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DOCUMENTS "COM"
COM(81)63
Vol.1981/0019

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COMMISSION OFTHEEUROPEAN COMMUNITI
COM(81)63 final
Brussels,24thFebruary1981
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REPORTFROMTHECOMMISSION TOTHECOUNCIL
ONTHEDEVELOPMENT OFTHEMARKETINCERTIFIED RICESEEDS
)
C0M(81)63final

CsWV
REPORT PROM THECOMMISSION TOTHECOUNCIL ONTHE
DEVELOPMENT OFTHEMARKET INCERTIFIED RICE SEEDS
Introduction
1#)Thecommon organization of "themarket inseeds wasse*tupbyCouncil Regu–
lation (EEC)NO2358/71of26Ootober 19710).Itwasimplemented forthe
first time for the 1972 harvest .
Itssoope ofapplication hasbeen amended onseveral occasions )last bythe
inclusion ofrice seeds (Regulation (EEC)No2878/79)(2),andsince then
hasoovered theproducts listed intheCCTunder thefollowing numbers :
07.05 A-Dried leguminous vegetables ,shelled ,whether or
not skinned orsplit ,forsowing .
10.05 A–Hybrid maize ,forsowing .
10.06 A–Rice forsowing .
/
12.01 AOilseeds andoleaginous fruit ,whole orbroken ,
N "forsowing .
12.03 -Seeds ,fruit andspores ,ofakind used forsowing .
\ '/
2.)TheRegulation provides forthepossibility incertain circumstances of
granting aidperquintal fortheproduction ofcertified seed ,inorder to
ensure afair income toproduoers andsecure thesupply ofquality seeds .
Thelevel oftheaidshall befixed bytheCouncil every twoyears before
1August forthemarketing year beginning inthefollowing year andforthe
subsequent marketing year .If,forthetwo-year period forwhich aidhas
been fixed ,thestability oftheCommunity market appears tobeBeriously
threatened ,theaidforthesecond year oftheperiod inquestion canbe
modified . : .
1)OJNo L246/71,p.1
(2)OJNoL325/79,p.1

Thelevelofaidtotheproductionofcertifiedseedsofricehasbeenfixed
at12,1Ecuperquintalforthemarketingyears1979/80,1980/81and1981/82(3)
3.)IntheCommunityafeatureofriceseedsproductionisthatallseedsmustbe
certifiedbeforebeingmarketedandproductionisalwaysbasedonaseed
multiplication contractbetweenaproducerandaseedcompany.Community
cooperatives haveastronginfluenceinthericeseedindustry(80$).
4.)Oneofthemostimportantproblemsinthegrowingofriceistheappearance
of"redgrains"(abnormaltypes),whichseriouslyaffectstheyield*Verylarge
areasunderricearepollutedwithseedsof"redgrain"plants,whichcan
persistinthesoilforseveralyearswithoutlosingitsgerminationcapacity,
andthisisoneresultoftheuseof"homegrown"andnon-controlled ricefor
sowing.Theonlywaytosolvethisproblemistoincreasethesupplyandthe
useofcertifiedseeds(inspectedfor"redgrains").
II.TheCommunitymarketincertifiedriceseeds
1.)OnlytwoMemberStatesproducecertifiedriceseeds,Italybeingthelargest
with+8.900haunderriceseedsin1980(seetable1)or97%ofCommunity
production.Prancehastheremaining3underriceseedsequalto+210ha.
ThemostimportantproductionregionsareVercelli,Pavia,NovaraandOristano
inItalyandtheRhoneDeltainPrance.
ProductioninItalywasstablebetween1972and1978ataround170.000qx
(seetable1).However,aftertheintroductionoftheproductionaid(1979
harvest),theproductionofcertifiedriceseedshasincreasedtoanestimated
+300.000qxin1980.ProductioninPranceisestimatedat+5-500qx.Commu­
nityproductioniscarriedoutby3-400producers.
ThereisacertainamountoftradebetweenItalyandPrance,withItalysupply­
ing4–7»000qxannuallytoPrance.
(3)Regulation(EEC)NO2879/79
OJNoL325,p.5
Λ

2*)Theuseofoertifiedriceseedswasstableuptilthemarketingyear1978/79
atalevelrefleotingproduction(+175.OOOqx).Thisuseisequalto+50
ofthepotentialuse,whichis+35O.OOOqx(seetable2).Theincreasein
productionsince1979hasresultedinapossiblecoverageof87$ofthe
potentialuseinthemarketingyear1980/81*TheforecastforCommunityuse
is+282.000qx(Italy+270.000qxandFrance+12.000qx)in1980/81.It
shouldbenotedthatinFrancealmostallseedsusedarecertified.
Certifiedseedsareusedbyaround10.000–11.000riceproducers.Taking
intoaccountexportopportunities tothirdcountries(1979/80equalto
+14.000qx)thereisagoodbalanceinthemarket(seetable2).Security
stocksattheendofthemarketingyeararenormally10%ofestimateduse.
3.)TheCommunitypricefixingsystemforcertifiedriceisbasedontheprices
whichcanbeobtainedforriceforhumanconsumption.Tothismustbeadded
thesupplementary costinvolvedintheproductionofcertifiedseeds;thus
theprice-fixing structurecanbeoutlinedasfollows:
i.theaveragepriceobtainedforconsumptionriceinthe.
monthsofOctober,NovemberandDecember
iisupplementary costinvolvedintheproductionandthe
processingofcertifiedseeds(seetable3).
Therearebigdifferencesinthepricelevelbetweenvarietiesreflecting
differencesinthedemandforspeoialqualitiesinriceforconsumption (see
table4).
-Beforetheintroduction oftheCommunityaidthepricedifferencebetween
riceforconsumptionandcertifiedricewasatalevelbetween13-17Ecu/qx.
TheCommunityaid(12,1Ecu/qx)hasresultedinanarrowingofthisdifference
toaround5■"8,5Ecu/qx,partlythankstonewcontracttermsbetweenseed
producersandseedcompanies.Thissituationhasdeterminedtheincreaseiin
theuseofoertifiedseeds,andthedisappearance ofexchangesofnon-
controlledseedsbetweenriceproduoers.
•/•

III.Relationship withtheworldmarket
1JBecauseoftheveiydifferentproductiontechniquesusedintheproduction
ofrice,aswellasthesoilandclimatedifferences betweentheregionsof
theworldwherericeisgrown,aricevarietyhasmostoftenonlyalimited
growingarea,asituationwhichresultsinlimitedworldtrade.Inaccordance
withtheCouncilDirectives'onthemarketingofcerealseeds(4),onlycer­
tifiedriceseedscanbemarketedandonlyThirdCountries,which "benefit
fromtheprovisionsoftheCommunityequivalencesystemforproductionof
certifiedseed,canexporttotheCommunitymarket.Atpresentonlythe'
UnitedStatesofAmericahaveequivalenceforriceseedsandnocommercial
importshavebeenrecordedinthelast10years.
2.)IntheMediterannian areathereisacertaininterestinthegrowingof
Italianvarietiesandfollowingthelowering'ofsalespricesin1979/80*it
isestimatedthatexportpossibilities areencouraging .Inthemarketing
year1979/80Italyexported+14.000qx. ,
IV.Conclusion
1.)ThemainfeaturesoftheCommunitymarketincertifiedriceseedsares
iitsrelativestability
iithehighdegreeofpriceelasticityofriceseeds
iiiitsrelativeindependence fromtheworldmarket
ivtheeaseofcontrollingthepaymentoftheproduction '
aidtoarelativelylownumberofproducers.
Inviewofthesefeaturesitisimportanttoensurethatthepresentstability
andbalanceinthemarketaremaintainedinordertoincreaseproductivity
andquality.
(4)CouncilDirectiveNo66/402of14July19^6
OJNo125of11.7.1966

-5-
2*)TheCommissionhasexaminedthedevelopmentofthemarketinrioeatboth
governmental andprofessional levelandingeneralitisunderstoodthat
theeconomiccontributiontothissectorhasworkedoutsatisfactorily and
tothebenefitoftheentirericeindustry.Asaresultofthisreviewthe
Commissionhasfoundthattherewasgeneralagreementonthefollowing
points:
itomaintainthepresentsystemtwithproduotionaid
grantedtotheproducerofcertifiedriceseeds(as
forallotherspeoies),inordertoobtainfurther
experience,
iitomaintainclosesurveillance ofthedevelopment
ofthemarket.
3.)InoonclusionttheCommissionfindsatpresentnoobjectivefoundation
forproposingfundamentalamendmentstoRegulationNo2358/71ashasbeen
requiredby*theEuropeanParliamentandtheEconomicandSocialCommittee
duringthediscussionsleadinguptotheinclusionofriceseedsinthe
oommonorganization ofthemarketinseeds.

TABLE1
'Area(ha)andproduction(qx)ofcertifiedriceseeds
1972 1973-1974 1975 1976 1977 1978 1979 1980
HaI5.4086.3986.976 5-5956.0347.618 8.743 8.1418.928
F - - '- - - - - - 212
QxI166.647185.412 162.060168.280 162.162 170.212 190.121 242.308300.000*
Ρ/
- - - - -5.6375.5ΟΟ*
».
Source:CommunicationsfromMemberStatesî*estimation

TABLE2
Communitymarket "balanceincertifiedriceseeds
1
Harvest2
Stock3-1+2
Availability4
Use3-4
DifferenceImport Export"Normal"
stocks
1979/80247.945 .9.000 256.945 216.O9O 4O.855" - 14.022 27.OOO
1980/81305.OOO 26.833 331.833 282.000 49.833 - ?
I27.OOO
'•Source:Informations fromMemberStates ,*estimation
I
i

TABLE3
Structureoftheelementsusedinseedspricefixing
Ecu/qx(1979/80)
\
Basisprices27,1-40,6 a)Averageofpricesreoorded
inOct,Nov,andDecfor^
consumptionrice-· ■
Additional costs:
la)lossinvalueduetodis- 1,7-3,4'
cardingofseeds
c)interest(18%)in6months 2,5-3,4
d)processingcosts 1,7
eJmediation 0,9
f)transport 0,9
g)sack 0,4
hJofficialcertification 0,4
i)particularcosts(administra–.
tion,etc.) .0,9
j)productionbonustoproducer 2,5-4,2
Source:Professionals

Marketpriceforcertifiedseedsin1978/79and1979/80
Italy Prance
1978/791979/801978/791979/80
Balilla 41,5 33,9-34,7
Padano 40,6 33,1■
VialoneNano 51,6 36,4 D 1)
RosaMarchetti 39,8 33,9 42,8 36,8
Ribe 40,6.33,9
EXiropa 41,1 33,9-34,7
Roma 44,4 33,0-33,9
Arborio 56,7 36,4
Baldo 44,9 33,9-34,7-
/
Source:Professionals andgovernments
,l)allvarietiesusedinPrance.'JV
TABLE4
enEcu/qx