Common Market Organisation Regulation

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Article 75 Establishment and content 1. Marketing standards may apply to one or more of the following sectors and products: (a) olive oil and table olives; (b) fruit and vegetables; (c) processed fruit and vegetable products; (d) bananas; (e) live plants; (f) eggs; (g) poultrymeat; (h) spreadable fats intended for … 366 unchanged words … practices and advanced systems of sustainable production; (h) coupage of must and wine including definitions thereof, blending and restrictions thereof; (i) the frequency of collection, delivery, preservation and handling, the conservation method and temperature, storage and transport; (j) the place of farming and/or origin, excluding poultrymeat and spreadable fats; origin; (k) restrictions as regards the use of certain substances and practices; (l) specific use; (m) the conditions governing the disposal, the holding, circulation and use of products not in conformity with the marketing standards adopted pursuant to paragraph 1 or with the definitions, designations and sales descriptions as referred to in Article 78, as well as the disposal of by-products. 4. In addition to paragraph 1, marketing standards may apply to the wine sector. Points (f), (g), (h), (k) and (m) of paragraph 3 shall apply to that sector. 5. The marketing standards by sectors or products adopted pursuant to paragraph 1 of this Article shall be established without prejudice to Articles 84 to 88 and Annex IX and shall take into account: (a) the specific characteristics of the product concerned; (b) the need to ensure the conditions to facilitate the placing of the products on the market; (c) the interest of producers to communicate the product and farming characteristics, and the interest of consumers to receive adequate and transparent product information, including the place of farming to be determined on a case-by-case basis at the appropriate geographical level, after conducting an evaluation, in particular, of the costs and administrative burdens for operators and the benefits offered to producers and the end consumer; (d) the methods available for determining physical, chemical and organoleptic characteristics of the products; (e) the standard recommendations adopted by international bodies; (f) the need to preserve the natural and essential characteristics of products and to avoid causing a substantial change in the composition of the product concerned. 6. In order to take into account the expectations of consumers and the need to improve the quality and the economic conditions for the production and marketing of agricultural products, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 to modify the list of sectors in paragraph 1. Such delegated acts shall be strictly limited to demonstrated needs resulting from evolving consumer demand, technical progress or the need for product innovation, and shall be subject to a Commission report to the European Parliament and to the Council evaluating, in particular, the needs of the consumer, the costs and administrative burdens for operators, including the impact on the internal market and on international trade, and the benefits offered to producers and to the end consumer.

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Article 78 Definitions, designations and sales descriptions for certain sectors and products 1. In addition, where relevant, to the applicable marketing standards, the definitions, designations and sales descriptions provided for in Annex VII shall apply to the following sectors or products: (a) all sectors in which edible parts of animals are produced and in particular the beef and veal; veal, pigmeat, sheepmeat and goatmeat, and poultrymeat sectors; (b) wine; (c) milk and milk products intended for human consumption; (d) poultrymeat; (e) eggs; (f) spreadable fats intended for human consumption; and (g) olive oil and table olives. 2. The definitions, designations or sales descriptions provided for in Annex VII may be used in the Union only for the marketing of a product which conforms to the corresponding requirements laid down in that Annex. 3. The Commission shall be empowered to adopt delegated acts in accordance with Article 227 concerning the modifications, derogations or exemptions to the definitions and sales descriptions provided for in Annex VII. Those delegated acts shall be strictly limited to demonstrated needs resulting from evolving consumer demand, technical progress or the need for product innovation. As regards Part Ia, point 3, of Annex VII, the Commission is empowered to adopt delegated acts in accordance with Article 227 supplementing this Regulation by granting derogations allowing the use of designations reserved for products derived from meat, for other products the exact nature of which is clear due to an established long-term use and does not cause any possible confusion to the consumer. 4. In order to ensure that operators and Member States have a clear and proper understanding of the definitions and sales descriptions provided for in Annex VII, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 concerning the rules on their specification and application. 5. In order to take into account the expectations of consumers and the evolution of the milk products market, the Commission shall be empowered to adopt delegated acts in accordance with Article 227 to specify the milk products in respect of which the animal species from which the milk originates is to be stated, if it is not bovine, and to lay down the necessary rules.

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Article 119 Compulsory particulars 1. Labelling and presentation of the products referred to in points 1 to 11, 13, 15 and 16 of Part II of Annex VII marketed in the Union or for export shall contain the following compulsory particulars: (a) the … 625 unchanged words … a label attached thereto. The indication referred to in the first subparagraph, point (c), of this paragraph shall comprise the word contains followed by the name of the substance or product as listed in Annex II to Regulation (EU) No 1169/2011.6. However, Article 1, point (8), shall apply from 19 March 2030 and Article 1, point (10)(a), shall apply from 19 September 2027.

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Article 149 Contractual negotiations in the milk and milk products sector 1. A producer organisation in the milk and milk products sector which is recognised under Article 161(1) may negotiate on behalf of its farmer members, in respect of part or all of their joint production, contracts for the delivery of raw milk by a farmer to a processor of raw milk, or to a collector within the meaning of the third subparagraph of Article 148(1). 2. The negotiations by the producer organisation may take place: (a) whether or not there is a transfer of ownership of the raw milk by the farmers to the producer organisation; (b) whether or not the price negotiated is the same as regards the joint production of some or all of the farmer members; (c) provided that, for a particular producer organisation, all of the following conditions are fulfilled: (i) the volume of raw milk covered by such negotiations does not exceed 4 7 % of total Union production, production; (ii) the volume of raw milk covered by such negotiations which is produced in any particular Member State does not exceed 33 36 % of the total national production of that Member State, State; and (iii) the volume of raw milk covered by such negotiations which is delivered in any particular Member State does not exceed 33 36 % of the total national production of that Member State; (d) provided that the farmers concerned are not members of any other producer organisation which also negotiates such contracts on their behalf; however, Member States may derogate from this condition in … 451 unchanged words … small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC. 8. The Member States in which negotiations take place in accordance with this Article shall notify the Commission of the application of point (f) of paragraph 2 and of paragraph 6.

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Article 152 Producer organisations 1. Member States may, on request, recognise producer organisations, which: (a) are constituted, and controlled in accordance with point (c) of Article 153(2), constituted by producers in a specific sector listed in Article 1(2); 1(2) and are controlled by farmer members producing agricultural products of the soil or of stockfarming, in accordance with Article 153(2), point (c); a recognition may be granted for one or more of the specific sectors listed in Article 1(2) provided that the producer organisation fulfils the conditions for recognition for all of them; Member States may decide that the control by the farmer members referred to in this point can be exercised by associations of farmers producing agricultural products of the soil or stockfarming provided that these associations are controlled by those farmers; (b) are formed on the initiative of farmers producing agricultural products of the producers soil or of stockfarming and which carry out at least one of the following activities: (i) joint processing; (ii) joint distribution, including by joint selling platforms or joint transportation; (iii) joint packaging, labelling or promotion; (iv) joint organising of quality control; (v) joint use of equipment or storage facilities; (vi) joint management of waste directly related to the production; (vii) joint procurement of inputs; (viii) any other joint service activities pursuing one of the objectives listed in point (c) of this paragraph; (c) pursue a specific aim which may include at least one of the following objectives: (i) ensuring that production is planned and adjusted to demand, particularly in terms of quality and quantity; (ii) concentration of supply and the placing on the market of the products produced by its members, including through direct marketing; (iii) optimising production costs and returns on investments in response to environmental and animal welfare standards, and stabilising producer prices; (iv) carrying out research and developing initiatives on sustainable production methods, innovative practices, economic competitiveness and market developments; (v) promoting, and providing technical assistance for, the use of environmentally sound cultivation practices and production techniques, and sound animal welfare practices and techniques; (vi) promoting, promoting and providing technical assistance for, for the use of production standards, improving product quality and quality, developing products with a protected designation of origin, with a protected geographical indication or covered by a national quality label; label, and carrying out initiatives promoting short supply chains or the use of the optional terms referred to in Article 88a; (vii) the management and valorisation of by-products, of residual flows and of waste, in particular to protect the quality of water, soil and landscape, preserving or encouraging biodiversity, and boosting circularity; (viii) contributing to a sustainable use of natural resources and to climate change mitigation; (ix) developing initiatives in the area of promotion and marketing; (x) managing mutual funds; (xi) providing the necessary technical assistance for the use of the futures markets and of insurance schemes. 1a. By way of derogation from Article 101(1) TFEU, a producer organisation recognised under paragraph 1 of this Article, or a producer organisation, including a cooperative or any other equivalent legal form recognised by national law that has applied for recognition and has not yet been recognised as a producer organisation by a Member State, provided that it meets the requirements set out in paragraph 1 of this Article and in Article 154 of this Regulation, may plan production, optimise the production costs, place on the market and negotiate contracts for the supply of agricultural products, on behalf of its members for all or part of their total production. Such a producer organisation may avail itself of that derogation within the period provided for in Article 154(4), point (a), of this Regulation, or, if the Member State has not taken any decision on the application for recognition by the end of that period, within the period of five years from the date of submission of the application for recognition, unless the Member State concerned has decided to refuse the recognition. The activities referred to in the first subparagraph may take place: (a) provided that one or more of the activities referred to in point (b)(i) to (vii) of paragraph 1 is genuinely exercised, thus contributing to the fulfilment of the objectives set out in Article 39 TFEU; (b) provided that the producer organisation concentrates supply and places the products of its members on the market, whether or not there is a transfer of ownership of agricultural products by the producers to the producer organisation; (c) whether or not the price negotiated is the same as regards the aggregate production of some or all of the members; (d) provided that the producers concerned are not members of any other producer organisation as regards the products covered by the activities referred to in the first subparagraph; (e) provided that the agricultural product is not covered by an obligation to deliver arising from the farmer's membership of a cooperative, which is not itself a member of the producer organisations concerned, in accordance with the conditions set out in the cooperative's statutes or the rules and decisions provided for in or derived from those statutes. However, Member States may derogate from the condition set out in point (d) of the second subparagraph in duly justified cases where producer members hold two distinct production units located in different geographical areas. 1b. For the purposes of this Article, references to producer organisations shall also include associations of producer organisations recognised under Article 156(1) if such associations meet the requirements set out in paragraph 1 of this Article. Where an association of producer organisations recognised under Article 156(1) does not comply with the conditions set out in paragraph 1a, second subparagraph, points (a) and (b), of this Article, but its members do comply with those conditions, it may also carry out the activities referred to in the first subparagraph of paragraph 1a, of this Article, provided that: (a) its members have been recognised in accordance with paragraph 1 of this Article; (b) its members are not members of another recognised association of producer organisations as regards the products covered by the activities referred to in the first subparagraph of paragraph 1a, of this Article; and (c) the volume of the product covered by the activities referred to in the first subparagraph of paragraph 1a, of this Article does not exceed 36 % of the total national production of that product in the Member State concerned. 1c. The national competition authority referred to in Article 5 of Regulation (EC) No 1/2003 may decide in individual cases that, for the future, one or more of the activities referred to in the first subparagraph of paragraph 1a are to be modified, discontinued or not take place at all if it considers that this is necessary in order to prevent competition from being excluded or if it considers that the objectives set out in Article 39 TFEU are jeopardised. For negotiations covering more than one Member State, the decision referred to in the first subparagraph of this paragraph shall be taken by the Commission without applying the procedure referred to in Article 229(2) or (3). When acting under the first subparagraph of this paragraph, the national competition authority shall inform the Commission in writing before or without delay after initiating the first formal measure of the investigation and shall notify the Commission of the decisions without delay after their adoption. The decisions referred to in this paragraph shall not apply earlier than the date of their notification to the undertakings concerned. 2. A producer organisation recognised under paragraph 1 may continue to be recognised if it engages in the marketing of products falling within CN code ex2208 other than those referred to in Annex I to the Treaties, provided that the proportion of such products does not exceed 49 % of the total value of marketed production of the producer organisation and that such products do not benefit from Union support. Those products do not count, for producer organisations in the fruit and vegetables sector, towards the calculation of the value of marketed production for the purposes of Article 34(2). 3. By way of derogation from paragraph 1, Member States shall recognise producer organisations, constituted by producers in the milk and milk products sector, which: (a) are formed on the initiative of the producers; (b) pursue a specific aim which may include one or more of the following objectives: (i) ensuring that production is planned and adjusted to demand, particularly in terms of quality and quantity; (ii) concentration of supply and the placing on the market of the products produced by its members; (iii) optimising production costs and stabilising producer prices.

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Article 153 Statutes of producer organisations 1. The statutes of a producer organisation shall require its producer members, in particular, to: (a) apply the rules adopted by the producer organisation relating to production reporting, production, marketing and protection of the environment; (b) be members of only one producer organisation for any given product of the holding; however holding, where any given product refers to products which are sufficiently distinct, in particular on the basis of their characteristics or intended final uses; however, Member States may derogate from this condition in duly justified cases where producer members hold two distinct production units located in different geographical areas; (c) provide the information requested by the producer organisation for statistical purposes. 2. The statutes of a producer organisation shall also provide for: (a) procedures for determining, adopting and amending the rules referred to in point (a) of paragraph 1; (b) the imposition on members of financial contributions needed to finance the producer organisation; (c) rules enabling the producer farmer members producing agricultural products of the soil or of stockfarming to scrutinise democratically their organisation and its decisions as well as its accounts and budgets; (d) penalties for infringement of obligations under the statutes, particularly for non-payment of financial contributions, or of the rules laid down by the producer organisation; (e) rules on the admission of new members, and in particular the minimum period of membership which may not be less than one year; (f) the accounting and budgetary rules necessary for the operation of the organisation. 2a. The statutes of a producer organisation may provide for the possibility of producer members being in direct contact with purchasers, provided that such direct contact does not jeopardise the objectives pursued by the producer organisation, including the concentration of supply and placing of products on the market by the producer organisation. Concentration of supply and the placing of products on the market shall be deemed to have been ensured if the essential elements of the sales sales, such as price, quality and volume volume, are negotiated and determined by the producer organisation. The statutes of a producer organisation that allows direct contact between members and purchasers may include internal control and prevention mechanisms to ensure that such contact does not adversely affect the objectives of the producer organisation, including the concentration of supply. 3. Paragraphs 1, 2 and 2a shall not apply to producer organisations in the milk and milk products sector.

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Article 157 Interbranch organisations 1. Member States may, on request, recognise interbranch organisations at national and regional levels and at the level of the economic areas referred to in Article 164(2) in a specific sector listed in Article 1(2) which: (a) are constituted … 511 unchanged words … and environmental risks, including by setting up and managing mutual funds or by contributing to such funds with a view to paying financial compensation to farmers for costs and economic losses arising from the promotion and implementation of such measures; (xvii) promoting the use of the optional terms referred to in Article 88a. 1a. Member States may, on request, decide to grant more than one recognition to an interbranch organisation operating in several sectors referred to in Article 1(2) provided the interbranch organisation fulfils the conditions referred to in paragraph 1 for each … 514 unchanged words … including market bonuses and losses, determining how any evolution of relevant market prices of the products concerned or other commodity markets is to be allocated between them; and (xiii) implementing measures to prevent and manage animal health, plant-protection and environmental risks.

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Article 210a Vertical and horizontal initiatives for sustainability 1. Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of producers of agricultural products that relate to the production of or trade in agricultural products and that aim to apply a sustainability standard higher than mandated by Union or national law, provided that those agreements, decisions and concerted practices only impose restrictions of competition that are indispensable to the attainment of that standard. 2. Paragraph 1 applies to agreements, decisions and concerted practices of producers of agricultural products to which several producers are party or to which one or more producers and one or more operators at different levels of the production, processing, and trade in the food supply chain, including distribution, are party. 3. For the purposes of paragraph 1, sustainability standard means a standard which aims to contribute to one or more of the following objectives: (a) environmental objectives, including including: climate change mitigation and adaptation, adaptation; the sustainable use and protection of landscapes, water and soil, including through irrigation systems; the transition to a circular economy, including the reduction of food waste, waste and the nutrient recycling of livestock manure into organic fertilisers or energy production; and pollution prevention and control, and control; as well as the protection and restoration of biodiversity and ecosystems; (b) the production of agricultural products in ways that reduce the use of pesticides and manage risks resulting from such use, or that reduce the danger of antimicrobial resistance in agricultural production; and (c) animal health and animal welfare. welfare; (d) supporting the economic viability of small farms predominantly relying on family labour with a standard output as defined in Article 2, point (8), of Council Regulation (EC) No 1217/2009 Council Regulation (EC) No 1217/2009 of 30 November 2009 setting up the Farm Sustainability Data Network (OJ L 328, 15.12.2009, p. 27, ELI: http://data.europa.eu/eli/reg/2009/1217/oj). that are not to exceed EUR 100000; (e) attracting and supporting young producers of agricultural products; or (f) improving working and safety conditions in agricultural or processing activities. 4. Agreements, decisions and concerted practices that fulfil the conditions referred to in this Article shall not be prohibited, no prior decision to that effect being required. 5. The Commission shall issue guidelines for operators concerning the conditions for the application of this Article by 8 December 2023. 6. From 8 December 2023, producers as referred to in paragraph 1 may request an opinion from the Commission concerning the compatibility of agreements, decisions and concerted practices as referred to in paragraph 1 with regard to the implementation of sustainability standards that aim to contribute to one or more of the objectives laid down in paragraph 3, points (a), (b) and (c), with this Article. From 19 August 2028, producers referred to in paragraph 1 may request an opinion from the Commission concerning the compatibility of agreements, decisions and concerted practices as referred to in paragraph 1 with regard to the implementation of sustainability standards that aim to contribute to one or more of the objectives laid down in paragraph 3, points (d), (e) and (f), with this Article. The Commission shall send its opinion to the applicant its opinion within four months of the receipt of a complete request. If the Commission finds at any time after issuing an opinion that the conditions referred to in paragraphs 1, 3 and 7 of this Article are no longer met, it shall declare that Article 101(1) TFEU shall is to apply in the future to the agreement, decision or concerted practice in question and inform the producers accordingly. The Commission may change the content of an opinion at on its own initiative or at the request of a Member State, in particular if the applicant has provided inaccurate information or misused the opinion. 7. The national competition authority as referred to in Article 5 of Regulation (EC) No 1/2003 may decide in individual cases that, in the future, one or more of the agreements, decisions and concerted practices referred to in paragraph 1 are to be modified, discontinued or not take place at all, if it considers that such a decision is necessary in order to prevent competition from being excluded or if it considers that the objectives set out in Article 39 TFEU are jeopardised. For agreements, decisions and concerted practices covering more than one Member State, the decision referred to in the first subparagraph of this paragraph shall be taken by the Commission without applying the procedures referred to in Article 229(2) and (3). When acting under the first subparagraph of this paragraph, the national competition authority shall inform the Commission in writing after initiating the first formal measure of the investigation and shall notify the Commission of any resulting decisions without delay after their adoption. The decisions referred to in this paragraph shall not apply earlier than the date of their notification to the undertakings concerned.

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Article 222 Application of Article 101(1) TFEU 1. During periods of severe imbalance in markets, the Commission may adopt implementing acts to the effect that Article 101(1) TFEU is not to apply to agreements and decisions of farmers, farmers' farmers’ associations, or associations of such associations, or recognised producer organisations, associations of recognised producer organisations and recognised interbranch organisations in any of the sectors referred to in Article 1(2) of this Regulation, provided that such agreements and decisions do not undermine the proper functioning of the internal market, strictly aim to stabilise the sector concerned and fall under one or more of the following categories: (a) market withdrawal or free distribution of their products; (b) transformation and processing; (c) storage by private operators; (d) joint promotion measures; (e) agreements on quality requirements; (f) joint purchasing of inputs necessary to combat the spread of pests and diseases in animals and plants in the Union or of inputs necessary to address the effects of natural disasters in the Union; (g) temporary planning of production taking into account the specific nature of the production cycle. Where the Commission adopts implementing acts in accordance with the first subparagraph of this paragraph, it may decide to make Union support from the agricultural reserve referred to in Article 16 of Regulation (EU) 2021/2116 available to the Member States concerned. Such financial support shall provide the means necessary for the implementation without delay of those agreements and decisions by the operators concerned. The Commission shall specify in adopt implementing acts specifying the substantive and geographic scope of the derogation of the first subparagraph of this derogation paragraph, and, subject to paragraph 3, the period for which the derogation applies. applies, as well as, where applicable, the amount of the agricultural reserve allocated to the Member State concerned under the second subparagraph of this paragraph. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2). 2. Paragraph 1 shall apply only if the Commission has already adopted one of the measures referred to in this Chapter, if products have been bought in under public intervention or if aid for private storage referred to in Chapter I of Title I of Part II has been granted. 3. The agreements and decisions referred to in paragraph 1 shall only be valid for a period of up to six months. However, the Commission may adopt implementing acts authorising such agreements and decisions for a further period of up to six-months. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).

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Article 222a Union market observatories 1. In order to improve transparency within the food supply chain, to inform the choices of economic operators and public authorities, to facilitate the monitoring of market developments and threats of market disturbance, the Commission shall establish Union market observatories. 2. The Commission may decide for which agricultural sectors from those listed in Article 1(2) the Union market observatories shall be established. The Commission may make a specific distinction between organic and non-organic production within those observatories. 3. The Union market observatories shall make available the statistical data and information necessary for the monitoring of market developments and threats of market disturbance, in particular: (a) production, supply and stocks; (b) prices, costs and, as far as possible, profit margins at all levels of the food supply chain; (c) short- and medium-term market forecasts; (d) imports and exports of agricultural products, in particular the filling of tariff quotas for the import of agricultural products into the Union. The Union market observatories shall produce reports containing the elements referred to in the first subparagraph. 4. The Member States shall collect the information referred to in paragraph 3 and provide it to the Commission.

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