promote the general competitiveness of the Community fishing fleet on world markets.<\/li>\n<\/ul>\nIt is based on a system of prices, which, when applied, triggers financial intervention mechanisms.<\/p>\n
Those mechanisms are determined on the basis of the guide price set by the Council for certain products before the start of the fishing year. The guide price is based on the average of the prices recorded on the wholesale markets or in ports during the previous three fishing years and takes account of predicted trends in production and demand.<\/p>\n
In order to guarantee fishermen a minimum level of income, POs may withdraw fishery products from the market if prices fall below a given level. This level, called the Community withdrawal price, is set by the Commission each year for each type of product marketed. It is calculated in relation to the guide price, not exceeding 90% of that price, and on the basis of the freshness, size and presentation of the product. When prices fall and the intervention mechanisms are triggered, members receive compensation from the PO to which they belong.<\/p>\n