Amended proposal for a COUNCIL REGULATION (EC) on the common organization of the market in fruit and vegetables
* -A. "&' vr "if if <P DEMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 05. 19% COM<%) 177 iinaS 96/0120(CNS) Proposal for a COUNCIL REGULATION (EC) introducing a Community aid scheme for producers of certain citrus fruits (presented by the Commission) Amended proposal for a COUNCIL REGULATION (EC) on the common organization of the market in fruit and vegetables (presented by the Commission pursuant to Articie 189 a (2) of the EC-Treaty) EXPLANATORY MEMORANDUM Re: Proposal for a Council Regulation introducing a Community aid scheme for producers of certain citrus fruits At the Council meeting of 10 November 1995, the Commission undertook to complete as soon as possible its proposals for aid to producers of certain citrus fruit, in the spirit of the declaration by the joint Council of 20 September 1993. In the communication from the Commission to the Council and Parliament of 27 July 1994, the Commission analysed the present situation in the sector of fresh and processed citrus fruits. Following the line taken in that communication, the Commission proposes a two-fold objective: on the production side, to prevent continued systematic recourse to processing as an alternative outlet for fruit originally destined for the fresh market, on the processing industry side, to enable the industry to move into new products (freshly squeezed juice and pasteurized juice), the only products where the Community has any chance of being competitive in relation to third countries. In order to attain these objectives, the Commission is envisaging a flexible system based on processing contracts, signed by processors and producers' organizations. The price of the raw materials, which must meet certain minimum conditions, will be freely established as a function of supply and demand. Flat-rate aid will be granted to producers' organizations for raw material supplied to the industry, in order to: support producers' incomes, facilitate negotiations with the industry, and promote the concentration of production through producers' organizations. To ensure that recipients of the aid take a responsible attitude to their output, the aid is adjusted whenever the thresholds are exceeded. X Proposal for a COUNCIL REGULATION (EC) No. /96 of introducing a Community aid scheme for producers of certain citrus fruits THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Having regard to the opinion of the Economic and Social Committee, Whereas the present situation in the citrus fruit industry continues to be marked by serious difficulties in the disposal of Community production; whereas these difficulties are attributable mainly to the varietal aspects of production, production surpluses and marketing conditions for fresh and processed citrus fruit; Whereas the Community supply of oranges, mandarins and lemons continues to keep pace with demand on the market in fresh fruit for some varieties of products; whereas production of Clementines has increased considerably in recent years to the extent that surpluses are being created; whereas satsumas, which are being replaced by clémentines on the market in fresh fruit, are also in surplus; whereas a system of support for producers should, therefore, provide an incentive for the disposal of the citrus fruit concerned with a view to their processing into juice and segments; Whereas it seems appropriate to implement this system by means of contracts concluded between processors and producers' organizations in order to ensure, firstly, regular supplies for processing industries and, secondly, effective checks on the products to be delivered; whereas the system should guarantee supplies to consumers at reasonable prices and quality; Whereas, in order to encourage producers to present their products for processing rather than withdrawal, provision should be made for the grant of an aid to producers' organizations which deliver citrus fruit to the processing industries; whereas the amounts of the aid should be established for a transitional period of five years after which they should be a fixed sum; whereas those amounts should be calculated on the basis of the ratio existing in 1995/96 between the financial compensation and the minimum price and be subject to an annual gradual reduction over the transitional period, except in the case of satsumas and clémentines, in order to meet the general objectives of the common organization of the market in fresh products; 3 Whereas the production of citrus fruit features structural shortcomings in terms of marketing which are demonstrated by the excessive dispersal of supply; whereas therefore individual producers who deliver all their citrus fruit for processing through producers' organizations should qualify under the system; whereas for that reason and in order to ensure equality of treatment with the fresh products sector, provision should be made for the amount of the aid to be reduced; whereas for the same structural reasons, it would be justified to grant an increase in the aid for producers' organizations which conclude a contract for more than one year and in respect of minimum quantities; Whereas the quantities that may be withdrawn from the market are limited by the rules governing fresh products; whereas in cases where production is rising, steps should be taken to prevent systematic recourse to processing as an alternative outlet; whereas the fixing of a maximum quantity for processing, the overrunning of which would entail a reduction in the aid in the following marketing year, would seem to be an appropriate measure to that end; whereas maximum limits should be laid down based on the average quantity eligible for financial compensation during a reference period, HAS ADOPTED THIS REGULATION: Article 1 A Community aid scheme for producers' organisations which deliver for processing certain citrus fruits harvested in the Community is hereby established. The scheme shall cover: (a) oranges, mandarins, clémentines and lemons processed into juice; (b) satsumas and clémentines processed into segments. Article 2 1. 2. 3. The scheme referred to in Article 1 shall be based on contracts between, on the one hand, producers' organizations recognized or provisionally admitted under Regulation (EC) No /96 and, on the other, processors or legally constituted associations or unions of processors. Such contracts shall be concluded before a specified date and for a minimum duration determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96. They must specify the quantities to which they relate, the phasing of deliveries to processors and the prices to be paid to producers' organizations. Once they have been concluded, contracts shall be sent to the authorities in the Member States concerned responsible for carrying out qualitative and quantitative checks on: (a) products delivered to processors by producers' organizations; (b) the actual processing of the quantities delivered. V Article 3 1. 2. Aid shall be granted to producers' organizations for the quantities delivered for processing under the contracts referred to in Article 2. The amount of the aid referred to in paragraph 1 shall be that fixed in Table 1 of the Annex hereto. However: (a) where the contract referred to in Article 2(1) covers more than one marketing year and a minimum quantity of citrus fruit, to be determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 2 of the Annex hereto; (b) for quantities delivered under the provisions of Article 4, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 3 of the Annex hereto. 3. The aid shall be paid by the Member States to producers' organizations which apply therefor as soon as the inspecting authorities of the Member State in which processing is undertaken have established that the products covered by the contracts have been delivered to the processing industry. The amount of the aid received by producers' organisations shall be paid to associated producers. Article 4 Producers' organizations shall pass on the benefit of the aid scheme defined in this Regulation to individual producers who are not members of any such organizations who undertake to market through them their entire output of citrus fruit intended for processing and who pay a subscription to cover the extra management costs borne by the organization because of the application of this provision. Where paragraph 1 is applied, (a) (b) the amount of the aid received by the producers' organization shall be paid to the individual producer concerned; the quantities supplied by individual producers may not be included in the multiannual contracts referred to in Article 3(2)(a). Article 5 Processing thresholds shall be established for oranges, for lemons, and for mandarins, clémentines and satsumas taken together^ as follows: oranges lemons mandarins, clémentines and satsumas 1 209 000 tonnes 444 000 tonnes 265 000 tonnes. X If, in the course of a given marketing year, the quantities of oranges, of lemons, and of mandarins, satsumas and clémentines delivered for processing under the scheme provided for in this Regulation exceed the processing thresholds established in paragraph 1, the aid fixed in accordance with Article 3(2) for the products in question shall be reduced for the following marketing year by 1% per tranche of the processing threshold overrun. Overrun tranches shall be equal to 1% of the level of each threshold fixed in paragraph 1. However, in the case of oranges and lemons, any overrun of the processing threshold shall be fixed, for a given marketing year, on the basis of a period of twelve consecutive months, staggered in relation to the said marketing year. Article 6 Detailed rules for the application of this Regulation, and in particular monitoring measures and penalties, the marketing years, the minimum characteristics of the raw materials delivered for processing and the financial consequences of exceeding the threshold shall be adopted in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96. Article 7 The measures provided for in this Regulation shall be regarded as intervention intended to stabilize the agricultural markets within the meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy1. They shall be financed by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF). Regulations (EEC) No 1035/77 and (EC) No 3119/93 are hereby repealed. Article 8 Article 9 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. It shall apply from the 1996/97 marketing year. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council 1 OJ No L 94, 2 8. 4. 1 9 7 0, p. 13 ANNEX AMOUNTS OF THE AID REFERRED TO IN ARTICLE 3(1) 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year ECU/100 kg net 2000/2001 and subsequent marketing years 9,36 10,03 11,31 8,92 7,34 9,25 9,75 10,71 8,92 7. 74 9,14 9,47 10,31 8,92 8,13 9,03 9,20 9,51 8,92 8,52 8,92 8,92 8,92 8,92 8,92 Table 1 Lemons Oranges Mandarins Clementines Satsumas Table 2 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year V Lemons Oranges Mandarins Clementines Satsumas 10,76 11,54 13,00 10,26 8,44 10,64 11,22 12,31 10,26 8,90 10,51 10,90 11,63 10,26 9,35 10,38 10,58 10,94 10,26 9,80 Table 3 Lemons Oranges Mandarins Clementines Satsumas 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year 8,42 9,03 10,17 8,03 6,61 8,32 8,78 9,64 8,03 6,96 8,22 8,53 9,10 8,03 7,32 8,13 8,28 8,56 8,03 7,67 ECU/300 kg net 2000/2001 and subsequent marketing years 10,26 10,26 10,26 10,26 10,26 saxegsss P 'ii n. i. M. ,, i. i. ' ECU/100 kg net 2000/2001 and subsequent marketing years 8. 03 8,03 8,03 8,03 8,03 ilAli LUU. » llllJLU_l. Lljm-LLJl _•• ' f r == FINANCIAL STATEMENT BUDGET HEADING: 1503 Date: APPROPRIATIONS: ECU 208 million TITLE: Proposal for a Council Regulation introducing a Community aid scheme for producers of certain citrus fruits. LEGAL BASIS: Article 43 of the Treaty AIMS: Reform of the rules governing the processing of certain citrus fruit alongside the reform of the common market organization in fresh and processed fruit and vegetables 5. FINANCIAL IMPLICATIONS: 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL AUTHORITIES - OTHER 5. 1. REVENUE - OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED REVENUE 5. 2. METHOD OF CALCULATION: See Annex. PERIOD OF 12 MONTHS (ECU million) CURRENT FINANCIAL YEAR (96) (ECU million) FOLLOWING FINANCIAL YEAR (97) (ECU million) 184. 1 1998 1999 2000 2001 ECU 181. 6 m ECU 179. 2 m ECU 177. 0 m ECU 174. 5 m 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? WILL A SUPPLEMENTARY BUDGET BE NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/N© YES/Wi ¥6S/NO YES/NQ OBSERVATIONS ? Citrus fruits I. Processed quantities- statistics and analysis (t) 89/90 90/91 91/92 92/93 93/94 94/95 Thresholds Tranches average for 5 marketing years 440848 386740 337729 473704 501490 474264 443889 444000 1302730 827983 1462609 1158254 1041507 1331979 1208618 1209000 88309 37585 36965 86530 75758 55797 51657 40653. 59613 40833 91143 57463 60000 58000 143364 155834 149142 146163 125994 146223 147000 4440 12090 600 580 1470 2012836 1483280 2091807 1631958 1781650 2064033 1915806 1918000 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit 2. Quantities used for the calculations and forecast trend (t) 1995/96 (Preliminary draft budget 1996) Quantities used PO - annual 1996/97 PO - multiannual 67% Non- associated producers 33% 1997/98 PO - annual PO - multiannual Non-associated producers 69% 31% 75% 25% 72% 28% 450000 444000 1150000 1209000 50000 50000 60000 58000 160000 147000 223110 607523 30150 29145 73868 74370 202508 10050 9715 24623 146520 398970 19800 19140 48510 220579 600631 29808 28814 73030 85781 233579 11592 11206 28400 137640 374790 18600 17980 45570 1860000 1918000 963795 321265 632940 952862 370558 594580 PO-annual 1998/99 PO- multiannual 71% 1999/2000 2000/01 Non- associalcd producers 29% PO - annual PO - multiannual 73% Non- associated producers 27% PO - annual multiannual PO - 75% Non- associated producers 25% 68% 32% 63% 37% 60% 40% 214363 583705 28968 28002 70972 100877 274685 13632 13178 33398 128760 204196 350610 556019 17400 27594 16820 26674 42630 67605 119924 326551 16206 15666 39705 119880 199800 133200 326430 544050 362700 16200 27000 15660 26100 18000 17400 39690 66150 44100 111000 302250 15000 14500 36750 926010 435770 556220 882088 518052 517860 863100 575400 479500 A dynamic trend has been assumed for the situation, both in response to the probable trend in concentration of supplies and given the prospect that aids will increase- the proportion due to PO's will increase gradually and, within that figure, the percentage of multiannual contracts will also increase. The assumption with regard to quantitiesis based on complete realization of the thresholds and compliance with them. Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit Lemons Oranges Mandarins Clementines Satsumas Total Citrus fruit Note: 9 Citrus fruits Fixed aids (ECU/t) Aid to processors - ECU/t Marketing year 1995/96 - ex reform Lemons Oranges Mandarins Clementines Satsumas IWV% 104,8 111,0 133,0 95,3 48,3 Note: The aids were fixed by Regulation (EEC) No 3318/93 for satsumas (for three marketing years), by Regulation (EC) No 1604/95 for lemons and by Regulation (EC) No 2803/95 for the other citrus fruits. a. Aid to PO's - with annual contracts (ECÙ/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 93,6 100,3 113,1 89,2 73,4 92,5 97,5 107,1 89,2 77,4 91,4 94,7 101,1 89,2 81,3 90,3 92,0 95,1 89,2 85,2 89,2 89,2 89,2 89,2 89,2 b. Aid to PO's - with multiannual contracts (ECU/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 107,6 115,4 130,0 102,6 84,4 106,4 112,2 123,1 102,6 89,0 105,1 109,0 116,3 102,6 93,5 103,8 105,8 109,4 102,6 98,0 102,6 102,6 102,6 102,6 102,6 c. Aid to PO's - with non-associated producers (ECU/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 84,2 90,3 101,7 80,3 66,1 83,2 87,8 96,4 80,3 69,6 82,2 85,3 91,0 80,3 73,2 81,3 82,8 85,6 80,3 76,7 80,3 80. 3 80,3 80,3 80,3 Note: The aids given here are those which are listed in the Annex to the draft Regulation. xCo Citrus fruit 4. 1 Cost per marketing year (ECU million) (broken down into PO's - with annual or multiannual contracts - and non-associated producers) 95/96 9é/97 97/98 ex reform Amraal Multwmnuul Non-associated Annual Mtriliiwmtial Noa-aswiciated producers producers 47,2 127,7 6,7 4,8 7,7 194,0 20>? 60,9 3,4 2,6 5,4 93,3 1,0 23,4 1,3 1,0 2,1 35,7 12,3 36,0 2,0 1,5 3,2 55,1 20,4 58,6 3,2 2,6 5,7 90,4 9,1 26,2 1,4 1,1 2,5 40,4 11,5 32,9 1,8 1,4 3,2 50,8 Lemons Oranges Mandarins Clementines Satsumas Total («itrus fruit 4. 2 Cost per marketing year (ECU million) (broken down into PO's - with annual or multiannual contracts - and non-associated producers) 1998/99 1999/2000 2000/01 Annual Multiannual Non- Annual Multiannual Annual Multiannual Non- associated producers 12,5 34,5 1,8 1,6 3,9 54,3 9,7 27,0 1,4 1,3 3,0 42,4 17,8 48,5 2,4 2,3 5,9 77,0 13,7 37,2 1,8 1,8 4,5 59,0 Non- associated producers 8,9 24,3 1,2 1,2 2,9 38,5 associated producers 10,6 29,9 1,6 1,4 3,1 46,6 10,6 29,9 1,6 1,4 3,1 46,5 18,4 51,1 2,6 2,4 5,8 80,3 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit 19,6 55,3 2,9 2,5 5,8 86,1 5. Cost per budget (ECU million) 1996 47,2 127,7 6,7 4,8 7/7 194,0 1997 41,2 120,3 6,7 5,1 10/7 184,1 1991 1999 2000 2001 41,0 117,7 6,4 5,2 U£ 181,6 40,8 115,1 6,1 5,2 \2$ 179,2 40,6 112,7 5,8 5,2 12/7 177,0 40,4 110,0 5,5 5,3 13,4 174,5 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit Note: Traditionally,expenditure for the processing of citrus fruit is charged to the financial year which corresponds to the second half of the marketing year. svt - Itj _ EXPLANATORY MEMORANDUM On 4 October 1995 the Commission presented the Council with two proposals for Regulations on the common organization of the markets in: fruit and vegetables, products processed from fruit and vegetables. At the Council meeting of 10 November 1995, the Commission undertook to send the Council a proposal for a new scheme introducing aid to the producers of certain citrus fruits. Under this new scheme, there is no lower limit on the price the processor must pay the producer. The former proposal needs to be adapted to take this into account. ~AZ Amended proposal for a Council Regulation on the common organization of the market in fruit and vegetables This proposal was presented by the Commission to the Council on 4 October 1995. /96 As a consequence of the presentation of the proposal for a Council Regulation (EC) No introducing a system of aid to producers of certain citrus fruits, the proposal on the common organization of the market in fruit and vegetables now requires the following amendments: Arfafc \$ 1. Paragraph 2(a) is replaced by the following: M(a) to finance market withdrawals on the terms of paragraph 3". 2. In paragraph 3: the introductory part of the first subparagraph is replaced by the following: "3. Use of the operational fund to finance withdrawals shall be permissible only if an operational programme has been approved by the competent national authorities. Financing shall take one of the following forms:"; point (c) is deleted; the second subparagraph is replaced by the following: "Member States may set a maximum on the compensation or supplements thus decided, at a level which shall not exceed the maximum withdrawal prices applying in the 1995/96 marketing year in accordance with Article 16(3a), Articles 16a and 16b and the first indent of Article 18(l)(a) of Regulation (EEC) No 1035/72. " stY ISSN 0254-1475 COM(96) 177 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-186-EN-C ISBN 92-78-03054-6 Office for Officiai Publications of the European Communities L-2985 Luxembourg yii