Common agricultural policy in the milk sector: Its application and implications for Greece

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1 Common agricultural policy in the milk sector: Its application implications for Greece Bollas E. in Baourakis G. (ed.). The Common Agricultural Policy the European Union: New market trends Chania : CIHEAM Cahiers Options Méditerranéennes; n pages Article available on line / Article disponible en ligne à l adresse : To cite this article / Pour citer cet article Bollas E. Common agricultural policy in the milk sector: Its application implications for Greece. In : Baourakis G. (ed.). The Common Agricultural Policy the European Union: New market trends. Chania : CIHEAM, p (Cahiers Options Méditerranéennes; n. 29)

2 . Agronomist, General Direction Dairy products,' Greek Agn'culture. Union milk into 804/68 on 27th July, the adoption this thefact that development milk to be accompaniedbytheestablishment in milk 1964 envisaged the annual a - the basis which a duty would - in with the goals 39 the one h it to stability, to living the milk it that which was to that to take into account the utilisation milk thus the milk given that the within the EU, it was in that subsidies had EU to milk not identical to 1. 0 milk, 0 lactose lactose 0 animals containing milk 2. 0 No 2071/92 (EEC) No 804/68 as last

3 No 2073/92: No 2074/92: additional levy 3. The milk to 31 The mide milk with a fat content 3.7 %; it th.at it is hoped O t sold milk to mi&. so that milk 4. OF for aus bellow 92% in skimmed milk buying in between 31 August Once in 4.2 Storage aid is 0 at least months between at least 4 months at least 15 months age at least 3 months age. Aid may be (EU. 1024/94) Financial aid amount 3,200 tons 1994/5. a. Amount financial aid: 1.97 day. b. up to the 110

4 ~ Cheese the aid: milk used in animal feed makes it possible to in foodstuff make them competitive with substitute the mill< in 10 (EEC) No 804/68 states that aid is to be milk skimmed milk in animal feeds. 4.3 stocks to dispose (EEC) No 804/68 states that than those specifically milk a) On this basis, aid is to to I[ 6 foodstuffs (570/88) in the being implemented (sales milk intended this in the past but at 12 (EEC) No aid the use skimmed milk in the feeding than No 865/84.). C> 26 (EEC) No 804/68 states that Community aid can be milk to 4.4 stability (EEC) No 1079/77 17 imposed in on all milk the mountain hill have at 3% the milk; since the 1989/90 milk 0 than 60,000 0 than 60,

5 Additional lew 5 c (EEC) No an quantity. is set at 115% milk a 12 month quantity This levy is extended, (EEC) No ouotas 1984 the mechanism is based on national quotas composed : the event o his must pay an additional amounts to 115% in the case to 75% the in the case The implementation this The inadequate milk, especially in view the fact that an ficial goal the E.U. is the is not milk the distances involved OP in - The lack the to the that the at the high level 125% This places a - The need to maintain an economically active population in mountainous The the people in achieving the goals laid down at in in such is kept at suffocating levels without the possibility not only the lack cohesion but the inconsistency which is when with the objectives with is 1 the EU. The that the economic activity in is beset by that than l 112

6 incentives in in time indeed still (EU) 866/90 (50% ceiling Community backing as opposed to the the Community). objectives in cohesion an effect on the economy The low nationd in the unacceptably low in not optimum expansion so as to beableto methods but low in to at high costs, a the GATT taken into account. A in the EU when the data in Table into that those involved in the business milk income imposition that l discontent because a subject - i.e. the size milk quota - which is costs the system quotas, in by the EU. 4.5 The utilisation the co-responsibility levy The funds levied as 0 to hide the Community to finance schemes: 0 * These funds &us used to in set up each milk 0 mik 4.6 Promotion widening the markets for dairy pro$& (EU) Financial aid is mills within the Union. 113

7 a. Amount jìnancial aid: to the cost With a Community subsidy attempt has been made to milk, This attempt, in to a in the consumption had as its in the huge quantities milk. his in We cheeses. the Community out which have been to both the the milk to pupils educational establishments (EU) 1842/ /93. Financial milk dairy (milk, up to an amount the equivalent 0.25 whole mill< pupil school day. a. Amount financial aid: to to at c. in the case 4.7 butter (EU 570/88 a. Amount financial aid: at amount financial aid to decisions taken by the the 48 Aid to reduce production giving up _ - " 114..;..

8 ~~ 30% The in milk in to so 1987/ /89. This out by means scheme, backed by ECU 6 per the 8th (1991/92) 2% in No 1637/91 scheme specifies the conditions on which compensation is paid. the 4.9 Trade (EEC) No 1336/86 lays down the amount but that these EAGGF funds this milk o levies to milk milk the levy is out with in the to the pilot account the milk 5. - OF., (EU) 2328 j / $5). Assistance is in 3545% for buildings, 20-30% for equipment animals. amounts in the case 43-56% 2537% equipment animals. Today, established quotas. the following table, the amount aid investment. a) Amount o Type investment less favoured regions & other mountainous b regions less favoured regions regions other Buildings 35% 45% 56 % 43 % animals I ~ I 20% I 37% I 25% I b) Aid is a limited amount expenses, specifically: - up to 19 unit - up to 38 I

9 866/90 (formerly 355/!77) national aid grants in an amount 32-60% (depending on milk the milk etc. The in Commission the EU, in the a mount the subsidy. Amounts subsidies to subsidy a. Attica 24% 32% b. Aegean, S. l the 10 % 40% 50% at a distance 20 Eun - Communities in the mountain massif in the - Communities in the mountainous in the - c. Xanthi) % 50 % d. 10% 35% 60 % 45% 116

10 6. OF TO OF AEGEAN SEA / /93 Financial aid is the the small isls costs, at a 1995) up to: - 1,000 isls A - 3,000 isls The isls A - A Thasos, Amouliani, the isls in the Ewia (Euboea) Ewia itself, the following isls the Cyclades: Andros, - The isls in the Samos, as well as the isls the the Cyclades in A. a. Amount economic aid for transport: b ECU A - 30 ECU ton group c. Coverage $scd expenditure: 10% d. This Community resources addition, under 2019/ /93 Financial aid the up to a total amount 5,000 tons annually. a. Amount financial aid: b ECU Cheese the above cheeses c. Application this been initiated in (EU) This the with the Food to the cheeses, feta, is significant 117

11 This is the thesecheeses within at EU level. To this end, the 25 it to the EU the documentation is in the case but the outlook is optimistic. The following table lists the names 25 types designations the Fe ta cheese: milk Lesbos the Cyclades (Lemos) od Lemos the Cyclades 118

12 Naxos Chania Thessaloniki Laconia Lesbos 6.3 for the milk quality in in two 90% up to the huge amount in this been put athe disposal they have been used fund to a installation tanks milk - the equipping milk (7 been equipped equipment the milk a at the quality the milk 119

13 7. OF OF 7.1 (EU) application this to the financial aid with a total value 3 to those as follows: a. installation mechanical equipment (tanks the mi&, tanks to against a commitment to milk. b. Amount financial aid : 90% c. in 10%. d. This &tallation mechanical equipment at the at 10a.nni.m. b. Amount financial aid: the c. This objective kas for Athens the Thessdoniki the activities b. Amount in the costs with 10%. c. d. This objective 120

14 a. installation mechanical equipment at the Quality in the b. Amount financial aid: 100% the c. This objective will be completed application this 1995.The to a total 1 the quality milk in to facilitate, 92/46/EU the enactment the milk, is installatioa tanks pre-cooling milk. milk. b. Amount hancid aid 70% in the costs with Community university daiy laboratories within theframework Directive Athens Thessaloniki b. Amount financial aid: 70% in the costs with 30%. c. Community applicatiox 1992,1993,1994. The total amount - 2,500,000 ECU 766,160,000 which: * 1,750,000 ECU 536,160,000 out * 750,000 ECU 230,000,000 out 121

15 this milk in in Construction premises five laboratories Quality Control Drama, a. b. Amount financial - 70% - 30% reservoirs pre-cooling milk provision tanks for milk transport A.E.) b. Amount financial aid: - 70% the costs, which * 49% (70% the 70%) * 21 % (30% the 70 %) - 30% in the costs by those eligible/ work into milk cheese, by the daiy laborato y the Aristotelian University Thessaloniki a. b. Amount financial aid: - the costs, which * (70% the 70%) * 21% (30% the 70%) - 30% in l 122

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