G. whereas the costs of production, collection, transport and commercialisation of milk and dairy products outside the region of production are substantially higher in these areas than in more favourable locations;

18. Stresses that a milk production market monitoring tool (Milk Observatory) is needed in order to collect and disseminate data and information on production and supply, to provide early warning of the risks of market imbalances, taking into account the diversity of dairy products, and to carry out prospective short-term analysis in the context of price volatility with a view to fine-tuning the adjustment of milk volumes to market demand;

SENOBLE manufactures and sells fresh dairy products (yoghurt, fresh cheese, fresh cream) and engages in various activities relating to collection of milk from dairy producers and food transport logistics.

The aid involves : A. distribution to milk producers of the shares of Dairy Crest (a wholly owned subsidiary of the Milk Marketing Board for England and Wales (MMB) that is its selling arm for processed products), B. transfer of the Genus business (artificial insemination husbandry) from MMB to Genus Limited and the corresponding transfer of shares in Genus Limited to dairy producers, C. transfer of certain assets to the Residuary Board, which will be responsible for paying the outstanding debts of the MMB. D. transfer of certain MMB assets (cash + assets: total value +/- #39m) to a new cooperative, Milk Marque, for the collection and marketing of mi ...[+++]lk, and, via certificates of entitlement, to dairy producers.

2. The effective increase in milk surpluses is accounted for by the following main factors: - the quantities guaranteed were set at too high a level in terms of requirements, - inter-regional offsetting introduced by the Council (Art. 4a of Regulation (EEC) No 857/84) entailed an increase in deliveries not attracting the additional levy of more than 1 million tonnes, - transfer of "direct sales" quotas to "deliveries" increase the latter by about 1 million tonnes, - the individual reference quantities allocated to producers exceed the guaranteed overall quantity in certain Member States. 3. During the 1985/86 marketing year, milk collections increased by 0.7% o ...[+++]ver the preceding marketing year, and butter and skimmed-milk powder (SMP) production increased by 2 and 4% respectively.

The aims of the measures implementing this policy are to: - make farming more dynamic and ensure better management of land by improving the quality of milk products (modernization of cheese-making plants), providing technical support for the milk sector, diversifying agricultural products (game, delicatessen, etc.), encouraging diversification towards tourist activities (accommodation, tourist attractions), country planning measures, measures to improve the quality of water and water management measures; - 2 - - reinforce the wood industry by improving damaged forests and forest access roads, modernizing forestry undertakings and upgrading forest products (installation of a centre for treating and market preparation of wood, public awarene ...[+++]ss measures, etc.); - enhance the competitiveness of production sectors other than agriculture and the first-stage processing of wood by collective measures in favour of undertakings (service centre, access to new technology, quality and quantity improvement of tourist accommodation, etc.); - adapt public and private services in main market towns.