentrated in the downstream sectors,
should, however, be freely negotiated. Nevertheless, in
especially dairies and retailers, with a final consumer
order to strengthen the stability of the dairy market
price that is not reflected in the price paid to milk
and the outlet for milk producers in certain Member
producers. All actors in the dairy chain, including the
States where the use of extremely short contracts is
distribution sector, should be encouraged to collaborate
quite widespread, Member States should be allowed to
to address this imbalance.
set a minimum contract duration to be included in such
contracts and/or offers. Such minimum duration should
however be imposed only on contracts between first
purchasers and milk producers or in the offers made
by first purchasers to milk producers. Moreover, it
should not impair the proper functioning of the
(7)
For dairies, the volume of milk which is delivered to
internal market and milk producers should be free to
them during the season is not always well planned.
opt out or refuse such a minimum duration. Among
Even in the case of dairy cooperatives (which are
the basic conditions, it is important that the price
owned by farmers, possess processing facilities and
payable for the delivery can be set in the contract, at
process 58 % of the Union’s raw milk), there is a
the choice of the contracting parties, as a static price
potential failure to adapt supply to demand: farmers
or a price varying depending on defined factors, such
are obliged to deliver all their milk to their cooperative
as the volume and the quality or composition of the
and the cooperative is obliged to accept all that milk.
raw milk delivered, without excluding the possibility of
a combination of a static price for a certain volume and a
formula price for an additional volume of raw milk
delivered in a single contract.
(8) The
use
of
formalised
written
contracts
concluded
in
advance of delivery containing basic elements is not
widespread. However, such contracts may help to
reinforce the responsibility of operators in the dairy
(11) Dairy cooperatives which have in their statutes or in the
chain and increase awareness of the need to better take
rules and decisions based thereon provisions with effects
into account the signals of the market, to improve price
similar to those of the basic conditions for contracts laid
transmission and to adapt supply to demand, as well as
down in this Regulation should, in the interests of
to help to avoid certain unfair commercial practices.
simplicity, be exempted from a requirement that there
be a written contract.
(9)
In the absence of Union legislation concerning such
contracts, Member States may, within their own
(12) In order to strengthen the effectiveness of the contract-
contract law systems, decide to make the use of such
based system set out above, where intermediate parties
contracts compulsory provided that in doing so Union
collect milk from farmers to deliver to processors,
law is respected and in particular that the proper func
Member States should be given the possibility of
tioning of the internal market and the common market
applying that system also to those intermediaries.

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L 94/40
EN
Official Journal of the European Union
30.3.2012
(13) Article 42 of the Treaty on the Functioning of the
(PGI), notably for vulnerable rural regions, and in order
European Union (TFEU) provides that Union rules on
to ensure the value added and to maintain the quality of,
competition are to apply to production of and trade in
in particular, cheeses benefiting from PDO or PGI, and in
agricultural products only to the extent determined by
the context of the expiring milk quota system, Member
the European Parliament and the Council within the
States should be allowed to apply rules to regulate the
framework of Article 43(2) TFEU, which itself provides
supply of such cheese produced in the defined
for the establishment of the common organisation of
geographical area. The rules should cover the entire
agricultural markets.
production of the cheese concerned and should be
requested by an interbranch organisation, a producer
organisation or a group as defined in Council Regulation
(EC) No 510/2006 of 20 March 2006 on the protection
(14) In
order
to
ensure
the
viable
development
of
production
of geographical indications and designations of origin for
and thus to ensure a fair standard of living for dairy
agricultural products and foodstuffs ( 1 ). Such a request
farmers, their bargaining power vis-à-vis dairy processors
should be supported by a large majority of milk
should be strengthened, thereby resulting in a fairer
producers representing a large majority of the volume
distribution of value added along the supply chain.
of milk used for that cheese and, in the case of inter
Therefore, in order to realise these objectives of the
branch organisations and groups, by a large majority of
common agricultural policy, a provision should be
cheese producers representing a large majority of the
adopted pursuant to Article 42 and Article 43(2) TFEU
production of that cheese. Moreover, these rules should
to allow producer organisations constituted solely of
be subject to strict conditions, in particular in order to
dairy farmers or their associations to jointly negotiate
avoid damage to the trade in products in other markets
contract terms, including price, for some or all of its
and to protect minority rights. Member States should
members’ production, with a dairy. However, only
immediately publish and notify to the Commission the
producer organisations which seek and obtain recog
adopted rules, ensure regular checks and repeal the rules
nition under Article 122 of Regulation (EC) No
in case of non-compliance.
1234/2007 should be eligible to benefit from that
provision. In addition, that provision should not apply
to recognised producers’ organisations, including cooper
atives, that process all the raw milk of their members,
since no delivery of raw milk to other processors is at
stake. Furthermore, provision should be made for the
(18) Rules
have
been
introduced
at
Union
level
for
inter
possibility of de facto recognition under this Regulation
branch organisations in some sectors. These organi
for existing producer organisations recognised under
sations can play useful roles in allowing dialogue
national law.
between actors in the supply chain and in promoting
best practice and market transparency. Such rules
should also be applied in the milk and milk products
sector, along with the provisions clarifying the position
of such organisations under competition law, provided
(15) So
as
not
to
undermine
the
effective
functioning
of
cooperatives and for the sake of clarity, it should be
that the activities of those organisations do not distort
specified that, when a farmer’s membership of a
competition or the internal market or adversely affect the
cooperative entails an obligation, in respect of all or a
good functioning of the common organisation of agri
part of that farmer’s milk production, to deliver raw milk,
cultural markets. Member States should encourage all
the conditions of which are set out in the cooperative’s
relevant actors to participate in interbranch organisations.
statutes or in the rules and decisions based thereon, those
conditions should not be subject to a negotiation
through a producer organisation.
(19) In order to follow developments in the market, the
Commission needs timely information on volumes of
(16) In
addition,
in
order
to
maintain
effective
competition
on
raw milk delivered. Therefore, provision should be
the dairy market, this possibility should be subject to
made to ensure that the first purchaser communicates
appropriate limits expressed in terms of a percentage of
such information to the Member States on a regular
the Union’s production and of the production of any
basis and that the Member State notifies the Commission
Member State covered by such negotiations. The limit
thereof.
expressed in terms of a percentage of the national
production should first apply to the volume of raw
milk produced in the producing Member State or in
each of the producing Member States. The same
percentage limit should also apply to the volume of
raw milk delivered to any particular Member State of
(20) The
Commission
also
needs
notifications
from
Member
destination.
States with respect to contractual negotiations, recog
nition of producer organisations and their associations
and interbranch organisations, as well as contractual
relations in the milk and milk products sector, for
(17) In view of the importance of protected designations of
origin (PDO) and protected geographical indications
( 1 ) OJ L 93, 31.3.2006, p. 12.

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30.3.2012 Official
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of
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European
Union L
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the purpose of monitoring and analysing the application
organisations and the rules for the regulation of supply
of this Regulation, notably with a view to preparing the
of cheese benefiting from a PDO or a PGI, detailed rules
reports which it should present to the European
concerning agreements, decisions and concerted practices
Parliament and Council on the development of the
in the milk and milk products sector, the content, format
dairy market.
and timing of compulsory declarations in that sector,
certain aspects of contracts for the delivery of raw milk
by farmers and the notification, to the Commission, of
(21) The
measures
set
out
in
this
Regulation
are
justified
in
options taken by the Member State in this respect should
the current economic circumstances of the dairy market
be exercised in accordance with Regulation (EU) No
and the structure of the supply chain. They should
182/2011 of the European Parliament and of the
therefore be applied for a sufficiently long period to
Council of 16 February 2011 laying down the rules
allow them to have full effect. However, given their
and general principles concerning mechanisms for
far-reaching nature, they should be temporary and
control by Member States of the Commission’s exercise
subject to review for the purpose of seeing how they
of implementing powers (
have operated and whether they should continue to

1 ).
apply. This should be dealt with in two Commission
reports on the development of the dairy market,
(25) In the light of the Commission’s powers in the field of
covering, in particular, potential incentives to encourage
Union competition policy and given the special nature of
farmers to enter into joint production agreements, to be
those acts, the Commission should decide without
submitted by 30 June 2014 and by 31 December 2018
applying Regulation (EU) No 182/2011 whether certain
respectively.
agreements and concerted practices in the milk and milk
products sector are incompatible with Union competition
rules, whether the negotiations by a producer organi
(22) The
economy
of
certain
disadvantaged
regions
in
the
Union depends heavily on milk production. Because of
sation relating to more than one Member State may
the specific characteristics of these regions, general
take place and whether certain rules laid down by the
policies need be adapted to better meet their needs.
Member States to regulate the supply of such cheese with
The common agricultural policy already contains
a PDO or a PGI should be repealed.
specific measures for those disadvantaged regions.
Additional policy measures laid down in this Regulation
(26) Regulation
(EC) No 1234/2007 should therefore be
may contribute to strengthening the position of milk
amended accordingly,
producers in such regions. These effects should
however be evaluated in the abovementioned reports
on the basis of which the Commission should, where
HAVE ADOPTED THIS REGULATION:
necessary, submit proposals to the European Parliament
and to the Council.
Article 1
(23) In order to ensure that the objectives and responsibilities
Amendments to Regulation (EC) No 1234/2007
of producer organisations and associations of producer
organisations in the milk and milk products sector are
Regulation (EC) No 1234/2007 is hereby amended as follows:
clearly defined, the power to adopt acts in accordance
with Article 290 TFEU should be delegated to the
Commission in respect of the conditions for the recog
(1) in point (a) of the first paragraph of Article 122, the
nition of transnational producer organisations and trans
following point is inserted:
national associations of producer organisations, the rules
on the establishment and the conditions of administrative
‘(iiia) milk and milk products;’;
assistance in the case of transnational cooperation and
the calculation of the volume of raw milk covered by
negotiations by a producer organisation. It is of particular
(2) in Article 123, the following paragraph is added:
importance that the Commission carry out appropriate
consultations during its preparatory work, including at
expert level. The Commission, when preparing and
‘4. Member
States
may
also
recognise
interbranch
organi
drawing up delegated acts, should ensure a simultaneous,
sations which:
timely and appropriate transmission of relevant
documents to the European Parliament and to the
Council.
(a) have formally requested recognition and are made up of
representatives of economic activities linked to the
production of raw milk and linked to at least one of
(24) In
order
to
ensure
uniform
conditions
for
the
implemen
the following stages of the supply chain: processing of
tation of this Regulation implementing powers should be
or trade in, including distribution of, products of the
conferred on the Commission. The implementing powers
milk and milk products sector;
relating to the implementation of conditions for the
recognition of producer organisations and their associ
ations and interbranch organisations, the notifications by
(b) are formed on the initiative of all or some of the repre
those organisations of the volume of raw milk covered
sentatives referred to in point (a);
by negotiations, the notifications to be made by the
Member States to the Commission concerning those
( 1 ) OJ L 55, 28.2.2011, p. 13.

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L 94/42
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Official Journal of the European Union
30.3.2012
(c) carry out, in one or more regions of the Union, taking
(3) in Chapter II of Title II of Part II, the following Section is
into account the interests of the members of those
inserted:
interbranch organisations and of consumers, one or
more of the following activities:
‘S e c t i o n I I A
(i) improving the knowledge and the transparency of
R u l e s
c o n c e r n i n g
p r o d u c e r
o r g a n i
production and the market, including by
s a t i o n s a n d i n t e r b r a n c h o r g a n i s a t i o n s
publication of statistical data on the prices,
i n t h e m i l k a n d m i l k p r o d u c t s s e c t o r
volumes and durations of contracts for the
delivery of raw milk which have been previously
Article 126a
concluded, and by providing analyses of potential
future market developments at regional, national
Recognition of producer organisations and their
and international level;
associations in the milk and milk products sector
1. Member
States
shall
recognise
as
producer
organi
(ii) helping to coordinate better the way the products
sations in the milk and milk products sector all legal
of the milk and milk products sector are placed on
entities or clearly defined parts of legal entities applying
the market, in particular by means of research and
for such recognition, provided that:
market studies;
(iii) promoting consumption of, and providing
(a) they meet the requirements laid down in points (b) and
information on, milk and milk products in both
(c) of the first paragraph of Article 122;
internal and external markets;
(b) they have a minimum number of members and/or cover
(iv) exploring potential export markets;
a minimum volume of marketable production, to be
laid down by the Member State concerned, in the area
(v) drawing up standard forms of contract compatible
where they operate;
with Union rules for the sale of raw milk to
purchasers and/or the supply of processed
(c) there is sufficient evidence that they can carry out their
products to distributors and retailers, taking into
activities properly, both over time and in terms of effec
account the need to achieve fair competitive
tiveness and concentration of supply;
conditions and to avoid market distortions;
(d) they have a statute that is consistent with points (a), (b)
(vi) providing the information and carrying out the
and (c) of this paragraph.
research necessary to adjust production in favour
of products more suited to market requirements
and consumer tastes and expectations, in particular
2. In
response
to
an
application,
Member
States
may
with regard to product quality and protection of
recognise an association of recognised producer organi
the environment;
sations in the milk and milk products sector if the
Member State concerned considers that this association is
(vii) maintaining and developing the production
capable of carrying out effectively any of the activities of a
potential of the dairy sector, inter alia, by
recognised producer organisation and that it fulfils the
promoting innovation and supporting
conditions laid down in paragraph 1.
programmes for applied research and development
in order to exploit the full potential of milk and
3. Member
States
may
decide
that
producer
organisations
milk products, especially in order to create value-
which have been recognised before 2 April 2012 on the
added products which are more attractive to the
basis of national law and which fulfil the conditions laid
consumer;
down in paragraph 1 of this Article are to be considered to
be recognised as producer organisations pursuant to point
(viii) seeking ways of restricting the use of animal-
(iiia) of point (a) of the first paragraph of Article 122.
health products, improving the management of
other inputs and enhancing food safety and
animal health;
Producer organisations which have been recognised before
2 April 2012 on the basis of national law and which do not
fulfil the conditions laid down in paragraph 1 of this Article
(ix)
developing methods and instruments for
may continue to exercise their activities under national law
improving product quality at all stages of
until 3 October 2012.
production and marketing;
(x) exploiting the potential of organic farming and
4. Member
States
shall:
protecting and promoting such farming as well
as the production of products with designations
(a) decide whether to grant a recognition to a producer
of origin, quality labels and geographical indi
organisation within 4 months of the lodging of an
cations; and
application accompanied by all the relevant supporting
evidence; this application shall be lodged with the
(xi) promoting integrated production or other environ
Member State where the organisation has its head
mentally sound production methods.’;
quarters;

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30.3.2012 Official
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(b) carry out, at intervals to be determined by them, checks
(d) withdraw recognition if:
to ascertain that recognised producer organisations and
associations of producer organisations are complying
(i) the requirements and conditions for recognition
with the provisions of this Chapter;
laid down in this Article are no longer met;
(c) in the event of non-compliance or irregularities in the
(ii) the interbranch organisation engages in any of the
implementation of the measures provided for in this
agreements, decisions and concerted practices
Chapter, impose on those organisations and associations
referred to in Article 177a(4), without prejudice
the applicable penalties they have laid down and decide
to any other penalties to be imposed pursuant to
whether, if necessary, recognition should be withdrawn;
national law;
(d) inform the Commission once a year, and no later than
(iii) the interbranch organisation fails to comply with
31 March, of every decision to grant, refuse or withdraw
the notification obligation referred to in
recognition which they have taken during the previous
Article 177a(2);
calendar year.
(e) inform the Commission once a year, and no later than
Article 126b
31 March, of every decision to grant, refuse or withdraw
Recognition of interbranch organisations in the milk
recognition taken during the previous calendar year.
and milk products sector
Article 126c
1. Member
States
may
recognise
interbranch
organi
sations in the milk and milk products sector provided
Contractual negotiations in the milk and milk products
that such organisations:
sector
(a) meet the requirements laid down in Article 123(4);
1. A
producer
organisation
in
the
milk
and
milk
products sector which is recognised under Article 122
may negotiate on behalf of its farmer members, in respect
(b) carry out their activities in one or more regions in the
of part or all of their joint production, contracts for the
territory concerned;
delivery of raw milk by a farmer to a processor of raw milk,
or to a collector within the meaning of the second
(c) account for a significant share of the economic activities
subparagraph of Article 185f(1).
referred to in Article 123(4)(a);
2. The
negotiations
by
the
producer
organisation
may
(d) do not themselves engage in the production of
take place:
processing of or the trade in products in the milk and
milk products sector.
(a) whether or not there is a transfer of ownership of the
raw milk by the farmers to the producer organisation;
2. Member
States
may
decide
that
interbranch
organi
sations which have been recognised before 2 April 2012
on the basis of national law and which fulfil the conditions
(b) whether or not the price negotiated is the same as
laid down in paragraph 1 are to be considered to be
regards the joint production of some or all of the
recognised as interbranch organisations under
farmer members;
Article 123(4).
(c) provided that, for a particular producer organisation:
3. Where
Member
States
make
use
of
the
option
to
recognise an interbranch organisation in accordance with
(i) the volume of raw milk covered by such negoti
paragraph 1 and/or 2, they shall:
ations does not exceed 3,5 % of total Union
production; and
(a) decide whether to grant recognition to the interbranch
organisation within 4 months of the lodging of an
(ii) the volume of raw milk covered by such negoti
application accompanied by all the relevant supporting
ations which is produced in any particular Member
evidence; this application shall be lodged with the
State does not exceed 33 % of the total national
Member State where the organisation has its head
production of that Member State; and
quarters;
(iii) the volume of raw milk covered by such negoti
(b) carry out, at intervals to be determined by them, checks
ations which is delivered in any particular Member
to verify that recognised interbranch organisations are
State does not exceed 33 % of the total national
complying with the conditions governing their recog
production of that Member State;
nition;
(d) provided that the farmers concerned are not members
(c) in the event of non-compliance or irregularities in the
of any other producer organisation which also
implementation of the measures provided for in this
negotiates such contracts on their behalf; however,
Regulation, impose on those organisations the
Member States may derogate from this condition in
applicable penalties they have laid down and decide
duly justified cases where farmers hold two distinct
whether, if necessary, recognition should be withdrawn;
production units located in different geographic areas;

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L 94/44
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Official Journal of the European Union
30.3.2012
(e) provided that the raw milk is not covered by an
mendation 2003/361/EC of 6 May 2003 concerning the
obligation to deliver arising from the farmer’s
definition of micro, small and medium-sized enter
membership of a cooperative in accordance with the
prises (**).
conditions set out in the cooperative’s statutes or the
rules and decisions provided for in or derived from
8. The
Member
States
in
which
negotiations
take
place
in
these statutes; and
accordance with this Article shall notify the Commission of
the application of point (f) of paragraph 2 and paragraph 6.
(f) provided that the producer organisation notifies the
competent authorities of the Member State or Member
States in which it operates of the volume of raw milk
Article 126d
covered by such negotiations.
Regulation of supply for cheese with a protected
designation of origin or protected geographical
3. Notwithstanding the conditions set out in points (ii)
indication
and (iii) of point (c) of paragraph 2, a producer organisation
may negotiate pursuant to paragraph 1, provided that, with
1. Upon the request of a producer organisation
regard to that producer organisation, the volume of raw
recognised under point (a) of the first paragraph of
milk covered by the negotiations which is produced in or
Article 122, an interbranch organisation recognised under
delivered in a Member State having a total annual raw milk
Article 123(4) or a group of operators referred to in
production of less than 500 000 tonnes does not exceed
Article 5(1) of Regulation (EC) No 510/2006, Member
45 % of the total national production of that Member State.
States may lay down, for a limited period of time,
binding rules for the regulation of the supply of cheese
4.
For the purposes of this Article, references to producer
benefiting from a protected designation of origin or from
organisations shall also include associations of such
a protected geographical indication under Article 2(1)(a) and
producer organisations.
(b) of Regulation (EC) No 510/2006.
5. For the purposes of applying point (c) of paragraph 2
2. The
rules
referred
to
in
paragraph
1
shall
comply
with
and paragraph 3, the Commission shall publish, by such
the conditions set out in paragraph 4 and shall be subject to
means as it considers appropriate, the amounts of raw
the existence of a prior agreement between the parties in
milk production in the Union and the Member States
the geographical area referred to in Article 4(2)(c) of Regu
using the most up-to-date information available.
lation (EC) No 510/2006. Such an agreement shall be
concluded between at least two thirds of the milk
producers or their representatives representing at least two
6. By way of derogation from point (c) of paragraph 2
thirds of the raw milk used for the production of the cheese
and paragraph 3, even where the thresholds set out therein
referred to in paragraph 1 and, if appropriate, at least two
are not exceeded, the competition authority referred to in
thirds of the producers of that cheese representing at least
the second subparagraph of this paragraph may decide in an
two thirds of the production of that cheese in the
individual case that a particular negotiation by the producer
geographical area referred to in Article 4(2)(c) of Regulation
organisation should either be reopened or should not take
(EC) No 510/2006.
place at all if it considers that this is necessary in order to
prevent competition being excluded or in order to avoid
seriously damaging SME processors of raw milk in its
3. For the purpose of paragraph 1, concerning cheese
territory.
benefiting from a protected geographical indication, the
geographical area of origin of the raw milk, as set in the
For negotiations covering more than one Member State, the
product specification for the cheese, shall be the same as the
decision referred to in the first subparagraph shall be taken
geographical area referred to in Article 4(2)(c) of Regulation
by the Commission without applying the procedure referred
(EC) No 510/2006 related to that cheese.
to in Article 195(2) or Article 196b(2). In other cases, that
decision shall be taken by the national competition
4. The
rules
referred
to
in
paragraph
1:
authority of the Member State to which the negotiations
relate.
(a) shall only cover the regulation of supply of the product
concerned and shall have the aim of adapting the supply
The decisions referred to in this paragraph shall not apply
of that cheese to demand;
earlier than the date of their notification to the undertakings
concerned.
(b) shall have effect only on the product concerned;
7. For
the
purposes
of
this
Article:
(c) may be made binding for no more than 3 years and be
renewed after this period, following a new request, as
(a) a “national competition authority” means the authority
referred to in paragraph 1;
referred to in Article 5 of Council Regulation (EC) No
1/2003 of 16 December 2002 on the implementation
of the rules on competition laid down in Articles 101
(d) shall not damage the trade of products other than those
and 102 of the Treaty (*);
concerned by the rules referred to in paragraph 1;
(b) an “SME” means a micro-, small- or medium-sized
(e) shall not relate to any transaction after the first
enterprise within the meaning of Commission Recom
marketing of the cheese concerned;

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(f) shall not allow for price fixing, including where prices
(c) additional rules regarding the calculation of the volume
are set for guidance or recommendation;
of raw milk covered by the negotiations referred to in
Article 126c(2)(c) and Article 126c(3).
(g) shall not render unavailable an excessive proportion of
the product concerned that would otherwise be
2. The
Commission
may
adopt
implementing
acts
laying
available;
down detailed rules necessary for:
(h) shall not create discrimination, constitute a barrier for
new entrants in the market, or lead to small producers
(a) the implementation of the conditions for recognition of
being adversely affected;
producer organisations and their associations and inter
branch organisations set out in Articles 126a and 126b;
(i) shall contribute to maintaining the quality and/or the
development of the product concerned;
(b) the notification referred to in Article 126c(2)(f);
(j) shall be without prejudice to Article 126c.
(c) the notifications to be made by the Member States to
the Commission in accordance with Article 126a(4)(d),
5. The
rules
referred
to
in
paragraph
1
shall
be
published
Article 126b(3)(e), Article 126c(8) and Article 126d(7);
in an official publication of the Member State concerned.
6. Member
States
shall
carry
out
checks
in
order
to
(d) the procedures relating to administrative assistance in
ensure that the conditions laid down in paragraph 4 are
the case of transnational cooperation.
complied with, and, where it has been found by the
competent national authorities that such conditions have
Those implementing acts shall be adopted in accordance
not been complied with, shall repeal the rules referred to
with the examination procedure referred to in
in paragraph 1.
Article 196b(2).
7. Member
States
shall
notify
the
Commission
forthwith
___________
of the rules referred to in paragraph 1 which they have
adopted. The Commission shall inform Member States of
(*) OJ L 1, 4.1.2003, p. 1. Editorial note: The title of
any notification of such rules.
Regulation (EC) No 1/2003 has been adjusted to take
account of the renumbering of the articles of the Treaty
establishing the European Community, in accordance
8. The
Commission
may
at
any
time
adopt
imple
with Article 5 of the Treaty of Lisbon; the original
menting acts requiring that a Member State repeal the
reference was to Articles 81 and 82 of the Treaty.
rules laid down by that Member State pursuant to
(**) OJ L 124, 20.5.2003, p. 36.’;
paragraph 1 if the Commission finds that those rules do
not comply with the conditions laid down in paragraph 4,
prevent or distort competition in a substantial part of the
internal market or jeopardise free trade or the attainment of
(4) in Article 175 the words ‘subject to Articles 176 to 177 of
the objectives of Article 39 TFEU. Those implementing acts
this Regulation’ are replaced by the words ‘subject to
shall be adopted without applying the procedure referred to
Articles 176 to 177a of this Regulation’;
in Article 195(2) or Article 196b(2).
(5) the following Article is inserted:
Article 126e
Commission powers in relation to producer
‘Article 177a
organisations and interbranch organisations in the
milk and milk products sector
Agreements, decisions and concerted practices in the
milk and milk products sector
1. In
order
to
ensure
that
the
objectives
and
responsi
bilities of producer organisations and associations of
1. Article
101(1)
TFEU
shall
not
apply
to
the
agree
producer organisations in the milk and milk products
ments, decisions and concerted practices of recognised inter
sector are clearly defined, so as to contribute to the effec
branch organisations for the purpose of carrying out the
tiveness of the actions of such organisations without
activities referred to in Article 123(4)(c) of this Regulation.
imposing an undue burden, the Commission shall be
empowered to adopt delegated acts in accordance with
2. Paragraph
1
shall
only
apply
if:
Article 196a which lay down:
(a) the conditions for recognising transnational producer
(a) the agreements, decisions and concerted practices have
organisations and transnational associations of
been notified to the Commission; and
producer organisations;
(b) within 3 months of receipt of all the details required,
(b) rules relating to the establishment and the conditions of
the Commission, without applying the procedure
administrative assistance to be given by the relevant
referred to in Article 195(2) or Article 196b(2), has
competent authorities in the case of transnational
not found that the agreements, decisions or concerted
cooperation;
practices are incompatible with Union rules.

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3. The
agreements,
decisions
and
concerted
practices
operation of point (iiia) of point (a) of the first
may not be put into effect before the period referred to
paragraph of Article 122, of Article 123(4) and of
in point (b) of paragraph 2 elapses.
Articles 126c, 126d, 177a, 185e and 185f,
assessing, in particular, the effects on milk
4. Agreements,
decisions
and
concerted
practices
shall
in
producers and milk production in disadvantaged
any case be declared incompatible with Union rules if they:
regions in connection with the general objective of
maintaining production in such regions, and
(a) may lead to the partitioning of markets in any form
covering potential incentives to encourage farmers
within the Union;
to enter into joint production agreements together
with any appropriate proposals.’,
(b) may affect the sound operation of the market organi
sation;
(7) the following Articles are inserted:
(c) may create distortions of competition and are not
essential to achieving the objectives of the common
‘Article 185e
agricultural policy pursued by the interbranch organi
sation activity;
Compulsory declarations in the milk and milk products
sector
(d) entail the fixing of prices;
From 1 April 2015, the first purchasers of raw milk shall
declare to the competent national authority the quantity of
(e) may create discrimination or eliminate competition in
raw milk that has been delivered to them each month.
respect of a substantial proportion of the products in
question.
For the purpose of this Article and of Article 185f, a “first
5. If,
after
the
period
referred
to
in
point
(b)
of
purchaser” means an undertaking or group which buys milk
paragraph 2 has expired, the Commission finds that the
from producers in order to:
conditions for applying paragraph 1 have not been met, it
shall, without applying the procedure referred to in
(a) subject it to collecting, packing, storing, chilling or
Article 195(2) or Article 196b(2), take a decision
processing, including under a contract;
declaring that Article 101(1) TFEU applies to the agreement,
decision or concerted practice in question.
(b) sell it to one or more undertakings treating or
processing milk or other milk products.
That Commission decision shall not apply earlier than the
date of its notification to the interbranch organisation
Member States shall notify the Commission of the quantity
concerned, unless that interbranch organisation has given
of raw milk referred to in the first subparagraph.
incorrect information or has abused the exemption
provided for in paragraph 1 of this Article.
The Commission may adopt implementing acts laying down
6. In
the
case
of
multiannual
agreements,
the
notification
rules on the content, format and timing of such declarations
for the first year shall be valid for the subsequent years of
and measures relating to the notifications to be made by the
the agreement. However, the Commission may, on its own
Member States in accordance with this Article. Those imple
initiative or at the request of another Member State, issue a
menting acts shall be adopted in accordance with the exam
finding of incompatibility at any time.
ination procedure referred to in Article 196b(2).
7. The
Commission
may
adopt
implementing
acts
laying
Article 185f
down measures necessary for the uniform application of
this Article. Those implementing acts shall be adopted in
Contractual relations in the milk and milk products
accordance with the examination procedure referred to in
sector
Article 196b(2).’;
1. If a Member State decides that every delivery of raw
(6) Article 184 is amended as follows:
milk in its territory by a farmer to a processor of raw milk
must be covered by a written contract between the parties
(a) point 6 is replaced by the following:
and/or decides that first purchasers must make a written
offer for a contract for the delivery of raw milk by the
‘6. before 31 December 2010 and 31 December 2012
farmers, such a contract and/or such an offer for a
to the European Parliament and Council regarding
contract shall fulfil the conditions laid down in paragraph 2.
the evolution of the market situation and the
consequent conditions for smoothly phasing out
Where the Member State decides that deliveries of raw milk
the milk quota system, accompanied, if necessary,
by a farmer to a processor of raw milk must be covered by
by appropriate proposals;’;
a written contract between the parties, it shall also decide
which stage or stages of the delivery shall be covered by
(b) the following point is added:
such a contract if the delivery of raw milk is made through
one or more collectors. For the purposes of this Article, a
‘9. by 30 June 2014 and by 31 December 2018 to the
“collector” means an undertaking which transports raw milk
European Parliament and the Council regarding the
from a farmer or another collector to a processor of raw
development of the market situation in the milk and
milk or another collector, where the ownership of the raw
milk products sector and in particular on the
milk is transferred in each case.

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2. The
contract
and/or
the
offer
for
a
contract
shall:
5. The
Member
States
which
make
use
of
the
options
referred to in this Article shall notify the Commission of
(a) be made in advance of the delivery;
how they are applied.
(b) be made in writing; and
6. The
Commission
may
adopt
implementing
acts
laying
(c) include, in particular, the following elements:
down measures necessary for the uniform application of
(i) the price payable for the delivery, which shall:
points (a) and (b) of paragraph 2 and paragraph 3 of this
Article and measures relating to notifications to be made by
— be static and be set out in the contract, and/or,
the Member States in accordance with this Article. Those
implementing acts shall be adopted in accordance with the
— be calculated by combining various factors set
examination procedure referred to in Article 196b(2).’;
out in the contract, which may include market
indicators reflecting changes in market
conditions, the volume delivered and the
(8) in Chapter I of Part VII, the following Articles are added:
quality or composition of the raw milk
delivered,
‘Article 196a
(ii) the volume of raw milk which may and/or must be
Exercise of the delegation
delivered and the timing of such deliveries;
1. The
power
to
adopt
delegated
acts
is
conferred
on
the
(iii) the duration of the contract, which may include
Commission subject to the conditions laid down in this
either a definite or an indefinite duration with
Article.
termination clauses;
(iv) details regarding payment periods and procedures;
2. The
power
to
adopt
delegated
acts
referred
to
in
Article 126e(1) shall be conferred on the Commission for
(v) arrangements for collecting or delivering raw milk;
a period of 5 years from 2 April 2012. The Commission
and
shall draw up a report in respect of the delegation of power
not later than 9 months before the end of the five-year
(vi) rules applicable in the event of force majeure.
period. The delegation of power shall be tacitly extended
3. By way of derogation from paragraph 1, a contract
for periods of an identical duration, unless the European
and/or an offer for a contract shall not be required where
Parliament or the Council opposes such extension not
raw milk is delivered by a farmer to a cooperative of which
later than 3 months before the end of each period.
the farmer is a member if the statutes of that cooperative or
the rules and decisions provided for in or derived from
3. The
delegation
of
power
referred
to
in
Article
126e(1)
these statutes contain provisions having similar effects to
may be revoked at any time by the European Parliament or
the provisions set out in points (a), (b) and (c) of
by the Council. A decision to revoke shall put an end to the
paragraph 2.
delegation of the power specified in that decision. It shall
take effect the day following the publication of the decision
4. All elements of contracts for the delivery of raw milk
in the Official Journal of the European Union or at a later date
concluded by farmers, collectors or processors of raw milk,
specified therein. It shall not affect the validity of any
including the elements referred to in paragraph 2(c), shall be
delegated acts already in force.
freely negotiated between the parties.
Notwithstanding the first subparagraph,
4. As
soon
as
it
adopts
a
delegated
act,
the
Commission
shall notify it simultaneously to the European Parliament
(i) where a Member State decides to make written contracts
and to the Council.
for the delivery of raw milk compulsory in accordance
with paragraph 1 of this Article, it may establish a
minimum duration, applicable only to written
5. A
delegated
act
adopted
pursuant
to
Article
126e(1)
contracts between a farmer and the first purchaser of
shall enter into force only if no objection has been
raw milk. Such a minimum duration shall be at least 6
expressed either by the European Parliament or the
months and shall not impair the proper functioning of
Council within a period of 2 months of notification of
the internal market; and/or
that act to the European Parliament and the Council or if,
before the expiry of that period, the European Parliament
(ii) where a Member State decides that the first purchaser of
and the Council have both informed the Commission that
raw milk must make a written offer for a contract to the
they will not object. That period shall be extended by 2
farmer in accordance with paragraph 1, it may provide
months at the initiative of the European Parliament or of
that the offer must include a minimum duration for the
the Council.
contract, set by national law for this purpose. Such a
minimum duration shall be at least 6 months and shall
Article 196b
not impair the proper functioning of the internal
market.
Committee procedure
The second subparagraph shall be without prejudice to the
1. The
Commission
shall
be
assisted
by
a
committee
farmer’s right to refuse such a minimum duration provided
which shall be referred to as the Committee for the
that he does so in writing. In this case, the parties shall be
Common Organisation of Agricultural Markets. That
free to negotiate all elements of the contract, including
committee is a committee within the meaning of Regulation
those elements referred to in paragraph 2(c).
(EU) No 182/2011 of the European Parliament and of the

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Council of 16 February 2011 laying down the rules and
shall apply from 2 April 2012 until 30 June 2020 and
general principles concerning mechanisms for control by
Articles 126c, 126d, 185e and 185f shall apply from
Member States of the Commission’s exercise of imple
3 October 2012 until 30 June 2020.’.
menting powers (*).
Article 2
2. Where
reference
is
made
to
this
paragraph,
Article
5
of Regulation (EU) No 182/2011 shall apply.
Entry into force
___________
1. This
Regulation
shall
enter
into
force
on
the
third
day
following that of its publication in the Official Journal of the
(*) OJ L 55, 28.2.2011, p. 13.’,
European Union.
(9) in Article 204, the following paragraph is added:
2. It
shall
apply
from
2
April
2012.
‘7. As regards the milk and milk products sector, point
However, Articles 126c, 126d, 185e and 185f of Regulation
(iiia) of point (a) of the first paragraph of Article 122,
(EC) No 1234/2007, as inserted by this Regulation, shall apply
Article 123(4) and Articles 126a, 126b, 126e, and 177a
from 3 October 2012.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Strasbourg, 14 March 2012.
For the European Parliament
For the Council
The President
The President
M. SCHULZ
N. WAMMEN

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