24.5.86 OfficialJournaloftheEuropeanCommunities NoL139/29
COUNCILREGULATION (EEC)No1579/86
of23May1986
amendingRegulation(EEC)No2727/75onthecommonorganizationofthemarketin
cereals
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,whichwillenableadefinitiontobegivenofthatprod­
uctionwhichrequiresfinancialsupportinorderto
ensureitsdisposalandallowanassessmenttobemade
oftheresultingchargesonthebudget,bearingaddi­
tionallyinmindimportsofcerealssubstituteproducts
ontheCommunitymarket;
Whereasdeterminedactionaimedatachievingamore
satisfactorybalancebetweensupplyanddemandon
themarketmustalsoentailchangesintheprice-sup­
portarrangementsandadjustmentoftheintervention
machinery ;whereasspecialinterventionmeasuresfor
commonwheatofbread-making qualityatahigher
price-support levelthantheinterventionpricehave,
togetherwithbread-making qualityrequirementswhich
werenotsufficientlystringent,boostedtheproduction
ofthatparticulartypeofwheat;whereaseliminating
thereferencepriceandfixinga'bread-making quality7
interventionpricecanhelptoachievetheobjective
describedabove;whereas,however,theproductionof
commonwheatofhigherbread-making qualityshould
besupported ;whereasthisobjectivecanbeattainedby
settingaspecialpremiumforthisparticularquality;
whereasintheinterestsofconsistency ,provision
shouldalsobemadeforaspecialpremiumforryeof
bread-making quality;HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle43
thereof,
Havingregardtotheproposalfromthe
Commission('),
HavingregardtotheopinionoftheEuropean
Parliament (2),
HavingregardtotheopinionoftheEconomicand
SocialCommittee (3),
WhereastheCommunitycerealsmarketischaracter­
izedbystructuralsurplusesresultingfromtheimbal­
ancebetweenthesupplyof,anddemandfor,theprod­
uctscoveredbyRegulation (EEC)No2727/75(4),as
lastamendedbyRegulation (EEC)No1006/86(5);
whereasproductionhasoutstrippedbothconsumption
intheCommunityandoutletsonworldmarkets;wher­
eastheresultingcostsandmarketmanagementprob­
lemscould,ifthattrendisnotchecked,jeopardizethe
futureofthecommonagriculturalpolicy;
Whereas,inordertoachieve,withtheutmosturgency,
animprovedbalanceinmarketforcesandtocontrol
growth,itisappropriatetodevelopCommunityoutlets
ononehandandontheothertogivetheproducersan
indicationofthemarketsituation;whereasthisobjec­
tivecanbestbeattainedbymeansofaco-responsi­
bilitylevyappliedtocerealsproducedintheCom­
munityandusedforcertainoperations ;whereas,bear­
inginmindthesocialimplicationsofthismeasure,itis
appropriatetoestablishadirectaidsystemforsmall
cerealsproducers,intendedtocompensateforthe
effectoftheco-responsibility levyontheirrevenue;
whereasanestimateoftheoverallamountofthisaid
maybeputat120millionECUforthe1986/87market­
ingyear;
Whereastheamountofthelevymustbedetermined
annually,takingintoaccountthevariouselementsWhereasthisnewapproachmeansthatthetargetprice
willbederived,forcommonwheat,fromitsinterven­
tionpriceand,forfeed-grain,fromtheintervention
priceforbarley;
Whereaswhenthereisasurplusonthemarketand
marketpricesaredepressed,thefactthatcerealscanat
alltimesbesenttointervention isveryoften,evenat
thebeginningofthemarketingyear,seenasanoutlet
initsownrightbymanyoperators,withtheresultthat
thelatterdonothavetoseektomarkettheirgrain;
whereas,inordertoencourageoperatorstoseekmore
activelyanoutletonthemarketduringtheearlystages
ofthemarketingyear,thequantitiesboughtinbyinter­
ventionagenciesshouldbelimitedtoacertainperiod
ofthemarketingyear,bearinginmindthespecialfea­
turesofcertainMemberStates;whereas,moreover,
allowingoperatorstooffertheirgrainforintervention
withoutnecessarilybeingtakenoverbytheinterven­
tionagencywillallowthemtoseek,duringaperiodto
bedetermined ,amoreadvantageous outlet,andwillbe
inkeepingwiththeobjectivedescribedabovewhile
guaranteeing thatthegraincan,asalastresort,be
boughtinifsuchisthewishoftheproducer;')OJNoC53,7.3.1986,p.5.
2)OJNoC120,20.5.1986.
-')OJNoC118,20.5.1986,p.9,
4)OJNoL281,1.11.1975,p.1.
s)OJNoL94,9.4.1986,p.i.

NoL139/30 OfficialJournaloftheEuropeanCommunities 24.5.86
Whereasamarketingyearbeginningon1Julyshould
allowmorefullyforthenewconditionsobtainingin
theCommunityfollowingtheaccessionofSpainand
Portugal,whereharveststendtotakeplaceearlyonin
theyear,andcaneasetheintroductionofthenew
interventionarrangements referredtoabove;
Whereas,moreover,inviewoftheappearanceonthe
marketoftheharvestsofmaizeandsorghum,itis
appropriatethatthethresholdpriceapplicabletothem
onimportduringtheprecedingmonthofMarchshould
beretainedforthefirstthreemonthsofthemarketing
yearforthesetwoproducts;
Whereas,inthecontextofthemarketorganization
adjustedasdescribedabove,acarry-overpaymentcan
beregardedsimplyasamanagementmeasuredesigned
toeasethetransitionfromonemarketingyearto
another;whereasthedecisiontograntsuchacarry­
overpaymentshouldaccordinglybeaCommission res­
ponsibilityunderthemanagement committeeproce­
dure;whereasthepossibilityofapplyingsuchamea­
sureformaizemoreovernolongerseemsjustified,in
viewoftherecentprovisionsintroducedinrespectof
thatcereal;
Whereastheaimofrestoringbalanceonthemarket
shouldbetoencouragethesearchfor,anddevelop­
mentof,newindustrialoutletsforcereals,inparticular
inthefieldofenergy;whereasprovisionshouldthere­
forebemadeforgrantingaidforcerealsusedforsuch
researchanddevelopment work;whereastheaid,
should,however,befixedinsuchawayastoallow
soundcompetitionwithworldmarketoutletsforthose
cereals;
WhereasArticles15and16introducearrangements
whichpermit,incaseswherethereisnocarry-overpay­
ment,theimportandexportofmaltmanufactured
fromthepreviousharvest'scropforthefirsttwo
monthsofthenewmarketingyear;whereasthechange
inthedateofthebeginningofthemarketingyearcalls
foraone-monthextensionoftheperiodreferredto
aboveinordertoenabletheimportandexportarrange­
mentsformalttooperateatthebeginningofthemar­
ketingyear,2.Article3isreplacedbythefollowing ;
'Article3
1.Beforethebeginningofthemarketingyear
referredtoinArticle2,thefollowingpricesshallbe
fixedannuallyfortheCommunity :
—anintervention priceforcommonwheat,
durumwheat,rye,barley,maizeandsorghum,
—atargetpriceforcommonwheat,atargetprice
fordurumwheatandacommontargetprice
forrye,barley,maizeandsorghum,
—aspecialpremiumforcommonwheatandfor
ryeshowingcertainfeaturesastoquality.
2.Thepricesshallbefixedforastandardquality.
3.Theinterventionpricesshallbefixedforthe
Ormesinterventioncentre,whichisthecentrefor
theCommunityareahavingthegreatestsurplusfor
allcereals,atthewholesalestage,goodsdelivered
atwarehouse ,beforeunloading .Theyshallbe
validforallCommunityinterventioncentresdesig­
natedforeachcereal.
4.(a)Thetargetpricesforcommonwheatand
durumwheatandthecommontargetprice
forrye,barley,maizeandsorghumshallbe
fixedforDuisburg,whichisthecentrefor
theCommunityareahavingthegreatest
deficitforallcereals,atthewholesale
stage,goodsdeliveredatthewarehouse ,
beforeunloading .
Theyshallbecalculatedbyadding,tothe
intervention priceforcommonwheat,
durumwheatandbarley,amarketcompo­
nentandacomponentreflectingthecost
oftransportbetweentheOrmesareaand
theDuisburgarea.
(b)Themarketcomponentfor:
—commonwheatshallreflectthediffer­
encewhichshouldexistbetweenthe
interventionpriceandthemarketprice
forveryhighqualitycommonwheatof
bread-making quality,producedinthe
Community ,tobeexpected,inanor­
malharvestandundernaturalpricing
conditionsontheCommunitymarket,
intheareahavingthegreatestsurplus,
—rye,barley,maizeandsorghumshall
reflectthedifferencewhichshould
existbetweenthemarketpriceforbar­
leyanditscommoninterventionprice,
plusthedifferenceinmarketprices
reflectingtheratiobetweentherelative
valuesofbarleyandmaizeforusein
animalfeed.ThemarketpricestobeHASADOPTED THISREGULATION :
Article1
Regulation (EEC)No2727/75isherebyamendedas
follows:
1.Article2isreplacedbythefollowing :
Article2
Themarketingyearforalltheproductslistedin
Article 1shallbeginon1Julyandendon30June
ofthefollowingyear.'

24.5.86 OfficialJournaloftheEuropeanCommunities NoL139/31
productsshowninAnnexDshallbetakeninto
consideration .
4.ThelevyreferredtointhisArticleshallbe
regardedasoneoftheintervention measures
designedtostabilizeagriculturalmarketsandshall
beallocatedtothefinancingofcostsinthecereals
sector.
5.Theco-responsibility levyshallbecollectedon
cerealsthatundergooneofthefollowingopera­
tions:
—firstprocessing ,
—interventionbuying,
—exportintheformofgrain.
6.Thelevyshallbepassedontotheproducer .
7.Thedetailedrulesfortheapplicationofthis
Article,andinparticular :
—thedefinitionofthefirstprocessing,
—theprocedureforcollectingthelevy,
—operationsexemptedfromtheco-responsibility
levy,
shallbeadoptedinaccordancewiththeprocedure
laiddowninArticle26.
Thetransitionalmeasuresnecessaryfortheappli­
cationofthisArticleshallbeadoptedinaccord­
ancewiththesameprocedure .
8.TheCommission shallensurethattheco-res­
ponsibilitylevysystemdoesnotcreateanydistor­
tionwithcompetingproducts.
9.TheCommission willconsultwithtradeinter­
estsontheuseoftheamountproducedbythelevy.takenintoconsideration arethoseto
beexpectedinanormalharvestand
undernaturalpricingconditionson
theCommunitymarket,intheproduc­
tionareahavingthegreatestsurplus,
—durumwheatshallreflectthediffer­
encewhichshouldexistbetweenthe
interventionpriceandthemarketprice
tobeexpected,inanormalharvest
andundernaturalpricingconditions
ontheCommunitymarket,inthearea
havingthegreatestsurplus.
(c)Thecomponentreflectingthecostoftrans­
portshallbedeterminedonthebasisofthe
mostfavourablemeansoftransportor
combinationofmeansoftransportandon
existingtariffs.Wheninlandwaterwayor
sea-freightratesarenotbasedonatariff,
transportcostsshallbedeterminedbytak­
ingtheaveragefreightrateoverthetwo
monthswiththelowestaveragerateduring
themostrecent12-monthperiodforwhich
dataareavailable .
5.Thepricesandthespecialpremiumsreferred
toinparagraph 1andthestandardqualities
referredtoinparagraph2shallbedeterminedin
accordancewiththeprocedurelaiddowninArticle
43(2)oftheTreaty.
6.TheCouncil,actingbyaqualifiedmajorityon
aproposalfromtheCommission ,shalllaydown
rulesfordeterminingtheinterventioncentresto
whichtheinterventionpricesapply.
7.Theintervention centresshallbedetermined ,
afterconsultation withtheMemberStatescon­
cerned,inaccordancewiththeprocedurelaid
downinArticle26.'
3.Article3aisherebyrepealed.
4.Article4isreplacedbythefollowing :
Article4Article4a
1.Directaidshallbeintroduced forsmall
producers .FortheCommunity ,theoverallaid
amountshallbefixedeachyearbeforethebegin­
ningofthemarketingyearinaccordancewiththe
procedurelaiddowninArticle43(2)oftheTreaty.
Thisamountmaynotexceedthetotalestimated
amountproducedbytheco-responsibility levyon
producersmarketingnotmorethan25tonnes.
2.Forthe1986/87marketingyeartheoverallaid
amountshallbesetat120millionECU.Should
paragraph4beapplied,thislatteramountshallbe
reducedbytheamountthatwouldhavebeenpaid
totheMemberStateunderthecurrentaidarrange­
ment,hadthesaidparagraph4notbeenapplied.
3.TheCouncil,actingbyaqualifiedmajorityon
aproposalfromtheCommission ,shalllaydown
generalrulesforsuchaid.
4.Duringthe1986/87marketingyearonly,Mem­
berStates,whichexperienceparticulardifficulties1.Aco-responsibility levyshallbepayableinres­
pectofthecerealsreferredtoinArticle1(a)and
(b)producedintheCommunityandusedforone
oftheoperationsreferredtoinparagraph5hereof.
Thisarrangement shallapplyforthe1986/87to
1990/91marketingyear.
2.Theamount,perunit,ofthelevyshallbefixed
annuallybeforethebeginningofthemarketing
year,inaccordancewiththeprocedurelaiddown
inArticle43(2)oftheTreaty.
3.Whentheamountoftheco-responsibility levy
isdetermined ,importsintotheCommunityofthe

NoL139/32 OfficialJournaloftheEuropeanCommunities 24.5.86
ofanadministrative ortechnicalnatureinapplying
theruleslaiddownforsmallproducersunderthis
Articlemay,subjecttoconditionstobesetin
accordancewiththeprocedurelaiddowninpara­
graph5,grantaidtosmallproducersintheformof
compensation forthelevypayablebythosesmall
producers .
Theoverallamountofthatcompensation forthe
MemberStateinquestionmayinnoeventexceed
theamountthatwouldhavebeenpaidtoit,had
thisparagraphnotbeenapplied.
5.Thedetailedrulesfortheapplicationofthe
aid,andinparticularitsallocation,shallbe
adoptedinaccordancewiththeprocedurelaid
downinArticle26onthebasisofobjective
criteria.'
5.Article5isherebyamendedasfollows:
(a)Thefollowingsubparagraph isaddedtopara­
graph1:
'However,formaizeandsorghum,thethres­
holdpricevalidduringMarchshallbeappli­
cableforJuly,AugustandSeptemberofthe
followingmarketingyear/
(b)Thefirstindentofparagraph4isreplacedby
thefollowing :
'—acomponentrepresenting thecostof
transportbetweenRotterdamandDuis­
burg,determinedinaccordancewiththe
criterialaiddowninArticle3(4)(c).'
(c)Paragraph6isreplacedbythefollowing :
'6.Thresholdpricesforproductsreferredto
inthisArticleshallbefixedannually,before
thebeginningofthemarketingyear,inaccord­
ancewiththeprocedurelaiddownin
Article26.'cularinrespectofqualityandquantity,tobedeter­
minedinaccordancewithparagraph5.However:
—interventionagenciesshallbuyinthecereals
offeredtothemfrom1Septemberondeferred
paymentterms,and,inPortugal,Italy,Greece
andSpainfrom1August,forcerealsharvested
inthesecountries,
—duringJuly1986,theSpanishintervention
agencyshallbuyinthecerealsharvestedin
Spainwhichareofferedtothemonthepay­
mentconditionsexistinginthatcountrybefore
1March1986.
Subjecttocertainconditionsandinrespectofcer­
tainperiodstobedeterminedinaccordancewith
theprocedurelaiddowninArticle26,theCommis­
sionshallhavepowertoauthorizethesubmission
tointerventionagenciesofofferswhichincludea
cancellation clause.'
8.InArticle7(2):
(a)'singleinterventionprice'isreplacedby'inter­
ventionprice';
(b)thethirdsentenceisdeleted.
9.InArticle7(5)thefollowingindentisinserted
betweenthesecondandthirdindents:
'—thespecificqualitycriteriawhichcommon
wheatofbreadmaking qualityandryeof
breadmakingqualitymustmeetinordertobe
eligibleforthespecialpremiumprovidedforin
Article3(1)'.
10.Article8isreplacedbythefollowing :
'Article8
1.Particularintervention measuresmaybe
adoptedwheneverthemarketsituationincertain
regionsoftheCommunitysorequires.
2.TheCouncil,actingbyaqualifiedmajorityon
aproposalfromtheCommission ,shalladoptgen­
eralrulesfortheapplicationofthisArticle.
3.Thenatureandapplicationoftheparticular
interventionmeasuresandtheconditionsandpro­
ceduresforthesaleorforanyothermeansofdis­
posaloftheproductssubjecttothosemeasures
shallbedeterminedinaccordancewiththeproce­
durelaiddowninArticle26.Detailedrulesforthe
applicationofthisArticleshall,whereappropriate ,
beadoptedinaccordancewiththesameproce­
dure.'
11.Article9isreplacedbythefollowing :
'Article9
Totheextentrequiredtofacilitatethechangeover
fromonemarketingyeartoanother,theCommis­
sionmay,inaccordancewiththeprocedurelaid
downinArticle26,grantacarry-overpaymentin6.Article6isreplacedbythefollowing :
Article6
1.WithoutprejudicetoArticle5,theintervention
prices,thetargetpricesandthethresholdprices
shallbethesubjectofmonthlyincreasesphased
overpartorallofthemarketingyear.
2.TheCouncil,actingbyaqualifiedmajorityon
aproposalfromtheCommission ,shalldetermine
annually,beforethebeginningofthemarketing
year,thenumberandamountofthemonthly
increasesandinwhatmonthstheyaretoapply.'
7.Article7(1)isreplacedbythefollowing :
'1.Theinterventionagenciesdesignatedbythe
MemberStatesshallbuyin,duringtheperiodfrom
1Octoberto30April,cerealsreferredtoin
Article3,whichhavebeenharvestedintheCom­
munityandwhichareofferedtothem,provided
thattheofferscomplywithconditions ,inparti­

24.5.86 OfficialJournaloftheEuropeanCommunities NoL139/33
respectofstocksofoneormoreofthefollowing
cerealsharvestedintheCommunitywhichremain
totheendofthemarketingyear:commonwheat,
durumwheat,ryeandbarley.'
12.ThefollowingArticle1laisinserted:
'Article11a
1.Aidmaybegrantedforcerealsharvestedinthe
Communitythatareputtonewindustrialuses.The
amountoftheaidmaynotexceedthatofthe
exportrefundforthecerealconcerned .
2.TheCouncil,actingbyaqualifiedmajorityon
aproposalfromtheCommission ,shalladoptrules
fortheapplicationofthisArticle.'13.Inthesecondsubparagraph ofArticle15(3),'the
firsttwomonthsofthemarketingyear'isreplaced
by'thefirstthreemonthsofthemarketingyear'.
14.Inthelastsubparagraph ofArticle16(4),'during
thefirsttwomonthsofthemarketingyear'is
replacedby'duringthefirstthreemonthsofthe
marketingyear'.
Article2
ThisRegulationshallenterintoforceonthedayofits
publicationintheOfficialJournaloftheEuropean
Communities .
Itshallapplyfrom1July1986.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicableinallMember
States.
DoneatBrussels,23May1986.
FortheCouncil
ThePresident
G.BRAKS