Partly or wholly dehydrated preserved milk for human consumption

PURPOSE: the amendment of Council Directive 2001/114/EC in order to simplify a number of rules.

PROPOSED ACT: Council Directive.

BACKGROUND: this proposal is being presented as a package, alongside two other, related proposals on the dairy sector. The other two proposals concern the amendment of:

- Council Regulation (EC) No 1255/1999 on the common organisation of the market in milk and milk products. See CNS/2007/0026

- Council Regulation (EC) No 2597/97 laying down additional rules on the common organisation of the market in milk and milk products for drinking milk. See CNS/2007/0027.

Since 1999 the accepted level of protein for dry milk, as approved by the Codex Alimentarius Committee, varies from that set in the EU. As a result the Community’s dairy industry and exporters of milk powders and condensed milk have requested a modification of Community rules on protein contents in such products.

CONTENT:  the purpose of the proposed amendments, therefore, is to modify the protein content standards in line with Codex approved protein contents, minimum content of 34% expressed in fat free dry matter. The intervention price for skimmed milk powder (SMP) is currently based on a protein content of 35.6%. With a Community standardisation of 34% the intervention standard should be logically aligned to that level.

As far as the financial consequences are concerned, the Commission suggests that standardisation of preserved milk, together with a reduction in the intervention price for SMP of 2.8% is likely to lead to a minor increase of SMP production while the bulk of the supplementary quantity of proteins obtained through standardisation will be absorbed by increased production of cheese and fresh dairy products. In turn, that increase will generate a higher fat use in those products and a correspondingly lower butter production and butter export. Overall, standardisation will lead to budgetary savings.