COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(92) 94 final - VOL. I 
Brussels, 24 March 1992 
COMMISSION PROPOSALS 
on the prices for agricultural products 
and on related measures (1992/93) 
VOLUME 
Explanatory Memoranda 
- 2 -
The Commission submits herewith its proposals for the agricultural prices for 
1992/93 and for certain related measures. The text is in three parts : 
Volume I : Explanatory memoranda 
Volume II : Financial implications 
Volume III : Legal Instruments 
Contents of Volume I 
Page 
Introduct ion 4 
A. General considerations 
I. General economic situation 5 
II. The agricultural economy in 1991 5 
Ml. Outlook for the agricultural markets 8 
(a) Community markets 8 
(b) World markets 10 
IV. Price proposals and related measures for 1992/93 
market I ng year 12 
V. Agr i-monetary measures .*. 13 
Vi. Financial implications 14 
B. Explanatory memoranda, by product 
1. Cereals 15 
2. Rice 19 
3. Sugar 20 
4. Olive oil 25 
5. Oil seeds and prote i n crops 28 
6. Text! le fibres 29 
7. Wine 33 
8. Fruit and vegetables 34 
9. Tobacco 35 
10. Milk sector 36 
11. Beef/Veal 37 
12. Sheepmeat and goatmeat 38 
13. P igmeat 39 
- 3 -
Paoe 
C. Annexes 
Annex 1: Report on the operation of the system of aid 
for cot ton 40 
Annex 2: Commission report to the Council on the 
situation with regard to the production and 
marketing of certain varieties of tobacco 53 
D. Tables 
1. Price proposals in ecus for the various agricultural 
products 58 
2. Argr(monetary proposals 1992/93 63 
3. Effect of Commission proposals on support 
prices for agricultural products expressed in 
ecus and in national currency 64 
4. Stabilizers and production thresholds 65 
5. Trends in economic indices from 1980 
to 1990 in real terms 68 
E. Figures 
Fig. 1: Net value added per person employed in 
agriculture 69 
- 4 -
introduction 
In November 1991 the Commission presented detailed proposals to the Council 
and to Parliament for the reform of several market sectors (arable crops, 
milk, beef, sheepmeat and tobacco). These proposals have been the subject of 
lengthy discussions in the Council and In Parliament and the Commission must 
insist that decisions be taken In these matters without further delay. In 
order to facilitate this process - which is essential to enable the Community 
to come to terms with existing market imbalances and prevent rapid increases 
in budgetary costs - the Commission is putting forward a set of price 
proposals which represent In essence the maintenance of the existing rules. 
Thus, except in a few cases where changes have already been decided In 
principle or are provided for in existing legislation, the Commission Is 
putting forward a set of price proposals which for the 1992/93 marketing year 
will maintain In place the present stabilisers, prices and producer levies. 
The proposals on the dismantlement of MCAs are designed to facilitate the 
Community's single market objective to remove controls at frontiers by 
1 January 1993. 
- 5 -
A. General considerations 
I- General economic situation 
1. As in the rest of the world, economic growth in the Community slowed 
significantly in 1991. On average, economic activity Is estimated to 
increase by only 1.3X in real terms in 1991, against 2.8X In 1990. A 
moderate recovery to 2.2X is expected In 1992, accelerating to 2.4X In 
1993. 
Employment growth slowed sharply to 0.5X In 1991 and appears likely to 
reach a standstill in 1992. As a result, given the strong growth in the 
size of the labour force, the rate of unemployment Is forecast to 
increase steadily over the period 1991-93, reaching 9.2X In 1993, 
compared to 8.4% in 1990. 
For the Community as a whole, inflation (implicit deflator of GDP) is 
forecast to fall from 5.7X in 1990 to 5.5X in 1991. During 1992 and 1993 
inflationary pressure is expected to moderate, leading to further falls 
to 4.6X and 4.4X respectively. Nevertheless inflation rates differ 
widely within the Community, with certain Member States (namely Greece 
and Portugal) still experiencing double digit inflation and others 
(Denmark, Netherlands, France, Belgium, Ireland and Luxembourg) with a 
rate of inflation below 4X in 1992. 
11. The agricultural economy in 1991 
2. After the sharp improvement experienced in 1989, 1991 was the second 
consecutive year in which the agricultural situation in the Community 
was seriously affected by the deterioration of markets and a sharp 
rebuilding of stocks. As regards weather conditions, productivity and 
level of output, the 1991 agricultural year, while not exceptional, may 
be counted among the good years for Community agriculture. Nevertheless, 
difficulties experienced in some markets hindered the achievement of 
satisfactory results In terms of farm incomes. This proves once again 
that restoring a durable equilibrium in agricultural markets is a 
crucial condition not only in the positive development of incomes but 
also if aggravation of the present crisis of Community agriculture is to 
be avoided. 
3. Due to more favourable weather and the consequent increase in yields, 
crop production in 1991 was in general higher than in the previous year. 
Cereal production increased by almost 6X relative to 1990, leading to 
around 181 million t In 1991. The highest production increases were for 
durum wheat and grain maize, rising by 43X and 15X respectively from 
1990 levels. Soft wheat production exceeded 81 million t (4X more than 
in 1990). 
- 6 -
Given the increase in cereal production and a slight decrease in 
consumption, especially for animal feed, the market imbalance already 
existing in this sector is expected to increase steadily during the 
current marketing year. Taking into account the carryover of stocks at 
the beginning of the 1991/92 marketing year one could estimate that the 
surplus of available supplies over total Internal use of cereals will 
approach 80 million t In 1991/92 compared to 66 million t In 1990/91. As 
the possibilities of export on the world market are relatively limited 
the 1991/92 marketing year will end with a sharp Increase of about 
10 million t In cereals stocks which will continue to depress the 
market. The situation worsened, in particular, for durum wheat (for 
which self-sufficiency now exceeds 200X), for common wheat and for 
barley. 
A fall In sugarbeet area and yields has led to lower sugar production 
than the previous year, but it Is still well above Internal consumption. 
Sunflower seed production was relatively stable at around 4.0 million t. 
Soya production fell by 0.5 million t. Largely as a result of record 
yields in France, production of rapeseed, excluding production In the 
new LSnder, reached a record of 6.4 million t and in the new LMnder 
rapeseed production rose to 1 million t. 
As a result of the spring frost, fruit production dropped by almost 20X. 
For the same reason, wine production is expected to decrease by more 
than 10X on average, reflecting particularly the drop In production in 
France. 
In the animal products sectors, milk production is expected to fall, due 
in particular to a 2X cut In milk quota decided in the context of the 
last price package. Although the drop in milk quotas during the last few 
years has reduced the imbalance between production and consumption, and 
special measures have been taken to encourage domestic consumption, the 
milk balance expressed in milk equivalent still has a surplus of about 
15 million t. Without special measures this figure would be 7 - 8 
million t higher. Beef production continued to increase in 1991 by 4 to 
5X and probably reached 8.6 million t, in line with the beef cycle which 
is now reaching its peak level. Beef consumption, on the other hand, has 
dropped steadily during the last few years and it is now estimated at 
7.5 million t, almost 1 million t under the level of production. 
Production In most sectors exceeded the levels at wrTlch action under the 
various stabilizer mechanisms is triggered. The cereals MGQ was 
exceeded by more than 3X which will lead to a price cut of 3X in 
1992/93. Excesses were also recorded for wine, certain varieties of 
tobacco, cotton, nectarines, peaches, milk and pigmeat. In the oilseed 
and proteins sectors, full Institutional prices were reduced as a result 
of the application of their MGQs systems, by 21X (rapeseed), 32X 
(sunflowerseed), 20X (soya beans) and 17X (peas and beans). 
7 -
5. Another sign of the increasing market Imbalances for most products is 
the continued growth in public stocks In the major sectors, after the 
sharp reduction in the late 1980s and In the first half of 1990. 
By the end of December 1991, cereal stocks exceeded 16 million t, 
compared to 12.8 million t twelve months before. In particular, stocks 
doubled for rye and durum wheat. For the first time In 1991 stocks of 
rice were also very high (more than 200 000 t on average). Stocks of 
butter and sklmmed-mllk powder which had practically disappeared by the 
beginning of 1990 Increased sharply during the 1990/91 marketing year 
and reached a peak exceeding 400 000 t and 500 000 t respectively in 
July 1991. By December 1991 stocks of both products had fallen again (to 
260 and 434 thousand t) as a result of a large export programme. Beef 
stocks, on the other hand, are continuing to Increase.and now approach 
one million t in spite of the extremely favourable pattern of exports In 
1991 (almost 1.1 million t). Only stocks of alcohol decreased sharply, 
due to a major sales programme and to the drop In production resulting 
from the bad weather over the last three marketing years. The dramatic 
Increase in intervention stocks since the second half of 1990 shows that 
we have again entered an era of oversupply, after a certain improvement 
in 1988 and in 1989, depressing the market situation and consequently 
affecting producer prices and farm Incomes. 
6. For the Community as a whole, producer prices are expected to rise in 
nominal terms by 2.7X relative to 1990. This means a fall of 3.5X In 
real terms on average. The drop in real output prices in 1991 is a 
result of falls of 0.6X and 7.7X in prices of crop products and animal 
products respectively. Sharp falls in real prices are expected for wine 
(-8.2%), milk (-6.6X), pigs (-6.7X), cattle (-10.OX) and sheep (-13.1%). 
Real prices of fruit, on the other hand, are forecast to rise by 10.1% 
following a poor harvest due to adverse weather conditions. Cereal 
prices are relatively stable (-0.6X) in real terms. 
Nominal input prices, on the other hand, are expected to rise by 4.OX, 
which means a drop of 1.5X in real terms (- 0.9X for fertilizers, + 3.8X 
for energy and - 3.5X for animal feedingstuffs). As purchases of goods 
and services account for only 45X of agricultural output, the fall In 
input price was not sufficient to offset the negative effect of the 
deterioration of producer prices on farm incomes. 
7. According to the first estimates made by the Commission in mid-December 
1991, on the basis of data supplied by the Member States, average farm 
incomes for the Community are expected to have fallen in real terms in 
1991 for the second year running, after a sharp increase in 1989. For 
the Community as a whole, farm income fell by 4.8X in real terms If 
agricultural incomes are measured by the net value added at factor cost 
per work unit, and by 9.8X in real terms, If measured by the net Income 
per work unit of the farmer and his family, i.e. after deduction of 
wages, rents and interests. Graph 1, in the Annex, shows the trend in 
real terms of agricultural income by Member State since 1980, as 
measured by net value added at factor cost per annual work unit. 
In general, farm incomes declined for almost every type of farming, and 
especially for cereals, oilseeds, dairy, beef and pork. 
- 8 -
III- Outlook for thu agricultural markets 
(a) Community markets 
8. As in previous years, the Commission has carried out an analysis of the 
medium-term prospects (1997/98 marketing year) for the main agricultural 
markets. These forecasts take into account the impact on production of 
the changes In agricultural policies adopted In recent years (I.e. • 
quotas, stabilisers, set-aside, etc.) and are based on the assumption 
that current policies will continue unchanged. In addition, they Include 
the Impact of German unification. So, they could be viewed as a 
reference scenario for the future of agricultural markets In the 
Community in the absence of CAP reform, and assuming the continuation of 
present polIcy. 
The main conclusion which can be drawn from this analysis Is that, 
despite several reforms adopted during the second half of the 80's to 
Improve the balance between supply and demand In agriculture, the 
depressed Community market situation will continue and even worsen in 
the medium term If more effective measures are not taken. 
9. Medium term forecasts for cereals show that, in spite of the price 
reductions due to stabilisers and a reduction In area, In particular as 
a consequence of the current set-aside schemes, production should 
continue to increase although at a lower rate than in the past. Total 
cereal production Is forecast to reach around 189 million t by 1997, 
that is almost 10 million t more than the 1991 crop. 
As far as cereal consumption Is concerned, In spite of a slight increase 
in industrial use and possibly in human consumption, total internal use 
is expected to continue falling as a consequence of the decline in 
animal feed use (a drop of about 5 million t by 1997/98, which means a 
drop of 0.7 million t a year on average). Total Internal use should 
amount to about 140 million t in 1997/98, which would leave some 50 
million t to be exported. 
10. Medium term forecasts for oilseeds have been made on the basis of the 
price and MGQ system which applied in the period 1988/89 to 1991/92. 
These show that the reinforced MGQ system which was Introduced in 1988 
and which has held production to lower levels than would otherwise have 
been the case, would not, had It continued, have prevented a further, 
but more moderate, rise in production in the medium term. The full 
impact of the reform agreed in December 1991 cannot yet be assessed but 
it seems likely to lead to less intensive production and hence to lower 
production totals than the record levels observed in recent years. 
11. The medium term outlook for sugar will be Influenced by any changes 
which could be introduced in the quota system and by the prospects for 
world market prices. Assuming a no-change situation in these two areas, 
the production forecast for 1997 is 15.8 million t while consumption 
could reach 11.9 million t. Taking account of preferential and other 
imports the total exportable surplus would amount to 5.4 million t of 
which 2.2 million t would be C sugar. 
- 9 -
12. Due to agronomic and climatic factors olive oil production fluctuates 
considerably from one year to the next. Total area should Increase 
slightly In the future due to the expansion In Spain and Portugal 
following Integration Into the Community regime. This, added to a small 
yield increase, should lead to production of about 1.5 million t In 
1997. On the other hand, overall consumption Is expected to Increase a 
little to 1.4 million t in 1997, giving a small surplus of production. 
13. Despite the Community's efforts to diminish the European wine potential 
by means of grubbing up schemes, wine production In the Community 
accounts for some 190 million hi in a normal year (of which about 30X Is 
quality wine), but since 1988 wine production has fluctuated between 160 
and 180 million hi essentially for climatic reasons. The trend observed 
since 1977 suggests a slight increase in yield, compensated for by a 
decrease in the surface cultivated. As a result, production might fall 
to an expected level of 170 million hi in 1997. Wine consumption has 
been steadily falling since 1975 and this trend will probably continue 
over the next decade. If so, global human consumption would be around 
106 million hi in 1997/98, compared to 123 million hi In 1989/90. To 
this quantity about 12 million hi can be added for Industrial use. With 
consumption falling dramatically, particularly In the producer 
countries, the imbalance which already exists especially in the table 
wine sector is expected to increase steadily over the coming years and 
extend to some quality wines. 
14. In the absence of the reform proposed by the Commission, tobacco 
production should continue to Increase, In spite of the stabilizer 
mechanism, and reach 550 000 t In 1997/98. The excessive development In 
production of certain varieties already observed in the past could cause 
the most concern especially in terms of market imbalance and budget 
cost. The global reform of this market organisation proposed by the 
Commission should reduce such problems, maintaining total production 
within the bounds of the proposed quota (340 000 t). 
15. Milk deliveries, as recorded in official statistics, are, In general, 
very close to the quota level. In the absence of any further reduction 
of quota and assuming that difficulties in the application of quotas in 
certain regions are overcome, one could assume that milk production will 
be close to the total quota level (97.6 million t excluding the five new 
Lander). As milk yield per cow Is expected to increase by 1.5X p.a., the 
dairy herd which now stands at 22.2 million head has to be reduced by at 
least 2 million by 1998 in order to keep deliveries within the quota 
Iimits. 
Assuming that special measures to promote internal consumption are 
retained, the long term trend within the Community Is for the total 
consumption of dairy products to remain relatively stable at 
87.5 million t (without the five new Lander). However, whilst there is 
increasing demand for fresh dairy products, soft cheeses and butter 
substitutes with some dairy content, the consumption of full-fat milk, 
hard cheeses and butter is declining. This, coupled with the ever-
increasing fat content of milk produced (due to better animal husbandry 
and diet), poses major problems as the Imbalance between production and 
consumption continues to grow. It must also be remembered that without 
special measures normal consumption of milk would be about 8 million t 
below actual domestic use. 
- 10 -
16. Beef production Is expected to reach about 8.3 million t by 1998. Beef 
consumption has been stead Iy declining for several years resulting not 
only from specific reasons leading to temporary drops in demand, but 
probably also from a more structural change in consumer preferences. 
Total beef consumption dropped by almost 700 000 t between 1987 and 1990 
falling to a level which Is now well below the trend. In these 
circumstances, only If the market Image of beef is restored could one 
expect that the long term trend could continue, leading to global 
consumption of 7.7 million t In 1998. If this goal is not achieved, beef 
consumption will probably continue to fall to a level of about 
7.0 million t In 1998. In any case. In the absence of effective measures 
to control production and to promote demand, present market Imbalances 
will continue and probably worsen In the coming years. 
17. Sheepmeat production has sharply Increased in recent years as a result 
of the expansion of the Community flock. Without any change in the 
present legislation, we can expect production to exceed 1.25 million t 
in 1998. The expectation for sheepmeat consumption is of a slight 
Increase. Total consumption should be around 1.5 million t in 1998. 
The consumption of pigmeat and poultrymeat is Increasing steadily and, 
given the ease with which production can respond to demand, a production 
forecast of 15.6 million t of pigmeat and 7.4 million t of poultrymeat 
for 1998 can be made. This allows for exports of 0.4 million t and 
0.26 million t for pigmeat and poultrymeat respectively with both 
sectors otherwise in balance. 
(b) World markets 
18. In spite of a relative improvement In the second half of 1991, the 
situation and prospects of agricultural world markets at the beginning 
of 1992 are always heavily affected by the structural disequilibrium 
which exists for most products and by the Increasing difficulties of 
financing imports. Many countries are currently in a period of economic 
uncertainty. In particular, the extent of the agricultural problems and 
import requirements of the former Soviet Union remains largely unknown 
for the short as well as for the medium and long term. Nevertheless, it 
is clear that quantities delivered will depend largely on the 
willingness of exporting countries to grant credits or provide aid. At 
the same time, because of the lack of hard currency, some important 
markets in North Africa and Eastern Europe appear less reliable 
customers for western exports. In the latter case It must also be 
stressed that some, which were traditionally net importers, are likely 
to become net exporters of agricultural products in the medium term, as 
a consequence of efforts to promote greater market orientation for their 
economies. In any case, the Community has a primary responsibility to 
support their economies and to facilitate their integration in a wider 
European free trade area. 
- 11 -
19. World cereal production Is forecast to fall by 6% compared to 1990, 
while still remaining the second-highest harvest on record. Wheat Is 
forecast at 547 million t, down almost 9%, and coarse grains at 795 
million t, down 4%. Although still declining In absolute terms, 
consumption Is set once again to exceed production In 1991/92. Prices 
remain firm for the moment due to the cut in production, relatively low 
stock levels and increased exports. The upwards tendency Is, however, 
being limited by large harvests In the EC and Canada and by uncertainty 
over the ability of some major importers to pay for Imports and to 
reimburse credits. In addition the present situation risks changing 
radically during the second half of the year as a consequence of the 
increase in production forecast in the USA. 
Assuming no change In policies, net export aval IIblI Ities in the OECD 
area are projected to Increase substantially over the period to 1996 to 
reach 163.3 million t, or 25X of production. When set against the likely 
commercial Import requirements these forecasts suggest the possibility 
of depressed cereal prices and continuing trade tension. 
World oilseed production for 1991/92 Is forecast at a record 222 
million t while consumption will reach about 220 million t. In the OECD 
area stocks are expected to increase by 1% while prices remain stable. 
Both world sugar production and consumption will increase in 1991/92 but 
at a reduced rate of annual growth. The marketing year will end roughly 
in balance or with a slight surplus. In the absence of trade reform it 
appears likely that In the medium term the market is set to continue its 
present cyclical pattern. World stocks should grow slowly while prices 
are expected to remain low. 
20. While OECD milk output has fallen marginally, and Is forecast at 220 
million t, consumption has increased slightly above the rate of 
population growth. Stocks have risen as a result of reduced imports by 
the USSR and the Gulf region, and a fall in butter consumption. Between 
1991 and 1996 OECD production is expected to increase by 2.5X while 
milkfat consumption should increase at a higher rate. In spite of this, 
export availabilities should exceed 1.1 million t in 1996, corresponding 
to a self-sufficiency ratio of 115%. In addition, as a large percentage 
of OECD dairy exports are to the former USSR, economic reform In the 
Republics and their financial problems could have a iriajor impact on 
future dairy exports. 
Beef production increased in 1991 in OECD countries, while demand 
weakened as a result of poor economic growth and changing dietary 
habits. Consequently, stocks have increased and prices have fallen. In 
the medium-term, production is set to continue to grow at a higher rate 
than demand. As a consequence, export aval IibiI ities in OECD countries 
are expected to increase from under 1 million t to 1.3 million t in 
1996. 
- 12 -
IV. Price proposals and related measures 
21. As is clear from the analysis of the current and prospective market 
situation, the Community Is facing a progressive deterioration of market 
balances. The precise budgetary effect of this deterioration will vary 
from time to time depending on conjuncture I market conditions. This 
year the conjunctural situation is somewhat better than last year, In 
particular because.of higher world market prices for cereals and some 
improvement In the world and, more particularly, the domestic market 
situation for dairy products. But these short term developments do not 
in any way remove this need to tackle the underlying tendency to greater 
market imbalance in the medium and long term. The Commission has 
presented the Council with a series of proposals for reform designed to 
confront these problems as they effect most of the major market sectors 
of the CAP and will make proposals for other sectors when this reform 
package has been accepted. 
22. The reform proposals change fundamentally the market organisations in 
several sectors, taking into account the need to ensure the 
competitivity of Community agriculture. Improve the distribution of 
agricultural support among farmers and reinforce measures to safeguard 
the environment. The aim of these measures is not Just to reduce 
agricultural expenses or to adapt in advance our policy to any 
international commitment which could be taken in the context of GATT 
negotiations, but essentially to have more effective instruments for 
bringing the markets into balance whilst safeguarding farm incomes and 
the rural economy. These proposals have been widely examined and 
discussed by the Council and the Parliament during the last few months. 
23. Formal conclusions have not yet been reached on these proposals but the 
need for fundamental reform is not in question. Indeed, in the absence 
of fundamental reform the Commission would be compelled to propose 
drastic changes in prices and support mechanisms. Such measures would 
bring the market back into balance but at a heavy cost in terms of 
producer incomes. 
24. In order, however, to allow the Council to concentrate its attention on 
the reform, the attached proposals provide essentially for the 
continuance into 1992/93 of the prices and stabiliser mechanisms as they 
existed in 1991/92. v 
25. It should be emphasised, however, that some parts of the proposals 
contained In the reform proposals cannot be delayed and early Council 
decisions on the basis of these proposals Is presupposed in this 
package. For example. In the milk sector, the proposal is for unchanged 
prices. This proposal can only be maintained if, before 1st April, when 
the existing milk quota system expires, the Council has taken decisions 
to extend the quota system as proposed In the reform package. It would 
be quite impractical to support unlimited production at current price 
levels. Similarly, for cereals, the current proposal assume acceptance 
of the proposal In which has been Included in the reform package for the 
continuance into 1992/93 of the existing maximum guaranteed quantity and 
basic and supplementary levy systems. In the prices package it is 
proposed to set the basic levy at 5X, the same level as In 1991/92. A 
proposal is also made that, as in 1991/92, farmers who Join a one year 
set-aside scheme will be exempted from the levy. This proposal is 
included as a safeguard in case decisions on the reform are not taken in 
time (before 1 June 1992) for the set-aside scheme proposed in the new 
arable products scheme to apply to the 1992/93 plantings. If early 
decisions are taken on the reform, this proposal will lapse. 
- 13 -
26. In other sectors prices, mechanisms and, where appropriate, stabiliser 
figures are carried forward from 1991/92 Into 1992/93 except where 
changes are due to come Into effect on the basis of existing 
legislation, adaptations are due to fulfil undertakings given In the 
course of last year, or it Is necessary to take Interim measures to 
bridge the gap between reform and the existing regime. Hence, in the 
olive oil sector there is a transfer of aid between the consumption aid 
and production aid, as promised last October when the consumption aid 
was last decided and, for cotton, a change Is proposed to make price 
levels somewhat more predictable without weakening the effectiveness of 
the stabiliser. For tobacco, the interim measures needed because of the 
delay in adopting the reformed regime have been proposed In advance of 
this package and what Is proposed now Is that prices and premiums should 
remain unchanged. Action Is, however, proposed to mitigate a perverse 
effect of the existing tobacco regime which can In some cases make low 
grade tobacco more attractive to the processor than high grade tobacco. 
27. This roll forward package is designed to allow the Council to take rapid 
decisions and to avoid distracting its attention from the reform of the 
CAP. It should not, however, be misunderstood as suggesting that, in the 
absence of reform, the existing CAP could be rolled forward 
indefinitely. On the contrary, as explained above, were the reform 
proposals to be rejected, very drastic price measures would be 
necessary. 
V. Agri-monetary measures 
28. Agri-monetary proposals are based on the situation of currencies at the 
beginning of February 1992. 
As regards the currencies which are maintained within a mutual margin of 
fluctuation of 2.25X there is no longer a monetary gap - the 
agricultural conversion rates are already at the level of the central 
rates. 
As regards the other currencies (the drachma, peseta, escudo and pound 
sterling) the monetary gaps vary with trends on the exchange rate 
market, but it was agreed in July 1988 that they should be dismantled 
before 1 January 1993. With regards to Greece, the arrangements for the 
automatic dismantling of the gaps created by monetary realignments 
provide for a final stage, for the majority of products, which will take 
effect at the beginning of the 1992/93 marketing year. 
In order to limit any further dismantling which may be needed on 
31 December 1992 it Is proposed to reduce all the monetary gaps existing 
at the time of the Council decision to 1.5 points, at which level the 
compensatory amount no longer applies. 
- 14 -
VI. Financial Implications 
29. The financial Implications of the proposals for prices and related 
measures for EAGGF Guidance Section expenditure and for the Community's 
own resources of agricultural origin are set out In Volume II. 
30. It is estimated that the financial Implications of these proposals for 
prices and related measures will be of ECU 6 million In 1992 and of 
ECU 45 ml 11 Ion In 1993. 
- la -
B. Explanatory memoranda by product 
1. CEREALS 
1.1. Prices 
For all cereals the Commission proposes for 1992/93 maintenance of the 
1991/92 prices. 
As the transitional period for Spain will have come to an end all Spanish 
institutional prices will henceforth be Identical with those for the 
Community of Ten. 
Under the arrangements for the second stage of Portuguese accession the 
first step In moving the intervention price for common wheat to the 
Community price will be taken and the specific aids for cereals will be 
adjusted. 
Target prices are derived from the intervention prices by adding a market 
component and a component representing the cost of transport between the 
Ormes and Duisburg areas. Updating the transport cost entails a slight 
reduction in target prices. 
The 1991792 overshoot of the maximum guaranteed quantity means that 
prices set by the Council for 1992/93 will automatically be reduced by 3% 
by the Commission. 
1.2. Monthly Increases 
Given the 3% reduction in the intervention prices and the prospect of 
lower interest rates, keeping the monthly increases at their present 
level offers the best prospects for disposal of cereals on the Community 
market throughout the marketing year. Those for common wheat flour, rye 
flour and groats and meal of durum wheat must however be adjusted to take 
account of a change In the processing coefficients, as was done in the 
course of 1991/92 for calculation of the export refunds. 
1.3. Special premium for breadmaking. wheat and rye '•* 
Article 3 of the basic Regulation (EEC) No 2727/75 requires the Council 
to set a special premium each year for common wheat and rye with certain 
quality characteristics. 
- 16 -
For the last few years the common wheat premium has been 2X of the 
Intervention price. 
Given the automatic 3% reduction In the Intervention price from the 
beginning of 1992/93 it Is proposed to adjust these premiums accordingly 
to ECU 3.27/t for common wheat and ECU 4.09/t for rye. 
1.4. Durum wheat aid 
The production aid for durum wheat is an element of producers' Incomes In 
certain production areas In the same way as Intervention prices. Given 
the freeze on institutional prices It Is proposed to make no change in 
its amount. 
In Spain the aid will, like prices and for the same reason, be the same 
as in the Community of Ten. 
1.5. Stabilizers and co-resoonsiblIItv lew 
Under the CAP reform proposals for cereals It is proposed to retain for 
1992/93 the basic and additional co-responsibility levies and to keep the 
maximum guaranteed quantity at the level maintained since its 
Introduction. 
The Commission draws attention to the need for this proposal to be 
adopted so that the co-responsibility levies will be app 11 cab I e Xjrcjn 
1 June 1992. the date of commencement of the marketing year for 
application of co-responsibtIIty in the southern countries. 
Given the persisting imbalance between production and the potential for 
disposal on either the Community or world market it is proposed to keep 
the basic co-responsibility levy at a level equivalent to 5% of the 
intervention price for common wheat. Since this will automatically be 
reduced by 3% at the beginning of the new marketing year It is proposed 
to set the basic levy at ECU 8.17/tonne. 
Retention of the stabilizers will result, since 1991/92 production 
overshot the MGQ, in the Commission's fixing an additional levy of 3% for 
1992/93. 
- 17 -
1-G- Aid for small caram producers 
Since it Is proposed to retain the co-responslblIIty levies It Is 
necessary to retain the aid to small cereal growers under which the co-
responslbl I Ity levy amounts due from them are reimbursed within an 
overall budget allocation. 
Since It Is proposed to maintain the basic co-responslblIIty levy at 5X 
the budget allocation can be maintained at ECU 293 million, which already 
covers the additional levy. 
1*7. Aid scheme for amaIiproducerm of certain arable crops 
This was Introduced for 1990/91 and Is applied at Member States' 
discretion Instead of the scheme for small cereal producers. Only France 
and Portugal have taken up the option. 
Under the reform proposals It Is proposed to continue special aid schemes 
for small producers until 1994/95. 
Since the basic and additional co-responsibility levies are being 
temporarily maintained no change should be made In the aid scheme for 
1992/93. 
1.8. Production aid for canary seed, millet and buckwheat 
The scheme was introduced from 1990/91. 
So far only some Member States, mainly northern ones, have taken It up. 
Despite lack of producer Interest it Is proposed, pending a decision on 
the reform proposals, to maintain the same aid levels as In past years. 
1.9. Potato starch 
There Is no market organisation for potatoes but potato starch Is subject 
to the same rules as cereal starch. The minimum price payable for 
potatoes must therefore continue to be aligned on the price level applied 
to maize. 
- 18 -
As regards the special premium paid to potato starch producers It appears 
that the economic position and special conditions of production have not 
significantly changed relative to cereal starch production. It Is 
accordingly proposed to retain In 1992/93 the present premium of 
ECU 18.67/tonne. 
1.10. Continuation of a special scheme for temporary set-aside of arable land 
It is not possible to exclude the possibility that the Council's 
decisions on the reform of the common agricultural policy may be taken 
too late for the new set-aside system proposed In that context to be 
applied to sowing for the 1993 crop. Therefore It Is proposed to carry 
forward "mutatis mutandis" the temporary set-aside system which was 
applied In 1991/92. 
- 19 -
2. RICE 
Prices and monthly Increases 
It Is proposed to keep the intervention price and the monthly increases 
at their present levels. 
Updating of the factors of calculation. In particular the costs of 
transport between Vercelll and Duisburg, leads the Commission to propose 
a slight reduction In the target price for husked rice. 
For Portugal under the arrangements applicable during the second stage of 
accession there will a second move of the rice Intervention price towards 
the Community level. 
- 20 -
3. SUGAR 
3.1. The Commission proposes freezing the basic price for sugar-beet, the 
intervention price for white sugar and the manufacturing margin. 
This proposal for sugar-beet relates to the basic price and to the 
minimum prices for A and B sugar-beet which are determined on the basis 
of the ceiling fixed for the basic production levy and for the B levy, 
the latter without prejudice to an Increase later In the celling in 
accordance with Article 28 of Regulation (EEC) No 1785/81. 
3.2. As regards the reimbursement of storage costs, the Commission also 
proposes to maintain the current rate of ECU 0.52/month, In the light of 
the proposed freeze on prices. 
3.3. The prices proposed for Spain have been established In accordance with 
Articles 3, 4 and 5 of Council Regulation (EEC) No 1716/91 (0J No L 162, 
26.6.1991, p. 18). 
3.4. As regards the prices proposal for Portugal, the Commission recalls that 
at the time of the accession of Portugal to the Community the basic price 
for sugar-beet guaranteed by the national regime was higher than that 
guaranteed by the Community regime and sugar prices were lower than those 
guaranteed by the Community regime. 
With the "classic" transition period applying in the sugar sector, sugar 
prices are regulated by Article 238(2) of the Act of Accession of Spain 
and Portugal which provides for a seven-stage move towards alignment when 
the price of a product is lower than the common price. Thus, since the 
1986/87 marketing year, sugar prices have been automatically Increased by 
part of the difference so that the common price will apply In Portugal as 
of the seventh move to alignment, i.e. from the 1992/93 marketing year. 
In accordance with the acts of the conference which preceded Portuguese 
accession, the reference "common prices" on which Portuguese prices must 
be aligned are the derived prices applicable in the Ireland/United 
Kingdom region, valid for 1992/93. This results in a final increase in 
the intervention prices for white sugar of ECU 0.87/100 kg. 
- 21 -
Sugar-beet prices are regulated by Article 238(3)(a) and (b) of the Act 
of Accession of Spain and Portugal which lays down that, where the price 
of a product in Portugal Is higher than the common price, alignment will 
result from the development of common prices during the seven years 
following accession and that the Council will carry out an analysis of 
the development of moves towards a price alignment, on the basis of an 
opinion from the Commission accompanied, where appropriate, by suitable 
proposals. 
Therefore, in order to give an opinion and present suitable proposals, 
the Commission has analysed the development of prices in the Portuguese 
sugar sector since the accession of Portugal to the Community. 
3.5. The circumstances under which the Treaty of Accession was negotiated have 
completely changed as regards the sugar sector., Thus, not only did a 
certain alignment expected as a result of Increases In Community prices 
for sugar-beet not occur but common prices were frozen and even reduced 
by 2.1X since then (1986). Portuguese prices have consequently been 
adjusted to avoid an increase in the gap between them and the common 
prices (Article 238(3)(a) of the Act of Accession). 
The trend In Portuguese and Community prices for sugar-beet since the 
accession of Portugal to the Community is shown in Table 1. It will be 
seen that the difference existing at the time of accession has been fully 
maintained, with the Portuguese price continuing to be higher than the 
common price and by the same amount, i.e. ECU 1.26/tonne. 
3.6. The Commission thus notes that for sugar-beet the difference of 
ECU 1.26/t between the Portuguese price and the relevant common price 
means that only 2.94% of the Portuguese price has to be made up. Under 
Article 237 of the Act of Accession, a gap of that size is to be classed 
as minimal because it is even less than the percentage of 3% fixed by the 
said Article as minimal. 
The Commission also emphasises that as the minimum prices for sugar-beet 
in question are determined by reference to regional price differentiation 
in the Ireland/United Kingdom region the sugar-beet price applicable in 
Portugal will be greater than the price applicable in areas where no 
shortfal I exists. .,. 
The Commission points out that the extent of sugar-beet production 
remains reduced (cf. Table II), despite the transitional quota 
arrangements applied for some years now. Since the 1987/88 season, 
production has not exceeded 2 000 tonnes. 
Therefore, in the light of the above, the Commission proposes that the 
Council decide that the alignment in the prices of sugar-beet should 
coincide with the alignment in sugar prices, i.e. from the 1992/93 
marketing year. 
- 22 -
TABLE I 
COMMUNITY AND PORTUGUESE PRICES IN THE SUGAR SECTOR 
86/87 87/88 88/89 89/90 90/91 91/92 92/93 
(prop.) 
1. Intervention 
price for 
white sugar 
(ECU/100 kg) 
- Portugal 50,12 51,00 51.88 51.68 52,47 53.35 54.22 
- EEC(1) 55.39 55.39 55.39 54,31 54,22 54,22 54,22 
Difference 
(ECU/100 kg) -5,27 -4,39 -3,51 -2,63 -1,75 -0.87 0 
2. Basic price 
for beet 
(ECU/tonne) 
- Portugal 43,72 43,72 43,72 42,90 42,83 42,83 41,57 
- EEC(2) 42,46 42,46 42,46 41,64 41,57 41,57 41,57 
Difference 
(ECU/tonne) +1,26 +1,26 +1,26 +1,26 +1,26 +1.26 0 
(1) UK/IRL derived intervention price. 
(2) Basic price for beet Increased by the regional price 
differentiation in the Ireland/United Kingdom area. 
- 23 -
TABLE 11 
Portuoal - Quota and Sugar Production 
(tonnes) 
1986/87 
1987/88 
1988/89 
1989/90 
1990/91 
1991/92 Mainland Portugal 
Quota 
60.000 
60.000 
60.000 
60.000 
60.000 
60.000 Prod. 
0 
207 
176 
656 
550 
(150)* Azores 
Quota 
10.000 
10.000 
10.000 
10.000 
10.000 
10.000 Prod. 
4.328 
1.663 
839 
1.046 
1.100 
(1.050)* Portugal 
Quota 
70.000 
70.000 
70,000 
70.000 
70.000 
70.000 . total 
Prod. 
4.328 
1.870 
1.015 
1,702 
1.650 
(1.200)* 
(*) Provisional estimate. 
- 24 -
TABLE III 
MCE PP.0P0SALS 1992/93 SUCA* 
7. Basic price for beet t 
2. Mini sua price for A beet <1> t 
3. Mlnlmia price for B beet W t 
4. Intervention price for white sugar q 
5. Target price for white sugar q 
6. Threshold price for white sugar q 
7. Intervention price for raw sugar q 
8. Threshold price for raw sugar q 
9. Threshold price for wo lasses q 
10. Monthly relaburseaent of storage costs q 
77. Prices applicable In Spain (*) 
(a) Basic price for beet t 
(b) Intervention price for white sugar q 
12. Prices applicable In Portugal (*) 
(a) Basic price for beet t 
(b) Intervention price for white sugar q 1991/92 
Price 
ECU 
40,00 
39,20 
27,20 
53.07 
55.79 
63.90 
43.94 
54.60 
6.89 
0,52 
46.84 
67.29 
42,83 
53.35 1992/93 
Proposal 
ECU 
40,00 
39,20 
27,20 
53.07 
55.79 
63.90 
43.94 
54,60 
6,89 
0,52 
46,08 
59,57 
47,57 
54,22 Change 
% 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
- 1.6 
'2,8 
- 2.9 
* 7.6 
(1) 
(2) 
(3) 
(4) 98 X of the basic price for beet. 
68 X of the basic price for beet, subject to application of Article 28(5) 
of Regulation (EEC) No 1785/81. 
Established in accordance with Council Regulation (EEC) No 1716/91 of 13 
June 1991 concerning the alignment of the sugar and beet prices 
applicable In Spain on the common prices. 
Established In accordance with Article 238 of the Act of Accession after 
alignment and including the effect of regional differentiation. 
- *D -
4. OLIVE Qlt 
4.1 Prices and aids 
4.1.1 In the context of a general freeze on prices the Commission proposes to 
maintain the target price for olive oil at the same level as in 1991/92. 
4.1.2 As was envisaged In the proposal for consumption aid for 1991/92 
(COM 91) 366 final) the Commission considers that in the light of market 
developments in the sector it is appropriate in future to fix both the 
production aid and the consumption aid at the same time and this year to 
make some transfer from one aid to the other. The Council, when It 
agreed on an ECU 7 reduction In consumption aid for 1991/92 announced Its 
agreement to this policy, adding that the change should have no effect on 
the budget, in the light of the said reduction. 
4.1.3 The Commission proposes an increase In the production aid paid to large 
producers of ECU 12/100 kg and a reduction in the Intervention price also 
of ECU 12. This change will have no effect on the income of producers 
who market their oil. In the case of small producers who consume a large 
proportion or, in certain cases, all their output, on the farm the 
reduction of the Intervention price will have less, or In some cases, no 
effect on revenue. Bearing this and the general policy of favouring 
small producers In mind, the Commission considers that there should be 
some increase in the aid paid to small producers but a smaller one than 
Is proposed for commercial producers. Thus the increase in the aid 
proposed for small producers is ECU 6/100 kg, which will reduce the 
difference between the aid for small producers and that for large 
producers to about ECU 8/100 kg. 
4.1.4 As regards consumption aid, the Commission proposes a reduction of 
ECU 8/100 kg. Taking into account the reduction in the intervention 
price, this will enable the representative market price to be reduced by 
ECU 4/100 kg. This reduction, taking the representative market price 
back part of the way towards the level prevailing in 1990/91, reflects 
the change in market circumstances. With 1991/92 production having 
recovered sharply from the depressed level of 1990/91, an Increase In 
consumption in the current campaign may be expected but the 1992/93 
campaign is likely to begin with stock levels of a<higher level than at 
the beginning of this year. 
- 26 -
4.1.5 In addition to the existing Institutional criteria, it is also proposed 
that deductions from aid (for measures to Improve quality, aid for 
professional organizations and promotional measures) be set on the basis 
not only of the tasks allocated but also on the basis of the amendments 
proposed to the aid and appropriations accumulated over previous years. 
4.1.6 With regard to consumption aid In Spain, the reduction in aid for the 
Community of Ten will result In a smaller Increase in Spanish aid In 
accordance with the rules on alignment laid down in Article 2 of 
Regulation (EEC) No 3416/90. 
With regard to Portugal, there should be slight changes to the current 
level of aid to consolidate the level of consumption in the country. 
An increase in production aid will be affected in the Iberian peninsula 
through the normal alignment machinery. 
All the Commission's proposals for the 1992/93 marketing year are 
summarized in the table. For comparison, the data on which production 
aid and consumption aid in the sector were based during the 1990/91 and 
1991/92 marketing years are also shown. 
4.2. Related measures 
In accordance with the abovementioned proposal of October 1991, the 
Commission proposes to the Council that Regulation No 136/66/EEC be 
amended so that: 
all institutional prices and aids for olive oil are set 
simultaneously in the price package; 
- when the representative market price (and consumption aid) are set, 
less weight is given than in the past to the movement of seed oil 
prices. 
- 27 
Olive oil price proposals 
(Ecus/100 kg) 
Type of price or aaount 
1. Target price for olive oil 
2. Intervention price EUR-10 
- Spain 
- Portugal 
5. Representative aarket price for olive oil 
6. Threshold price 
7. Production aid for olive oil 
- Spain 
- Portugal 
- Coaaunlty of Ten 
8. Production aid to olive growers whose 
average production Is less than 500 kg 
olive oil per aarketIng year 
- Spain 
- Portugal 
- Coaaunlty of Ten 
Consumption aid applicable 
- Spain 
- Portugal 
- Community of Ten 
9. Amounts withheld on production aid 
- quality Improvement 
- aid to producer organizations and 
associations thereof 
10. Amount withheld on consumption aid 
- promotion measures 
- aid to trade organizations 90/91 
322.01 
215.87 
175.12 
207.58 
190.28 
189,11 
39,61 
35,46 
70.83 
44,36 
40,21 
81,62 
42,93 
47,92 
60,90 
2,0 
7,5 
4,0 
7.4 91/92 
322,01 
215,87 
785.37 
209,65 
197,28 
194,20 
45,85 
42,53 
70,83 
51,81 
48,49 
81,62 
45,67 
49.42 
53.90 
2.0 
1,5 
1,0 
1,4 92/93 
322,01 
203,87 
184,63 
199,95 
193,28 
189,98 
55,10 
52,61 
82,83 
60,76 
58,27 
87,62 
45,75 
48,25 
45,90 
1.6 % 
1.2 % 
0.7 % 
2.0 % 
- 28 -
5. OILSEEDS AND PROTEIN CROPS 
5.1. OlIseeds 
The Council has already taken the necessary decisions on the support 
arrangements for oilseed producers. 
5.2. Protein Crops (Peas. Field Beans and Sweet Lupins; Dried Fodder) 
For 1992/93 the elements of the existing market organization for protein 
crops should be retained, with no changes. 
5.2.1 Stabilizer Regime: 
The Maximum Guaranteed Quantity (MGQ) system is applied to pulses but no 
MGQ Is applied to dried fodder. The level of the MGQ was fixed for an 
initial period of three marketing years, from 1988/89 to 1990/91 and 
extended for the 1991/92 marketing year. 
The current MGQ system, as applied during the last four maketlng years, 
results in the Commission making adjustments In support when production 
exceeds the MGQ. 
The Commission proposes that, for 1992/93 for pulses, the MGQ system be 
maintained unchanged. 
5.2.2 Prices: Peas, field beans, sweet lupins (pulses) 
Under Articles 2 and 3 of Regulation (EEC) No 1431/82. the Council is 
requried to set. annually, various institutional prices for pulses. 
The Commission proposes that for the 1992/93 marketing year these 
components should be maintained unchanged. 
5.2.3 Prices; Dried fodder 
The Council is required, under Article 4 of Regulation (EEC) No 1117/89, 
to set, annually, a guide price for dried fodder. The Commission 
proposes that the dried fodder guide price for the *\992/93 marketing year 
will be maintained unchanged. 
The coefficient to be used in the calculation of the aid has already been 
fixed by the Council at 80X for the 1992/93 marketing year. 
5.3. Other protein crops; Lentils, chick peas and vetches 
In Regulation (EEC) No 762/89 the Council introduced a per hectare based 
aid system for the growers of lentils, chick peas and vetches, which will 
expire on 30.6.1992. It is proposed to extend this aid system until the 
end of the 1992/93 marketing year, and maintain the aid at ECU 75/ha. 
- 29 -
6. TEXTILE FIBRES 
6.1 Cotton 
6.1.1 Pursuant to Article 3(2) of Regulation (EEC) No 1964/87<1>, the 
Commission presents In Annex I a report on the operation of the aid 
system for cotton together with a proposal for adapting this system. 
6.1.2. Under paragraph 8 of Protocol No 4, a guide price Is fixed each year by 
the Council In order to support cotton production In Community regions 
where it is Important to the agricultural economy and to enable producers 
to earn a fair income. 
In the light of the proposals for the chief alternative crops, and taking 
Into account the conclusions of the attached report, it is proposed that 
the guide price be maintained for 1992/93, subject, however, to a 
technical adjustment resulting from the change proposed to the standard 
quality. It would be appropriate for the standard quality to be brought 
into line with the quality of cotton effectively marketed In the 
Community^2). In order to avoid a drop In operators' Income and not at 
the same time increase EAGGF expenditure, the guide price for 1992/93 
should be raised to ECU 102.79/100 kg. 
6.1.3 Under Article 9 of Council Regulation (EEC) No 2169/81, a minimum price 
for unginned cotton has to be fixed each year at a level which enables 
producers to sell at a price as close as possible to the guide price. 
For 1991/92 the Council fixed the minimum price for unginned cotton at 
95X of the guide price. The differential between the guide price and the 
minimum price, which serves to maintain the necessary market fluidity, 
has not given rise to problems. It is therefore proposed that the 
minimum price for unginned cotton for 1992/93 also be fixed at 95X of the 
(adjusted) guide price. I.e. at ECU 97.65/100 kg. 
6 1.4 As explained in the report, it i 
regime but to limit the size of 
the course of a season, with any 
into the following season. This 
a better assurance of the price 
diminishing the long-term effect 
order to give producers greater 
guaranteed quantity be fixed for 
annually. The figure proposed I 
figure as last year but adapted 
standard qualIty. s proposed to continue the stabiliser 
the price reductions which may be made in 
excess beyond that limit carried forward 
amendment is designed to give producers 
they will receive in any year but without 
iveness of the stabilizer. Also, in 
security, it is proposed that the maximum 
a period of four years rather than 
s 701 000 tonnes, effectively the same 
to take account of the change in the 
6.1.5 It is proposed that the programme for small producers (less than 2.5 ha) 
be extended by four marketing years. 
(1) 0J No L 184, 3.7.1987, p. 14. 
(2) This improvement in the standard quality leads to a proportional 
reduction in the quantity eligible for aid. 
- 30 -
6.2. Fibre flax 
Under Article 4 of Regulation (EEC) No 1308/70<1>, a flat rate of aid 
per hectare has to be fixed each year for fibre flax to ensure an even 
balance between the necessary production and the scope for disposal. For 
1991/92 the aid was fixed at ECU 374.36/ha, of which ECU 37.44/ha was not 
paid to the beneficiaries but earmarked for funding promotional measures 
and the search for new markets. Areas under fibre flax in the Community 
have risen In recent years (78 900 ha In 1990 and 1989, 73 000 in 1988, 
67 000 In 1987), which has led to a sharp drop in flax straw prices and 
In producers' income. To counter this market imbalance, the areas under 
fibre flax in the Community fell in 1991 to reach only 55 100 ha (-30X) 
and a further decline Is expected for 1992. Production of flax fibre 
should consequently go down substantially In order to reach a new 
balance. In view of the current and foreseeable situation on the market, 
aid of ECU 374.36/ha is proposed also for 1992/93. Furthermore, as far 
as the deduction of the aid for promotional measures is concerned, It is 
proposed that it be kept at 10X of the aid, i.e. again at ECU 37.44/ha. 
Such promotional measures are necessary to ensure the desired market 
equilibrium in the longer term. 
6.3. Flax seed 
Under Article 1 of Regulation (EEC) No 569/76(2), the Council fixes a 
guide price each year for flax seed In order to ensure a fair income for 
producers. 
The guide price for the Community of Ten and Portugal was fixed at 
ECU 54.49/100 kg for 1991/92. It Is proposed that for 1992/93 the price 
should again be fixed at ECU 54.49/100 kg for these Member States. 
6.3.2 In the light of the proposals for alternative crops, keeping the guide 
price the same for flax seed should allow the cultivation of seed flax to 
be maintained, at least in production areas where suitable yields can be 
obtained. In the case of flax seed obtained from fibre flax, the 
proposed price should ensure a fair Income for producers, given the 
foreseeable recovery of the market price for flax straw and the level of 
the flat-rate aid granted per hectare. 
6.3.3 In accordance with Article 93 of the Act of Accession of Spain and 
Portugal it is proposed that the guide price for Spain be set at 
ECU 51.67/100 kg. 
(1) 0J No L 146, 4.7.1970, p. 1. 
(2) 0J No L 67, 15.3.1976, p. 29. 
- 31 -
6.3.4 Although no changes are proposed in the linseed scheme this year, the 
Commission recognises that It is anomalous that this oilseed is subject 
neither to the maximum guaranteed area system currently applying to other 
oilseeds nor to the set aside requirement to which the producers of other 
oilseeds will be subject under the proposed new support system for 
producers of arabel crops. A choice between these alternatives can best 
be made once the new support system for producers of arable crops has 
been adopted but the Commission wishes to take the opportunity of, 
accounclng to linseed producers that unless by the end of this calendar 
year the Iinseed has been taken Into the proposed support system for 
arable crops it will, from 1993/94 onwards be subject to a maximum 
guaranteed area system based on the area sown in 1991/92. Under this 
system the aid will be reduced by 0.5X for each 1X Increase In the 
planted area compared with the base year. 
6.4. Hemp 
6.4.1 Under Article 4 of Regulation (EEC) No 1308/70, a flat rate of aid per 
hectare has to be fixed for hemp to ensure an even balance between the 
necessary production and the scope for disposal. 
For 1991/92, the aid was fixed at ECU 339.42/ha. 
For 1992/93, It Is proposed to keep the aid at Its present level. 
6.4.2 The Commission considers that, given the forseeable trend in prices for 
fibres and seeds, on the one hand, and the level of the aid for hemp seed 
as well as the prices for other crops, on the other, the proposed flat-
rate aid should enable producers' Incomes and the areas sown to be 
maintained. 
6.5. Hemp seed 
Article 1 of Regulation (EEC) No 3698/880) provides that aid Is to be 
fixed each year for hemp seed at a level which Is fair to producers and 
takes account of the Community's supply requirements. 
For the 1991/92 marketing year, the aid was fixed at ECU 24.59/100 kg. 
It is proposed that for 1992/93 the aid be maintained at its present 
level. • 
(1) OJ No L 325, 29.11.1988, p. 2. 
- d* -
6.6. SiIkworms 
Article 2 of Regulation (EEC) No 845/72<2) provides that aid is to be 
fixed each year per box of silkworm eggs used, at a level which helps to 
ensure a fair Income for silkworm rearers. 
For 1991/92, the aid was fixed at ECU 111.81/box. For 1992/93 it Is 
proposed In view of the current and foreseeable prices for raw silk that 
It remain unchanged at ECU 111.81/box. 
(2) OJ No L 100, 27.4.1972, p. 1 
5) 
- 33 -
7. WINE 
7.1. Prices 
The Commission proposes to maintain the same guide price In 1992/93 as In 
1991/92. 
7.2. Related measures 
The Commission Intends to present proposals in the course of this year 
for the reform of the common organization for wine. - However, it does not 
consider It opportune to open this discussion whilst the attention of the 
Council Is concentrated on the major series of reform already proposed in 
other areas of the common agricultural policy. It therefore proposes to 
extend certain deadlines set out In existing legislation, that is to say: 
the submission of reports on the definition of wine-growing zones, 
enrichment, the effectiveness of structural measures on compulsory 
distillation, the sulphur dioxide content of wine, sparkling wine 
and dessert wine (in preparation) and measures to enable groups of 
producers to be treated in the same way as producers for compulsory 
distillation contracts; 
determination of the rules for calculating the quantities to be 
distilled in each production region (uniform percentage and 
reference year), agreed to following the Dublin agreement but held 
over until 31 August 1992, and the derogation given to allow the 
compulsory distillation scheme to be applied according to special 
rules in Greece; 
setting of the trial period for certain deacidification practices 
soon to expire; 
fixing of the period during which that part of the aid intended to 
promote the use of grape must for the production of Juice may be 
earmarked for the promotion of grape Juice (already extended last 
year until 31 August 1992). 
- 34 -
8. FRUIT AND VEGETABLES 
8.1. Basic and buy Ino-In prices 
Pursuant to Article 16 of Council Regulation (EEC) No 1035/72 on the 
common organization of the market In fruit and vegetables, each year the 
Commission proposes a basic price and a buying-in price for each of the 
products listed In Annex II to the said Regulation, namely cauliflowers, 
apricots, nectarines, peaches, lemons, tomatoes, aubergines, pears, table 
grapes, apples, satsumas, mandarins, Clementines and oranges. 
It Is proposed that the basic and buying-In prices of all products be 
kept at their present level. The Commission will draw the necessary 
consequences of any overshooting of the intervention thresholds once the 
final level of withdrawals during the 1991/92 marketing year is known. 
In the case of Spain and Portugal, the prices will be further aligned In 
accordance with Articles 149 and 285 of the Act of Accession. This Is 
the third alignment for Spain and the second for Portugal. 
8.2. Intervention thresholds 
The intervention threshold for apples Is now set until the end of the 
1991/92 marketing year. With a view to ensuring the market equilibrium 
in this sector, it Is proposed that this threshold be made permanent and 
at the rate in force for the 1991/92 marketing year, namely 3X of the 
average production for consumption as fresh fruit pertaining over the 
last five marketing years for which figures are available. 
8.3. Processed fruit and vegetables 
The system of quotas for processed tomatoes which has applied for the 
past four years expires at the end of this season and the previous 
guarantee threshold system will automatically come back into force. Many 
in the industry prefer the certainty of a quota system and the Commission 
recognises that it does have many advantages. It is too late to disturb 
the legitimate expectations that quotas will not apply this year but the 
Commission is prepared to propose their re introduction next year based on 
previous levels, not on production in 1992/93. In 'the meantime, in order 
to avoid a sudden increase In expenditure arising from the non-
application of a quota system this year and to avoid a conflict between 
the two systems next year, the Commission proposes that any aid reduction 
which may be needed as a result of the threshold being exceeded this year 
will apply this year rather than next. 
- 35 -
9. TOBACCO 
9.1. As the proposed reform of this regime cannot now be applied to the 1992 
crop, the Commission proposes to extend unchanged the 1991 levels of the 
norm and intervention prices, premiums, derived intervention prices, 
refrence qualities and production areas. Prices also remain unchanged 
for certain problematic varieties where the specific price reductions 
decided In the past have to be continued. 
9.2. For certain varieties, however, the proportion of the lowest grade 
acceptable for intervention which is purchased by processors has risen to 
levels at which, under existing rules, the lowest grade should now become 
the representative one. The full application of this rule would, 
however, have a more drastic effect on the level of premla paid for these 
varieties than Is reasonable In the context of this final year of the 
existing regime. As an interim measure, therefore, a premium reduction 
will be applied in cases where a processor purchases more than a given 
percentage of the lowest quality. This measure will have no effect on 
the minimum price payable to the producer. 
9.3. Furthermore, according to Article 13 of Regulation (EEC) No 727/70 the 
Commission presents In Annex II a report on the situation of production 
and marketing of certain varieties of tobacco. 
- 36 -
10. MILK AND MILK PRODUCTS 
10.1. Prices 
The Commission proposes to maintain In 1992/93 the same level of target 
and Intervention prices as In 1991/92. This proposal assumes that the 
Council will decide to continue the milk quota system, as the Commission 
has already proposed. 
10.2. Price alignment in Spain and Portugal 
In accordance with the rules of the Treaty of Accession (Article 70(3)), 
the Commission proposes that the common intervention prices for butter 
and skimmed-milk powder should be applied in Spain. For Portugal, the 
common intervention price for butter has already been applied since the 
beginning of the 1991/92 marketing year. For skimmed-milk powder the 
Commission proposes, as provided for In the Treaty of Accession, that the 
difference in price between the Azores and mainland Portugal should be 
eliminated and therefore that the current Intervention price in the 
Azores should be applied to Portugal as a whole. 
10.3. CoresDonslblilty lew 
Taking Into account the serious budgetary situation and the general 
context of maintaining the existing price level, the coresponsiblIty levy 
must be maintained at its present level. 
10.4. Quotas 
The existing quota regime expires on 1 April 1992. Proposals for quotas 
from that date onwards have been presented In the context of the reform 
of the common agricultural policy. The proposal to maintain prices at 
the same level as in 1991/92 presupposes that the Council will reach 
decisions on the basis of these proposals before 1 April. It would be 
quite impossible to maintain support prices without limits on quantities. 
10.5. Inward processing 
Inward processing Is currently suspended in the milk sector, with a 
specific exemption for certain products. The Commission proposes that 
both this suspension and the exemption should continue In 1992/93. 
- 37 -
11- BEEF AND VEAL 
11.1. Community prices 
It is proposed to maintain the guide price at the same level as in 
1991/92, I.e. at ECU 200/100 kg llveweight. It Is also proposed to 
maintain the intervention price at ECU 343/100 kg carcase weight for 
qua Iity R3. 
11.2. Public intervention 
Whilst the Council reaches decisions on the reform it is proposed not to 
adapt the existing Council rules. 
11.3. Promt a. 
No change for the special beef premium Is proposed, compared to Its level 
in 1991/92, i.e. ECU 40 per animal (with an unchanged maximum of 90 
animals). As regards the suckler cow premium, the level should be fixed 
at the level existing in 1990/91 (exclusive of the once-off increase 
decided for 1991/92), I.e. ECU 40/cow (without headage limit); with the 
possibility of a national supplement subject to a maximum ECU 25/cow; and 
the associated provision for payment by EAGGF of the first ECU 20/cow of 
this national supplement in the case of Greece, Ireland, and the United 
Kingdom insofar as Northern Ireland Is concerned. 
11.4. The Commission remains concerned at the continuing difficulties In the 
beef sector as reflected by heavy intervention purchasing and low prices 
to producers. Accordingly, It expects early decisions by the Council in 
the reform context to redress current trends. The Commission will 
continue to monitor' the situation closely and, in the absence of the 
necessary Council decisions on reform of the sector, reserves the right 
to bring forward proposals to deal with the situation in the event of a 
further deterioration in the market. 
- 38 -
12. SHEEPMEAT AND GOATMEAT 
12.1. Institutional prices for the 1992 marketing year were fixed in the 
1991/92 price package. 
As regards institutional prices for 1993 the Commission wishes to stress 
that within Its proposals for the reform of the sector the application of 
the stabilizer mechanism is to be frozen at 7X (Its 1990 level). This, 
together with the introduction of a limited producer guarantee for 
premium purposes and the reduction of 2X In the basic price fixed by the 
Council for the 1992 marketing year, should limit the development of 
production. The Commission therefore considers that Its cautious 
Institutional price policy should be continued. Under these circumstance 
It proposes to maintain the basic price unaltered for 1993. However, 
should the Council fail to adopt Its reform proposals, the Commission 
reserves the right to make further proposals with respect to the 1993 
institutional prices. 
12.2. In the context of the reform of the sheep sector, which has operated 
since 1990, the opening of private storage measures is dependent on the 
level of the weekly seasonal!zed basic price. However, because of the 
importance of the variable slaughter premium in Great Britain, 
particularly in budgetary terms, the seasonal scale of the basic price 
has been influenced since then more by the requirements of the slaughter 
premium than by those of private storage. Since the variable slaughter 
premium no longer applies in Great Britain, it is now opportune to adjust 
the seasonal scale so as to improve Its application insofar as private 
storage Is concerned. 
12.3. Sheepmeat production throughout the Community tends towards two seasonal 
peaks, the first in late winter and spring in southern parts and the 
second in mid-summer and autumn in northern parts of the Community. Peak 
production in the south in spring is relatively high cost as it is 
dependent on cereal feeding while peak production in the north is less so 
as it is generally grass based. In order to provide a reasonable measure 
of market support at peak production periods throughout the Community 
while at the same time taking some account of differing production costs, 
it is proposed to maintain the overall shape of the seasonal scale. 
Nevertheless, it Is felt that the extent of the increase or decrease in 
the seasonalized price in comparison to the basic price itself should be 
reduced considerably from the levels associated with the variable 
slaughter premium in order to take Into account the abovementioned 
differences in peak production throughout the Community. Therefore, it 
is proposed that the peak and trough levels of the 1992 seasonalized 
basic price be reduced by 25X. Experience gained to date in the 
operation of the tendering system for aid to private storage would 
suggest that eligibility for tendering would not change significantly, 
consequent to such an alteration in the seasonal scale. 
- 39 -
13. PIGMEAT 
Basic price 
The basic Regulation for pigmeat provides for the fixation of a basic 
price, the aim of which Is to trigger market Intervention measures (in 
practice, aids to private storage). Such measures may be Initiated when 
the average market price in the Community falls below 103X of the basic 
price. The basic price is In force from 1 July to 30 June. 
From 1 November 1984 to June 1990 the basic price for pig carcases of 
standard quality stood at ECU 2.033.30 per tonne, and for the period 
July 9190 to June 1992 has been fixed at ECU 1.897.00 per tonne. 
it is proposed to maintain this level for the marketing year 1992/93. 
The definition of standard quality should remain at: 
(a) carcase weighing 60 kg to less than 120 kg: grade U, 
(b) carcase weighing 10 kg to 180kg: grade R. 
- 40 -
ANNEX t 
Report on the on«rntjQn of the system of aid for cotton 
(to be submitted to the Council by the Commission) 
1. introduction 
Article 3(2) of Regulation (EEC) No 1964/87(1) provides that by the 
1992/93 marketing year at the latest, the Commission Is to submit a report 
on the operation of the system of aid to the Council. If the report shows 
it to be necessary, the Council Is to decide on any adjustments to the 
system. 
2. Basic provisions of the system of aid for cotton 
A. The system of production aid Introduced for cotton by Protocol No 4 annexed 
to the Act of Accession of Greece and adjusted by Regulation (EEC) 
No 1964/87 provides basically for: 
(1) the granting of aid In respect of a quantity of cotton of a certain 
quality (standard quality); 
(2) the calculation of the aid on the basis of the difference between a 
norm price and a world market price fixed for unginned cotton (raw 
cotton) with a view to permitting the disposal of Community production 
at the world price;*2) 
(3) the granting of aid to ginning plants provided they have paid the 
producer a minimum price which Is close to the norm price and takes 
account of the quality of the product delivered; 
(4) a reduction in the aid where production exceeds a maximum guaranteed 
quantity (MGQ). 
(1) Council Regulation (EEC) No 1964/87 adjusting the system of aid for cotton 
(OJ No L 184, 3.7.1987, p. 14). 
(2) The report annexed to the 1987/88 price package says that the Commission 
drew the Council's attention in particular to the problems inherent In 
granting aid for unginned cotton (basically the lack of prices for seed and 
the difficulty of assessing the cost of ginning). Noting in addition that 
the difficulties It experienced in calculating the aid stemmed almost 
exclusively from those components of the calculation not related to fibre, 
the Commission proposed to grant the aid In respect of the latter. However, 
the Council did not endorse the Commission's conclusions. Noting now that 
since that time these problems have persisted but not worsened and In the 
light also of experience with oilseeds (soya panel), the Commission is 
refraining from proposing such an amendment again. 
- 41 -
B. In addition to this system of production aid, In 1990<1) the Council 
introduced a system of aid for small cotton producers (cultivating up to 
2.5 hectares) for the 1989/90, 1990/91 and 1991/92 marketing years to allow 
them to recover the additional costs of manual harvesting. (They are 
unable to undertake mechanical harvesting owing to the small size of their 
holdings.) It appears from the development of the area cultivated by small 
producers that the additional aid granted was too attractive by comparison 
with the aid granted to other producers. However, the effect of the 
Increase in the area planted by small producers has been to diminish the 
aid, thus moving the scheme closer to an equilibrium and the Commission 
therefore proposes to extend It unchanged. 
3. The way the system of aid operates 
While It permits reasonable expansion of Community cotton cultivation, the 
present aid system has curbed excessive growth In production, thus limiting 
EAGGF Guarantee expenditure on cotton and safegarding traditional 
deliveries from non-member countries, which Include some developing 
countr ies. 
(a) Firstly, during the three years preceding accession, areas under cotton 
amounted on average to 148 600 ha in Greece and 54 700 ha in Spain 
compared with 260 300 ha and 76 700 ha respectively on average during 
the period 1989 to 1991. In addition, areas under cotton In these two 
countries, which amounted to 273 100 ha before Spain's accession and 
rose to 391 700 ha in 1988/89, fell back from 1989/90 to 311 500 ha In 
1991/92 (Table I). During the last five marketing years, aid for cotton 
fell on average by 14.6% (ECU 14.584/100 kg) as a result of the 
co-responsibility arrangements, thus reducing the average norm price to 
ECU 81.372/100 kg (Table II). Community cotton production, which rose 
substantially until 1988/89 (1 190 000 tonnes), subsequently declined 
to 850 000 tonnes (estimate) in 1991/92. 
During the period under consideration, average production was around 
1 million tonnes (1 009 000 tonnes). 
(1) Regulation (EEC) No 1152/90 Instituting a system of aid in favour of small 
cotton producers (OJ No L 116, 8.5.1990, p. 1). 
- 42 -
(b) Secondly, as regards the financial consequences of the 
co-responsibility arrangements, savings amount In total to ECU 766 
million for the period 1987/88 to 1991/92. or ECU 153 million on 
average per marketing year (Table III). 
(c) As regards trade, Imports of cotton fibres Into the Community In 1990 
were only slightly down on those In 1986 and are still above 1 million 
tonnes (Table IV), deliveries from Spain and in particular from Greece 
to both other Member States and non-member countries did not fall 
(Table V) and the Community's self-sufficiency rate Is only around 25X 
(Table VI). 
To conclude, experience gained since the 1987 change to the aid system 
Indicates that the latter has operated satisfactory. For these reasons the 
Commission considers that the present system should be maintained, subject 
to certain technical adjustments to Improve the way It functions. 
Before the 1996/97 marketing year, the Commission will submit a report to 
the Council on the future arrangements for cotton in light of experience 
gained in this area after the changes proposed below and after the 
introduction of the system contemplated for major crops under the reform of 
the CAP. 
4. Proposed changes 
A. Stabilizer arrangements 
While considering that the stabilizer arrangements have basically achieved 
their objectives, the Commission points out that In the framework of the 
discussions on the agricultural price proposals for 1991/92 the Council 
called on the Commission "in the context of the upcoming revision of the 
stabilizer for cotton, to see what measures would be appropriate for 
protecting producers against the very substantial price fluctuations 
between one season and the next, without thereby Jeopardizing the economic 
effectiveness of the system. 
The Commission Is aware of the fact that the reduction varies greatly, 
which Introduces great uncertainty as regards anticipated income. During 
the period under consideration, the reduction varied'between 6X and 25X 
(Table VII); this figure would have been even higher if a buffer had not 
existed. 
The present system, which Is based on the calculation of estimated 
production and actual production, has not affected the way the aid system, 
has functioned despite the differences sometimes recorded between those two 
components. 
- 43 -
Lastly, the present stabilizer arrangements provide for annual fixing of 
the MGQ. Although a maximum of 752 000 tonnes has always been used, this 
annual fixing is an additional source of uncertainty among producers. 
Under these circumstances, to remedy the abovementioned drawbacks. It Is 
proposed: 
1. to discontinue the annual fixing of the MGQ; 
2. to discontinue the progressive reductions In bands where the MGQ Is 
exceeded but to fix a reduction resulting from the app11 cat Ion of a 
coefficient calculated on the basis of the overrun in the MGQ; that 
coefficient Is to be calculated so as to bring about a reduction 
comparable with the present reduction but more equitable In the case of 
production levels which are close to the present band of 15 000 tonnes; 
3. to limit the reduction applicable to a marketing year to 20X while 
carrying over that part of the reduction above the 20X maximum to the 
following marketing year; such a change should provide greater 
stability for the stabilizer arrangements; 
4. to make the MGQ equal to 701 000 tonnes In order to ensure budget 
neutrality. In view of the change in the standard quality (see B(a) 
below). 
B. Other chances 
(a) Determination of the standard quality 
Determining the quantity of cotton eligible for the aid requires taking 
a sample to record the Impurities and moisture content in order to 
adjust the weight as such of the cotton placed under supervision, 
taking account of the difference compared with a standard quality (3X 
inorganic impurities and 14% moisture, the organic impurities content 
not being taken into account). 
The standard quality used has turned out to be very different from the 
actual quality of cotton produced (around 3% impurities including 1% 
Inorganic impurities and 10X moisture). Substantial adjustments to the 
contract price and to the quantity of product eligible for aid were 
therefore necessary (Table VIII). 
Furthermore, as organic impurities are not taken into account, the 
producers were not encouraged to produce clean cotton, to the detriment 
of the quality of product delivered. 
Under these circumstances the Commission proposes the following 
standard quality: 3% impurities and 10X moisture, which results in a 
reduction of 6.74x1 in the quantity eligible for aid. 
100 - (1 • 10) 100 - (3 • 10) 
100 - (3 + 14) 100 - (3 • 10) 
- 44 -
(b) Fixing the aid after the event 
While the Commission considers that despite the lack of intervention or 
other measures to facilitate disposal, the latter has not posed major 
problems. It nevertheless notes that glnners who were not able to sell 
fibres on placing under supervision, the latest time limit for the 
submission of aid applications, receive Insufficient aid where there Is 
a fall in the world price. By introducing the possibility of applying 
for the aid after placing under supervision, the problem would be 
so Ived. 
5. This report Is accompanied by a proposal for a Council Regulation: 
- adapting for the second time the system of aid for cotton; 
amending Regulation (EEC) No 2169/81 laying down the general rules for 
the system of aid for cotton (the aim of these two proposals is to 
amend the stabilizer arrangements In line with point 4.A. above); 
- amending Regulation (EEC) No 1152/90 instituting a system of aid In 
favour of small cotton producers (the aim of this proposal Is to extend 
the arrangements as indicated In point 2.B. above). 
- 45 -
TABLE L 
Change In Coaaunltv areas under cotton (ha) 
1978/79 
1979/80 
1980/81 
9 1978/80 
1981/82 
1982/83 
1983/84 
1984/85 
1985/86 
i 1983/85 
1986/87 
1987/88 
1988/89 
1989/90 
1990/91 
1991/92 
9 1989/91 GREECE 
168.232 
136.354 
141.060 
148.549 
126.300 
137.300 
168.000 
192.000 
209.000 
210.000 
202.000 
256.000 
280.000 
268.000 
233.000 148.549 
260.333 SPAIM 
39.606 
60.313 
64.052 
80.583 
87.306 
735.473 
67.829 
83.881 
78.496 54.657 
76.735 ITALY 
33 
255 
166 
93 
-
-TOTAL 
273.052 
290.616 
283.561 
391.639 
347.922 
351.881 
311.496 
337.068 
T A 8 I E II 
1997/99 
1999/99 
1999/90 
1990/91 
1991/92 
• MCO 
(t< 
792.000 
792.000 
792.000 
792.000 
792.000 
792.000 Product Ion 
(tonnes) 
979.000 
1.199.998 
1.099.947 
991.743 
999.912) 
1.009.939 Overrun 
(tonnes) 
123.909 
437.998 
348.947 
239.743 
139.912 
299.933 Theoretlcol reduction 
(without carryover) 
X | EfcU/100 ko 
+ T T 
Adjusted 
norm price 
ECU/100 kg 
9 | 9.842 
20(30) | 19.204 
24 | 23.04S 
18 | 19.338 
10 | 9,999 
IS.9 | 19.193 87.378 
78.818 
72.979 
90.922 
99.274 
90.793 Small producers 
(ECU/100 ko) 
Aid 
0 
9.248 
8.038 
8.038<#> 
4.084<»> Adjue. price 
83.378 
78,818 
81.221 
88.998 
92,310 
84,897 
(•) Estimate 
3 1 I 
• w 
•5 
ft kl 
J 
5 
4. 
Cv < 
m • c 
s 
*-
* Aid 0 
ECU/100 kg Norm prlc* 
Ecu/100 kg J 
• 
• 
• 
3 •J* < 
"9 • X 8 § 5 8 8 522 
842 | 
483 | 
444 
[578] | 875.808 
1.189.888 
1.098.547 
991.793 
[888.912] 283.561 
391.839 
347.922 
351.881 
311.498 
•» tn p» «o «—i <o ot to r* © 
s' s i i s-
CO 3.761 
19.200 
17.284 
23.965 
6.710 90.259 
78.820 
78.736 
71.895 
89.150 
8 8 8 8 8 <o co *o en in 1 
j 1987/1966 
| 1988/1989 
1989/1990 
1990/1991 
| 1991/1992 
i s 
§ 
8 i 
z 
5 
<M 
•0 
2 
Ok 
Ok 1 
-J I i<* 
S 
: u 
ki Ok so * * CO 
8 fc 8' 8 R 
w 
HIM 
2 P* *> • p» 
8888 8 
5 9 S 8 8 
8 8 3 8:: 
N M N « « 
^ O en p* co ok 
•C • • • • • 
Jo SS"** 
8s 
3 SS§3 
2 S 8 ? 8 
«- CM Ok CO SO CM SO <* * CO 
P 8 8* 8 8 
S3§§§ 
§2§gS As 
CO p* CO co w 
8 8 n n n 
sssu 
M i*) io to n 
°« w "l ** **". 
•^ SO *0 SO CM 
8 2 2 2 8 
»n so ok CM S 
£ 8 8 8 5 
K8S CM kf> • • « fi p* r» CM so CM K 
Q CM Ok P. Q n N a M a «» K so co *-
in <o 51 
•*- « 2 
00 CO 80 
Ok Ok O* 2SL5 §3 
8 §2 88 
•- CM CM •- CM 
m p» co «e> co 
SQ p* e> CM 
co so CM so 
3 5 P* so 
CM O 8 
« N q s o co co co eo ok 
O O O O ft 
- 49 -
r *gLC y 
Deliveries of cotton fibres (tonnes) 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 GREECE 
Intra EC-10 
1.518 
1.130 
5.617 
7.532 
427 
Intra EC-12 
14.956 
44.999 
4.355 
41.821 
19.468 Extra EC-10 
7.765 
16.407 
17.288 
27.431 
37.770 
Extra EC-12 
11.927 
43.594 
36.793 
66.742 
49.663 florid 
9.283 
17.537 
22.905 
34.963 
38.197 
World 
26.883 
88.593 
41.448 
108.563 
69.150 SPAIM 
Intra EC-10 
8.633 
24.143 
Intra EC-12 
18.807 
19.240 
18.460 
42.474 
14.534 Extra EC-10 
1.463 
8.325 
Extra EC-12 
5.895 
7.742 
8.736 
. 11.702 
7.579 tor Id 
10.096 
32.463 
lorld 
24.702 
26.982 
27.222 
54.176 
22.647 
Source : EUROSTAT-COMEXT 
- 50 -
T A B L g VI 
EC self-sufficiency rate in cotton fibres 
1987 
1988 
1989 
1990 
9 Production 
t 
280.195 
380.757 
351.535 
317.374 
332.465 Exports 
t 
56.742 
55.593 
89.910 
72.130 
68.594 Imports 
t 
1.201.837 
1.017.376 
1.028.266 
1.005.528 
1.063.252 Apparent 
consumption 
t 
1.425.290 
1.342.540 
1.289.891 
1.250.772 
1.327.123 Self-
suffi­
ciency 
rate 
% 
20 
28 
27 
25 
25 
Source : EC Commission. DG VI 
- 51 -
TABLE VII 
Estimated ond octuol Cc—unlty unglnnod cotton production 
1987/88 
1988/89 
1989/90 
1990/91 
1991/92 
0 Production (t) 
Eattatatod 
828.850 
1.086.902 
1.009.119 
1.035.279 
888.912 Actual 
875.608 
1.189.866 
1.098.547 
991.743 
(1) 850.000 Olfforonco 
+ 46.758 
«f 102.964 
+ 89.428 
- 66.508 
(1) - 38.912 Reduction X 
Actual 
6 
20 
18 
25 
7 
15.2 Thoorotlcol 
9 
20 
24 
16 
7 
15.2 
(1) E»tlmot« 
- 52 -
T A B L E V I I I 
Total quality and quantity eligible for aid 
GREECE SPAIN 
1982/83 1.055 
1983/84 1.064 
1984/85 1,064 
1985/86 1.066 
1986/87 1.064 1,080 
1987/88 1,051 1,085 
1988/89 1,075 1,103 
1989/90 1,070 1,113 
1990/91 1.071 1.115 
average 1986/87-1990/91 1,066 1,099 
- 53 -
ANNEX II 
Commission report to the Council 
on the situation with regard to the production 
and marketing of certain varieties of. tobacco 
1. Article 13(1) of Council Regulation (EEC) No 727/70 of 21 April 1970 on 
the common organization of the market In raw tobacco lays down that 
where, for a variety or a group of varieties, the quantities taken over 
by the Intervention agencies exceed, or seem likely to exceed, a stated 
percentage of the production for two successive crops, and In any case a 
stated quantity (see the Annex to Regulation (EEC) No 1469/70), the 
Commission is to submit to the Council a report and proposals for 
measures to bring about a better balance between production and demand 
and to reduce stocks and. If necessary, for measures to enable a 
reasonable standard of living to be maintained for producers. Pursuant 
to paragraph 2 of the same Article, the measures In question are to be 
implemented when It is apparent that for a given single crop the 
extension of cultivated areas Is the main cause of the percentages 
and/or quantities being exceeded. 
2. The information available regarding Intervention stocks relates to the 
1988 and 1989 crops and points to large quantities being offered for 
intervention (see Annex I). 
For three varieties the quantities presented for Intervention exceeded 
the quantity for a single crop as referred to in Article 13 and for ten 
varieties the quantities presented for intervention exceed the quantity 
stated for two successive crops (1988 and 1989) as referred to In 
Article 13. 
Among the varieties concerned, three have already been the subject of 
Article 13 measures. These are the varieties hybrids of Badischer 
Geuder the inter, Tsebelia and Mavra. 
For these three varieties, the quantities presented for intervention for 
one or two years were massive (the limit being exceeded by 600X to 
1260%), and the MGQs were also vastly exceeded (by up to 1000%). 
- 54 -
3. Production of the variety Badlscher Geudertheimer In Italy In 1989 
totalled 85 321 tonnes, compared with an MGQ of 7 700 tonnes. This 
situation led the Council to take four measures concerning this variety. 
(a) For the 1989 crop, on the basis of the special measures provided 
for in Article 13 of Council Regulation (EEC) No 727/70 the 
lowering of the intervention price for variety No 1 (Badlscher 
Geudertheimer and hybrids thereof) to 75% of the norm price 
(Council Regulation (EEC) No 1330/90 of 14 May 1990). 
(b) For the 1990 crop the reclassification of variety No 1 Badlscher 
Geudertheimer grown in Italy under variety 11 with the designation 
hybrids of Badlscher Geudertheimer, along with, among others, the 
variety Forchheimer Havanna, leading to a 25% cut in the premium 
and a 35% cut In the Intervention price (Council Regulation (EEC) 
No 1331/90 of 14 May 1990). 
(c) From the 1990 crop the reduction of the percentage of the 
production of tobacco presented for intervention triggering the 
measures provided for In Article 13(5) of Council Regulation (EEC) 
No 727/70 from 115 to 110% (Council Regulation (EEC) No 1332/90 of 
14 May 1990). 
(d) For the 1991 crop an additional 13% cut in the prices and premiums 
(Council Regulation (EEC) No 138/91 of 13 June 1991). 
4. The Increase In the quantities of varieties Nos 23 Tsebelia and 24 Mavra 
offered for intervention led the Council in 1989 to cut the intervention 
price to 75% of the norm price pursuant to Article 13 of Regulation 
(EEC) No 727/70 (Council Regulation (EEC) No 1253/89). For the 1990 
crop the Council also reduced the level of prices and premiums for these 
two varieties by 15% (Council Regulation (EEC) No 1331/90), followed by 
13% for the 1991 crop (Council Regulation (EEC) No 1738/91). 
5. For the variety Badlscher Bur ley (zone B) the ceiling was exceeded for 
the 1988 crop, while the crop area increased significantly. Since then 
the crop areas appear to be stabilizing (despite a substantial increase 
in 1990), but production in 1990 and estimated production In 1991 show a 
steep rise (169% up on 1988). * 
6. The other nine varieties come under the category sun-cured, also known 
as oriental varieties. The development in the areas cultivated in 1988 
and 1989 Is close to the average, and the level of production remains 
below the MGOs except in the case of the Italian oriental varieties, 
which exceeded the MGQ by 9% in 1989 only. For the 1988 and 1989 crops 
the reason for the increase in intervention is not therefore the trend 
in production but the trend in demand for these varieties. 
- 55 -
These varieties have, to a greater or lesser degree, specific aromatic 
characteristics which are sought for the manufacture of American blends. 
A large percentage of this tobacco thus finds an outlet on the world 
market and is very sensitive to trends in these outlets. 
The increase in the quantities of oriental tobacco from the 1988 and 
1989 crops entering intervention can thus be attributed to a substantial 
decrease in exports In 1989, linked with a surplus of world stocks. It 
may also be the case that certain speculative practices have reinforced 
this situation. 
7. The current market situation with regard to the 1990 and 1991 crops can 
be regarded as relatively satisfactory. Having regard to greater demand 
on the world market, prices have Improved and, according to the 
information supplied by the Member States, the quantities of tobacco 
from the 1990 crop entering Intervention are very small. It may 
therefore be assumed that in general the risk of high Intervention 
buying is limited and would not require special measures. Nonetheless, 
as regards the three problem varieties mentioned In point 3, the 
intervention potential remains high, in view of the limited demand on 
the market. 
8. In October 1991 the Commission put three proposals for Regulations to 
the Council, the first on the common organization of the market in raw 
tobacco, the second fixing the premiums and quotas, and the third 
concerning inter-branch organizations and agreements in the tobacco 
sector. 
However, as the adoption of this reform by Council has been delayed, the 
existing regulations will remain in force for the 1992 crops. It is 
therefore proposed to roll-over, for the 1992 crop, the special measures 
taken for the varieties No 11 Forchheimer Havanna, Hybrids of Badischer 
Geudertheimer, etc.. No 23 Tsebelia and No 24 Mavra. 
- 56 -
ANNEX L 
Variety 
No 1 Badlscher Geuderthelaer 
Zone B • 
No 23 Tsebella 
No 24 Mavra 
No 2 Badlsher Bur ley 
Zone B 
No 21 Myrodata 
No 13 Xanthl Yaka 
No 14 Perustlza 
No 15 Erzegovlna 
No 17 Basaa 
No 18 Katerlnl 
No 19 Kaba Koulak CI. 
No 20 Kaba Koulak N-CI. 
No 22 Zlchnoiyrodata X by which Interven­
tion quantities 
pursuant to Article 
13 are exceeded 
1988 
1.260.8 
925.8 
1102.0 
159.2 
-
149.7 
126.5 
97.2 
43.9 
90.0 
326.4 
25.0 
477.9 1989 
-
900.5 
602.5 
-
539.8 
287.5 
77.7 
143.7 
46.3 
20.4 
249.5 
393.6 
561.4 Percentage change 
In crop 
area 
1988 
1987 
4 259.0 
- 1.0 
- 2.5 
4 92.0 
- 5.0 
• 15.0 
+ 11.6 
- 37.4 
- 5.8 
- 5.7 
- 23.5 
- 31 
- 17 1989 
1988 
4 15.1 
- 0.8 
- 6.8 
4 0.4 
- 10.0 
- 4.8 
- 12.1 
- 25.0 
4 12.4 
4 4.0 
4 36.3 
- 27.3 
- 14.0 
Fron the 1990 harvest onwards variety No 1, Badlscher Guederthelaer (Zone B) Is reclassified under 
variety No 11(e) hybrids of Badlscher Guederthelier. 
- 57 -
MHEX LL 
Variety 
No 1 Badlscher Geuderthelaer 
Zone B •• 
Forchheleer Havanna 
No 23 Tsebella 
No 24 Mavra 
No 2 Bad 1sher Bur ley 
Zone B 
No 21 Myrodata 
No 13 Xanthl Yaka 
No 14 Perustlza 
No 15 Erzegovina 
No 17 Basia 
No 18 Katerinl 
No 19 Kaba Koulak CI. 
No 20 Kaba Koulak N-CI. 
No 22 Zlchnoayrodata 1988 
67.407 
6.504 
30.084 
13.267 
3.973 
5.885 
8.875 
8.815 
2.164 
24.410 
19.226 
23.709 
3.362 
774 1989 
85.321 
3.954 
30.060 
13.176 
3.890 
6.055 
10.368 
9.263 
2.217 
23.975 
19.256 
17.373 
2.500 
700 Production 
(tonnes) 
1990 
45.222 
25.395 
21.590 
9.163 
5.443 
4.618 
8.408 
8.635 
1.978 
20.304 
18.950 
13.725 
1.668 
397 1991 (•) 
46.000 
25.000 
21.000 
10.000 
5.500 
5.000 
8.500 
8.600 
1.900 
26.000 
21.000 
13.000 
1.500 
400 
• Estimate. 
•* Froa the 1990 harvest onwards variety No 1, Badlscher Guederthelner (Zone B), Is reclassified 
under variety No 11(e). hybrids of Badlscher Geudertheiier. 
H* 1 Prlco propoaols In ecus for Indlvlduot oqrlcutturol products 13.2.1992 - 58 -
Product and typo of prlco or amount 
(Period of application) 
1 
Common wheat 
- Target prlco 
- Intervention prlco breadmaklng wheot (2) 
- (Intervention price feed wheat) 1. 7.92-30. 6.93 
Barley 
- Target price 
- Intervention 
Maize 
- Target price 
- Intervention 
Sorghum 
- Target price 
1 - Intervention 
1 Rye 
1 - Torget price 
1 - Intervention pr 
Pr 
Pr 
Pr ce 
ce 
Ice 
ce (3) 1. 7.92-30. 
1. 7.92-30. 
1. 7.92-30. 
1. 7.92-30. 6.93 
6.93 
6.93 
6.93 
Durum wheat 
- Target price 
- Intervention price 
- Aid (ecue/ha) 1. 7.92-30. 6.93 
Rice 
- Target price - hueked rice 
- Intervention price - paddy rice 1. 9.92-31. 8.93 
Sugar 
- Basic price for sugar beet 
- Intervention price for white sugar (•) 1. 7.92-30. 6.93 1991/92 
Decisions 
Amounts 
ecus/t X change 
(D 
233,26 
168.55 
160.13 I -
212.33 
160,13 
212.33 
168.55 
212.33 
160,13 
212.33 
160.13 
277.21 
227.70 
161.88 
546.13 
313.65 0.41 
0.00 
0.00 
I -0.45 
0.00 
- 0.45 
0.00 
- 0.45 
0.00 
- 0.45 
0,00 
-3.54 
- 3,50 
4 6.28 
0,00 
0,00 
40.00 I 
53.01 I 0.00 
0.00 Proposals 
1992/93 
Amounts 
In eeus/t 
232,76 
168.55 
160.13 
211.83 
160.13 
211.83 
168.55 
211.83 
160,13 
211.83 
160.:3 
276,71 
227.70 
181.88 
545.52 
313.65 
40,00 
53,01 X 
change 
0,21 
0.00 
0,00 
0,24 
0.00 
0,24 
0,00 
0,24 
0,00 
0,24 
0,00 
0,18 
0.00 
0.00 
0,11 
0.00 
0.00 
0.00 Spain 
Amounts 
1991/92 
233,26 
168,55 
160,13 
212.33 
160,13 
212.33 
168.55 
212.33 
160,13 
212.33 
160.13 
277,21 
216.48 
148.34 
546.13 
313,65 
46.84 
61.29 n eeus/t 
1992/93 
232,76 
168.55 
160.13 
211.83 
160.13 
211,83 
168.55 
211,83 
160.13 
211.83 
160.13 
276,71 
227.70 
181,88 
545,52 
313.65 
48.08 
59,57 X 
change 
- 0,21 
0.00 
0,00 
0.24 
0.00 
0.24 
0.00 
0.24 
0.00 
- 0.24 
0,00 
- 0.18 
4 5.18 
4 24.29 
- 0.11 
0.00 
1.8 
2.8 Portugal 
Amounts 
91/92 
9 (4) 
233.26 
210.80 
200.26 
212.33 
160.13 
212,33 
168,55 
212.33 
160.13 
212.33 
160.13 
277.21 
227,70 
181.88 
548.13 
338.39 
42.83 
53,35 n ocus/t 
1992/93 
10(4) 
232.76 
206,11 
195.80 
211,83 
160.13 
211,83 
168.55 
211.83 
160,13 
211,83 
160.13 
276.71 
227,70 
181,88 
545.52 
332,21 
41,57 
54.22 X 
change 
11 
- 0,21 
- 2.22 
- 2,22 
0,24 
0.00 
0.24 
0.00 
0.24 
0.00 
0.24 
0.00 
0.18 
0.00 
0,00 
0,11 
1,83 
- 2.9 
4 1.6 
(•) ecus/q. 
(1) Without the ogrlmonetary effect. 
(2) For the 1991/92 marketing yeor. this prlco was Increased by 3.37 ocus/t for a higher quality. A premium of ECO 3,27 ocut/t It propotod for 1992/93 (^3.00X). 
(3) For the 1991/92 marketing yeor. this prlco wot Incroasod by 4,22 ecus/t for a higher quality. A premium of ECU 4,09 ocus/t It propotod for 1992/W (-3X). 
(4) Portuguese producers receive special assistance to grow common wheat, barley, maize, sorghum and rye, (R. 3653/90). 
N* 2 - 59 -
Price proposols In ecus for Indlvlduol oqrlculturol products 
I I 1991/92 I Proposals I Spain I Portugal I 
I Product and type of price or amount I Decisions I 1992/93 I I I 
I (Period of application) I II I I 
I I Amounts I X I Amounts I X I Amounts In ocus/t I X I Amounts In ocut/t I X I 
I I ecus/t I change I ecus/t I change I 1991/92 I 1992/93 I change I 1991/92 I 1992/93 I change I 
, 1 1 1 1 1 1 1 1 1 1 1 
i 1 I 2 I 3 I 4 I 5 I 6 I 7 t 8 I 9 I 10 I 11 I 
• 1 1 1 1 1 1 1 1 1 1 1 
! Olive oil 1.11.92-31.10.93 I I I I I I I I I I I 
I - Production target price I 3.220.1 I 0 I 3.220,1 I 0,0 I 3.220.1 I 3.220.1 I 0.0 I 3.220.1 I 3.220,1 I 0,00 I 
I - Intervention price I 2.158,7 I 0 I 2.038,7 I - 5,6 I 1.853.1 I 1.846,3 I - 0,4 I 2.096.5 I 1.999.5 I -4,6 I 
I - Representotive market price I 1.972,8 I 3,7 I 1.932.8 I - 2,0 I - I - I - I - I - I - I 
I -Production aid I 708.3 I 0 I 828.3 I 16.9 I 458.5 I 551,0 I 20,1 I 425,3 I 526,1 I 23,7 I 
I -Consumption aid I 539.0 I - 11,5 I 459,0 I - 14,8 I 456.7 I 457,5 I 0,2 I 494,2 I 482,5 I - 1,4 I 
I Dried fodder - Guide prlce(l) 1. 5.92-30. 4.93 I 178.61 I 0 I 178.61 I 0 I 178.61 I 178.61 I 0 I 178,61 I 178.61 I 0 I 
,_ | | 1 1 1 1 1 1 1 1 1 
I Peas and field beans 1. 7.92-<J0. 6.93 I I I I I I I I I I I 
I - Activating price I 440.1 I -1.5 I 440.1 I 0 I 440,1 I 440,1 I 0 I 440.1 I 440,1 I 0 I 
I - Cuide price I 290.3 I - 1.5 I 290.3 I 0 I 290.3 I 290,3 I 0 I 290.3 I 290.3 I 0 I 
I - Minimum price - peas I 253,4 f - 1,5 I 253,4 I 0 I 253.4 I 253.4 I 0 I 253,4 I 253.4 I 0 I 
I - field beans I 234,7 I - 1.5 I 234,7 I 0 I 234.7 I 234.7 I 0 I 234,7 I 234.7 I 0 I 
l_ | 1 1 1 1 1 1 1 1 1 1 
I Lupins 1. 7.92-30. 6.93 I I I I I I I I I I I 
I -Activating price I 423.4 I - 1.5 I 423,4 I 0 I 423,4 I 423,4 I 0 I 423.4 I 423.4 I 0 I 
I -Minimum price I 284.2 I - 1.5 I 284,2 I 0 I 284,2 I 284.2 I 0 I 284.2 I 284.2 I 0 I 
| Flax 1. 8.92-31. 7.93 I I I I I I I I I I I 
I -Guide price (seed) I 544,90 I - 1.5 I 544.90 I 0 I 507.30 I 516.70 I 1.9 I 544,90 I 544,90 I 0 I 
I -Fixed-rote aid (fibre) (per ha) I 374.36 I 0 I 374,36 I 0 I 318.87 I 374.36 I 17,4 I 318.87 I 374,36 I 17,4 I 
| Hemp 1. 8.92-31. 7.93 I 1 I I I I I I I I I 
I - Fixed-rate old (per ho) I 339,42 I 0 I 339.42 I 0 I 289.16 I 339,42 I 17,4 I 289.16 I 339,42 I 17.4 I 
1 -Aid (seed) I 245,90 I - 1,5 I 245,90 I 0 I 245.90 I 245.90 I 0 I 245,90 I 245.90 I 0 I 
I | - | I j | I I I I \ * 
I Silkworms 1. 4.92-31. 3.93 I I I I I I I I I I I 
I -Aid per box I 111.81 I 0 I 111.81 I 0 1 95.80 1 111.81 I 16,7 1 95.80 1 111,81 I 16.7 1 
(1) A 20X reduction in aid over 2 years Is proposed, using a coefficient of 90 X In 1991/92 and 80 X In 1992/93. 
Krice proposen in ecus tor Indlviduol aqncui turol products - 00 -
Product ond type of price or amount 
(Period of application) 
Cotton 
- Guide price 
- Minimum price 1. 9.92-31. 8.93 
Milk 
- Target price 
Butter 
- Intervention price 
Skimmed milk powder 
- Intervention price 
Crana padano cheese 30-60 days 
- Intervention price 
Grona pedono cheese 6 months 
- Intervention price 
ParmlgIano-ReggIano cheese 6 months 
- Intervention price 1. 4.92-31. 3.93 1991/92 
Decltlons 
Amounts I X 
ecus/t I chonge 
1 
2 I 3 
1 
I 
958.6 I 
910.7 I 
I 
268,1 I 
I 
2.927.8 I 
I 
1.724.3 I 
I 
3.796,7 I 
I 
4.704.3 I 
I 
5.192.1 I Proposals 
1992/93 
Amounts I X 
ocus/t I chonge 
1 
I 
1.027.9 I 7,23(«0 
976.5 I 7.23(») 
1 
I 
268,1 I 
I 
2.927.8 I 
I 
1.724.3 I 
I 
3.796.7 I 
I 
4.704.3 I 
I 
5.192.1 I Spain 
Amounts 
1991/92 
958.6 
910.7 
268.1 
3.024.9 
2.028.7 n ocut/t 
1992/93 
1.027.9 
976.5 
288.1 
2.927.8 
1.724,3 X 
change 
7.23(0 
7.23(0 
0 
-3.2 
- 14,9 Portugal 
Amounts In 
1991/92 I 
958.6 I 
910.7 I 
I 
268.1 I 
I 
2.927.8 I 
I 
2.100.0(1)1 
I 
I I ocus/t I X 
I 1992/93 I change 
I 1 
I 10 I 11 
I 1 
I I 
I 1.027.9 I 7.23(*) 
I 976,5 I 7,23(*) 
I 1 
I I 
I 268.1 I 0 
I | 
2.927.8 I 0 
I I 
! 2.070.0 I -1.4 
I I 
I I 
I I 
I 1 
I I 
I Beef/veal 2. 4.92-31. 3.93 I 
I - Guide price for odult bovine onlmalt (2) I 
I - Intervention price quality R 3 cat. A I 
I - Intervention price quality R 3 cat. C I I 
2.000 I 
3.430 I 
3.430 I I 
2.000 I 
3.430 I 
3.430 I I 
2.000 I 
3.430 I 
3.430 1 I 
2.000 I 
3.430 I 
3.430 I I 
0 I 
0 I 
0 I I 
2.000 I 
3.430 I 
3.430 I 1 
2.000 1 
3.430 I 
3.430 I 
I Sheepmeat 
I - Boslc price (carcase weight) 1992 
7. 1.92- 6. 1.93 1 " I 
I 4.229,5 I 1993 
- 2 t I 
I 4.229,5 I I I I I I 
0 I 4.229,5 I 4.229.5 i 0 I 4.229.5 I 4.229.5 I 
I Plgmeat 
I - Basic price (carcase weight) 1. 7.92-30. 6.93 I 
I I 
1.897 I 0 I I 
1.897 I I 
0 I I I 
1.897 I 1.897 I I 
0 I I I 
1.897 I 1.897 i 
(*) Technical adjustment taking account of the Improvement In the standard quolity. 
(1) For the Azoree. the Intervention price for skimmed milk powder Is ECU 3/100 kg less than the price Indicated, which It applicable on the mainland. 
(2) Price per tonne (IIvewelght). 
5 
N« 4 Price proposols In ecus for Indlvlduol oqrlculturol products - 61 -
Product ond type of price or amount 
(Period of application) 
Fruits and vegetables - Basic price 
- Caul If lowers 
- Tomatoes 
- Pooches 
- Lemons 
- Pears 
- Tab I* grapes 
- Apples 
- Mandarins 
- Sweet oronges 
- Apricots 
- Aubergines 
- Clementines 
- Satsumas 
- Nectarines 1 
11 
1 
1 
1, 
1 
1, 1991/92 
Decisions 
5.92-30. 4.93 
6.92-30.11.92 
6.92-30. 9.92 
6.92-31. 5.93 
7.92-30. 4.93 
8.92-20.11.92 
8.92-31. 5.93 
16.11.92-28. 2.93 I 
1.12.92-31. 5.93 
1. 6.92-41. 7.93 
1. 7.92-31.10.92 
1.12.92-15. 2.93 
16.10.92-15. 1.93 
1. 6.92-31. 8.92 Proposals 
1992/93 
i 
I Amounts I X (3) 
I ecus/t I change 
I 1 
12 13 
I 1 
I I 
I I 
I - I) 0 
I - I) 0 
I - I) 0 
I - I) 0 1 
I - I) 0 1 
I - I) 0 
I - I) 0 1 
I - I) 0 1 
I - I) 0 1 
I - I) 0 
I - I) 0 
I -I) 0 
I - I) 0 
I - I) 0 I Amounts 
I ecus/t % (3) 
changs Spain 0) Portugal (2) 
I Amounts In ecus/t 
I 1991/92 
•I 
I 6 1992/93 * (3) 
change •I — 
I Amounts In ecus/t 
t 1991/92 
.| 
I 9 
4 5.0 I 
4 13.8 I 
4 1.0 I 
4 9,7 I 
4 7.9 I 
0 I 
4 7,5 I 
4 5.6 I 
4 1,8 I 
4 8.1 I 
4 16.0 I 
0 I 
0 I 
0 I 1992/93 
10 I * (3) 
I change 
I 11 
| i 
I 4 3,4 
I 4 5.5 
I 0 I 
I 4 9.0 I 
I 4 8.6 
I 4 5.4 
I 4 5.0 
I 0 1 
I 4 4.5 I 
I 4 6.3 I 
I 4 5,8 I 
I 0 I 
I 0 I 
I 0 I 
(1) Including price alignment (3rd alignment) 
(2) Including price alignment (2nd alignment) 
(J) Without the effect of intervention thresholds. 
Table wine (D 
- Guide price Type 
- Guide price Type 
- Guide price Type 
- Guide price Type 
- Guide price Type I 
11 
III 
I 
II 
Guide price Type A III 1. 9.92-31. 8.93 
3.21 
3.21 
52.14 
3.21 
69,48 
79.35 I 0 I 3,21 
0 I 3.21 
0 I 52,14 
0 I 3.21 
0 I 69.48 
0 I 79.35 
(1) R I, R II and A I expressed In ocus/X/hl. 
R III, A II and A III expressed In ecus/hi. 
For Portugal Including price alignment (1st alignment) carried out in 1991/92. 0 1 
0 1 
0 1 
0 1 
0 1 
0 1 3.01 1 
3.01 1 
48.81 1 
3.01 I 
65.04 1 
74,28 1 3.21 1 
3.21 1 
52.14 1 
3.21 1 
69.48 1 
79,35 1 4 6.64 1 
4 6.64 1 
4 6.82 1 
4 6.64 I 
4 6,83 1 
4 6.83 1 3.21 t 
3.21 1 
52.14 1 
3.21 1 
89.48 1 
79.35 1 3.21 
3,21 
52.14 
3.21 
69.48 
79.35 
^ 
- 62 -
N» 5 
Price proposols In ocut for Indlvlduol oqrIcultureI productt 
I Product, group ond variety I Harvott 1991 - Docttlont I Harvott 1992 - Propotolt I 
I I Prlee/premlum/X change 1 PrIee/prem tum/X chango I 
I I compared with 1990 I compared with 1991 I 
I 1 1 2 I 3 I 
I Tobacco I I ' 
I I) Prtco - 6X odjuttable I OX; oxeopt whore tho I 
I I) Premium - 6X odjuttobio I proportion of lowor | 
I I I qualities purehatod by I 
I I 1 o processor exceodt I 
I I I o specified maximum. I 
^ N 
-•3-
Toblo 2 AC R I MONETARY fROMfAll - PRICI >ACUtf 1112/13 
Applicable ot the beginning of tha '992/93 Ign 
MEMBER STATES 
Product Craup(l) 
RELG IUMAUOMBOURB 
All products 
OENMARK 
All products 
PRANCE 
All products 
CERMANY 
All products 
IRELAND 
All products 
ITALY 
All products 
NETHERLANDS 
All products 
PORTUGAL 
All products 
UNITED KINGDOM 
All products 
SPAIN 
SM(, milk 
Cereals, sugar 
Ollva oil. »lne. drlod fodder. 
flex. hemp, sllkeorme 
Cotton, groin legume* 
Sheeomeat. other crop prod. 
Others 
GREECE 
Shsspmsot. esroals. sugar. 
vine, ©live oil, tobacco. 
fishing prod., structure 
Tomatoes, cucumbers. 
courgettes, aubergines 
Poultry (3) 
Croln legumes (3) 
Other crop products (3) 
Others (3) GREEN 
CENTRAL 
RATES(2) 
(ecu-, .nc) 
48.9063 
1.97909 
7.89563 
2.38418 
0.878776 
1761.45 
2.85256 
202.670 
0.815203 
147.965 
270.197 PREVIOUS SITUATION 
GREEN 
RATES 
(ecu-..nc) 
46.5963 
t.97909 
7.80963 
2.36416 
0.878776 
1761.49 
2.69256 
208.676 
0.795423 
154.136 
153.498 
149.813 
151.660 
150.828 
151.660 
292.121 
297.188 
256.467 
257.895 
257.188 
257.895 REAL 
•JAPS 
(points) 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
2.878 
-2.487 
4.251 
3.852 
1.487 
2.687 
2.150 
2.687 
-7.170 
-0.096 
-5.345 
-4.770 
-6.096 
-4.770 APPLIED 
•JAPS 
(points) 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
1.* 
-1.0 
2.8 
2.4 
0.0 
0.0 
-5.7 
-2.2 
-3.3 DISMM4T-
LEMENT 
0 
0 
0 
0 
0 
0 
0 
-1.378 
0.907 
-2.791 
-2.392 
0.000 
-1.187 
-0.650 
-1.167 
5.670 
3.596 
3.849 
3.270 
3.996 
3.270 SOT SITUATION 
GREEN 
RATES 
(ecu». .nc) 
48.5963 
8.97980 
7.80563 
2.39418 
0.878776 
1761.49 
2.89296 
209.796 
0.803196 
149.832 
149.832 
149.813 
149.832 
149.832 
149.832 
r 266.204 
266.204 
266.204 
266.204 
266.204 
266.204 REAL 
•JAPS 
(points) 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
1.500 
-1.900 
1.500 
1.900 
1.467 
1.500 
1.900 
1.500 
-1.900 
-1.900 
-1.500 
-1.500 
-1.500 
-1.500 APPLIED 
•JAPS 
(points) 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 EPPECT 
ON 
PRICES 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
0.000 
-1.399 
0.972 
-2.794 
-2.388 
0.000 
-1.209 
-0.660 
-1.205 
5.566 
3.506 
3.788 
3.222 
3.506 
3.222 
(1) Except plcrrot (application of Article 6a of Council Regulation (EEC) No 1676/05). 
(2) Switch-over coefficient - 1.145109 - Creen market rate for floating currencies; »eek of reference: 29.1.92 — 5.2.92. 
(3) The pocket price dismantlement has to be added to the automatic dismantlement taking effect ot the beginning of the 1992^3 campaign: 
Poultry 
Craln legumes 
Other crop products 
Others 292.121 
292.121 
252.121 
252.121 -7.170 
-7.170 
-7.170 
-7.170 -2.2 
-9.7 
-9.7 1.825 
2.400 
2.112 
2.400 256.467 
257.895 
257.188 
257.895 -9.345 
-4.770 
-5.058 
-4.770 0.0 
-3.6 
-3.3 1.732 
2.290 
2.010 
2.290 
- 64 -
TflMe 3 
Effect of Commission proposals on support prices for 
agricultural products expressed in ecus and in 
national currency 
X change in prices (1)(2) 
In ecus in national currency 
(3) 
Belgium 0.0 0.0 
Denmark 0.0 0.0 
Germany 0.0 0.0 
Greece (4) 0.0 6.1 
Spain (5) 1.2 - 0.4 
France 0.0 0.0 
Ireland 0.0 0.0 
Italy 0.0 0.0 
Luxembourg 0.0 0.0 
Netherlands 0.0 0.0 
Portugal (5) 0.4 - 1.0 
United Kingdom 0.0 1'.O 
EUR 12 (5) 0.1 0.3 
(*) 
(1) 
(2) 
(3) 
(4) 
(5) Excluding Impact of stabilizers 
Percentage variation between proposed support prices for 
1992/93 and the support prices for 1991/92 
Support price (intervention or equivalent), weighted 
according to the share of the various products in the 
value of agricultural production covered by common prices 
Common prices in ecus, converted at green rates in this 
proposal. For the currencies not respecting the narrow 
band in the EMS calculations were done using the rates of 
the week ending on 5.2.92 
Including effect of automatic dismantlement 
Including effect of alignment of Spanish and Portuguese 
prices on common prices under accession arrangements 
- 09 -
Toble 4 - Stabilisers end production thresholds (without 00*) 
Cereols 
Sugar 
(white 
sugar eq.) 
Isoglu-
cose 
Rape 
Sunflower 
Soya 
Pees, 
field 
beans 
and swset 
lupins 
01 ive 
ol I 
Wine 1991/92 1992/93 
Ouotes or MCO 
applicable 
MCO : 160 million t 
Ouota A : 11.187 m t 
Quota 8 : 2.488 m t 
Ouoto A : 240.743 t 
Quota 0 : 90.342 t 
MCO 
EUR-10 : 4.900.000 t 
Spain : 12.900 t 
Portugol 1,300 t 
MCO 
EUR-10 : 2.000.000 t 
Spain : 1.411.800 t 
Portugal : 90.000 t 
MCO 
EUR-12 : 1.300.000 t 
MCO 
EUR-12 : 3.900.000 t 
O.M.C. 
EUR-12 1.390.000 t 
Compulsory distilla­
tion : Pries bosed on 
the quantity covered 
by the compulsory-
distillation scheme,as 
follows : 50% of ths 
guide price for the 
equivalent of 10% of 
the volume used; 
7.5X of that price 
for the remainder Market situation 
Estlmoted production: 
169 «lII Ion t 
(+11.6 Million t 
5 new LSnder) 
Production (Including 
carryovers) In m t 
Ouota A : 10.970 
Ouota 8 i 2.412 
Sugar C : 2.158 
Total : 15.335 
Estimated production 
within quotas 
Estimated production: 
EUR-10 : 6.376.000 t 
Spain : 21.000 
Portugal : — 
Estimated production: 
EUR-10 : 2,966.000 t 
Spain : 1.036.000t 
Portugal : 39.000t 
Estimated production 
1.947.000 
Estimated production 
EUR-12 : 4.469.000 t 
Production will be 
estimated In March 
1992 
Ouantlty covered 
by the compulsory-
distillation scheme: 
1S.600.00Oh! Overrun I Ouota or quantity 
lapplI cab I a/proposed 
.| 
overrun t million t: 
cut In price for 92/92 of 3% 
EUR-10 : overrun of 41.7% re­
sulting in o reduction of 
ECU 9.06/100 kg (- 20.SX) 
In the target price 
Spain : ECU - 6.78/100kg In 
the target price (-16.2%) 
Portugal : no overrun 
EUR-10 : overrun of 48.3 X 
resulting In a reduction of 
ECU 18.43/100 kg (-32.IX) In 
the target price 
Spain : no overrun 
Portugal : no overrun 
Overrun of 19% 
resulting In a reduction of 
ECU 11.07/100kg In the guide 
price for the Community of Ten 
end ECU 4.67/100kg for Spain 
(-9.6X) 
Overrun of 27.6% resulting In 
a reduction of ECU 4.8/100 kg 
In the guide prices for peas 
and field beans (-16.5%) 
No clear indication 
Yes : averoge price reduction 
for compulsory distillation : 
about 28% I 
I Proposed In the 
I context of CAP 
I reform : the some 
I am for 1991/92 
I The same as for 
I 1991/92 
I 
I 
I 
I SMC : (approvsd 
I by the CounclI) 
I 
IEUR-12: 2.377.000ha 
l(wlth DDR) 
I I 
I 
I SMC : (approved 
I by the CounclI) 
IEUR-10:1.202.000ha 
ISpaln :1.411,000ha 
(Portugal:122.OOOho 
I I I 
I SMC : (approved 
I by the CounclI) 
I 
I EUR-12:509.OOOho 
I I 
I I 
I MCO : the some 
I as for 1991/92 
I I 
I I 
I 
I I I I I 
I MCO : the some 
I os for 1991/92 
I I I 
I I 
I I I 
i I 
- 06 -
1 Tobocco I 
1 Cotton 1 
1 Fresh 
1 tomatoes 
t Caul 1-
I flowers 
1 Nectar 1-
1 tines 
1 Peaches 
|-Apples 
1 Oranges 
I Lemons 
1 Sotsumos 
1 CI4m«n-
1 tines 
1 Vendor 1-
t net 1991/92 1 
Ouota or MCO | 
applicable 1 
Overa 11 MCO 1 
EUR 12 : 390.000 t of 1 
leaf tobacco. 1 
Allocated by variety 1 
MCO : 752.000 t 1 
(EUR-12) I 
Intervention threshold ! 
EUR-12 : 599.300 t 1 
Intervention threshold 
EUR-12 : 57.300 t 
Intervention threshold 
EUR-12 : 62.400 t 
Intervention threshold 
EUR-12 : 269.700 t 
Intervention threshold 
EUR-12 : 240.300 t 
Intervention threshold 
EUR-12 : 1.181.800 t 
! Intervention threshold 
I EUR-12 : 369.400 t 
1 Intervention threshold 
I EUR-12 : 34,900 t 
1 Intervention threshold 
1 EUR-12 : 133.900 t 
I Intervention threshold 
I EUR-12 : 35,800 t Market situation 1 
Anticipated overall 1 
production : 1 
EUR 12 : t490.000 t I 
Estimated production:! 
EUR-12 : 888.912 t I 
Withdrawals : 
52.218 
(provlslonol) 
Withdrawals : 
26.350 
(provlslonol) 
Withdrawals : 
79.043 
(provlslonol) 
Withdrawals : 
422.688 
(provlslonol) 
Marketing year 
under way 
Marketing year 
under way 
Marketing year 
Marketing year 
under way 
Marketing year 
1 under way 
1 Marketing year 
1 under way Overrun 1 
Overrun In the case of cer- 1 
teln varieties I 
Reduction of old by 6.710 1 
ECU/100 kg 
No overrun 
Overrun anticipated, 
(price reduction of 9%) 
Overrun anticipated, 
(price reduction of 6%) 
•f 1992/93 I 
Ouota or quantity 1 
applIcable/propossdl 
Overall quoto : 1 
EUR 12:340.000 t 1 
ollocated by j 
variety and group 1 
of varieties, 1 
proposed to the 1 
Council I 
MCO : EUR 12 1 
701.00 t I 
(the same as I 
lost year but I 
adapt to take 1 
account of the 1 
chonge In the | 
standard quantity)! 
Intervention | 
thresholds : 1 
the some as for 1 
1991/92 I 
3% of the overage 1 
quantity produced 1 
for coneumptIon, 1 
not Including pro-l 
ducts for proces- I 
elng. In the lest 1 
five yeers 1 
10 X of average 1 
quantity produced 1 
some basis as for 1 
cauliflowers 1 
12 X of overege 1 
quantity produced 1 
some basis as for 1 
caul iflowsrs 1 
the some as In 1 
1991/92 1 
10 X of average 1 
quantity produced 1 
1 In the last five 1 
! years plus 1 
! 792.392 t 1 
I 10 X of average I 
I quantity produced I 
I In the last five I 
I yeors plus I 
I 290.993 t I 
I 10 X of avsrags 1 
1 quantity produced 1 
1 In the lest five 1 
1 yeers 1 
1 10 % of overege 1 
1 quantity produced 1 
1 in the lost five 1 
1 years 1 
1 10 % of average 1 
1 quantity produced 1 
I In the last five 1 
1 yeers 1 
Processed 
tomatoes 
Orled 
grapes 
Willi ome 
pears 
Psochee 
In syrup 
Shsepmeot Ouota or MCOs 
applIcablo 
Guarantee thresholds 
Concentrate : 
EUR-11 : 4.283.699 t 
Cermany 33.700 t 
Peeled 
EUR-12 
Other 
EUR-11 
Cermony 1.543.228 t 
734.920 t 
1.300 t 
Cuarantee threshold 
Currants 
Sultanas 
Moscotsl 68.000 t 
93.000 t 
4.000 t 
Cuarantee threshold 
EUR 12 : 102.805 t 
Cuarantee threshold 
EUR-12 : 582.000 t 
Overall guaranteed 
quantity (Including 
Community reserve and 
temporary suspension of 
4.5 X) 
EUR 11 : 98,802.551 t 
(without Portugal) 
Maximum guaranteed 
level for ewe flock 
63.400.000 head 
18.100.000 for Croat 
Britain and 
45.300,000 for EUR-11 
and Northern Ireland 1991/92 
Market situation 
Esttmetsd 1991 flock: 
46,360,000 heed for 
EUR-11 and Northern 
Irelond and 
19.775.000 for Croat 
Britain Ovc 
No claer Indication 
No clear Indication 
No clear Indication 
No overrun 
No overrun 
Small overrun expected, on the 
fat basis content (tO.SX) 
Estimated overrun of 9% 
for EUR-11 and Northern 
Irelond and 6% for Croat 
Britain, reductlor-e In the 
basic prices of 6.45% and 8.1% 
respectively (with effect 
from 7 jon 1991) 1992/93 
Ouota or quantity 
applI coble/proposed 
Some thresholds 
as In 1991/92 
Same thresholds 
as In 1991/92 
Some thresholds 
as In 1991/92 
Propossd 
In the context 
of the CAP 
reform : 
2X cut +of which 
IX redistri­
bution 
A proposal mads 
In the context 
of CAP reform: 
-Individual limit 
per producer 
-freeze If the 
reduction In the 
basic price, of 
7% 
- 68 -
Table S 
Trends In econoalc Indices froa 1980 to 1990 In real tens 
- EUR 12 -
Index base on 1980 - 100 
Years 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 Expenditure 
EAGGF-Guarantee 
(D(3) 
100.0 
89.0 
91.7 
110.4 
121.0 
125.5 
136.9 
138.4 
160.6 
142.5 
131.9 GNP 
total 
(2) 
100.0 
100.1 
101.0 
102.7 
105.1 
107.6 
110.5 
113.8 
118.3 
122.2 
125.5 Final 
agrlcult. 
output 
(2) 
100.0 
99.1 
104.5 
104.9 
108.0 
107.9 
110.1 
110.0 
112.1 
113.3 
113.7 Eapioyi. 
In agric. 
In AlU 
100.0 
95.0 
91.8 
89.5 
87.3 
85.9 
83.2 
80.9 
75.3 
75.0 
72.8 Final agric. 
output per 
pers. eapi. 
(2) 
100.0 
104.4 
113.8 
117.2 
123.8 
125.7 
132.3 
135.9 
143.1 
151.1 
156.1 NVA 
agric. 
(1) 
100.0 
97.2 
104.0 
98.4 
99.5 
93.9 
92.1 
88.1 
87.3 
92.9 
86.2 NVA 
per AMU 
(1) 
100.0 
102.3 
113.3 
109.9 
114.0 
109.4 
110.6 
108.8 
111.5 
123.9 
118.4 
(1) In real teras (6NP deflator) 
(2) In constant prices 
(3) Budget "1987" : froa 1 January to 31 October 1987 
Budget "1988" : froa 1 Novenber 1987 to 15 October 1988 
Budget "1989" : froa 16 October 1988 to 15 October 1989 
Budget "1990" : froa 16 October 1989 to 15 October 1990 
GNP : Gross National Product at aarket price 
NVA : Net Value Added at factor cost 
AWU : Annual Work Unit 
Source : Eurostat - DG VI 
- 69 _ Figure 1 
130r 
110 
701 Net value added (1) per person employed in agriculture (2) 
"1985" (3) = 100 
80 81 82 83 84 85 86 87 88 89 90 91 o 
< > o 
Q UJ UJ O 
(1) At factor cost in real terms, adjusted on the basis of the 6DP 
deflator. 
(2) Based on the number of work units. 
(3) Average 1984, 1985, 1986. 
Source: EUR0STAT - sectoral income index 
130 
110 - 70 -
Net value added per person employed in agriculture 
"1985" = 100 
130 
110 Danmark 
/ / / / / f f / / / / * 
130 
110 130 
110 
70 1—, , , , r 
/ J / f / .*N 
130 
110 
70 T 1 1 T 
A 130 
110 
/ / / / / / / / / / / / 
130-
110 Nederiand 130 
110 
/ / / / / / i—i—i—i—i—i—i—i—i—r 
/ / / / / / 130 
110 
130 
110 
/ / / / / f 
130. 
110-Luxembourg 
/ / / / / / 
130 
110 
/ / / / / / 
CEE DG VIA5 Jan.92 M.O. 
ISSN 0254-1475 
COM(92) 94/1 final 
DOCUMENTS 
EN 03 
Catalogue number: CB-CO-92-126-EN-C 
ISBN 92-77-42341-2 
Office for Official Publications of the European Communities 
L-2985 Luxembourg