Proposal for a Council Regulation introducing a Community aid scheme for producers of certain citrus fruits

(96/C 191/07)

COM(96) 177 final - 96/0120(CNS)

(Submitted by the Commission on 13 May 1996)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas the present situation in the citrus fruit industry continues to be marked by serious difficulties in the disposal of Community production; whereas these difficulties are attributable mainly to the varietal aspects of production, production surpluses and marketing conditions for fresh and processed citrus fruit;

Whereas the Community supply of oranges, mandarins and lemons continues to keep pace with demand on the market in fresh fruit for some varieties of products; whereas production of clementines has increased considerably in recent years to the extent that surpluses are being created; whereas satsumas, which are being replaced by clementines on the market in fresh fruit, are also in surplus; whereas a system of support for producers should, therefore, provide an incentive for the disposal of the citrus fruit concerned with a view to their processing into juice and segments;

Whereas it seems appropriate to implement this system by means of contracts concluded between processors and producers' organizations in order to ensure, firstly, regular supplies for processing industries and, secondly, effective checks on the products to be delivered; whereas the system should guarantee supplies to consumers at reasonable prices and quality;

Whereas, in order to encourage producers to present their products for processing rather than withdrawal, provision should be made for the grant of an aid to producers' organizations which deliver citrus fruit to the processing industries; whereas the amounts of the aid should be established for a transitional period of five years after which they should be a fixed sum; whereas those amounts should be calculated on the basis of the ratio existing in 1995/96 between the financial compensation and the minimum price and be subject to an annual gradual reduction over the transitional period, except in the case of satsumas and clementines, in order to meet the general objectives of the common organization of the market in fresh products;

Whereas the production of citrus fruit features structural shortcomings in terms of marketing which are demonstrated by the excessive dispersal of supply; whereas therefore individual producers who deliver all their citrus fruit for processing through producers' organizations should qualify under the system; whereas for that reason and in order to ensure equality of treatment with the fresh products sector, provision should be made for the amount of the aid to be reduced; whereas for the same structural reasons, it would be justified to grant an increase in the aid for producers' organizations which conclude a contract for more than one year and in respect of minimum quantities;

Whereas the quantities that may be withdrawn from the market are limited by the rules governing fresh products; whereas in cases where production is rising, steps should be taken to prevent systematic recourse to processing as an alternative outlet; whereas the fixing of a maximum quantity for processing, the overrunning of which would entail a reduction in the aid in the following marketing year, would seem to be an appropriate measure to that end; whereas maximum limits should be laid down based on the average quantity eligible for financial compensation during a reference period,

HAS ADOPTED THIS REGULATION:

Article 1

A Community aid scheme for producers' organizations which deliver for processing certain citrus fruits harvested in the Community is hereby established. The scheme shall cover:

(a) oranges, mandarins, clementines and lemons processed into juice;

(b) satsumas and clementines processed into segments.

Article 2

1. The scheme referred to in Article 1 shall be based on contracts between, on the one hand, producers' organizations recognized or provisionally admitted under Regulation (EC) No . . ./96 and, on the other, processors or legally constituted associations or unions of processors.

2. Such contracts shall be concluded before a specified date and for a minimum duration determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No . . ./96. They must specify the quantities to which they relate, the phasing of deliveries to processors and the prices to be paid to producers' organizations.

3. Once they have been concluded, contracts shall be sent to the authorities in the Member States concerned responsible for carrying out qualitative and quantitative checks on:

(a) products delivered to processors by producers' organizations;

(b) the actual processing of the quantities delivered.

Article 3

1. Aid shall be granted to producers' organizations for the quantities delivered for processing under the contracts referred to in Article 2.

2. The amount of the aid referred to in paragraph 1 shall be that fixed in Table 1 of the Annex hereto.

However:

(a) where the contract referred to in Article 2 (1) covers more than one marketing year and a minimum quantity of citrus fruit, to be determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No . . ./96, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 2 of the Annex hereto;

(b) for quantities delivered under the provisions of Article 4, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 3 of the Annex hereto.

3. The aid shall be paid by the Member States to producers' organizations which apply therefor as soon as the inspecting authorities of the Member State in which processing is undertaken have established that the products covered by the contracts have been delivered to the processing industry.

The amount of the aid received by producers' organizations shall be paid to associated producers.

Article 4

1. Producers' organizations shall pass on the benefit of the aid scheme defined in this Regulation to individual producers who are not members of any such organizations who undertake to market through them their entire output of citrus fruit intended for processing and who pay a subscription to cover the extra management costs borne by the organization because of the application of this provision.

2. Where paragraph 1 is applied,

(a) the amount of the aid received by the producers' organization shall be paid to the individual producer concerned;

(b) the quantities supplied by individual producers may not be included in the multiannual contracts referred to in Article 3 (2) (a).

Article 5

1. Processing thresholds shall be established for oranges, for lemons, and for mandarins, clementines and satsumas taken together, as follows:

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2. If, in the course of a given marketing year, the quantities of oranges, of lemons, and of mandarins, satsumas and clementines delivered for processing under the scheme provided for in this Regulation exceed the processing thresholds established in paragraph 1, the aid fixed in accordance with Article 3 (2) for the products in question shall be reduced for the following marketing year by 1 % per tranche of the processing threshold overrun. Overrun tranches shall be equal to 1 % of the level of each threshold fixed in paragraph 1. However, in the case of oranges and lemons, any overrun of the processing threshold shall be fixed, for a given marketing year, on the basis of a period of 12 consecutive months, staggered in relation to the said marketing year.

Article 6

Detailed rules for the application of this Regulation, and in particular monitoring measures and penalties, the marketing years, the minimum characteristics of the raw materials delivered for processing and the financial consequences of exceeding the threshold shall be adopted in accordance with the procedure laid down in Article 45 of Regulation (EC) No . . ./96.

Article 7

The measures provided for in this Regulation shall be regarded as intervention intended to stabilize the agricultural markets within the meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy (1). They shall be financed by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF).

Article 8

Regulations (EEC) No 1035/77 and (EC) No 3119/93 are hereby repealed.

Article 9

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

It shall apply from the 1996/97 marketing year.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No L 94, 28. 4. 1970, p. 13.

ANNEX

Amounts of the aid referred to in Article 3 (1)

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