Together with the common agricultural policy (CAP), the European Union, established common market organisations (CMOs), i.e. sets of rules and measures to manage the production and trade of most of the EU's agricultural products. They were created in order to stabilise markets and ensure steady incomes for farmers and continued supplies for consumers. 

Regulation (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products lays down rules to manage the single market for agricultural products. The main purpose of the CMO Regulation is to stabilise markets and preventing market crises from escalating by providing a safety net to agricultural markets through the use of market intervention tools and exceptional measures. It also provides for the necessary market transparency measures to allow agricultural producers to better make their production and investment decisions in view of market developments.

It aims at improving productivity and quality at the production level, boosting demand and helping EU agricultural sectors to better adapt to market changes and increase their competitiveness through aid to specific sectors (particularly fruit and vegetables, and wine). The regulation aims to encourage producer cooperation through producer organisations and inter-branch organisations and to strengthen their power in the food chain.

Related regulations:

• Regulation (EU) No 1308/2013 establishing a common organisation of the markets in agricultural products