ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77)339
Vol.1977/0113

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)339 final.
Brussels .July19.1977
Proposal fora
REGULATION (EEC)OFTHECODICIL
layingdownspecialmeasures inrespectofcastorseeds
(submitted -totheCouncilbytheCommission )
ReportfromtheCooaission totheCounoilontheadvisability
ofpronoting oastorseedproduotion intheOonmunity
C0M(77)339final.

Proposal fora
!
REGULATION (EEC)No/77OFTHECOUNCIL
of
layingdownspecialmeasures inrespectofcastorseeds
THECOUNCIL OFTHEEUROPEAN COMMUNITIES /
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,andin
particular Article A3thereof.
Havingregardtotheproposal fromtheCommission,
HavingregardtotheOpinionoftheEurcpeanParliament,
HavingregardtotheOpinionoftheEconomic andSocialCommittee,
Whereascastorseedproduction isbecoming ofincreasing importance totheCommu­
nity;whereastopromotethisproduction,whichisindirectcompetition withcastor
seedsimported dutyfreefromnon-member countries,appropriate supportmeasures
shouldbeintroduced ; ,
Whereas,tothisend,onthedisposal oftheircropstothemarket,Community produ­
cersmustbeguaranteed afairreturn,the'levelofwhichcanbedefinedbyaguide
price;whereasthedifference overarepresentative periodbetweenthispriceand
thepriceofcastorseedsontheworldmarketrepresents theamountofaid
whichmustbegrantedtoattainthedesiredobjective ;
Whereas,tofacilitate theapplication ofthissystem,theaidshouldbegranted
toseedprocessing undertakings ;whereas,sothattheproducers may"benefitfromsuchaid
thegranting thereofshouldbemadesubjecttotheconclusion withtheformerof
(
contracts providing foraminimumpurchasing price;
Whereasprovision should "bemadefortheCommunity tobear,undertherulesgoverning
thefinancing ofthecommonagricultural policy,theexpenditure incurred "bythe
MemberStatesasaresultoftheobligations arisingoutoftheoperation ofthis
Regulation ,
HASADOPTED THISREGULATION S

-2-
Article 1
1.8efore 1Augusteachyear,inrespectofthemarketing yearcommencing thefollowing
yearthereshallbefixedfortheCommunity ,inaccordance withtheprocedure laid
downinArticle43(2)oftheTreaty,aguidepriceforcastorseedsfallingwithin
1heading No12.01oftheCommonCustomsTariff.
However,forthemarketing year1978/79thispriceshall "befixedbefore1April1978.
Itshallbefixedatafairlevelforproducers havingregardtotheCommunity's 1
supplyrequirements .
2.Theguidepriceshallremaininforcethroughout themarketing year;thisshall
covertheperiodfrom1Octoberto30September ..
3.Theguidepriceshallrefertoastandardquality.Thisqualityshallbedefined
bytheCouncilinaccordance withtheprocedure referredtoinparagraph 1.
Article 2
1.Whentheguidepriceforamarketing yearishigherthantheworldmarketpricefor
castorseeds,asdetermined inaccordance withArticle3anaidequaltothediffe­
rencebetweenthesetwopricesshallbegrantedforcastorseedsharvested andpro­
cessedintheCommunity .
2.Theaidshallbegrantedonlytoseedprocessing undertakings which:
-meettheconditions laiddownforentitlement totheaid,and
-haveconcluded withcastorseedproducers oontracts stipulating aminimumprice.
Thisminimumpriceshallbefixedatalevelguaranteeing salesforseedproducers
atapriceascloseaspossibletotheguideprice,takingintoaccountmarket
fluctuations andthecostoftransporting theseedsfromtheproduction areastothe
processing areas.
3.TheaidshallbepaidbytheMemberStateonwhoseterritory theseedsareprocessed .
A.TheCouncil,actingbyaqualified majority onaproposal fromtheCommission ,
shalleachyear,ingoodtimebeforethebeginning ofthemarketing year,fixthe
minimumpricereferredtoinparagraph 2.
Thesameprocedure shallbeusedtolaydown:
(a).generalrulesforgrantingtheaid;
detailedrulesforcheckingentitlement totheaid;suchchecking arrangements may
anply "bothtoseedsharvested withintheCommunity andtoseedsimported fromnon–
-membercountries ;inthecaseofthelatterthosearrangements mayincludeprovisii
forthelodgingofasecurity ;
(c)theconditions referredtointhefirstindentofparagraph 2.
5.TheamountoftheaidshallbefixedbytheCommission .
6*Detailedrulesfortheapplication ofthisArticle,particularly inrespectofthestan<
provisions whichthecontracts referred toinparagraph 2mustcontain,shallbe

determined inaccordance withtheprocedure LaiddowninArticle38ofRegulation
No136/66/EECof22Septwiber 1966ontheestablishment ofacommonorganization of
(1) "themarketinoilsandfats
.!
i
Article 3
Theworldmarketpriceforcastorseeds,calculated atafrontiercrossingpoint
intheCommunity,shallbedetermined onthebasisofthemostfavourable purchasing
possibilities duringthemostrepresentative periodforthe'saleofseedsofCommunity
origin.TheCouncil,actingbyaqualifiedmajority onaproposalfromtheCommis­
sion,shalllaydownthecriteriafordetermining theaverageworldmarketprice.
Detailedrulesfortheapplication ofthisArticleshallhedetermined inaccordance _1
withtheprocedurelaiddowninArticle38ofRegulation No136/66/EEC.
Article 4
TheMemberStatesandtheCommission shallexchangeallinformation necessary foriheimple­
mentation ofthisRegulation .Retailedrulesconcerning thenature,provision and^_
circulation ofsuchinformation shallhedrawnupinaccordance withtheprocedure
laiddowninArticle38ofRegulation No136/66/EEC.
Article 5
Theprovisions concerning thefinancing ofthecommonagricultural policyshall
applytotheaid(arrangements providedforinthisRegulation .
Article 6
ThisRegulation shallenterintoforceonthethirddayfollowing itspublication
intheOfficial JournaloftheEuropean Communities .
Theaidarrangement 'sprovidedforin"thisRegulation shallapplywitheffectfrom •
1October 1978.
ThisRegulation shallbebindinginitsentirety anddirectlyapplicable incLl
MemberStates.
Doneat FortheCouncil
(1)OJNo172,30.9.1966,p.3025/66

Thepromotion ofcastorbeancultivation intheCommunity
Atitsmeetingon25/26April1977,theCounciltooknoteoftheCommission 's
commitment toexaminetheadvisability ofpromoting castorseedproduction inthe
Community andtosubmitareporttoitinthesubjectbefore 1July1977,accom­
paniedifneedbebyappropriate proposals .
Thisdocument constitutes thereportinquestion andalsoservesastheexplanatory
memorandum toaproposal foraCouncilRegulation layingdownspecialmeasuresfor
castorseeds.
Havingundertaken theexamination inquestion,theCommission considers thatit
isintheCommunity'sinteresttodevelopthiscropbothatindustrial andagricul­
turallevel,inparticular soastohelpensureabetterequilibrium betweenagri­
cultural production inthenorthern andsouthernpartsoftheCommunity .

11..
ReportfromtheCommission totheCouncilontheadvisability ofpromoting castor
seedproduction intheCommunity
.Thecastorseedisanarborescent andperennail plantinwarmcountries butherba­
ceousandannualintemperate countries .It-requiresfertilelandandaclimate
andsoilwhichareneither humidrorarid.Although mainlytropical orsubtropical
itisgrownalsoinEuropewhereitcaninterrupt thetraditional croprotation
inagriculture .Castoroilisarawmaterial whichismuchsoughtafterbytheche­
micalindustryforvery\ariedandoftenhighlyspecializad uses.Itisu,sedprinci­
pallyinthemanufacture ofplastics,highqualitypaints,textilefibresandpharma­
ceutical products .
Castorcake,thoughedible,isnotusedinanimalfeedbecauseofitsdisagreeable
tasteandlownutritive value;although nothighlyprizedasafertilizer bydeve­
lopingcountries becauseofitslownitrogen content,itisvaluedmorebyindustria­
lizedcountries forsophisticated cropssuchasearlyvegetables andflowers,and
alsoforuseinparksandsportsgrounds.
.In1976theworldareadevotedtocultivating castorbeanswasabout1.5million hec­
tares,representing anoutputof800000tofseeds(515kg/ha)and370000tofoil
(46%).Production hadbeenontheincreaseuntil1973butconsumption hasdropped
sincethenasaresultofthehighpriceoftheoil.BrazilandIndiaaccountfora
totalof69%ofworldseedproduction .InEurope,thiscropislimitedtotheUSSR,
RomaniaandYugoslavia ,whileItalycultivated ittoasmalldegreeatonetime.
SinceBrazil,IndiaandtheUSSRpresstheirseedlocallyandprefertoexportthe
oil,worldseedexportsamounttoonly10Xofworldproduction .Thailand,Ecuador,
Paraguay and,fromtimetotime,Chinaarepractically theonlyexporters ofcastor
seeds.BrazilandIndiaaccountforatotalofabout90%ofworldcastoroil
exports;theymainlysupplyWesternEurope,theUnitedStatesandtheUSSR.
.SincethecastorseedisnolongergrownintheEECtheMemberStatesrelyfortheir
castoroilsupplieseitheronimportedoiloronoilpressedlocallyfromimported
seeds.In1975theMemberStatesimported 58600tofcastorseeds.TheFederal
RepublicofGermany,Fance,theUnitedKingdomandItaly,eachofwhichhasanoil
mill,aretheimporting countries .
Onthebasisofa46%yieldCommunity castoroilproduction in1975canbeestimated
at27000t,whichishigherthaninthetwoprecjedingyears.
Communitycastoroilimportsin1975amountedto40000t,mainlyfromBrazil(77X)
andIndia(21JO.FranceandtheUnitedKingdomwerethemainimporting MemberStates.

-2
Exportsamountedto3300t.
Apparentcastoroilconsumption intheEECin1975cantherefore beestimated at
64300t,representing 140000tofseeds.
4.ItwouldbeverymuchintheCommunity'sinteresttoproducepartofitscastor
seedrequirements itself.
Experiments carriedoutinthelastthreeyearsdesignedtoreintroduce theculti­
vationofthecastorseedinItalyindicatethatthereisapossibility thatitcan
bedeveloped incertainless-favoured areasofItalyandinparticular inApulia
andSicily.Alfcoitislikelythatcertainareasofsouthern France/e.g.Languedoc,
wouldbesuitedtothiscrop.
Inthiswaytheagricultural potential ofthesouthernpartoftheCommunity could
bebetterutilized andthenorth/southequilibrium improved.Thedisposal ofproduc­
tionisnotlikelytoposeaproblemsinceCommunity castoroilrequirements repre­
sent100000haandthoseofItalyalone10000ha.
Sincetheworldmarketincastorseedsisalreadyverysmallandmayshrinkstill
furtherintheyearstocome,supplytotheCommunity'soilmillswouldbecomemore
stableifatleastpartoftheseedscouldbeobtained locally.
Thiswouldfacilitate thesurvival ofthisindustry andconsequently provide abetter
guarantee ofcastoroilsupplies toEuropean consumers undersatisfactory conditions .
5.Itistobefeared,onthebasisofexperience withothercrops,thatinitially
therewillbeconsiderable riskofinsufficient yields,dueinparticular to
inadequate knowledge ofgrowingtechniques .
Inthesecircumstances thereintroduction ofcastorseedcultivation intheCommu­
nitywillbepossible onlyifproducers canobtainslightly higherincomesfromthis
cropthantheywouldfromcompeting crops,e.g.durumwheat,particularly sincethe
workinvdvedincastorseedgrowingisrelatively longanddifficult .
Ontheassumption thattheprofitability threshold ofthiscropisabout490u.a./ha
andthattheyieldsof13to15qlobtained duringtestsareachieved,producers
shouldreceiveapriceofabout35u.a./1Q0kg,whichisnearthecurrentworld
marketprice.
However,sincetheworldpriceisnormally lower,itwouldnotberealistic touse
thecurrentpriceasabasiswhendetermining theaidrequired.Assumingthata
priceof35u.a./10Qkgshouldbeobtained,theaidrequired wouldhavebeen
7u.a.in1976(worldprice=28)and13u.a.in1975(worldprice=22),oranave­
rageof10u.a./100kg.
Thusitshouldbepossibletoguarantee afairincometoproducers bygranting almost
thesameamountofaidasthatgrantedtootheroilseeds.

-3-
6.Sinceitinvolves acropstilltobelaunchedtheaidsystemImplemented should,
attheoutsetatleast,beverysimplesoastobeinkeepingwiththeexpenditure
incurredandtopreventanyexcessive delayinpaymentoftheaidfromdiscouraging
producers .
Although asystemoffixedamountsmeetsthiscriterion,itwouldnotbeappropriate
toadoptthis:itcannotbeadaptedinaccordance withpricechangesanditdoes
nottakeaccountofactualyields.Itis,however,unlikelythatagricultural pro­
ducerswillgoinforcastorseedcultivation unlesstheyareprotected against
thesubstantial flctuations inworldmarketprices.Furthermore ,itistobefeared,
m
that,duetoinexperience ,yieldswillvaryconsiderably fromoneproducerto
another.
Anaidsystemwherebytheproducerreceives aviableandstablepricethroughthe
grantingofaidforpressedCommunity seeditthispricecannotbeobtained onthe
worldmarketappearstobethesystembestsuitedforlaunching castorseedcultivat­
ionintheCommunity .
TheCommission willfixtheamountoftheaidonthebasisoftheworldmarket
priceforseedsduringthemarketing period,derivingthisprice,ifnecessary,
fromthepricesofoil;Topreventimported seedsfrombenefiting fromtheaid,
acheckwillneedtobekeptonseedimportsintoMemberStatesinwhichcastor
seedisproduced.Thecontrolofthequantity ofCommunity seedsprocessed does
notposeanyproblems,inparticular sincethereareatpresentonlyfouroilmills
tocontrol.
Inproviding thattheaidistobegrantedtotheoilmilloncondition thatthe
latterhasconcluded contracts withproducers ataminimumpriceclosetothe
guidepricetheaimistoguarantee thattheagricultural producerwillnothave
anyproblemsindisposing ofhisproductandwillbenefitfromtheaid,andto
provideCommunity crusherswithacertainincentive tobuyCommunity seeds.

ANNEX
Table1
Worldproduction ofcastorseeds
Areaundercultivation -
1000haYield-■Kg/ha!Production-1000t.'
l
1961/6519751976(1)1961/6519751976(1)1961/6519751976(1)1
World 13661689 1543 504 491515 688
l830 794
IAfrica 12199 I100 515 560640 6255 64
jN-CAmerica 3917 20795 414554 •31 7 11
SouthAmerica i366482 307 870 694918 318335 281
ofwhich:i
i
BraziI 323429 270 828 676910 268290 246
IEcuador 1940 251148 675720 2227 18
Paraguay 1111 111373 15451535 1517 18
Asia 650880 880 319 413418 220.363 I368
Iofwhich:
China 124175 175 371 457429 4680 75
India 469583 580 223 371388 105 I216 225
Thailand 3930 391097 11491159 42 !34 35
Europe 272121 !734 462458 2010 10
ofwhich:
Romania 2121 21640 440435 14 9 9
USSR 123190 215 299 316279 3760 60
Source:ECCommission,06forAgriculture onJrbebasisofFA0statistics
<1>Estimates

ANNEX
Table2
Worldtradeincastorseeds
(tonnes)
1966 1973 1974(1)
A.IMPORTS
World 175917 117963 123012
ofwhich:
Brazil 17404 25300
Japan 63030 j45916 38101
Europe 108225 49176 54119
B.EXPORTS
World 165075 105269 95022
Iofwhich:
Ecuador 9860 27200 19223
Paraguay 8026 6458 19100
China 56303 13500 4000
Thailand 43859 26578 27886
Source:ECCommission,DGfcrAgriculture onthebasisofFAOstatistics
(1)1974:estimates
/

ANNEX
Table3
International tradeincastoroïl
(tonnes)
1966t
1973i
1974(1)
[
A.IMPORTS
World 119255 174557 191000 .
ofwhich:
UnitedStates 46340 46996 56567
Japan 12 5192 4558
Europe 65169 99574 114910
USSR 13300 12100
B.EXPORTS
World 116202 185676 202368
ofwhich:
BraziI 95043 i132223 155793
India 617 40267 31000
Source:ECCommission,DGforAg-iculture onthebasisofFA0statistics
(1)1974:estimates\

ANNEX
Table4
Castoroil-Tradewithnon-Member States
(1975-tonnes)
Seeds Oit
lED&QÇy lOLQÇlS ' ÊXûQÇtS
B.R.Deutsfchland 33934 3905 1926
France 10346 20376 825
Italia 6429 19 40
Nederland 1859
BLEU/UEBL 343 42
UnitedKingdom 7899 14073 349
Ireland 17
Denmark 17 12
E.E.C. 58608 40609 3271
ofwhichfrom: ofwhichfrom:
Paraguay 1867932XBrazil31450 Poland 751
Ecuador 1502126X (77X)Austria 390
Thailand 39957XIndia 8432 Spain 357
TBnzania 3845 (21X)Czechos-354
PRChina 3444lovakia
Source:ECCommission,DGforAgriculture
\

ANNEX
Table5
Pricesofcastorseedsandcastoroil
(1)
1.Pricesofcastoroil-dollar/t
1971 1972 1973 1974 1975 1976
CO8months)
339 546 1117 740 590 651
888888888
Source:FA0
(1)Brazilian No1,inbulk/immediatedelivery;CifEuropeanports;
from1974intankRotterdam
2.Pricesofcastorseedsandcastoroil-u.a./t/cifEurope
1975 ■ 1976 6
Seeds 220 277 249
Oil 439 555 497
Source:ECCommission,D6forAgriculture onthebasisofdatasupplied
bytraders
\

FINANCIAL STATEMENT
DATEi8June1977
1.BUDCETLINSCOHCLTCJED IChapter 63,Article 634
2.ACTIONiDraftCouncilRegulation layingdownspecialmeasuresinrespect
ofcastorseeds
3.LEGALBASISIArticle A3oftheTreaty
4.OBJECTIVES iDevelopment ofcastorseedproduction intheE.E.C.
5.FINANCIAL COHSEQUCNCE
5.0EXPENDITURE-CHARGED TOTHEECBUDGET
(KKWSM«/l?lTERVENTIOHS )
-CHARGE»TONATIONAL ADMINISTR .
–CHARGED TOOTHERNATIONAL CROUPS
5.1RECEIPTS-OWNRESOUnCiS OPTHEEC
(LEVIES/CUSTOMSDUTIES)
-NATIONALFORTHEMARKETING YEAH
0.2-0.5MuaCURRENT FINANCIAL YEAH
(77)FOLLOWING FINANCIAL YEAH
(78)
tokenentry
YEAH....j.97£.
5.0.1PLURIANNUAL PATTERN OFEXPENDITURE
5.1.1PLURIANNUALPATTERN OFRECEIPTS0.15Muayear ..1980..
0.30MuaTEAR....Y9M..
0.45Mua
5.2KETilOD OFCALCULATION
1978harvest :1000ha=1500tx100u.a./t150.000u.a.
1979harvest :2000ha=3000tx100u.a./t=300.000u.a.
1980harvest :3000ha=4500tx100u.a./t=450.000u.a.
Theaidwillbepaidintheyearfollowingthatofharvest/giventhetime
lapsebetweenthesubmission oftheapplication foraidandpayment.
6.3CRZD1TS TOBEHRITTQf INTOFUTURE BU3X3STS 1
fromthe'1979budget
C0HXENT3 I