1. A producer organisation in the beef and veal sector which is recognised under Article 152(1) and which pursues one or more of the objectives of concentrating supply, the placing on the market of the products produced by its members and optimising production costs may negotiate on behalf of its members, in respect of part or all of the aggregate production of their members, contracts for the supply of live cattle of genus Bos taurus for slaughter falling within CN codes ex 0102 29 21 , ex 0102 29 41 , ex 0102 29 51 , ex 0102 29 61 , or ex 0102 29 91 :
(a)
aged less than 12 months; and
(b)
aged from 12 months and older.
A producer organisation fulfils the objectives mentioned in this paragraph provided that the pursuit of those objectives leads to the integration of activities and such integration is likely to generate significant efficiencies so that the activities of the producer organisation overall contribute to the fulfilment of the objectives of Article 39 TFEU.
This could be realised provided that:
(a)
the producer organisation carries out at least one of the following activities:
(i)
joint distribution, including joint selling platform or joint transportation;
(ii)
joint promotion;
(iii)
joint organising of quality control;
(iv)
joint use of equipment or storage facilities;
(v)
joint management of waste directly related to the production of live cattle;
(vi)
joint procurement of inputs;
(b)
these activities are significant in terms of quantity of beef and veal concerned and in terms of cost of the production and placing of the product on the market.
2. The negotiations by the recognised producer organisation may take place:
(a)
whether or not there is a transfer of ownership by the farmers to the producer organisation;
(b)
whether or not the price negotiated is the same as regards the aggregate production of some or all of the members;
(c)
provided that, for a particular producer organisation, the quantity of beef and veal production covered by such negotiations which is produced in any particular Member State does not exceed 15 % of the total national production of each product referred to in (a) and (b) of the first subparagraph of paragraph 1 of that Member State expressed in carcass weight equivalent;
(d)
provided that, for the quantity of beef and veal covered by such negotiations, the producer organisation concentrates supply and places the product of its members on the market;
(e)
provided that the producers concerned are not members of any other producer organisation which also negotiates such contracts on their behalf;
(f)
provided that the product in question is not covered by an obligation to supply arising from the producer's membership of a cooperative, which is not itself a member of the concerned producer organisation, in accordance with the conditions set out in the cooperative's statutes or the rules and decisions provided for in or derived from these statutes; and
(g)
provided that the producer organisation notifies the competent authorities of the Member State in which it operates of the quantity of beef and veal production covered by such negotiations.
3. For the purposes of this Article, references to producer organisations shall also include associations of such producer organisations recognised under Article 156(1).
4. For the purposes of applying point (c) of paragraph 2, the Commission shall publish, by such means as it considers appropriate, the quantity of beef and veal production in Member States expressed in carcass weight equivalent.
5. By way of derogation from point (c) of paragraph 2, even where the thresholds set out therein are not exceeded, the competition authority referred to in the second subparagraph of this paragraph may decide in an individual case that a particular negotiation by the producer organisation should either be reopened or should not take place at all if it considers that this is necessary in order to prevent competition being excluded or it finds that the product covered by the negotiations forms part of a separate market by virtue of the specific characteristics of the product or its intended use and that such collective negotiation would cover more than 15 % of the national production of such market, or if it finds that the objectives of Article 39 TFEU are jeopardised.
For negotiations covering more than one Member State, the decision referred to in the first subparagraph shall be taken by the Commission without applying the procedure referred to in Article 229(2) or (3). In other cases, that decision shall be taken by the national competition authority of the Member State to which the negotiations relate.
The decisions referred to in this paragraph shall not apply earlier than the date of their notification to the undertakings concerned.
For the purposes of this Article, the definition of "national competition authority" in point (a) of Article 149(7) shall apply.
6. The Member States in which negotiations take place in accordance with this Article shall notify the Commission of the application of point (g) of paragraph 2 and paragraph 5.