COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC89) 329 final 
Brussels, 29 June 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1117/78 on the common organization 
of the market in dried fodder 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
Regulation (EEC) No 1117/78 on the common organization of the market In 
dried fodder provides that aid for sun-dried fodder is equal to the aid for 
artificially dried fodder less an amount fixed taking Into account the 
difference In the cost of producing the two categories of products. 
In Spain, where the guide price is lower than the common price and Is 
gradually being aligned with It, the rule has led to a very low level of 
aid, and In some cases no aid at all, for sun-dried fodder, with the result 
that its competitiveness vis-à-vis artificially dried fodder Is not 
assured. 
As a result of this situation, the undertakings In question are being 
connected occasionally in difficult circumstances, to the production of 
artificially dried fodder. 
In the first Instance this Is costly for the Community budget since the 
proportion of fodder qualifying for the higher level of aid Is Increasing. 
Secondly, it runs counter to the Community's environmental objectives 
recognized in the Single European Act, In particular the encouragement of 
renewable sources of energy. 
This proposal contains provisions for Increasing for the remainder of the 
transitional period, the aid applicable to sun-dried fodder produced in 
Spain by an amount equal to the residual difference between the guide 
prices. 
It represents a budgetary saving of ECU 0.4 million for 1989 and 
ECU 1 million for 1990. 
Proposai for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1117/78 on the common 
organization of the market In dried fodder 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to the Act of Accession of Spain and Portugal, and in 
particular Article 89(1) thereof, 
Having regard to the proposal from the Commission, 
Whereas Article 120(2) of the Act of Accession sets out the procedure for 
adjusting the aid for dried fodder In Spain; 
Whereas Council Regulation (EEC) No 1960/87<1> amends Council Regulation 
(EEC) No 1117/78(2), as last amended by Regulation (EEC) No 3996/87<3>, 
by providing that the aid for fodder dried In other ways is equal to the 
aid for fodder dried artificially and by heating, less an amount fixed 
taking into consideration the difference In the cost of producing the 
products concerned; whereas the Commission fixed that amount at ECU 
43/tonne in Regulation (EEC) No 2334/87*4> amending Commission Regulation 
(EEC) No 1528/78 of 30 June 1978 laying down detailed rules for the 
application of the system of aid for dried fodder(5), as last amended by 
Regulation (EEC) No 1963/88<6>; 
(1) OJ No L 184, 3.7.1987, p. 6. 
(2) OJ No L 142, 30.5.1978, p. 1. 
(3) OJ No L 377, 31.12.1987, p. 35. 
(4) OJ NO 210, 1.8.1987, p. 63. 
(5) OJ NO L 179, 1.8.1978, p. 10. 
(6) OJ NO L 173, 5.7.1988, p. 9. 
- 2 -
Whereas the application of Article 120 of the Act of Accession has resulted 
In the level of the guide price for dried fodder being lower In Spain than 
In the other Member States; whereas the deduction from this lower price of 
the amount fixed for the Community results In a level of aid for sun-dried 
fodder lower than that needed to ensure the competitiveness of that product 
vis-à-vis artificially dried fodder; 
Whereas as a result of this situation Spanish operators have begun to 
transform their facilities, Increasing considerably the production of 
artificially dried fodder and reducing that of fodder dried in other ways; 
whereas this trend Is harmful to the Community budget in that It increases 
the proportion of products qualifying for the higher level of aid; whereas 
the trend Is also contrary to Community policy on the use of renewable 
sources of energy; whereas a scheme should therefore be Introduced which 
provides that during the transitional period the amount provided for In the 
second subparagraph of Article 5(2) of Regulation (EEC) No 1117/78 Is 
reduced, In the case of dried fodder produced In Spain, by the difference 
between the guide price applicable to Spain and that applicable to the 
other Member States; whereas the said Regulation should be amended 
accordingly; 
Whereas, In order to avoid any risk of disturbance on the market in dried 
fodder, the measure should apply with effect from the beginning of the 
marketing year, 
HAS AD0PTE0 THIS REGULATION: 
Article 1 
The following subparagraph is added to Article 5(2) of Regulation (EEC) 
No 1117/78: 
"In the case of dried fodder produced in Spain, the amount referred to In 
the second subparagraph shall be reduced, until 31 December 1992, by an 
amount equal to the difference between the guide price applicable to that 
Member State and that applicable to the other Member States". 
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Article 2 
This Regulation shall enter Into force on the day of its publication in the 
Official Journal of the European Communities. 
This Regulation shall be applicable from 1 May 1989. 
This Regulation shall be binding In its entirety and directly applicable In 
a 11 Member States. 
Done at Brussels, For the Council 
ANNEX 
AssumptIons: 
(a) Quantity of sun-dried fodder: 
- 100 000 t without the measure 
- 150 000 t with the measure, the additional 50 000 t being deducted 
from the quantities dried artificially. 
(b) Aid levels: 
- Artificially dried: ECU 82/t in 1989/90 and ECU 86/t In 1990/91 
- Sun-dried: 
(1) Without the measure: ECU 39/t In 1989/90 and ECU 43/t In 1990/91 
(2) With the measure: ECU 52/t for the two marketing years. 
Calculations 
(a) Expenditure In respect of the products in question: 
(1) Without the measure: 
1989/90: (100 000 t x ECU 39/t) + (50 000 t x ECU 82/t) x 1.193 - ECU 10 million 
1990/91: (100 000 t x ECU 43/t) + (50 000 t x ECU 86/t) x 1.193 - ECU 10 million 
(2) With the measure: 
1989/90: 150 000 t x ECU 52/t x 1.193 - ECU 9 ml 11 ion 
1990/91: 150 000 t x ECU 52/t x 1.193 - ECU 9 mi M Ion 
(b) implications of measure 
For each of the two marketing years in question there will be a saving 
of ECU 1 mill Ion. 
For the 1989 budget year the saving will be only ECU 1 million x 0.35 -
0.4 ml 11 ion. 
For 1990 the saving will be ECU 1 million. 
FINANCIAL STATEMENT VI/772/89 (POLE/EN/1022) 
DATE: 27 April 1989 
1. BUDGET HEADINS: 131 Production aid for dried fodder APPROPRIATIONS: ECU 706 mi 11 ion 
2. TITLE: Council Regulation amending Regulation (EEC) No 1117/78 on the ccnncn organization of the 
market in dried fodder 
3. LEGAL BASIS: Article 89(1) of the Act of Accession of Spain and Portugal 
4. AIMS OF PROJECT: To make sun-dried fodder competitive with artificially dried fodder in Spain 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
- OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
-NATIONAL Period of 12 months 
19 
ECU 1 ml 11 ion Current Financial Year 
1969 
ECU 0.4 ml 11 Ion Following Financial Year 
1990 
ECU 1 mi 11 Ion 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 
5.2 METHOD OF CALCULATION: 
See Annex 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES/ND 
6.1 CAN THE PROJECT BE FINANCED EY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
YES/NO 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
YES/NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
YES/NO 
OBSERVATIONS: 
Commission of the European Communities 
COM(89) 329 final 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1117/78 on the common organization of 
the market in dried fodder 
(submitted to the Council by the Commission) 
29.6.1989 
Office for Official Publications of the European Communities 
L - 2985 Luxembourg 
Series: DOCUMENTS 
1989 - 7 pp. - Format: 21.0 * 29.7 cm 
EN 
ISSN 0254-1475 
ISBN 92-77-51808-1 
Catalogue number: CB-CO-89-289-EN-C 
ISSN 0254-1475 
COM(89) 329 final 
DOCUMENTS 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1117/78 on the 
common organization of the market in dried 
fodder 
(submitted to the Council by the Commission) 
03 
Catalogue number: CB-CO-89-289-EN-C 
ISBN 92-77-51808-1 29.6.1989 
€ 
COMMISSION OF THE EUROPEAN COMMUNITIES