Producer organisations (e.g. cooperatives) and their associations are important players in the food supply chain which contribute to strengthening the position of producers by carrying out a wide array of activities (e.g. concentrating supply, improving marketing, providing assistance to their members, etc).
While preserving a market oriented approach, the 2013 CAP Reform aimed to enhance the bargaining power of producer organisations in the food supply chain by providing certain derogations from the application of competition rules.
The 2013 CAP reform introduced new specific sector derogations for the sale of olive oil, beef and veal, and arable crops into the CMO Regulation.
Articles 169-171 of the CMO Regulation allow producer organisations and associations of producer organisations that are recognised by the authorities of the Member State in which they are located in to jointly sell and set prices, volumes and other trading conditions for the products of the three sectors concerned, if they create significant efficiencies through other joint economic activities (e.g. joint processing, joint transport/storage or joint quality control).
The PO/APO must make a self-assessment, whether the conditions of the derogation are fulfilled. These conditions primarily require that the PO/APO integrate certain activities other than joint selling, which are significant enough to ensure that the CAP objectives are fulfilled.
In order to enable POs and IBOs to apply the derogations, on 27th of November 2015, the Commission adopted Guidelines on the application of the specific rules set out in Articles 169, 170, 171 of the CMO Regulation for the olive oil, beef and veal and arable crops sectors on the application of these provisions.
Useful information for the application of the Guidelines
Data on national production relevant for application of the derogation, see 169-171 (2) c) CMO Regulation:
The POs/APOs notify their Member State ('competent authority') of the quantities covered by such negotiations. The Member State notifies the European Commission.