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Table 2 Comparison of derogations

From: About farmers’ bargaining power within the new CAP

  Pre reform Milk package (2012) CAP reform 2013–2020
Derogations Agreements, decisions and practises that:
-are part of a national market organisation;
-are necessary for the attainment of CAP objectives;
-concern the production, sale of agricultural products or the use of joint facilities for the storage, treatment or processing.
(TFEU Art 101 and Art 42, Regulations 1184/2007, 1234/2007, 330/2010, 1218/2010)
In addition to general derogations:
joint selling of milk and milk products by POs.
POs can collectively negotiate contract terms including price of raw milk.
Deliveries by farmers to their cooperatives cannot be subject to joint negotiations, but collecting cooperatives can form POs and negotiate collectively with processors.
(Regulation 261/2012)
Agreements or practises needed to attain CAP objectives.
Horizontal, vertical or inter-branch agreements, on a case-by-case approach
(Regulation 1308/2013)
Conditions No price or quota fixing and no geographical division of markets, unless CAP objectives are jeopardised. Thresholds: volume of milk negotiated by a PO < 3.5% of EU production and <33% national production in MS. No price or quota fixing, no geographical division of markets (with exceptions).
Market share thresholds
Sector coverage Hops, olive oil, table olives, silkworm, tobacco (Reg. 1234–2007); sugar (Reg. 318/2006); fruit and vegetables (Reg. 1182/2007); wine (Reg.479/2008) Milk and milk products All agricultural products covered by Reg. 1308/2013
Sector specificities Tobacco: IBOs provisions could be extended to non-members, if they pursue specific objectives.a
Sugar: compulsory delivery written contracts, where price and quantities must be defined.
Fruit and vegetables: financial assistance to POs and APOs.
Market withdrawal by POs
POs are required to sell the entire production of their members.
  Tobacco: IBOs provisions could be extended to non-members if they pursue specific objectives.b
Fruit and vegetables: financial assistance to POs and APOs. Market withdrawal by POs. Joint selling by POs.c
Dairy: specific written contracts including prices (milk package)
Olive oil, beef and veal, and arable crops: joint negotiation by POs.
Sugar: collective negotiation provision not explicitly mentioned in Reg. 1308/2013, but rules for the sugar sector provide for the collective negotiation, price and quantity are part of the delivery contract(s).
  1. aIn particular, pursuing research aiming at finding uses that do not pose threats to public health, improving leaf quality, researching environmentally friendly methods, permitting the use of plant health products
  2. bIn particular, pursuing research aiming at finding uses that do not pose threats to public health, improving leaf quality, researching environmentally friendly methods, permitting the use of plant health products
  3. cThe General Court considered in its decision T-432/2007 that this obligation requires the PO to be in control of the sale of produce, including the setting of the sales price