No C 204/28 Official  Journal  of the European  Communities 30. 8. 76 
Opinion  on the  proposal  for a Council  Regulation  on the common  organization  of 
the market  in potatoes 
The text  referred  to the Committee  has been  published  in Official  Journal  No C 61 of 
17 March  1976,  page  2. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 20 January  1976  the  Council  referred  the  abovementioned  proposal  to the 
Economic  and  Social  Committee  in accordance  with  Articles  47 and  198  of the Treaty 
establishing  the European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
140th  plenary  session,  held  in Brussels  on 30 June  and  1 July  1976. 
The full  text of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Articles  47 and 198  thereof, 
Having  regard  to the request  for an opinion  made 
by the  Council  of the  European  Communities  on 
20 January  1976, 
Having  regard  to the  decision  taken  by its Bureau 
on 25 February  1976  instructing  the  Section  for 
Agriculture  to prepare  the Committee's  work  on the 
matter, 
Having  regard  to its previous  work,  and  more 
specifically  its opinion  on the proposal  for a Council 
Regulation  concerning  agricultural  producer  groups 
and federations  of such  groups  (*), and  its opinion 
on the proposal  for a Council  Regulation  concerning 
common  measures  to improve  the conditions  under 
which  ' agricultural  products  are  marketed  and 
processed  (2), 
Having  regard  to the  report  submitted  by  the 
rapporteur,  Mr De Tavernier, 
(*) OJ No C 1, 12. 1. 1968. 
(2) OJ  No C 45, 27. 2. 1976. Having  regard  to the opinion  issued  by the Section 
for Agriculture  at its meeting  on 3 June  1976, 
Having  regard  to the discussions  at its 140th  plenary 
session,  held  on 30 June  and  1 July  1976  (meeting 
of 30 June  1976), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by 48 votes  to 32, with  three  abstentions: 
The Committee  endorses  the  proposal  and  makes 
the following  comments: 
1. General  comments 
1.1. The  need  for a Community  market  organization 
for potatoes 
1.1.1.  A  common  organization  of the  potato 
market  is one  of the  goals  prescribed  in (a) the 
general  objectives  of the  Treaty  of Rome  and  (b) 
the Treaty  provisions  (in  particular  Article  40) 
relating  specifically  to agriculture.  For  years  most 
30. 8. 76 Official  Journal  of the European  Communities No C 204/29 
of the Member  States  have,  in the absence  of suitable 
Community  agreements,  been  intervening  more  often 
on the  market.  Such  intervention  measures  have 
become  increasingly  radical  and  in many  cases  the 
Member  States  have  been  at cross  purposes.  Both 
producers  and  consumers  derive  certain  advantages 
from  measures  to promote  a degree  of market 
stability  and  to strike  a better  balance  between  the 
parties  concerned  within  the  framework  of intra-
Community  free  trade.  This  is in fact  one  of the 
main  aims  of the Commission  proposal. 
However,  the  above  comments  prompt  the  Com-
mittee  to consider  that  the proposed  common  market 
organization  must  be phased  in so as to enable  it to 
make  due  allowance  for the prevailing  situation  and 
the changes  which  will  necessarily  'be  made  in 
growing,  marketing  and  processing  of potatoes. 
1.2. The  proposed  preferential  treatment  of 
producer  groups 
1.2.1.  The  Committee  would  point  out  that  not 
only growers,  cooperatives  and  producer  groups,  but 
also private  merchants  and  processors  play  a very 
significant  role  in potato  marketing  in the  EEC  at 
the present  time.  In certain  Community  regions  there 
is a growing  trend  towards  closer  contractual  and 
other  links  between  growers,  merchants  and 
processors.  Accordingly,  the  Committee  considers 
that the  Community  market  organization  and  any 
associated  public  financial  aid arrangements  should 
be based  on the  harmonious  use  of all marketing 
facilities,  i.e.  those  of producers,  merchants  and 
processors.  Encouragement  of contract  selling  could 
also help  to counteract  market  instability  and  would 
make  for  better  relations  between  the  parties 
concerned. 
1.3. The  statistical  information 
1.3.1.  Without  reliable  and  adequate  statistics 
covering  both  Community  and  non-Community 
growing  areas  and  markets,  it would  be impossible 
to follow  the frequently  irregular  trends  on the potato 
market,  draw  up balances,  or make  forecasts.  It is, 
of course,  important  that  these  statistics  be available 
in good  time.  Data,  making  for  greater  market 
transparency,  must  be channelled  to all interested 
parties  as quickly  and  completely  aS possible. 2. Comments  on the individual  Articles  of the 
proposal 
2.1. Article  1 
2.1.1.  Various  potato  products,  listed  in sub-
paragraphs  (f) to (k) inclusive,  are already  covered 
by Community  legislation  on either  (a)  processed 
fruit  and  vegetable  products  or (b)  dehydrated 
fodder.  The  Committee  therefore  agrees  that  such 
products  should  be included  in a common  market 
organization  for  potatoes.  There  is already  a 
considerable,  constantly  expanding  market  in potato 
products.  It would  therefore  be difficult  to create 
a Community  market  organization  for fresh  potatoes 
only.  Such  a market  would  be extremely  vulnerable 
to serious  disruption  by trends  on the  market  for 
potato  products. 
2.1.2.  When  new  legislation  is being  introduced, 
adequate  allowance  should,  of course,  be made  for 
legislation  currently  in force,  and  certain  transitional 
measures  may  prove  necessary.  The  rules  governing 
potato  starch,  as set out  in Article  11 of Regulation 
(EEC)  No  2727/75,  are  to be retained.  Article  11 
states  that  'payment  of the  production  refund  for 
potato  starch  shall  be subject  to the  condition  that 
the processor  has  paid  a minimum  free-at-factory 
price  for the potatoes'. 
2.2. Article  2 
2.2.1.  The  Committee  takes  the  view  that,  given 
the supply  pattern  in certain  Community  regions, 
the marketing  season  for  new  potatoes  should  run 
from  1 March  to 10 August  inclusive  of the  same 
year.  The  marketing  year  for  other  fresh  potatoes 
should  begin  on 1 August  and  end  on 31 July  of the 
following  calendar  year. 
TITLE  I: MARKETING  STANDARDS 
2.3. Article  3 
2.3.1.  The  Committee  endorses  the  proposal  to 
establish  common  marketing  standards.  The  estab-
lishment  of common  minimum  standards  — for the 
purpose  of keeping  low-quality  potatoes  out  of the 
market  (item  8 of the  explanatory  memorandum) 
— is a major  precondition  for the free  circulation  of 
the products  listed  in Article  1. In that  connection; 
we would,  nevertheless,  make  the following  remarks: 
No C 204/30 Official  Journal  of the European  Communities 30. 8.76 
— such  common  standards  must  be  sufficiently 
flexible  to make  allowance  for national  differences 
in regard  to (i) consumers'  taste  and  preferences 
and (ii) marketing  and  (iii)  processing; 
— account  should  be taken  of specific  requirements 
of merchants  and  processors,  particularly  as 
regards  contract  and  forward  sales.  Accordingly, 
common  standards  should  be amended  only  in 
very  exceptional  circumstances. 2.6.2.  Be  that  as it may,  temporary  derogations 
from  the  common  standards  should  be permitted 
only  very  exceptionally  in the event  of serious  market 
imbalance.  Such  derogations  should  relate  solely  to 
riddle  sizes.  Point  8 of the explanatory  memorandum 
states,  in fact,  that  'provision  is also  made,  in the 
case of potatoes  for human  consumption  in the fresh 
state,  for  adjusting  the  minimum  quality  stan-
dards  ...'  (i.e.  it is only  minimum  quality  standards 
of such  potatoes  which  may  be  adjusted).  This 
wording  is clearly  more  restrictive  than  Article  6. 
2.4. Article  4 
2.4.1.  The  Committee  draws  attention  to  the 
provision  for  'specific  requirements',  possibly 
derogating  from  common  marketing  standards.  These 
'specific  requirements'  may  apply  to: 
— products  at the  initial  stage  of the  distribution 
process  and  products  consigned  to processing 
plants; 
— products  traded  with  non-member  countries. 
2.4.2.  The  Committee  considers  that,  as in the 
case of the  fruit  and  vegetable  sector,  common 
marketing  standards  should  not  apply  to farm-gate 
retail  sales. 
2.4.3.  The  Committee  wishes  to be consulted  again 
when  the Council,  acting  on a Commission  proposal, 
draws  up  general  rules  and  the  relevant  list  of 
products.  The  appropriate  consultative  committees 
could  give  useful  advice  on  the  'specific 
requirements'. 
2.5. Article  5 
2.5.1.  The  Committee  realizes  that  it is impossible 
to check  whether  every  single  tuber  complies  with 
the standards.  Nevertheless,  enough  sampling  checks 
should  be made  to ensure  with  an adequate  degree 
of certainty  that  given  products  and  groups  of 
products  conform  to the standards. 
2.6. Article  6 
2.6.1.  The  measures  to cope  with  deficits  (Article 
6 (1))  seem  to be less  comprehensive  than  those 
proposed  for  surpluses  (Article  6 (2)).  This 
impression  could  perhaps  be  avoided  by 
amalgamating  paragraphs  1 and 2 of Article  6. TITLE  11: PRODUCER  GROUPS 
2.7. The  Committee  would  refer  firstly  to section 
1.2 of the general  comments. 
2.7.1.  On  28  September  1967,  the  Committee 
endorsed  the  proposal  for  a Council  Regulation 
concerning  agricultural  producer  groups  and  feder-
ations  of such  groups.  The  Committee  would  refer 
to that  opinion  and  to the  Committee  opinion  of 
29 January  1976  on the  proposal  for  a Regulation 
to improve  the  conditions  under  which  agricultural 
products  are  marketed  and  processed.  As  regards 
the present  proposal,  it  must  however  be 
recognized  (a)  that  'producer  groups'  at present 
account  for a very  small  part  of the trade  in potatoes 
for human  consumption,  (b)  that,  in some  Com-
munity  regions  relations  between  producers, 
merchants  and  processors  are  largely  based  on 
contracts. 
2.7.2.  The  Committee  appreciates,  however,  that 
there  are  problems  in certain  areas  concerning  the 
rationalization  of potato  production  and  marketing. 
In the  interests  of producers  and  consumers,  there 
may be legitimate  reasons  for  having  recourse  to 
a certain  amount  of aid out  of public  funds  in order 
to improve  conditions.  In this  context,  action  to 
assist  producer  groups  and  to promote  the  present 
trend  towards  more  contractual  agreements  between 
growers,  merchants  and  processors  may  be necessary. 
TITLE  111:  SUPPORT  MEASURES 
2.8. Article  9 
2.8.1.  Article  9 gives  the  impression  that,  at the 
beginning  of each  marketing  year,  i.e. in August,  the 
Commission  will  be  able  to draw  up  forward 
30. 8. 76 Official  Journal  of the European  Communities No C 204/31 
estimates  which  will  be sufficiently  reliable  to serve 
as a basis  for  intervention  on  the  market.  In 
practice,  the  Commission  would  have  its work  cut 
out to compile  by that  time  satisfactory  estimates  of 
the potato  acreage  for the entire  Community.  During 
the subsequent  months  the forward  estimates  should 
be continuously  revised  and  improved  in order  to 
provide  an  adequately  reliable  and  complete 
statistical  basis  for  private  storage  aids  and  other 
measures  listed  in the  proposal.  In the  interests  of 
greater  market  transparency  for  the  benefit  of all 
the economic  interest  groups  involved,  the data  thus 
compiled  should  be published  at regular  intervals. 
The relevant  consultative  committees  should  be given 
an appropriate  role  in compiling  the data. States.  Due  account  should  therefore  be taken  of 
this additional  method  of disposing  of surpluses. 
2.10.3.  In  disbursing  such  aid,  care  must  be taken 
(a) to prevent  disruption  of the  feed  market  as a 
whole  (not  just  the  market  in dehydrated  fodder) 
and (b) to ensure  that  producers  are not encouraged 
to grow  low-quality  potatoes.  Moreover,  surplus 
stocks  should  be disposed  of gradually.  Due  allow-
ance  should  also  be made  for the interests  of certain 
industrial  plants  which  have  been  receiving  aid under 
Council  Regulation  (EEC)  No  1067/74  of 30 April 
1974  on the  common  organization  of the  market  in 
dehydrated  fodder. 
2.9. Article  10 
2.9.1.  The  market  situation  may  call  for  private 
storage  aid,  in the  interests  of producer  and, 
frequently,  in the  interests  of consumers  also.  If 
such  measures  are to be effective,  the following  are 
pre-requisites:  (a)  reliable  statistics  on production, 
consumption  and  international  trade;  (b)  an 
adequately  developed  storage  system  which  is not 
only available,  but  can  be utilized  when  necessary. 
As regards  the latter,  it should  be pointed  out  that 
— apart  from  cooperatives  and/or  producer  groups 
— private  merchants  and  processors  and,  in some 
areas,  a number  of individual  potato  growers  have 
modern,  extensive  storage  facilities.  If storage  aid 
is granted,  it may  be expedient  to call  on these 
various  facilities.  Account  should,  of course,  be taken 
of standards  and  stipulations  to be laid  down.  By 
means  of the latter,  the current  trend  towards  more 
contractual  agreements  between  growers,  merchants 
and processors  can be encouraged. 
2.10.  Article  11 TITLE  IV: 
TRADE  WITH  NON-MEMBER  COUNTRIES 
2.11.  Articles  12 to 17 
2.11.1.  The  Committee  realizes  that  the  Com-
munity  is generally  a net importer  of new  potatoes, 
and that  a degree  of protection  at the frontier  could 
certainly  have  some  effect  — more  so than  in the 
case of imports  of second  early  or late  potatoes,  of 
which  the  Community  is usually  a net  exporter. 
Nevertheless,  the  Committee  has  its doubts  about 
the effectiveness  of a reference  price  system. 
Experience  in the fruit  and  vegetable  sector  is hardly 
encouraging.  The  Committee  would  emphasize  that 
additional  measures  may  be  necessary  to protect 
incomes  and  promote  Community  preference  in areas 
where  the  production  of  potatoes  for  direct 
consumption  — especially  new  potatoes  — accounts 
for a considerable  proportion  of  growers'  total 
income. 
2.10.1.  As  regards  the  disposal  of  surpluses, 
Article  11 proposes  that  aid should  be granted  only 
for dehydrating  products  stored  in accordance  with 
Article  10. The  impression  is given  that  such  action 
is to be undertaken  only  towards  the  end  of the 
marketing  year  and  that  there  is to be no economic 
analysis  of the  advantages  and  drawbacks  which 
such  measures  may  have  over  other  arrangements. 
2.10.2.  It  would,  however,  be much  cheaper  to 
subsidize  the use  of undehydrated  potatoes  as stock 
feed.  This  is already  being  done  in some  Member 2.12.  Article  18 
2.12.1.  The  Committee  would  point  out  that 
several  Member  States  export  relatively  large 
quantities  of ware  and  seed  potatoes  to non-member 
countries,  without  making  use  of arrangements  such 
as those  proposed  in Article  18. Bearing  in mind  the 
need  to provide  a legal  basis  for action  which  may 
have  to be taken  in very  exceptional  circumstances, 
the Committee  could,  however,  accept  Article  18, 
provided  this  is called  for by the general  structure  of 
the majority  of the basic  CAP  Regulations. 
No C 204/32 Official  Journal  of the European  Communities 30. 8. 76 
TITLE  V:  GENERAL  PROVISIONS 
2.13.  Article  25 
2.13.1.  Some  of the  information  necessary  for 
implementing  the  proposed  Regulation,  particularly 
the details  of the annual  estimate,  is of considerable 
potential  interest  to business  circles.  Such  information 
should  be given  adequate  publicity  and  the  relevant 
advisory  committees  should  be involved  as closely 
as possible. 
2.14.  Article  32 
2.14.1.  Regulation  (EEC)  No  1067/74  on  the 
common  organization  of the  market  in dehydrated fodder,  is no longer  to apply  to potato  products 
listed  under  CCT  subheading  ex. 07.04  B. They  will 
thus be deprived  of a number  of concrete  sources  of 
aid which  are not provided  for — at least  not in the 
same  concrete  form  — in this  proposal.  In this 
connection  the  Committee  would  refer  to its com-
ments  on Article  11.  The  same  problem  may  also 
arise  in connection  with  Article  34. 
2.15.  Article  34 
2.15.1.  The  Committee  recommends  that  certain 
transitional  measures  should  finally  lapse  two  years 
after  the Regulation  comes  into  force. 
Done  at Brussels,  30 June  1976. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
ANNEX 
to the opinion  of the Economic  and Social  Committee 
Rejected  amendments 
The following  amendments  were  rejected  during  the discussion: 
Item 1.1.1. 
Add the following: 
'Nevertheless,  the  Committee  would  favour  the  establishment  of machinery  which  makes 
it possible  to fix maximum  prices  for the various  stages  in the marketing  process.' 
Reason 
The Regulation  provides  a certain  degree  of protection  for  growers.  Consumers  must  also 
be offered  a certain  degree  of protection. 
Voting 
for: 31, 
against:  48, 
abstentions:  11. 
30. 8. 76 Official  Journal  of the  European  Communities No C 204/33 
Item  2.7.1. 
Delete  subparagraph  (b) of the  second  sentence.  The  sentence  would  then  read:  '. . . it must 
be recognized  that  producer  groups  at present  account  for only  a very  small  part  of the trade 
in potatoes  for human  consumption'.  Insert  a new  sentence  as follows: 
'Allowance  must,  of course,  be made  for  such  situations.  More  effective  aid  must  be 
provided  for  promoting  and  developing  producers'  associations  and  steps  must  be taken 
to promote  fair  contracts  between  (a) growers  and  (b) processors  and  dealers.' 
Reasons 
If the  situation  is as described  by the  rapporteur,  the  only  logical  way  of assisting  both 
growers  and  consumers  is contained  in the  amendment  and  not  in the  generalities  expressed 
in the last  sentence  of 2.7.1. 
Item  2.7.2. 
To ensure  consistency  with  the  amendment  to item  2.7.1,  it is proposed  that  item  2.7.2  be 
deleted.  Otherwise,  the text  would  be partly  superfluous  and contradictory. 
Voting 
for: 37, 
against:  39, 
abstentions:  8. 
Item  2.9.1. 
Delete  the entire  paragraph. 
Reasons 
This  point  basically  proposes  that  storage  aid be extended  not  only  to producer  groups  but 
also to dealers,  processors  and  heaven  knows  who  else.  Storage  aid is, however,  only  justified 
in abnormal  market  circumstances  and  is restricted  to cooperatives  and  producer  groups. 
Even  here  it is limited.  Maximum  restraint  is exercised  in disbursing  public  funds.  Storage 
aid is designed  not  to encourage  commercial  speculation  but  to guarantee  growers  a fair, 
minimum  income  and,  in certain  circumstances,  to ensure  that  they  are  not  discouraged  or 
induced  to abandon,  or reduce  unduly  growing  in future  years. 
Voting 
for: 32, 
against:  35, 
abstentions:  8. 
Original  text  of passages  in the  opinion  of the  Section  which  were  amended  in Committee: 
Second  paragraph  of 1.1.1. 
'There  is, however,  not  necessarily  any  close  link  between  the  rigidity  (or  flexibility)  of 
the market  organization  and  the  degree  to which  prices  fluctuate.  Consequently  there  is 
little  to be gained  by establishing  a rigid  and  very  radical  system.  The  Section  therefore 
advocates  the principle  of the establishment  of a fairly  flexible  common  market  organization 
for potatoes.' 
Voting 
for: Large  majority, 
against:  11, 
abstentions:  10. 
No C 204/34 Official  Journal  of the European  Communities 30. 8. 76 
Penultimate  sentence  of 2.7.1. 
'As regards  the  present  proposal,  however,  it must  be recognized  (a) that  producer  groups 
at present  account  for only  a very  small  part  of the  trade  in potatoes  for human  consumption 
and (b)  that  contracts  are  gradually  playing  an increasing  role  in relations  between  pro-
ducers,  merchants  and  processors.' 
Voting 
for: Large  majority, 
against:  8, 
abstentions:  18. 
Opinion  on proposals  for: 
— a Council  resolution  concerning  the  determination  of criteria  for sulphur  dioxide 
and suspended  particulate  matter  in urban  atmospheres 
— a Council  Directive  concerning  health  protection  standards  for  sulphur  dioxide 
and suspended  particulate  matter  in urban  atmospheres 
The text  referred  to the Committee  has been  published  in Official  Journal  No C 63 of 
19 March  1976,  page  5. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 8 March  1976  the  Council  referred  the  abovementioned  proposals  to the 
Economic  and  Social  Committee  in accordance  with  Article  198  of the  Treaty 
establishing  the European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the above  matter  at its 
140th  plenary  session,  held  in Brussels  on 30 June  and  1 July  1976. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  Treaty  establishing  the Euro-
pean  Economic  Community,  and  in particular  Article 
198 thereof, 
Having  regard  to the request  for an opinion  made  by 
the Council  of the  European  Communities  on 
8 March  1976, 
Having  regard  to the decision  taken  by its Chairman 
on 10 March  1976,  instructing  the  Section  for 
Protection  of the  Environment,  Public  Health  and 
Consumer  Affairs  to draw  up an opinion  and  a 
report  on the matter, 
Having  regard  to the opinion  issued  by the  Section 
for Protection  of the  Environment,  Public  Health 
and Consumer  Affairs  on 8 June  1976  and  the report 
submitted  by the rapporteur,  Mr Eboli, Having  regard  to the discussion  at its 140th  plenary 
session,  held  on 30 June  and  1 July  1976  (meeting  of 
30 June  1976), 
HAS  UNANIMOUSLY  ADOPTED  THE  FOLLOWING 
OPINION: 
The Economic  and  Social  Committee  approves  the 
proposals,  subject  to the comments  set out below. 
1. General  comments 
1.1. The  Committee  agrees  with  the  aim  of the 
proposals.  Such  measures  help  considerably  to 
protect  health.