ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)444
Vol.1982/0147

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t t
COMMISSION OFTHEEUROPEAN COMMUNITIES
COM (82)444 final
Brussels ,14July 1982
COMMUNICATION FROM THE COMMISSION TOTHE COUNCIL
concerning food aid toNicaragua
Supplementary Programme for1982
and multi annual allocations for1983 1984
7«2 i
COM (82)kkk final<V\Xv>v-
fcf-s-<r-i
"Ύ/\ . 1–
£·■■/
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- '«M ♦––––" 1 m
1.SincethecollapseoftheSomozaregimeinJuly1979,Nicaragua
hasreceivedaidfromtheEuropeanCommunitiestotallingalmost32MECU.
Thishasessentially beenprovidedintheformoffoodaid,whichhas
helpedtosupportthebalanceofpayments,heavilyencumberedasitis
byforeigndebtrepayments,andhasenabledpriorityprojectstobefinanced
fortheGovernmentinsectorssuchaseducationandagriculture with
thecounterpart funds.
»
ThetotalamountoffoodaidgrantedtoNicaraguasinceAugust1979comes
to24MECUatworldprices.Themainfeaturesofthisfoodaidarethat:
theEuropeanCommunitywasabletoactrapidly,straightaftertheend
ofthecivilVar,byprocuringfoodproductsinCentralAmericaitself;
theproductsprovidedasaidcorresponded exactlytothedietary
habitsofthelocalpopulation;;inadditiontocereals(mostly
procuredinCentralAmerica:maize,rice,etc...)anddairyproducts,
considerable quantitiesofredbeansorvegetableoilweredelivered;
thisaidreleasedcounterpart fundswhichwillexceed219M(1);these
fundshavebeenextremelywellmanagedandfinancinghasconcentrated
onthefollowingthreefields:at7Mcontribution toeducationof
which1.8MasaCommunitycontribution tothe1979-1980literacy
campaign,23Hforpost-literacy educationandt2.2millionfor
theconstruction of100ruralschools,at1Mcontribution toopening
uptheAtlanticcoastofNicaraguaandfinancingforvarious
agricultural projects.
(1)Ifaccountistakenof'therecentaidapprovedbytheCouncilunder
the1982programme :2000tofmilkpowderand300tofbutteroil.

2
2.In1982.Nicaragua's overalleconomiesituationisstilishaky:
inadditiontothecontinuingafter-effects ofthecivilwar,therisein
thepriceofpetroleumproducts,fluctuations inthepricesofcommodities
exported(coffee,cotton)andthestagnation intradebetweenCentral
Americancountriesarehamperingitseffortsatdevelopment .
Asregardsagriculture,theGovernmentisworkingwithFA0onan
appropriate strategyaimedatachievingfoodsecurity.Thenationalfood
programme (PAN)createdinApril1981constitutes athree-pronged
attackontheprobleminvolving :
maximumutilisation ofavailablelandfortheproductionofbasic
foodproducts(maizeandbeans)withtheaimofachievingself-sufficiency
inthem;
improvedutilization oftechnology ;seeds,fertilizers,agricultural
equipment;
improveddistribution andmarketing soastoreducepost-harvest losses
inparticular .
3.Aspartofthisstrategy,itisplannedtofinanceaprogramme
fordeveloping basicfoodproducts (ProjectNA/81/25)throughCommunity (1)
financial andtechnicalassistance .
Thisprogramme aimsatincreasing basicfoodproductionforlocal
consumption andimprovingthelivingconditionsofaconsiderable section
ofthemostdeprivedagricultural population .Theprogrammewillalsohelp
redressthebalanceofpayments,whichisshowingabigdeficit,and,in
thelongterm,itwillreduceifnotdoawaywithalargeproportionof
foodimports,whichhavepartlybeencoveredbyCommunityfoodaidtodate.
(1)Appropriations fornon-associated developingcountries,Article930
oftheGeneralBudgetoftheCommunities .

Thetotal cost oftheprogramme tobefinanced over three years (1982-83 ,
'1984-85 )isput at19.9 MECU,ofwhich 7.4 MECUwill bedirectly financed
bygrant aidunder financial andtechnical assistance tonon-associated
developing countries .Theremaining 12.5 MECU istobecovered byNicaragua ,
with food aidcounterpart funds .
Theprogramme will contain thefollowing main measures :
structuring andorganization ofpeasant cooperatives :inthefirst
stage there areplans tostructure andorganize approximately 1,000
cooperatives' bringing together approximately 20,000 peasant families ;
anincrease inbasic food production bystrengthening theexisting
agricultural extension service andgreater agricultural research in
specific fields .
Theprogramme could lead toanestimated increase inproduction of18000 t
ofmaize and 4000 tapproximately ofbeans ,representing around 10%of
total national production in1980 /81. "
Inview ofthemagnitude oftherequirements ,food aidmust continue .unti I
thebeneficial effects ofthis programme are felt onagricultural imports ,
but itwould beadvisable fortheaidtobelinked totheprogramme for
developing basic food products .
4. Nicaragua hassubmitted twoapplications forfood aidto
the Commission :
oneapplication for1982 fordairy products ,cereals (25000 t),
vegetable oil (13700 t)andredbeans (14000 t);
anapplication formultiannual food aid involving annually 75000 t
,ofcereals ,14000 tofvegetable oilanddairy products (4000 tof
milk powder );inthis context ,Nicaragua pointed outthat theestimated
shortfalls tobemade upbyimports will burden itsbalance ofpayments
tothetune ofover t35Mperannum .

4
a.Requirements for1982
t
Asregardsdairyproducts,theCouncildecidedon26April1982toallocate
3200tofmilkpowderand300tofbutteroiltoNicaraguaunderthe1982
programme.Thisaidisworth4MECUatworldprices.Aproportion ofthese
quantities,namely2000tofmilkpowderand300tofbutteroil,willbe
soldtothedairyindustry,releasing -counterpart fundsputat2.8MECU.
Theshortfallinwheat(approximately 70000tconsumedannually,all
imported)willbefairlylowfor1982becauseofsufficiently bigstocks
carriedover.Consequently ,around25000tofimportswillbeneededto
meettherequirements ofthesecondhalfof1982.Therearenoplansfor
theCommunitytoprovidefoodaidincerealsfor1982,butratherto
concentrate onthemosturgentneeds.
Theshortfalls invegetableoilandredbeanswillremainconsiderable
forthesecondhalfoftheyear(13700tforvegetableoiland14000t
forredbeans),particularly sincethesearethemostexpensiveproducts.
TheCommunity hasalreadysuccessfully deliveredvegetableoilandred
beanstoNicaragua,andoughttocontinuedoingso.Byutilizing
theappropriations enteredinthe1982budgettothisend,thefollowing
allocations couldbemade;
1.5MECUfordeliveriesofvegetableoil,corresponding to
approximately 2700t;
1MECUfordeliveriesofredbeans,corresponding toapproximately
1500t.
Allthisaidwouldbedelivered asfarastheFOBstage.Itwouldhowever
beexpedienttoprocuretheredbeansinCentralAmericaitself,soasto
reducetransportcostsfortherecipientcountry.
(1)Nicaraguareceivedover110000tofwheatasaidin1981.

5
Ifthenewproposalssetoutaboveareaccepted,Nicaraguawillreceive
foodaidin1982totalling6.5MECUatworldprices,coveringdairy
products,vegetableoilandredbeans.
b.Requirements in1983and1984
The-programmefordeveloping basicfoodproductswillincreaseproduction
offoodcropsandthusreduceNicaragua'sdependence onagricultural imports.
Asregardsdairyproducts,however,noimprovement (1)isexpectedin
thedependencesituation andimportsofmilkpowderwillcontinuetobe
neededattherateof6000to7000tperannum.
Itisthereforeproposedthataidindairyproducts(intendedforsale)
shouldcontinuefor1983and1984atitspresentannuallevelof2000t
ofskimmed-milk powderand300tofbutteroil.
c.Counterpart fundsgenerated byaidin1982,1983and1984
i
Theannexshowsthataidindairyproducts,vegetableoilandredbeans
for1982andproposedaidindairyproductfor.1983and1984should
generatecounterpart fundstotalling10.8MECU.Thesefundswouldbe
allocatedtotheprogrammefordeveloping basicfoodproducts,whichwould
consequently bealmostentirelyfinanced,directlyorindirectly,by
theCommunity.. *
(1)Aftertherevolution,considerable livestocklossesandasignificant
increaseintheconsumption ofdairyproductscombinedtoincrease
theshortfalls .
Aprogrammeforimprovingstockfarming wasdrawnupbytheGovernment
butinviewofitshighcost(aroundt200M)nofinancing hasyet
beenfoundforit.

5.Decisions
InviewofNicaragua'srecentrequestsandfoodaidrequirements ,coupled
withtheexistenceofafoodstrategy(theNationalFoodProgramme )and
offinancinginthecontextofthisstrategyforaspecificprogrammefor
developing basicfoodproducts,
theCouncilisrequestedtoagreetotheCommunity'snotifying
theNicaraguan Government thatitisfavourably disposedtowards
supporting theprogrammefordeveloping basicfoodproductsby
meansoftheutilization ofcounterpart fundsresultingfrom
thesaleeachyearof2000tofskimmed-milk powderand300t
ofbutteroil,whatisthecontinuation ofthecurrentprogramme
inmilkproducts;theregulations concerning theallocationdecisions
willbesubmitted inthecontextoftheindividual foodaidannual
programmes ;
moreover,theCommission intendstoapprovethefollowingallocations
ofproductstobedelivered FOBtoNicaraguaunderthe1982budget
appropriations :
vegetableoil:1.5MECU(1),namelyapproximately 2700t;
redbeans:1MECU((2),namelyapproximately 1500t„
ItisinformingtheCouncilandParliamentofitsintention.
Thecounterpart fundsresultingfromthesaleofthesefoodproducts
willbeallocatedtotheprogrammefordeveloping basicfoodproducts.
(1)Appropriations enteredunderArticle923:5MECU.
(2)Appropriations enteredunderArticle924"foodaid(othercommodities
5MECU.

Counterpart funds
MillionECU
1982 1983 19S4
2000tmilk2.4íalready
300tbutteroil0.45)app'"0ved
2700toil 1.5
1500tredbeans0.8
5.152000tmilkî-,QC/CmOJ
300tbutteroil 3
2.85'2000tmiIkÌ-oc
<ámOJ
300tbutteroil )
2.85 10.85
Financingofprogrammeforthedevelopment ofbasicfoodproducts(totalcost:19.9MECU)
-FTA :7.4MECU
-Counterpart funds:10.85MECU
-Localresources :1.65MECU
19.9MECU