No C 354/10 Official Journal of the European Communities 31. 12. 85 
1. The Committee agrees with the Commission pro­
posals regarding enzootic bovine leukosis (EBL). 
2. The Committee strongly encourages the endeavours 
of the Commission in supporting the definition of 
monoclonal antibody for the enzyme-linked 
immunosorbent assay (ELISA). 
3. The Committee commends the publication of the 
relative methodology for the ELISA method. 
4. The Committee recommends the drafting of pro­
posals for a Community EBL eradication scheme, in 
anticipation of the practical application of the ELISA 
method to EBL virus diagnosis. 
(!) OJ No C 297, 20.11.1985, p. 6. 
Done at Brussels, 18 December 1985. 
1. The Committee feels that the system of production 
quotas in the sugar sector should be retained for the time 
being, because there is still no valid alternative. 
1.1. Despite certain limitations and flaws which have 
given rise to difficulties in some Member States, the existing 
system has, on the whole, proved useful. 
2. The Committee also considers it necessary to retain 
(!) OJ No C 219, 29. 8. 1985, p. 4. 5. The Committee is of the opinion that, in the 
meantime, it is in the general interests of livestock 
producers and the livestock industry, and in the interest of 
trade, both intra-Community and export to third countries, 
that Member States should pursue current EBL diagnostic 
and prophylactic measures with increased vigour. 
6. The Committee is also of the opinion that the present 
proposal complies with the general principle that a desire to 
simplify the trade in live animals and meat products 
(including the reduction in non-tariff barriers) — as 
envisaged by the Internal Market White Paper — should 
not override the need to continue with a strict and 
scientifically based policy of controlling animal disease in 
the interests of agricultural economy and human health. 
Reduction in health certification and the use of a 'health 
mark' should be introduced cautiously with an apprecia­
tion of the potential hazards involved. 
The Chairman 
of the Economic and Social Committee 
Gerd MUHR 
the principle of self-financing, whereby producers bear the 
cost of marketing sugar in excess of consumption. 
3. Whilst upholding the abovementioned principles, the 
Committee does not believe that they automatically 
necessitate the amendment of Regulation EEC No 1785/81, 
as proposed by the Commission. 
4. The Commission proposal is based almost exclusi­
vely on an increase in producers' contributions which the 
Committee considers untenable; the Committee therefore 
rejects the proposal and would make the following 
comments. Opinion on the proposal for a Council Regulation (EEC) amending Regulation (EEC) 
No 1785/81 on the common organization of the markets in the sugar sector (*) 
(85/C 354/07) 
On 13 September 1985 the Council decided to consult the Economic and Social Committee, under 
Article 198 of the Treaty establishing the European Economic Community, on the abovementioned 
proposal. 
The Section for Agriculture, which was responsible for preparing the Committee's work on the 
subject, adopted its opinion on 5 December 1985, in the light of the report by Mr Delia Croce. 
At its 232nd plenary session (meeting of 18 December 1985) the Economic and Social Committee 
adopted the following opinion by 91 votes to 3, with 3 abstentions: 
31. 12. 85 Official Journal of the European Communities No C 354/11 
5. Quota system 
5.1. In the light of trends on the world market, with 
annual production consistently exceeding consumption, 
and on the Community market, with heavy surplus 
production capacity, it is necessary to contain production 
(at guaranteed prices). 
5.2. Production has been contained by the quota system, 
in operation since 1968; however, the system does have 
shortcomings, in that its lack of flexibility hampers a 
rational evolution of production. 
5.2.1. Although there are no immediate substitutes for 
this system, it cannot last much longer; its gradual 
replacement should therefore be envisaged at the end of the 
next five-year period. 
5.2.2. To this end, the Committee urges the Commis­
sion to carry out the necessary studies, so as to be able to 
amend the system in the light of experience gained during 
this period. 
5.2.3. The Commission does not propose amending the 
present allocation of quotas, but some Member States 
nevertheless consider it unsatisfactory. 
5.2.3.1. Even though the present allocation was the 
outcome of a painstaking compromise, it probably needs to 
be reviewed in detail. 
5.2.3.2. The Commission should make explicit provi­
sion for such a review. 
6. Production contributions 
6.1. The Committee agrees that the principle of self-
financing, whereby producers bear the full cost of 
exporting sugar produced in excess of their quotas, should 
be maintained. 
6.2. The principle of self-financing is also consistent 
with the Commission's new guidelines for the Common 
Agricultural Policy. 
6.2.1. However, as the self-financing system should not 
place an unreasonable burden on producers, the contri­
bution levels proposed by the Commission are 
unacceptable: 
— in the case of A sugar because they would put producers 
and regions producing mainly this category of sugar at 
an unfair disadvantage, 
— in the case of B sugar because returns to producers 
would drop to well below the level of production costs. 
6.3. There is already, under present conditions, a 
tendency to reduce the sugar-beet acreage, in favour of 
crops which cost the Community much more; a sharp 
increase in contributions would greatly encourage this 
trend. 6.4. It would probably be more harmful to increase 
producer contributions by the amount proposed than to 
reduce quotas, particularly B quotas. 
6.4.1. Such a reduction might be achieved by buying up 
quotas. 
6.5. The Commission's forecasts of management 
deficits seem pessimistic because they are based on a highly 
controversial criterion. 
6.5.1. The Commission's calculations have been heavily 
influenced by the losses occurring in 1984, and fail to take 
account of cyclical variations in the market. 
6.5.2. If, as it is claimed, the deficit totalled ECU 330 
million at the end of 1984, then the prospect of Spain and 
Portugal's entry into the Community, an increase in the use 
of sugar in the chemical industry and a likely increase in 
world sugar prices could combine to bring about an 
improvement in the situation in the next few years. 
7. Use of sugar in the chemical industry 
7.1. In the explanatory memorandum accompanying its 
proposal, the Commission makes a number of interesting 
predictions about the use of sugar in the chemical industry. 
In essence, the Commission maintains that the industry 
could use 530 000 tonnes of sugar annually (an increase of 
450 000 on present figures), provided sugar can be made 
available to it at a price considerably lower than the 
Community market price. 
7.2. Calculations of this kind serve to strengthen the 
case for not increasing producer levies. 
7.3. However, speculation should be turned into fact, by 
creating the legal instruments needed to enable the 
chemical industry to purchase Community sugar at prices 
which are competitive with world sugar prices. 
7.3.1. Contracts should therefore be drawn up with the 
chemical industry. 
7.3.2 These contracts should provide for the same price 
delivered at the factory gate for all chemical producers. 
This price should not be higher than the price paid by their 
main competitors in other countries. 
7.4. The above measures should form an integral part of 
an industry policy designed to enhance the use of sugar and 
starch in advanced technology processes. 
7.5. The Committee welcomes the Commission's 
recognition of the need for the Community's chemical 
industry to be able to guarantee its supply of domestically-
produced sugar. 
No C 354/12 Official Journal of the European Communities 31. 12. 85 
7.5.1. However, refunds financed by levies on B quota 
sugar will not be enough to allow the chemical industry to 
set up a production network in the Community. 
7.5.2. Refunds should be fixed at a level which takes 
greater account of the price of sugar which the chemical 
industry could obtain from non-Community European 
countries and other parts of the world. 
7.5.3. When fixing refunds, the close link between 
cereal-based glucose and starch should also be taken into 
consideration. 
8. Isoglucose and protein-free sweeteners 
8.1. In addition to promoting the use of sugar by the 
chemical industry, careful attention must be paid to trends 
in the consumption of sugar and in the isoglucose market. 
8.2. Since the cereal-based starch and maize markets, as 
well as in the sugar market are important, the agreements 
with the chemical industry should take account of the 
general problems of Community agriculture. 
9. Arrangements concerning reserve quantities 
9.1. The proposed increase from 10 % to 15 % in 
reserve quantities is welcomed by the Committee as a 
means of taking greater account of regional needs and 
restructuring requirements. 
10. Mixed-price arrangement 
10.1. The Committee does not agree with the Com­
mission's contention that the possibility of waiving the 
system of differentiated contracts via inter-trade agree­
ments approved by the Member States concerned is 
'undesirable'. 
10.1.1. Furthermore, the Commission does not provide 
adequate information to back up its claim. 
10.2. The mixed-price arrangement has enabled a 
number of Member States to take specific regional needs 
into consideration. 
10.2.1. Rather than giving the system a Community 
stamp, the proposed stipulation that prior Council 
authorization must be obtained for such derogations would 
create a major administrative obstacle. 
11. Final comments 
11.1. As it was about to draw up the present opinion the 
Economic and Social Committee received information on 
Done at Brussels, 18 December 1985 the progress of work at the Council and more specifically 
on the results of the 1050th Council meeting on 9/10 
December 1985, at which the Council agreed in principle 
on the main features of the future Community sugar 
arrangements, without prejudice to the opinion of the 
European Parliament. In particular, it: 
— confirmed the principle of self-financing in the sugar 
sector, 
— decided to introduce an absorption levy designed to 
cover an accumulated deficit of 400 million ECU from 
the arrangements applying between 1981/82 and 1985/ 
86, 
— confirmed that the current system of quotas would be 
retained for the next five years, 
— decided that for the 1986/87 and 1987/88 marketing 
years the quotas and production levy ceilings would 
remain unchanged; the following would also remain 
unchanged during these two marketing years. 
(a) derogations from the system of differentiated 
contracts (mixed price system); 
(b) the amount of the reserve quantity (quota transfers 
between undertakings), with a derogation for Spain; 
(c) the provisions for national aid which France and 
Italy are authorized to grant, on the understanding 
that in the case of Italy such aid might be adjusted to 
meet exceptional needs arising from the restructur­
ing of the sugar industry. 
The detailed arrangements to apply in the years 1988/89 to 
1990/91 will be decided on by the Council (before 1 
January 1988) on the basis of a Commission proposal. 
11.2. The Committee notes with satisfaction that the 
above agreement in principle, which the Council arrived at 
on the basis of an amending proposal submitted by the 
Commission on 6 December 1985, takes account (as did the 
proposal in question) of a number of requests made in the 
opinion of the Economic and Social Committee's Section 
for Agriculture and taken over by the Committee in the 
present opinion. 
The Committee regrets, however, that this Council 
agreement was reached before the European Parliament 
and the Economic and Social Committee had formally 
expressed their views on the subject, as this would have 
made for a more thorough and precise decision. 
The Chairman 
of the Economic and Social Committee 
Gerd MUHR