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The Common market organisation (CMO) Regulation

The ‘common market organisation’ (CMO) Regulation introduces changes to rules governing the common market organisation in agricultural products (including the rules on wine), the EU quality schemes (geographical indications) and the support measures for remote regions. The aim is to equip agricultural markets with support measures to face new challenges, update provisions, simplify procedures and ensure consistency with other regulations under the common agricultural policy (CAP).

Legal basis

The legal basis for the common agricultural policy is established in the Treaty on the Functioning of the European Union (Articles 38 to 44) (3.2.1)

The EU’s agricultural markets are covered by the following legislative acts:

  • Regulation (EU) 2021/2117 of the European Parliament and of the Council of 2 December 2021 amending Regulations (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products, (EU) No 1151/2012 on quality schemes for agricultural products and foodstuffs, (EU) No 251/2014 on the definition, description, presentation, labelling and the protection of geographical indications of aromatised wine products and (EU) No 228/2013 laying down specific measures for agriculture in the outermost regions of the Union (CMO Regulation).
  • Regulation (EU) 2024/1143 of the European Parliament and of the Council of 11 April 2024 on geographical indications for wine, spirit drinks and agricultural products, as well as traditional specialities guaranteed and optional quality terms for agricultural products, amending Regulations (EU) No 1308/2013, (EU) 2019/787 and (EU) 2019/1753 and repealing Regulation (EU) No 1151/2012.
  • Regulation (EU) No 251/2014 of the European Parliament and of the Council of 26 February 2014 on the definition, description, presentation, labelling and the protection of geographical indications for aromatised wine products and repealing Council Regulation (EEC) No 1601/91
  • Regulation (EU) No 228/2013 of the European Parliament and of the Council of 13 March 2013 laying down measures for agriculture in the outermost regions of the Union and repealing Council Regulation (EC) No 247/2006.
  • Directive (EU) 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain.

The CMO Regulation is also part of the CAP 2023-27 legislative framework, along with two other regulations:

  • Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans) and financed by the European Agricultural Guarantee Fund (EAGF) and by the European Agricultural Fund for Rural Development (EAFRD) and repealing Regulations (EU) No 1305/2013 and (EU) No 1307/2013 (3.2.3), and
  • Regulation (EU) 2021/2116  of the European Parliament and of the Council of 2 December 2021 on the financing, management and monitoring of the common agricultural policy and repealing Regulation (EU) 1306/2013 (3.2.7).

Introduction

The CMO Regulation amends a number of regulations in the CAP’s previous legal framework (2014-2020) related to the organisation of the agricultural markets, the quality schemes for agricultural products, geographical indications for aromatised wine products and measures for agriculture in the outermost regions of the EU.

Most of the CMO Regulation remains unchanged from the previous programming period. The common organisation of the markets for agricultural products covers all the products listed in Annex I to the Treaties with the exception of fishery and aquaculture products. Agricultural products are divided into a number of sectors (cereals, rice, sugar, wine, beef and veal, milk and milk products, etc.) for which the CMO Regulation sets out specific rules.

Besides introductory and final provisions that aim to ensure the functioning of the CMO rules, the CMO Regulation makes provisions in the following areas:

  • market intervention (including public intervention and aid for private storage, aid for the supply of fruit and vegetables and of milk and milk products in educational establishments, and the scheme of authorisations for vine plantings);
  • marketing (such as marketing standards and designation of origin);
  • specific provisions for individual agricultural sectors;
  • producer organisations and associations, and inter-branch organisations;
  • trade with non-EU countries (such as import and export licences, duties and tariffs);
  • competition (including guidelines on the application of competition rules to agriculture and State aid rules);
  • exceptional measures (e.g. in the event of market disturbance, or market support measures related to animal diseases and plant pests);
  • market transparency, with the creation of Union market observatories.

Among the amended provisions, the most substantial changes concern aid schemes in general and support for specific sectors (fruit and vegetables, apiculture, wine, hops; olive oil and table olives). These ‘sectoral interventions’ are now part of Member States’ strategic plans and, consequently, the respective provisions have been moved from the CMO Regulation to the CAP Strategic Plans Regulation.

Several amendments have also been introduced to the rules applicable to the wine sector, geographical indications and other quality schemes (the amended rules on quality schemes for agricultural products (Regulation (EU) No 1151/2012) were repealed in 2024 by Regulation (EU) 2024/1143), and measures for the outermost regions and smaller Aegean islands.

Following their adoption in December 2021, the CMO Regulation and the other two CAP regulations apply as of 1 January 2023 and the CAP Strategic Plans have been implemented in all EU countries since 1 January 2023.

In December 2024, the Commission proposed targeted amendments to the CMO Regulation and a new Regulation on cross-border enforcement against unfair trading practices. Both proposals aim to strengthen the position of farmers in the agri-food supply chain and restore the trust between the different actors in the chain. Further proposals for amendments to the CMO Regulation put forward by the Commission in March 2025 aim to support the EU’s wine sector in the face of new challenges, following the policy recommendations issued by the High-Level Group on Wine Policy in December 2024. All these amendments need to be examined by Parliament and the Council before becoming EU law.

Market interventions and market transparency: changes compared to the previous legislative framework

While the CMO Regulation maintains the objectives, architecture and main features of Regulation (EU) No 1308/2013, it introduces a number of changes regarding market interventions and market management.

  • Provisions concerning aid schemes set out in Part II, Title I, Chapter II, Sections 2 to 6, of Regulation (EU) No 1308/2013 have been deleted, as all types of intervention in the sectors concerned are now set out in Title III, Chapter III (Types of intervention in certain sectors) of Regulation (EU) 2021/2115 of the European Parliament and of the Council. The interventions for specific sectors could now cover all agricultural products (3.2.3).
  • Several amendments have been introduced to the rules applicable to the wine sector, in order to address new economic, environmental and climatic challenges.
  • Union market observatories:the new regulationestablishes a single formal legal framework for the setting up and operation of Union market observatories in any agricultural sector and lays down the relevant notification and reporting obligations for those observatories. These observatories should be set up by 31 December 2023. On the basis of the statistical data and information collected for the monitoring of agricultural markets, they should identify threats of market disturbance in their reports. The Commission should regularly present to the European Parliament and to the Council information on the market situation of agricultural products, the threats of market disturbance and possible measures to be taken, by means of regular participation in meetings of the Committee on Agriculture and Rural Development and the Special Committee on Agriculture. In 2024, the EU agri-food chain Observatory joined the already set up market observatories on milk, meat, sugar, crops, fruit and vegetables, wine, fertilisers, and olive oil and table olives.

Producer and inter-branch organisations

The CMO Regulation sets out rules for the recognition by a Member State of producer and inter-branch organisations, and of associations of producer organisations, in a number of agricultural sectors, with the aim of strengthening producers’ position in the market.

Producer organisations applying for recognition must be legal entities formed on the initiative of producers to pursue a specific objective, such as concentrating the supply of products or providing technical assistance to their members. Associations of producer organisations are formed on the initiative of recognised producer organisations to carry out any of their activities and functions. Inter-branch organisations are constituted on the initiative of producer organisations (or associations of producer organisations) and include representatives of economic activities linked to producing and processing or trading/distributing products in one or more sectors, with aims such as improving knowledge and transparency of the market or developing methods and instruments for improving product quality.

Producer organisations and their associations can set up operational funds to finance their operational programmes approved by Member States. Besides members’ financial contributions, operational funds may be granted EU financial assistance.

New rules for geographical indications

Regulation (EU) 2024/1143 lays down, in a single legal text, rules for geographical indications (GIs) for wine, spirit drinks and agricultural products, which were previously spread over different acts, including the CMO Regulation. The CMO Regulation had established rules regarding geographical indications in line with some of the steps taken to strengthen the position of farmers in the value chain. Most of these rules have moved to Regulation (EU) 2024/1143. In addition, this regulation introduces new features such as simplified and shorter procedures for registration of GIs, online protection of GIs by requiring Member States to ensure that domain names using GIs illegally are removed or that access to them is disabled, and detailed rules on using GIs as ingredients. The Commission is in charge of managing the GI system, while the European Union Intellectual Property Office (EUIPO) provides technical assistance on administrative issues, and maintains and updates the GI register.

Specific measures for agriculture in the outermost regions of the Union

The CMO Regulation inserts a new article in Regulation (EU) No 228/2013 on inter-branch agreements in Réunion (France). This article establishes certain derogations to the CMO rules in the case of inter-branch organisations operating exclusively in Réunion and being considered representative for one specified product, with the aim of supporting the maintenance and diversification of local production in order to increase food security in Réunion.

Other provisions in the CMO Regulation

  • Agricultural reserve:provisions concerning the reserve for crises in the agricultural sector laid down in Part V, Chapter III, of Regulation (EU) No 1308/2013 have been deleted, as updated provisions concerning the agricultural reserve are laid down in Regulation (EU) 2021/2116. The reserve amounts to at least EUR 450 million every year and can be directed towards measures such as emergency buying and private storage aid. The Commission has to report to Parliament and the Council every three years on the use of the crisis measures adopted on the basis of the CMO Regulation’s provisions.
  • EU school scheme for the distribution of milk, fruit and vegetables: the new regulation sets the total EU budget for the school scheme at EUR 220.8 million per school year, consisting of up to EUR 130.6 million for fruit and vegetables and up to EUR 90.1 million for milk. Each country may transfer part of its EU budget for fruit and vegetables to milk, or vice versa, depending on its priorities and needs. Member States are to choose the products to be featured in distribution or to be included in accompanying educational measures on the basis of objective criteria (e.g. health and environmental considerations, seasonality, variety and availability of local or regional produce, organic products, short supply chains, sustainability and fair-trade considerations).
  • Finally, a number of obsolete provisions have been removed from the CMO Regulation, such as:

Unfair trading practices

By the end of 2022, all EU Member States had transposed Directive (EU) 2019/633 on unfair trading practices in the agricultural and food supply chain into national law. Along with the CMO Regulation, the directive is part of efforts to improve the position of farmers in the value chain. The directive provides for different levels of protection for weaker suppliers against stronger buyers, and this protection covers farmers, producer organisations and distributors. It bans 16 unfair trading practices, distinguishing between practices that are prohibited whatever the circumstances and practices that may be allowed if the supplier and the buyer agree on them in a clear and unambiguous manner.

Role of the European Parliament

On 1 June 2018, the Commission published its legislative proposals for the reform of the common agricultural policy (CAP). In Parliament, the Committee on Agriculture and Rural Development (AGRI) was in charge of this dossier. On 23 October 2020, Parliament adopted its first-reading position on the Commission’s legislative proposals.

The adopted text constituted the basis for the subsequent negotiations with the Council, which started for all three CAP files on 10 November 2020 and continued through a series of ‘trilogue’ meetings. In late June 2021, negotiators reached an agreement on the three proposals of the CAP reform package. This agreement was endorsed by EU agriculture ministers on 28 June 2021 and by AGRI members on 9 September 2021. Parliament voted on the three proposals of the CAP reform package during its November II plenary session and the final act, now Regulation (EU) 2021/2117 of 2 December 2021, was published in the Official Journal L 435 of 6 December 2021.

Regarding the Amending Regulation, the co-legislators were quite close in their positions on wine and geographical indications, but much further apart on market management and crisis measures. The most controversial points proved to be the amendments proposed by Parliament on public intervention, private storage aid, trade with non-EU countries, transparency of the market, exceptional market measures and provisions for the sugar sector.

On the sensitive issue of trade with non-EU countries, it was agreed that Parliament’s concerns about imports and lower product standards could be addressed by political declarations, namely three statements: a joint statement signed by the three institutions on health and environmental standards for imported products; a bilateral statement by Parliament and the Council inviting the Commission to prepare a report on these issues at the latest by June 2022; and a unilateral statement by the Commission indicating what could be done in terms of the imports of agricultural and agri-food products from outside the EU. Similarly, a joint statement by all three institutions recognised the difficulties faced by the sugar sector and undertook to assess the conclusions of an ongoing study on the adaptation strategies of the sugar supply chain after the end of the sugar quotas, published in January 2022.

As pointed out by a study commissioned by Parliament on the reform process of the CAP post- 2020 seen from an interinstitutional angle, Parliament achieved several of its objectives during the negotiations, notably on market management (extension of interventions to all sectors in the strategic plans regulation, EU market observatories, supply regulation measures for PDOs/PDIs), the agricultural reserve (rollover mechanism) and the wine sector (authorisation system extended to 2045, limitation of wine varieties available to producers).

Concerning unfair trading practices in the agri-food supply chain, Parliament drew attention to the issue in a number of resolutions adopted over the years. When negotiating the text of the 2019 directive, Parliament succeeded in widening the scope by ensuring that the rules extend to all types of actors, include all agricultural products, and cover an extended list of prohibited unfair trading practices.

 

Rachele Rossi