Brussels,

The European Union (EU) implements a range of market measures designed to stabilize agricultural markets, prevent crises from escalating, boost demand, and help agricultural sectors adapt to market changes. These measures are part of the Common Market Organisation (CMO) regulation, which provides the framework for how EU agriculture operates within the single market. The funding for these interventions comes from the European Agricultural Guarantee Fund.

1. Public Intervention

Purpose: Public intervention aims to prevent prices of agricultural products from dropping to unsustainably low levels by purchasing and storing surplus products. These products are then sold back into the market when conditions improve.

How It Works:
  • Fixed Price Mechanism: The EU sets a fixed price at which a predetermined quantity of a product will be bought. This acts as a price floor, helping to stabilize the market.
  • Tender Mechanism: Operators submit bids specifying quantities and prices. The EU accepts bids below a certain price threshold, purchasing the offered quantities. These stocks are later sold through tenders when the market stabilizes.

Quality Standards: Strict quality criteria must be met for products to qualify for public intervention storage.

Eligible Sectors: Public intervention is available for sectors prone to price fluctuations, including:

2. Private Storage Aid

Purpose: During periods of low market prices, the EU provides financial aid to private operators to cover the costs of storing their products for a specified time. This helps reduce the impact of short-term oversupply by temporarily removing excess products from the market.

Eligible Sectors: Aid for private storage can be granted for:

3. Exceptional Measures

Purpose: Exceptional measures are employed when a crisis arises or is imminent, requiring a specific response to prevent a sudden drop in prices and mitigate adverse effects.

Situations Warranting Exceptional Measures:
  • Severe market imbalances
  • Loss of consumer confidence due to public, animal, or plant health risks
  • Specific problems affecting the agricultural sector

Legal Basis: The use of exceptional measures is governed by Regulation (EU) 1308/2013, particularly Articles 219-222.

Reporting: The European Commission prepares reports on the use of crisis measures, detailing the exceptional actions taken under the CMO Regulation.
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4. Market Transparency and Monitoring

Objectives:
  • Accessible Information: Provide all participants in the food supply chain, especially farmers and researchers with limited resources, access to information. This empowers them to make informed business decisions.
  • Market Monitoring: Track the development of agricultural markets to identify potential threats early, allowing the Commission to implement appropriate measures without delay.

Implementation:
  • The European Commission gathers data from EU countries and stakeholders to monitor market conditions.
  • This information enhances market transparency and is disseminated through market observatories and the agri-food data portal.

5. Legal Framework

The application of market measures is governed by specific articles within Regulation (EU) 1308/2013:
  • Public Intervention: Articles 11-16 outline the procedures for using public intervention in agricultural markets.
  • Private Storage Aid: Articles 17-21 detail the provision of aid for private storage of agricultural products.
  • Exceptional Measures: Articles 219-222 cover the conditions and implementation of exceptional measures during market crises.
  • Market Transparency: Articles 222a-223 focus on market transparency and monitoring requirements.