23. 6. 78 Official Journal of the European Communities No L 166/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EEC) No 1360/78 of 19 June 1978 on producer groups and associations thereof THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Articles 42 and 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parlia- ment (}), Having regard to the opinion of the Economic and Social Committee (2), Whereas a feature of the Community at present is the variation in the situation regarding the supply and marketing of agricultural products in the different regions ; Whereas in Italy the supply of agricultural products reflects very severe structural deficiencies ; whereas the market is supplied by a very large number of holdings which are small in size and insufficiently organized ; whereas, in particular, the information available indi- cates that only about 16 % of Italian holdings are members of producer organizations set up to market produce and only about 13 % of the value of Italy’s total agricultural output is marketed by such organiza- tions ; whereas, with a few exceptions, these structural deficiencies as regards supply affect the whole of Italy ; whereas, by reason of their limited nature, these exceptions do not prevent the situation in Italy as a whole being taken into consideration ; Whereas in France similar deficiencies have been observed in certain southern regions principally in the table wine sector, where supply comes from a large number of small cooperative groups and is only to a small degree (between 5% and 10 %) provided by reasonably large producer organizations ; whereas such deficiencies also occur in these regions in the table olives sector, where producer organizations are practi- (1) OJ No C 36, 13. 2. 1978, p. 43. () OJ No C 59, 8. 3. 1978, p. 25. cally unknown and in the case of plants for perfumery, where producer organizations are just beginning ; whereas there are also serious structural deficiencies in the supply of agricultural produce in the French overseas departments in respect of tropical fruits and beef and veal products, less than 12 % of which are marketed by producer organizations ; Whereas in Belgium serious structural deficiencies in supply have been noted in the case of cereals, only 15 % of total production of which is marketed by producer organizations, and in the case of live bovine animals, piglets and lucerne, less than 3 % of which is marketed by producer organizations ; Whereas the persistence of the above deficiencies is an obstacle to the fulfilment of the objectives of Article 39 (1) of the Treaty inasmuch as it makes it difficult to increase agricultural productivity, to promote technical progress, to ensure rational develop- ment of agricultural production and optimum use of the factors of production, to ensure a fair standard of living for the agricultural community and to stabilize markets ; whereas, furthermore, this situation is likely to affect the level of prices to consumers; Whereas this situation can be remedied by grouping farmers so that the economic process can be influ- enced by common measures designed to centralize supply and adapt production to market requirements ; whereas such grouping should therefore be encour- aged henceforth the regions concerned without however preventing the arrangements envisaged being extended to other regions which give proof of similar requirements ; Whereas, however, steps should be taken to ensure, by means of a system of recognition, that the grouping of holdings takes place within bodies with the appro- priate production and marketing discipline, which offer sufficient guarantees as to the stability and effec- tiveness of their action and do not, by virtue of their