The Dairy Produce Quotas (Scotland) Regulations 2002

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which extend to Scotland only, consolidate with amendments the Dairy Produce Quotas Regulations 1997, as amended. They are to be read with the Dairy Produce Quotas (General Provisions) Regulations 2002.

The Regulations implement measures for an additional levy in the milk and milk products sector provided for in Council Regulation (EEC) No. 3950/92 (“the Council Regulation”) and Commission Regulation (EC) No. 1392/2001 (“the Commission Regulation”). Under this and other Community legislation (collectively defined in these Regulations as “the Community legislation”), a levy continues to be payable on dairy produce sold by direct sale by a producer or delivered by that producer wholesale to a purchaser, unless the sales or deliveries are within a reference quantity described in that legislation. The Community legislation establishes the system of what are commonly called “milk quotas” and in these Regulations the term “quota” is used to refer to the reference quantity described in the Community legislation.

The main changes effected by these Regulations are as follows:–

1.  The conditions surrounding a transfer of quota without a corresponding transfer of the land to which that quota relates have been eased. The transferor and transferee are no longer required to give undertakings that they will not transfer quota onto or from their holdings for up to two quota years, and existing undertakings will cease to have effect (regulation 34(2)). Instead, the transferee is required to undertake to the Scottish Ministers that the transferee will be in milk production on a date six months from the date of the transfer (regulation 12(2)(c)).

2.  The provisions concerning the temporary reallocation of quota have been extended to cover herd movement restrictions resulting from a declaration made under an order made pursuant to section 17 of the Animal Health Act 1981 (regulation 14(2)(a)). In addition, the definition of “eligible heifer” has been amended, introducing a new method of counting such heifers, and of calculating when the replacement number of heifers has been met, thus determining when reallocation is possible (regulation 2(1) and regulation 14).

3.  In implementation of Article 13(2) of the Commission Regulation (which requires purchasers to be approved and confers on member States the power to impose additional conditions of approval), purchasers are required to apply to the Scottish Ministers for approval and meet certain conditions as to character, financial state and future conduct (regulation 24).

4.  New provisions have been adopted in respect of the keeping and retention of records (regulation 29 and Schedule 4).

5.  Administrative penalties have been introduced in relation to any failure of a purchaser to submit to the Scottish Ministers certain statements, summaries or statistics (regulation 30).

6.  The provisions concerning offences and criminal penalties have been revised (regulation 31).