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A term used in common market trading for the theoretical price at has been set as the norm for the sale of farm products under the common agricultural policy. It is fixed annually on the basis of what is a fair return for economic and efficient farmers in each of the member countries. It may therefore vary from one member state to another and is the basis for the formulation of the annual threshold price and intervention price.
Reference: The Penguin Business Dictionary, 3rd edt.
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