Table 1 Conditions for benefiting from rules in Articles 169, 170 and 171 of the CMO Regulation

Recognition of PO and association of POs

Needed to benefit the derogation. A PO may be a member of another PO (second-tier PO) which commercialise the output by its member PO, and members of the PO can be producers and other entities which are not producers.

Pursuing of specific objectives

At least one of the following: concentrate supply, placing products of members into the market, optimise production costs.

Creating significant efficiencies

Ways:

- by integrating activities in the PO,

- by generating efficiencies and thus

- by contributing to the CAP objectives.

Efficiencies are measured in terms of volume increase or reduction of costs when the PO carries out at least one activity, or uses alternative ad hoc methods when the POs carry out various activities.

Relations between the PO and its members.

Producers are only members of one PO (but they can sell in parallel product to the market) and with existing obligations in cooperative structures.

Cap on quantities subject to contractual relations.

The PO should not hold a dominant position:

-Beef and veal. Maximum 15% of the total national production of each product.

-Arable crops. Maximum 15% of the total national production of each product.

-Olive oil. Maximum 20% of the relevant market.

Notification obligations. Volume of production to the competent authorities in the MS.