OfficialJournaloftheEuropeanCommunities 39
NoL156/18 OfficialJournaloftheEuropeanCommunities 12.7.72
COMMISSION DECISION
of22June1972
ongrantingaidforthegrowingoflucerneinBelgium
(72/248/EEC)
(OnlytheFrenchandDutchtextsareauthentic)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuro­
peanEconomicCommunity,andinparticularthe
firstsubparagraphofArticle93(2)thereof;
HavingregardtoCouncilRegulation(EEC)No
827/680)of28June1968onthecommonorganiza­
tionofthemarketincertainproductslistedinAn­
nexIItotheTreaty,andinparticularArticle5
thereof;
Havingregardtothecommentssubmittedbythose
concerned;
WhereastheBelgianGovernment ,byletterof24
June1971fromtheOfficeofitsPermanentRepre­
sentative,notifiedtheCommission ,inaccordance
withArticle93(3)oftheTreaty,ofitsintentionto
subsidizethegrowingoflucernein1971,1972and
1973;whereasthisaidwouldtaketheformofa
degressivepremiumofrespectively3000,2000and
1000francsperhectare,andwhereasitwasprovided
thatsuchaid,becauseofitsfinancialcharacter,
couldbemadeavailableexclusivelytothegrowers
notwithstanding anyagreementtothecontrary;
whereasthismeasurewaslaiddownbyanarrete
ministerielon9September1971,publishedinthe
BelgiumMoniteurof2October1971;
Whereasthepremiumisgrantedonthebasisofa
specialstatementmadeannuallywhichhadtobere­
ceivedbytheOfficebeigepourl'economieetl'agri­
culturebefore31October1971forlucernegrown
in1971andbefore15May1972and1973respec­
tivelyforlucernegrownin1972and1973;whereas
thepremiumispaidbythecommunaladministra­
tionsandin1971coveredapproximately 6100hec­
tares;
Whereas,havingregardtothe\factthattheBelgian
measuretosubsidizethegrowingoflucerneforthree
yearsisanoperationalaid,theCommissionhasiniti­atedtheprocedurelaiddowninArticle93(2)of
theTreatywithrespecttothatmeasure;
Whereasthisfinancialaidgrantedperhectarehas
adirecteffectonthecostofgrowingfreshlucerne,
suchcostbeingreducedbytheamountoftheaid,
andwhereasitconsequentlyencouragesthegrowing
oflucerne,whenalineofcultivationwhichhasbeen
decreasingsince1965inBelgium(1965:107000
metrictons;1966:87800metrictons;1967:86300
metrictons;1968:80700metrictons;1969:71200
metrictons;1970:62000metrictons,expressedas
dryhay)andisthusparticularlyresponsivetoaid,
especiallyifgivenintermsofquantitiesandprices
ofproductsorofareasgrown(hectare);whereas,
inthelightofcertainfiguresavailableforgrossin­
comeperhectare,calculatedonthebasisofdrylu­
cerne(averagereturnperhectaremultipliedbythe
wholesalepriceofdrylucernepaidtothegrower
permetricton),theincreaseinincomewhichthis
aidwouldprocurecanbeestimatedatapproximately
20%,13%and6%forthefirst,secondandthird
yearsrespectivelywhensuchaidisgranted;
Whereassuchaid,becauseofthewayinwhichitis
granted,directlyaffectstheincomeofgrowerswho
receiveitandthusimprovestheirposition,enabling
themeithertolowerthesellingpriceoftheproduct
ortogrowmorelucernewith,asapossibleconse­
quence,anincreaseinincomeonaccountofreduced
costsduetobetteruseofanydryingplantswhich
theyoperate;
Whereasaidforthegrowingoflucerne,bylowering
thepriceforfreshlucerne,maysimilarlyaffectthe
pricefordrylucerne,eitherbecausethelatteris
produceddirectlybythegrowersoffreshlucerne,
orbecauseofadownwardinfluence .exertedthereon
bythesituationofthemarketinthatsector,even
thougharreteministerielof9September1971de­
creedthatthepremiumshouldbemadeavailable
exclusivelytothegrowersnotwithstanding anagree­
menttothecontrary;whereasanyincreaseinthe
amountoffreshlucernegrowncouldhaveadown­
wardeffectonthesellingpricealsoonaccountof
dryingplantsbeingputtofulleruse; 1OJNoL151,30.6.1968,p.16.

40 OfficialJournaloftheEuropeanCommunities
ages,affecttradingconditionsinthoseproducts
withintheCommunity;
Whereassuchaiddistortscompetitionandaffects
tradebetweenMemberStatesandwhereasitthere­
forecomesundertheprohibitionsetoutinArticle
92(1)oftheTreaty;
Whereasexemptionfromthatprohibitioncannotbe
justifiedunderoneofthederogationsprovidedfor
inArticle92(2)and(3)since,inparticular,the
aidmeasuretakenbytheBelgianGovernment isby
itsnatureandconditionsanoperationalaidnotcal­
culatedtomakeforalastingrationalization ofthe
sector,eitherinrespectofgreenlucerneorofdry
lucernemeal,therebeinginparticularnostructural
obligationongrowerstoreorganize;whereasthe
eliminationofallaid,exceptinvestmentaid,having
aneffectonproductionisoneoftheguidingprin­
cipleslaiddownbytheCommissionaspartofthe
agriculturalaidpolicyandincludedinCouncilReso­
lutionof25May19711onthenewguidelinesforthe
commonagriculturalpolicy;
Whereasthegrantingofsubsidiesforthegrowing
oflucerneisconsequentlyincompatiblewiththe
commonmarketintermsofArticle92oftheTreaty,Whereasaidforthegrowingoffreshlucerne,byre­
ducingitsproductioncosts,couldleadproducersof
animalfeedtomakeuseoffreshlucerneinplaceof
otherfeedingstuffs ;whereasalowerpriceforfresh
lucerne,andpossiblyfordrylucerne,couldmilitate
againstproductsinmarketcompetitionwithlucerne,
suchascereals,othergreenfodder,skimmedmilk
andoil-cake;
Whereastheuseinfeedingstuffsofsubsidizedfresh
ordrylucernecanlowerthecostofproductionof
animalfeedingstuffs ,indirectratiotothatuse,espe­
ciallywherethegroweroflucerneisalsoastock­
breederorfattener;whereas,inthelattercase,extra
lucerneatalowerpricecanalsogiveencouragement
totheproductionofanimalfeedingstuffs ;
Whereasthelowercostofproductionofanimal
feedingstuffsduetotheuseoflargerproportionsof
lucernecangiveacompetitiveadvantagetopro­
ducersusingsubsidizedlucerne;whereas,although
intheCommunitylucernemealentersintocattle
feedinveryvariableproportions,generallybetween
0and30%forbovineanimals,0to10%forsows,
3to4%forpoultryand1%forpigs,andwhereas,
forBelgiumsuchproportionsareratherlow,except
forpoultry(over80%oflucernemealgoestothe
feedingofpoultry,inparticularfor-itscarotincon­
tent),anincreaseoftheseproportionsinfeeding­
stuffsforallanimalscannotberuledout;
Whereas,althoughthereislittletradeinfreshlu­
cerne,theaidcanhavetheeffectofreducingimports
intoBelgiumoflucernemealfromotherMember
States(whichwere60000metrictonsin1969and
64000metrictonsin1970)andofcompetingpro­
ductssuchascompoundfeedingstuffs ,skimmed-milk
powder,maizeandoil-cake(netimportsofmaize:
108000metrictonsin1969and117000metrictons
in1970,ofwhichover70%,onaverage,wasfor
animalfeed;netimportsofoil-cakealone,unpro­
cessed,includingsimilarresidues,amountedto
37000metrictonsin1969and31000metrictons
in1970,ofwhich90%,onaverage,wasforanimal
feed);
Whereassuchaidcanthereforeinproportiontoits
influenceonthesellingpriceofanimalfeedingstuffs
orontheextensionofproductionwhichitencour­HASADOPTED THISDECISION :
Article1
TheKingdomofBelgiumshall,notlaterthan1Au­
gust1972,abolishtheaidintroducedunderthear­
reteministerielof9September19712concerningthe
grantingofsubsidiesforthegrowingoflucerne.
Article2
ThisDecisionisaddressedtotheKingdomofBel­
gium.
DoneatBrussels,22June1972.
FortheCommission
ThePresident
S.L.MANSHOLT
1OJNoC52,27.5.1971,p.1.
2MoniteurBeige,2.10.1971.