ANNOUNCEMENT 03 Feb 2009

In February 2009, the European Commission announced a change in production support.

NUMBER OF INTERVENTIONS

2

  • 0 harmful
  • 1 neutral
  • 1 liberalising
Inception date: 03 Feb 2009 | Removal date: open ended
Still in force

Production subsidy

On 19 January 2009, the European Commission issued regulation 72/2009 modifying its Common Agricultural Policy.
 
Restrictions on public purchasing interventions
The regulation 1234/2007 was amended with regards to pigmeat. There will be no further interventions in the form of reference pricesfor this product.
These reference prices are set as the intervention threshold, below which the Commission may withdraw products from the market in order to keep prices above the reference value.
The new regulation further replaced the monthly reference price fixing for cereals with an annual reference price of (EUR 101.31tonne at its instatement).
The interval for interventions in the cereals sector was shortened to 1 November - 31 May.
For common wheat, the intervention price set "shall be equal to the reference price for a maximum quantity offered of 3 million tonnes per intervention period" (art. 18(1)a of 72/2009). Previously this was simply set to "the reference price without prejudice to price increases or reductions for quality reasons" (art. 18 of 1234/2007).
Regarding butter, the intervention benchmark was lowered from 92% to 90% of the reference price (art. 18(1)b of 72/2009).
The amendment further set the intervention limits for durum wheat, barley, maize, sorghum and paddy rice to 0 tonnes in the intervention period (art. 13(1)a of 72/2009).
Despite these limits, article 13(3) stipulates that "the Commission may decide to continue public intervention beyond the amounts referred to in that paragraph 'i.e. regarding durum wheat, barley, maize, sorghum, paddy rice, butter and skimmed milk powder' if the market situation and, in particular, the development of market prices, so requires."
 
Modified import quotas
The new CAP modifies the quota on potato starch.
 
Restrictions on assistance to cheese and milk producers
The provisions erased the possibility of private storage aid for the Grana Padano, Parmigianno Regiano and Provolone cheeses.
Furthermore, the new CAP includes the abolition of aid for dried fodder processing. Other changes included a different calculation method for the surplus levy charged on Member States which exceed their national quota on milk and other milk products. Instead of having to pay EUR 27.83100kg of milk, "the surplus levy for milk delivered in excess of 106 % of the national quota (...) shall be set at 150 % of the levy referred to in the second subparagraph 'i.e. determined nationally and separately for deliveries and direct sales'".
The regulation came into force on 3 February 2009. However, the provisions regarding quotas on milk production expire on 31 March 2015.

Inception date: 03 Feb 2009 | Removal date: open ended
Still in force

Production subsidy

On 19 January 2009, the European Commission issued regulation 72/2009 modifying its Common Agricultural Policy.
 
Restrictions on public purchasing interventions
The regulation 1234/2007 was amended with regards to pigmeat. There will be no further interventions in the form of reference pricesfor this product.
These reference prices are set as the intervention threshold, below which the Commission may withdraw products from the market in order to keep prices above the reference value.
The new regulation further replaced the monthly reference price fixing for cereals with an annual reference price of (EUR 101.31tonne at its instatement).
The interval for interventions in the cereals sector was shortened to 1 November - 31 May.
For common wheat, the intervention price set "shall be equal to the reference price for a maximum quantity offered of 3 million tonnes per intervention period" (art. 18(1)a of 72/2009). Previously this was simply set to "the reference price without prejudice to price increases or reductions for quality reasons" (art. 18 of 1234/2007).
Regarding butter, the intervention benchmark was lowered from 92% to 90% of the reference price (art. 18(1)b of 72/2009).
The amendment further set the intervention limits for durum wheat, barley, maize, sorghum and paddy rice to 0 tonnes in the intervention period (art. 13(1)a of 72/2009).
Despite these limits, article 13(3) stipulates that "the Commission may decide to continue public intervention beyond the amounts referred to in that paragraph 'i.e. regarding durum wheat, barley, maize, sorghum, paddy rice, butter and skimmed milk powder' if the market situation and, in particular, the development of market prices, so requires."
 
Modified import quotas
The new CAP modifies the quota on potato starch.
 
Restrictions on assistance to cheese and milk producers
The provisions erased the possibility of private storage aid for the Grana Padano, Parmigianno Regiano and Provolone cheeses.
Furthermore, the new CAP includes the abolition of aid for dried fodder processing. Other changes included a different calculation method for the surplus levy charged on Member States which exceed their national quota on milk and other milk products. Instead of having to pay EUR 27.83100kg of milk, "the surplus levy for milk delivered in excess of 106 % of the national quota (...) shall be set at 150 % of the levy referred to in the second subparagraph 'i.e. determined nationally and separately for deliveries and direct sales'".
The regulation came into force on 3 February 2009. However, the provisions regarding quotas on milk production expire on 31 March 2015.