ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)100
Vol.1977/9003

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)100 final
Brussels ,11February 1977
COMMISSION PROPOSALS
onthefixingofpricesforcertain
agricultural products andoncertain
related measures
VolumeI
COM(77)100final

COOTENTS
Volume I
Introductory remarks
A*Explanatory Memorandum
B,Discussion ofindividual products 12
•Cereals 13
•Rice 20
•Sugar andisoglucose 24
•Olive oil 29
.Oilandprotein seeds 32
•Dehydrated fodder 38
•Flax andHemp 39
•Seeds 41
•Wine 43
•Rawtobaoco 45
•Fruit andvegetables 51
.Milk 57
•Beef andveal 65
•Pigmeat 68
•Silkworms 69
C•Financial implications 70
Volume II
(will bepresented later )
Draft proposai gofRégulations :
-nrices
-adaptation ofgreen rates
-related measures

INTRODUCTORY REMARKS
TheCommission herewith presents totheCouncil itsproposals concerning
thefixing ofprices forcertain agricultural products forthe1977/78
marketing year andalso concerning anumber ofrelated measures .
Atthesame time ,theCommission puts forward itsproposals onthecommon
prices tobeapplied inthenewMember States insofar astheActconcerning
theConditions ofAccession andAdjustments totheTreaties lays down
special provisions (milk ,beef andveal ,flax ). These special provisions
come toanendon31December 1977 *
The Commission 'sproposals follow theguidelines setoutinitsMemorandum
ontheimprovement oftheoommon agricultural policy (C0M(73)1850 final of
31October 1973 )andinitsstocktaking ofthecommon agricultural policy
(COM(75)100 of26February 1975 )aswell astheCouncil 'sconclusions on
theStocktaking ofthecommon agricultural policy (doc.1/173/75(Agri .12)
(Pin60)of11November 1975 ).
Theattached proposals have been formulated inthe light oftheinformation
contained inthe 1976Report ontheAgricultural situation intheCommunity
(report published inJanuary 1977 inconjunction with theTenth General
Report ontheactivities oftheEuropean Communities ),inthe1976 Report
onthesituation ofagricultural markets (COM(77)50 final )andinthe
Report onagricultural incomes intheCommunity (Complement tothe
1976 Report ontheagricultural situation intheCommunity )
(doc .C0M(77)60 final ).
Thelegal acts relating totheprice determinations forthe1977/78
marketing year and those concerned with related measures are included in
Volume IIofthis document C0M(77)100 .
Thefinancial consequences oftheattaohed proposals arelaid down indocument
COM(77 )l50A-^*je .

-2-
A. Explanatory Memorandum
1.Theproposals forprices forthe1977/78marketing year arebeing
framed atatime when the Community isemerging from theworst economic
recession ithas experienced since its creation .
Although thegeneral economic situation hasimproved and the Community*s
gross domestic produot increased by4.3$ in1976 ,unemployment has
remained atanexceptionally high level }towards theendoftheyear ,
almost 5*3million workers ,including 2million young people ,were without
jobs .
In1976 ,theinflation rate wasbrought below double figures forthefirst
time Bince 1974 »butitisstill high (9*3$ Community average )* Differences
between Member States remain significant andhave worsened .
2.Overall economic prospects for 1977 remain uncertain ,following the
slow-down oftherecovery process inlate 1976 .Gross domestic product
isexpected torise by3$,butunemployment will remain high ,inflation
will continue tobeserious and oilprice rises may cause renewed balance
ofpayments difficulties .
3.In1976 ,agricultural production washitbythelongest drought ofthe
century .Price inoreases forthemeans ofproduction ,which hadreached
ahigh level intheCommunity in1974 07*6$ ),fell toless than 11$in
1975 butrose slightly in1976 (11$)• Atthesame time ,producers *prices
ofagricultural output increased onaverage by15$in1976 (13$1975 »
6$1974 ).
Theoverall effect wasthat in1976 theaverage income expressed asthevalue
added byeach manemployed inagriculture rose by10.5$ innominal terms ,
though therise wassmaller (1.0$ )inreal terms .In1975 therise inthe
value added byeach worker was17*6$ innominal and2.1$ inreal terms .
Again ,there isaconsiderable divergence between Member States .
The?impact ofthedrought wasgreater forvegetables (especially potatoes )
andmaizethan forother crops (forexample ,barley andsugar ). Themilk
industry recovered quickly from thedrought andproduction forthewhole
year washigher than in1975 ty"1*7$ »milk deliveries todairies increased
by2.5$ ,whereas consumption remained stable oreven declined .

4*Milkproduction anddeliveries todairiesareexpectedtogoonrisingin
1977(3to4$>)butboofoutput,whichincreased duringthedrought,isexpected
to"belowerthanin1975aB"theproduction oyclemovesdownwards# Pigmeatsupplies
however,areexpectedtohehigh*Theyear1977 "beginswithsomeworldmarket
pricesatlowlevels-forexample,wheatandsugar-asworldstocksincrease
following good1976harvests# TheCommunityisstillcarryingsurplusstocksof
skimmedmilkpowder,wineandoliveoil#Ifappropriate decisions arenottaken
inthemilksector,stocksofbutterandskimmedmilkpowderwillincreasefurther
5#Thiseconomicbackground tothepriceproposalsforthe1977/78marketing
yearmustbeseentogether withtheCommunity institutions *ratherlonger-term
reflections basedontheStocktaking oftheoommonagricultural policy(l).
Inparticular ,theCommission insists ontherapidadoption ofmeasures associated
withthemilkaction programme tooombatexisting andgrowingsurpluses inthe
milksectorandofmeasurestoreturntoaunifiedagricultural market#
TheCommission willbackupallthesemeasures byproposing beforeJuly1977
asetofimprovements tosomecurrentmarketorganizations ,inparticular
thoseforbeef,oliveoilandstarch#
6#Thegeneraleconomicsituation andthepressure whichitexertsonpublic
finance makesitstillmorenecessary toimplement theoommonagricultural
polioyinthemostefficient andleast-costly waypossible ,inrespectbothof
economic andbudgetary costs#TheCommission aims,withitspresentproposals
andwiththosetobepresented beforeJuly1977»tostrengthen theoverall
effortsoftheCommunity andtheMemberStatestofightinflation andyetnot
impairagriculture 'sroleinthegeneraleoonomic recovery#
TheCommission intendstopresentbeforeJuly1977appropriate measuresto
improvethecurrentstructural policy,takingintoaccountespecially the
particular problems ofthestructurally mostdeficient regions#
* *
(l)SeeStocktaking ofthecommonagricultural policy,doc#COM(75)lOO of
26February 1975»par#92and93*

7.Sincethe1972/73marketing year,theCommission hasusedtheresultof
thesocalled"objective mehod"asthestartingpointforitsannualconside­
rationofagricultural proposals (l)*
Takingintoaccount (a)thestructure ofinputsnotedonthereference farmsof
theFarmAccountancy DataNetwork (1972,1973,1974),(b)theinterrelated
development in1974,1975 1976ofinputprices,ofcomparable income,of
theincreases incommonpricesinu*a*andoftheevolution ofnational
currencyexchangeratesand(o)afixedtechnioal progresscoefficient of1,5$
peryear,theresultofthecalculation indicates noneedforanincreasein
thegenerallevelofcommonpricesofagricultural productsforthe1977/78
marketing year*
Theresultislowbecausethecalculation oftheneedexpressed inu,a,ismade
onthebasisthatthedifferences betweenthegreenratesandthemarketrates
ofexchange areeliminated *Sincetherehavebeenlimitstoanabolition ofthe
MCA's,onehastooonoludethatthereisanadditional needofpriceincrease
inu*a*
If,forinstance,thecalculation ismadefortheSnakecountries only(Germany,
Benelux,Denmark)wheremonetaryinstability hasbeenmuchlessthaninthe
Community atlarge,theresultindicates aneedforanincreaseinthegeneral
levelofcommonprioesoftheorderof5
8*The"objective method"provides onlyageneralindicator ,whichthe
Commission usesincombination withothers(marketsituation ,generaleconomio
evolution),inordertot
(1)achieveincomeaimsasfaraspossible,
(2)moveclosertomarketunity,byadaptingthecurrentgreenrates,
(3)achieveabettermarketbalancewherenecessary ,inparticular inthe
milksector,
(4)supportanti-inflationary policiesthroughout theCommunity *
*
* *
(l)SeeStocktaking ofthecommonagricultural policy,doo*C0M(75)100of
26February 1975»par*92and93*

-5-
9.Whenproposing amethodforapermanent adaptation ofgreenrates,the
Commission emphasised thenumerousdistortions arisingfromabuseofthesystem
ofmonetary compensatory amounts.Whilereoognising theusefulshort-term role
ofMCAsinprotecting farmersorconsumers againstsuddencurrency movements ,
theCommission opposesstrongly anyattempttomaintain thembeyondtheirshort-
termrole*Itconsiders unacceptable theirharmfuleffects–tradedistortions ,
discrimination betweencommodities andanincreasingly seriousmisallocation of
resources .
10.Asinpreviousyears,theCommission proposestoincludegreenrate
adaptations inthepricepackage,inordertomoveclosertoaunified
agricultural market.
Thismarketisnowdividedintosevenmonetary zonesbyMCA'swhich,despite
therecentrecoveries ofsomecurrencies ,remainathistoricaly highlevels.
Thecurrentpositionisinsharpcontrasttothatatthebeginning of1976.
11.Theyear1976hasseenanewrevaluation oftheDeutschmark (+2%)and
adevaluation oftheDanishkroner(-4%)\"theFrenchfranoleftthesnakein
March;furtherfallshavetakenplaceinthevalueoftheFrenchfranc,the
Italianliraandthepoundsterling,althoughthesecurrencies haveshown
recentrecoveries .
Thesecurrency movements havebeenpartlyoffsetbyanumberofgreenrate
adaptations .ThesizeofMCAson31January 1977wast
Germany t+9*3 France t-16.1
Benelux t+1.4 Italy i-19*9
Ireland t-9*5 UnitedKingdom t-33«6
12.Facedwiththissituation ,theCommission proposesthefollowing changes t
Reduction ofMCA's variation inprices
Germany
Bénélux
Ireland
Franoe2,75points
0,4points
3points
3points
3points
8points-2,96%
Italy
UnitedKingdom-0,4%
+2,79%
+2,65$
+2,64,
+6,311*

Thesechangeswillapplyfromthebeginning ofeachmarketing year,exceptfor
inthissector,thechangefortherevaluing countrieswillheon16«9»1977
andfortheUnitedKingdomintwoequalstepson1«4*1977 16»9»1977 »
Throughtheseadaptations ofthegreenrates,theCommunity willhavetaken
asteptowardsrestoring marketunity.ButtheCommission stillbelieves
thatfurtheraotionshouldbetakeninthisfieldduringthemarketing year
1977/78alongthelineslaiddownintheproposedmethodforapermanent
adaptation ofthegreenrates^.
*
* *
13.Inproposing different prioeinoreases forthevariousproducts ,the
Commission hasalsoconsidered :
–theexistence orthethreatofsurpluses (milk,wine,oliveoil,
somefruit),
–thetwofinalstepstowardsfulloommonprioesfortheUnitedKingdom
andIreland,
–theprioeeffectsofprevious andproposed greenrateadaptations ,
–theneedtoconsider consumerinterests and,inareaswhereconsumption
isstagnating orevendeclining (butter,oliveoil,beef),tohave
apositiveeffectonconsumption ,
–possibleeffeotsontradewithnon-member countries ,
14«TheCommunity facesadisastrous situation inthemilkmarket.
TheCommission therefore proposes anextremely strictpricepolicyformilk
andurgestheadoptionofamilkaotionprogramme beforethebeginning of
thenewmarketing year.Inorderthatsuchaprogramme canbeeffective in
tacklingtheproblemandtakingaooountofthereaction toitsearlier
proposals ,theCommission hasrethought someofthemeasures already
proposed andisnowputtingforwardsomemodifications toitsoriginal
proposals *
1See"Longertermmeasurestobetakeninthefieldofmonetary compensatory
amounts",doo.CCS-l(76)600 of21Ootober1976andCCM(76)590 of4November 197

15.Aprudentpricepolicyisalsodesirable inseveralothersectors:
sugar,sometobacoovarieties,somefruit(apples,pears,oranges,mandarins ,
tablegrapes)andwine.
InviewoftheCommission'sintention toproposebeforeJuly1977further
measures inseveralsectors,thispricepackagehasbeenkepttoaminimum.
However sometransitional measures forbeefandspecialmeasures for
isoglucose areincludedinthisprioepaokage.
Detailedexplanatory memorandaforindividual products (prioesandrelated
measures)willbefoundinpartBofthisdocument.
.*
* #
10*Prioeincreases ,aslistedintheattachedtable,resultinanaverage
increaseofagricultural pricesinu«&«(institutional prioes)oftheorder
of3Theaverageeffectontheoostoffoodtotheconsumer wouldbeof
theorderof1,5$ontheoostoflivingintheCommunity oftheorder
of0,3%
Thecumulative effectofpriceincreases inu.a.,ofanadaptation ofthe
greenratesand,whereapplicable ,ofacaadjustments inthenewMember
States,resultsinanaverageincrease ofagricultural prioesoftheorder
of5i°(weightedaverage).
Thepricepackage,aslaiddownintheattachedtable,emphasizes the
Commission*.a.lwill tostrengthen theoveralleffortsoftheCommunity and
theMember3tatestofightinflation .

Proposedpricesandamounts _. i
4
t
*
Amountsfixed
1976/77
u.a./toirme1977/78proposais Periodofapplica­
tionofthe
proposed prices-Product Category ofpriceoramount " u.a./tonnePercentage chaftgë --from
1976/77to1977/78
1 2 3 4 5 6
Durumwheat .Targetprice
Singleintervention price
Aid218.80
202.00
0-21-50uc/ha223.20
202,00
50UC/ha2.0
0.0 1.8.77-31.7.78
Coraaonwheat Targetprice
Commonsingleintervention price
Singleintervention pricefor
"bread-^wheat
Reference pricefor"bread-wheat152.00
131.00156.50
119.50
em
135.003.0
3,0
1.8.77-31.7.78
Barley Targetprice
Singleintervention price
Commonsingleintervention price137,80
116^00144.20
119.504,7
3,01.8.77-31.7.78
I$re> Targetprice
Singleintervention prioe149.15
124.00153.60
127.703,0
3,01.8.77-31.7.78
Maize Targetprice
Singleintervention price'137.80
112.20144.20
117.504,7
4.71.8.77-31.7.78
Rice.· Targetprice-huskedrice
Intervention price-paddyrice
Singleintervention price
paddyriçe284.52
164,16292.98
170.732,97
4,01.9.77-31.8.78
Sugar Minimumpriceforsugarbeet
Targetpriceforwhitesugar
Intervention priceforwhitesugar24.57
348,70
331,4025.31
361.40
344.203.0
3.6
3.91.7.77-30.6.78
Oliveoil Producertargetprice
Markettargetprice
Intervention price1850.00
1¡448^90
1.376.401868.50
1412,00
1339.50(1) 1.11.77-31.10.78
• t

Product
1
Oilseeds
Dehydrated
fodderCategoryofpriceoramount
Guidepriceforsoyaseed
Targetprice
•Colzaandrapeseed
•Sunflower seed
-Basicintervention price
.Colzaandrapeseed
.Sunflower seed
Guidepriceflaxseed
Fixedrateaid
Cottonseeds •Fixedrateaid(perha)
ulaxandhemp
Seeds
Table
wine:TypeR
TypeR
TypeR
TypeA
TypeA
TypeAI
II
III
I
II
IIIFixedrateaid(perha)
.Fibreflax
•Hemp .
Aid(per100kg)
.Monoecious hemp
•Fibreflax
•Seedflax
.Grasses
.Legumes
Guideprice
(perdegree/hiorperhiaccording
totype)Amountsfixed
1976/77
u.a./tonne
285,00
275,70
286,30
267,70
278,00
290,00
9,00
103.20
188.15
174.04
8.00
13.00
10to31
4to25
1,96
1.96
30.58
1,84
40.75
46,53"1977/78proposals .
u.a./tonne
305,00
284,00
306,30
275,70
297.50
313,20
9,50
104,00
191,91
176,00
9,00
13,00
10,00
10to33
4to25
2.02
2.02
31.50
1.90
41.97
47.93Percentage changel0f-the
from1976/77"toprices
1977/78 IPeriodofapplicar -
oftheproposed
7.0
3,0
7.0
3.0
7.0
8,0
3,0
3,0
3,0
3,0
3.01.11.77-31.10.78
1.7.77-30.6.78
1.9.77-30.6.78
1.7.77-30.6.78
1.9.77-31.8.78
1.8.77-31.7.78
1.4.77-31.3.78
lehydrated potatoes .
1.7.77-30.6.78
1.8.77-31.7.78
1.8.77-31.7.78
1.7.77-30.6.78
16.12.77 -
15.12.78

Raw-tobacco
[Fruitand.
(vegetablesProduct
1Category ofpriceoramount
Bormpnce
Intervention price
Basioprice
Buying-in priceAmountfixed
1976/77
u.a./tonne
(3)
(4)1977/78proposals "
u.a./torme
(3)
(4)Percentage change
,from1976/77to1977/78
1,5
(onaverage)Periodofapplica­
tion,ofthe
proposedprices
1.1.77-31.12.77
1977-1978(4)
Milk(5)
Beefandveal
'igmeat
SilkwormsTargetpriceformilk
Intervention price
.forbutter(6)
.forskimmedmilkpowder
.forcheese
-Granapadano30-60days
-Granapadano6months
~Parmigiano-Reggiano 6months162.90 167.60
2180,002.238.00
901,60 913,70
2089.102.137,90
2506,902.558,40
2718,102.769,60167,60
2.238,00
913,70
137,90
558,40
769.60172.60
2.298,00
936,50
2.192,40
2.616.00
2.827,20
Guidepriceforadultbovines
(liveweight)
Guidepriceforcalves
(liveweight)-1187,40
*
1390,401223,0
Basicprice(slaughter weight) 1144,80 1190.60
Aidperboxof
silkseed
Aidtorecognized producer
groups(perbox)40,00
15,0040.00
13.61
/3,0
2.68
2-49
2.55
2,25
2,08
3.0
4,01.4.77-31.3.78
'•4.77–2>4*78
1.11.77-31.1fl.78
1.4.77-31.3.78
C

(1)1i<>increaseintheproducertargetpriceinu.a.Retentionofmarkettargetprice "both,inItalianlirasandPrendifrancs.
Retention ofthedifference "betweenthemarkettargetpriceandtheintervention price.
Theamountoftheaidmovesfrom401,1u.a.atonneto45^,5u.a.
(2)Pricesdifferentiated fornewMemberStates:
Fibreflax
Butter
AdultbovinesAid
Intervention price
GuidepriceUnitedKingdom
161.34u.a./foa
1April1977 19
16September 1977 201996.30u.a./t
2050.20u.a./t
1177.00u.a./t
upto31.12.1977»thencommonlevelIreland
(191.91u.a./hacommonlevel)
1April1977 2199.20u.a./t
16September 1977 2258.60u.a./t
(3)Nineteenvarietiesoftobacco,thepricesforwhichapplytothecalendaryearcrop.
(4)ProductsinAnnexIIofCouncilRegulation 3052/72of18May1972andperiodsvaryingaccordingtotheproduct:
Cauliflowers :1.5.1977to30.4.1978 Lemons :1.6.1977to31.5*1978 Apples :1.8.1977to31.5 Cauliflowers :
Tomatoes :
Peaches :Cauliflowers :1.5.1977to30.4.1978 Lemons :1.6.1977to31.5*1978 Apples :1.8.1977to
Tomatoes :1.6.1977to30.11.1977 Pears 1.7.1977to30.4.1978 Mandarins :16.11.1977
Peaches :1.6.1977to30.9.1977 Tablegrapes:1.8.1977to31.10.1977 Sweetoranges:1.12.1977t
Increasesof2%fororanges,mandarins andClementines and2.5$forlemonsareproposedinthefinancial
compensation designedtopromotethemarketing ofCommunity citrusproduction onCommunity importmarkets.1.8.1977to31.5.1978
16.11.1977 to28.2.1978
1.12.1977 to30.4.1978
(5)Inthissector,twoperiodsofapplication in1976/77?from15.3.1976andfrom16.9.1976 ;andin1977/78,from
1.4.1977andfrom16.9.1977 (pricechangesfrom16«9•19TT)•Increases arecalculated inrelationtothesecond
periodofthepreviousmarketing year#
(6)Consumersubsidyforbutterin1976/77amaximumof50u.a./l00kg(ofwhichamaximumof16,25u.a.payablebythe
EAGGP)|in1977/78thesamemaximumwithEAGGPcontribution of25fobetween0and20u.a.andof50i°between20
and50u.a.(ofwhichamaximumof20u.a.).Maintenance ofthepresentlevelofsubsidyforskimmedmilkpowder
foruseasanimalfeed.
UBAidforthe1975hopharvestrangingfrom200to65Ou.a./naaccording tovariety.
Vithregardtofishing,different pricesforeachproductcoveredbytheCouncilRegulation of20October1970.In
December 1976fixingof(guide)pricesforproductsinAnnexI,AandCofthisRegulation (guide)pricesforproducts
inAnnexIIofthisRegulation ,intervention pricesandCommunity production pricesforthe1977marketing year.
Intervention pricesforsardines andanchovies areautomatically calculated attherateof45$ofguideprices.

12
B.DISCUSSIONOPINDIVI DOALPROKJCTS

-13-
CEREALS
A. PRICES
1.Article 3ofCouncil Regulation (EEC)No2727/751of29October 1975
onthecommon organization ofthemarket incereals ,asamended by
Λ
Council Regulation (EEC)No1143/76of17May1976 ,provides that the
following should beadopted according totheprocedure laid down in
Article 43(2 )oftheTreaty :
–acommon single intervention price forcommon wheat ,barley andmaize
andthesingle price forryeandfordurum wheat ;
–areference price forcommon wheat ofbread –making quality ;
–target prices forcommon wheat ,durum wheat andryeandthecommon
target price forbarley andmaize .
2.Asanincrease inthegeneral level ofcommon agricultural prices is
desired ,andinview oftheagri–monetary measures proposed :
(a)there should bea3$increase inthecommon single intervention
price forfeed-grains ,except maise ,forwhich a4*7$ increase is
proposed asasecond step towards acommon single price ;
(b)inorder toencourage theproduction ofcommon wheat ofmedium
bread –making quality ,thereference price for itshould be
calculated byadding 15/&tothecommon single intervention prioe .
This corresponds totheratio between theoutput ofthemedium
bread-making andnon-bread -making qualities ofcommon wheat .However ,
inview ofcurrent eoonomic conditions ,thereferenoe price forI977/78
should besetfortheminimum quality forbread-making ,with a13$
difference only from thecommon single intervention prioe .
IOJNòL281,1.11.1975 ,P*1.
*0JNoL130,I9.5.I976 .p.1.

-14-
(o)thetarget prioe foroommon wheat should becalculated byadding
tothereference prioe forcommon wheat of "bread-making quality a
market component of6.5$ ,inorder toallow themarket todevelop
anadequate price spread depending upon quality ,andacomponent
representing Ormes-Duisburg transport oosts at12.76 u.a./t;
(d)there should betheBame rise inthesingle intervention price for
ryeasinthecommon single intervention price ,viz.3%\
(e)there should still beaseparate system forrye ,with the
intervention andtarget prices being increased bythesame
percentage asforother cereals ;
(f)there should benoincrease inthesingle intervention price for
durum wheat ,soastoimprove theintervention price ratio between
durum wheat andcommon wheat ofbread-making quality t
1976/77*131/202-154
1977/781 135.00 /202-149-6
(g)thetarget price fordurum wheat should becalculated byadding
tothesingle intervention price amarket component of4*2
which will besufficient toincrease fluidity while not too
seriously affecting theintervention price ratio between common
and durum wheat !
1976/77*152/218.8 -144
1977/78:156.5/223.2-142.6
(h)thecommon target price forbarley andmaize should becalculated
byincreasing theoommon single intervention price byamarket
component of10$andacomponent representing Ormes-Duisburg
transport costs at12.76 u.a./t.
This proposal constitutes asingle whole designed toserve asthe
framework within which aprice range maydevelop freely onthemarket in
terms ofthecomparative technical quality ofthevarious cereals .This
system isbased onthedifference between barley andmaize intheir
conversion value foruseasfeed ,which isoommonly assessed at0$,with an
extra market margin of2$forbarley ,inorder toavoid intervention buying
ofbarley ,being thecereal with thelowest conversion value .This is
\
\

howthe10$marketcomponent ofthetargetpriceforbarleyandmaize
isarrivedat*
Thevariousincreases proposed giveanaverageriseincerealprices
asawholeofabout3.1$•
Aidfordurumwheat
Specialmentionshouldbemadeoftheproposal onaidfordurumwheat.
TheCommunity marketindurumwheathasbeendisturbed tyabadprice
ratiobetween commonanddurumwheat*Thishasledtoproduction being
encouraged –sometimes tothedetriment ofquality–inregionsnotwell
suitedtogrowingdurumwheat,whileusershavebeendiscouraged ty
priceswhichwereexcessive forthelowerqualities offered.Itwasthus
imperative tore-establish amorenormalintervention pricerelationship
between commonanddurumwheatandtoimprovethefluidity ofCommunity
trade.
Theaidfordurumwheatistobegrantedonlyinthosepartsofthe
Community wherestructures aresuohastomakeitindispensable ,which
isnotthecaseinallregionswhereitiscurrently granted.Henoe
theCommission 'sproposaltolimittheaidtothatpartofItalyin
whichitwillbemostusefulandtomakenoincreaseinitsamount,
whichisconsidered sufficient .
3.Thepriceproposals werebasedonthefollowing analysis ofthe
situation inthecerealssectort
•Cerealsproduction ,whichaccounted forabout10.5$ofthevalue
ofthefinalagricultural production oftheCommunity in1975,
coversabout28$oftheutilizedagricultural area.Afterafallof
10.2$in1975»production wasabout90.9milliontonnesin1976,a
dropof6*4$dueprincipally toafallinyieldsasaresultofthedrought.

-16-
.thepreviousyear's17%increaseindurumwheatwasreplacedin
1976byafallof11.3$.Commonwheatandryewentupby4«9$and1*4$
respectively ,whileoutputofallothercerealsfell-barleyby
7.6$,oatsby17.4$,maizeby23.2$.Thefallwasthusmainlyinthe
ooarsegrains.
4.Asregardsthemonthlyincreases,aninoreasefromI.42toI.46u.a./t
isproposedforalloerealsexceptdurumwheat,forwhicharisefrom1.52
toI.56u.a./tisputforward.Aparallelriseinmonthlyinoreasesis
proposed forflour,groatsandmeal.
5*Inviewofthesupplyandmarketsituation ,theCommission hasno
intention ofproposing carry-over paymentsforcereals.
*
**
Intheproposedfiguresincludedinthefollowing table,thepercentages
havebeenroundedofftothefirstdeoimalpoint.

-17-
PRICE PROPOSALS FOR1977/78
Produot 1975/76 Increase 1976/77Increase ^I977/78
u.a. /t % u.a. /t *
COMMON WHEAT
Single intervention price )
"bread –wheat )
Common single intervention
price
Reference price bread-wheat
Basic intervention price
Target price .125.93
I39.44 +9.O131.00
(116.00 )
I52.OO+3.0
+3.0119.5
135.-2
156.5
RYE
Single intervention prioe
Target price•II9.76
138.74+3.5
+7.5I24.OO
149 .19+3.0
+3.0127.7J
153.6
BARLEY
Single intervention price
Common single intervention )
price )
Target price .IIO.96 +4.5 116.00
116.00 +3.0 119.5
126.99 +8.5 137·80 +4.7 144.2
MAIZE
Single intervention price
Target prioe .103.43
126.41+8.5
+9.0112.20
137.80+4.7
+4.7117.5
144.2
DURUM WHEAT
Single intervention prioe
Target price .190.53
207.33+6.0
+5.5202.00
218.800
+2.0202.0
223.2
Aid 24.92
u.a./tO-2I-5O
u.a./ha5° A
u.a./ha
^Percentage rounded-off tothefirst decimal point .
Common wheat ofbread–making quality meeting only minimum requirements for
^bread-making .Aspecial bonus of3*1u.a./tisproposed forryeofbread–making quality
.with anamylographic index of200ormore .
Forsouthern Italy only .

-18-
B*RELATED MEASURES
1«Proposal foraCouncil Regulation amending Regulation (EBJ)No2127/15
onthe common organization ofthemarket incereals
Theaimoftheproposed amendments istoadapt Regulation (EEC)No2727/75
tothenewprice system which istoenter into force on1August 1977 »
following thetransitional system forthe1976/77marketing year .
This adjustment takes account ofcertain observations put forward after
theadoption ofthecompromise ontheCommission proposals atthetime
ofthe1976/77price decisions *
Consideration hasthus "been given tothedesire ofcertain delegations
tohave specified thequality inrespect ofwhich thereference price forcommon
wheat of "bread-making quality isfixed .Todothis ,itwasnecessary to
introduce into the "basic regulation theconcept ofamedium "bread-making
quality onthe "basis ofwhich thereference prioe isfixed andtoleave
ittotheCouncil todetermine "both theminimum requirements forbread­
making andthemedium "bread-making quality *The "basic regulation
(Article 4)contained only transitional arrangements forthe1976/77
marketing year *
Nevertheless ,provision ismade foraderogation for1977/78forwhich
year ,"because ofpresent eoonomio conditions ,itisproposed tofix
thereference price atthelevel oftheminimum quality required for
"bread-making *
Similarly ,itwasdeemed appropriate toadopt that part ofthe
transitional Article 4concerning themethod to "befollowed which has
to "beestablished inaccordance with Management Committee procedure *
Todemonstrate theCouncil *swillingness toextend special intervention
measures toproducers ofcommon wheat of "bread-making quality ,an
addition has "been made totheartiole onspecial intervention
measures ,totheeffect that such measures may "beapplied toqualities
which mettheminimum requirements butwhich areother than that in
respect ofwhich thereference prioe isfixed *

Itwasconsidered necessary tospecify themanner ofcalculating
transport costs inallcases where this isprovided forinthe
regulation .For this purpose arule wasadopted which existed at
thetime when intervention prices were derived .This rule applies
tothecalculation of "both thetarget price andthethreshold
price .
Theamendment tothesecond indent ofArticle 10(5 )ofthebasic
regulation isintended tomake itsimpler toestablish thequality
where reference tothevariety issufficient guarantee ofthe
characteristics required forpastar-making ,thus facilitating
controls andreducing their cost .
2.Proposal for aCouncil Regulation onminimum "bread-making
requirements inrespect ofcommon wheat
This regulation follows ontheamendment tothe "basic regulation
whereby itisleft totheCouncil toestablish theminimum
requirements which common wheat must satisfy tobeconsidered
suitable forbreaxl-making .
This proposal incorporates thedetermination ofminimum requirements
aslaid downbytheCouncil inrespect ofthe1976/77marketing year .
3.Proposal foraCouncil Regulation supplementing Regulation (EEC )
No2731/75fixing standard qualities forcommon wheat ,rye ,
barley «maize and durum wheat
The sole aimofthis proposal istoinclude thereference price in
thelist ofprices towhich thedefinition ofstandard quality applies .
There hasbeen noother change .

-20
RICE
A.Prices
1.Articles 2and4ofCouncilRegulation (EEC)NO1418/76of
21June1976onthecommonorganization ofthemarketinriceprovides
foratargetpriceforhuskedriceandintervention pricesforpaddy -
riceinrice-producing areas(Vercelli andAries).Itisproposed
thattheintervention pricesbereplaced "byasingleintervention
pricefor1977/78(Vercelli)#
2.IntheCommunity ,riceisgrowninItalyandPrance.Overthe
last10years(1966–76),sownareashaveincreased inItaly "by39%
(from132000hato183500ha),whereasinPrancetheyhavedecreased
"by71$(from28000hato8100ha).Overthesameperiod,theyields
perhectarehavealsoincreased "by86%inItalyand6.7%inPrance.
Thishasmeanta57%increaseinpaddyriceproduction inItaly
(1966:621250t;1976:975000t)whileinPrancetherehas"been
a68%decrease (1966:100000t;1976:32400t).
Italyis,therefore ,theonlyimportant producer ofriceinthe
Community andtheriseinproduction hasledtoastructural surplus
whichmaybeestimatedat330000t(milledrice)forthecurrent
marketing year.TheCommunity alsoimports .about500000t,ofwhich
aboutI87000tcouldbecoveredbyItalianrice,thatis,abouthalf
oftheItaliansurplus ;theremaining 140000twouldhavetobe
exported tonon-member countries .
3.Infixingriceprices,accountshouldbetakenofthe
interchangeability ofmaizeorsugarbeetcropswithricecrops.
Thepricesofsuchsubstitute crops,andmaizepricesinparticular ,
aretherefore adetermining factorforriceproduction .The
intervention priceforriceshouldtherefore beincreased bya
percentage corresponding tothatappliedtomaize.
Withanincreaseof4%intheintervention prioeofpaddyrice,the
targetprioeofhuskedriceisasfollows:

-21-
u.a./t
1976/77Proposal
1977/78
1.Intervention priceatVercelli I64.I6 170.73
Increase inrelation topreceding
marketing year (+6%)(+Afo)
2.Marketcomponent (including 17.32 18.78
ACP/OCTpreference of1.5u.a./t) (10.55$)
3.Huskingcostsforpaddyrice 23.95 25.96
4.PriceofhuskedriceatVercelli
(l+2+3χcoeff.1.25) 256.79 269.34
5.Transport costs(Veroelli-Duisburg ) 27.73 23.64
6.Targetpriceforhuskedriceat
Duisburg (4+5) 284.52 292.98
Increaseinrelationtopreoeding
marketing year (+9$)(+2.97/0)
4*Thetargetpricecalculated fromthenewintervention priceis
increased "byslightlylessthan3$.Threefactorshaveto"beconsidered
indetermining thetargetprioe:
(a)Marketcomponent
Byanalogywiththeapproachtocereals,thesystemforriceshouldalso
he"basedonthefactthatmarketpricesintheareaofproduction
normallyriseabovetheintervention price.Thisrisewhichmayoccur,
calledthemarketfactor,hasbeenestimatedatahout1C%>forthe1976/77
marketing year#Itisproposed toincrease themarketcomponent for
1977/78to11%fbyincludinghalftheACP/OCTpreference (=1.5u.a./t)
whichwaspreviously takenintoaccountinthederivation ofthetarget
price.
(h)Processing component
Theintervention priceappliestopaddyrice,whereasthetargetpriceis
fixedinrespeotofhuskedrioe.Forthisreason,boththeprocessing
costsandtheprocessing coefficient (1.25)shouldbetakeninto
accountwhenthepriceiscalculated .

Theprocessing costsadoptedfor1977/78are8*4%higherthanthose
adoptedfortheprevious marketing year#
(c)Transport component
Thetransport component coversthemostfavourable transport rates
"betweenVercelli andIhiis'burg.Thesecostsrelatetocombined
transport ,thatisfrailfromVercellitoBasleand"bargefromBasle
toBuis"burg.Theyare15%lowerthanthoseadoptedfor1976/77;this
reduction isdueinparticular tothesharpdecrease inrailtransport
costs(tariff)inSwitzerland .
B.Related measures
1.Amendment tothe"basicregulation onrice(1418/76)
Inaccordance withtheprovisions ofRegulation (EEC)No1418/76
currently inforce,theintervention pricesforAriesandVercelli are
to"bederived fromthetargetpriceatIhiis'burg.
Byanalogywiththenewsystemforcereals,asingleintervention
price(Veroelli)isnowalsoproposedinrespectofrice;thisprice
willhavetoformthe"basisforcalculating thetargetprice.The
components describedin4(a)to(o)should "betakenascriteriaforthe
calculation .
Theproposed amendment inquestion alsoincludes aprecisedefinition
ofthecriteria to"beobservedinderiving thethreshold price.
2.Amountfortheprotection oftheindustry to"beincluded inthe
threshold priceformilledrice
Thisprotective amountisatpresent11*50u.a./t.Thisamountmay
"bemaintained atthesamelevelinviewofthevolumeofimportsof
milledrice.
Importsofmilledrice
1974
1975
19761119073t
74738t
57469t
9months,Netherlands 8months,Italy6months.

-23
3.Monthly increaoes
Forthe1976/77marketing year ,theamount ofthemonthly increases
wasfixed at1.74 u.a./t,that is,aslight increase (1.16% )over
theprevious marketing year# For1977/78,itisproposed that the
amount ofthemonthly increase forpaddy rice heraised to
1.80 u.a./t,oranincrease of3.4$ over the1976/77marketing year .
Theresulting amount forhusked rice is2.25 tua./t,oranincrease
of3.2$ .

-24
SUGAR
1.CouncilRegulation (EEC)No3330/74of19December 1974on"thecommon
organization ofthemarketinsugarprovidesinArticles 2,3,4and25for
thefixingofthetargetpriceforwhitesugar,theintervention pricefor
whitesugarintheareahavingthelargestsurplus,theminimumpricefor
beetinthesaidareaandthecoefficient forfixingthemaximumquota.
2.Inviewofthedesireforanoverallincreaseinagricultural prices,and
takingintoaccounttheagri-monetary measures andthesugarsurpluses on
theCommunity marketandtheworldmarket,a3$increaseintheminimum
priceofbeetisproposedforthe1977/78marketingyear.
3.A1.5$increase (0.60u.a.per100kgofwhitesugar)intheprocessing margin
isproposed .Thisistheamountadoptedhitherto asthequality premiumin
calculating intervention pricesforrawsugar.TheCommission proposes
excluding thatpremiuminfuturewhencalculating intervention pricesand
atthesametimeabolishing thepremiumforfirstgradesugarapplicable to
buying-in .Thepurposeofthesemeasuresistomatchthequalityofsupply
moreoloselytodemand.
4.Atthenegotiations withtheACPcountries onguaranteed pricesforthe197^/77
sugarmarketingyearandattheEEC/ACPCouncilofMinistersdiscussions in
July1976therewasadivergence ofviewsconcerning theinterpretation of
Article5(4)ofProtoool Ho3totheLom6Convention .Thisprovidesthatthe
guaranteed pricemustbenegotiated withintherangeofpricesobtaining in
theCommunity .TheACPcountries arguethattheguaranteed prioeforthis
marketing yearis26.70u.a.per100kgofrawsugar,whereasthelowest
intervention priceintheCommunity is28.15u.a.
Toresolvethisproblem,theCommission proposesfixingtheintervention and
targetpricesfortheCommunity withoutincorporating thestoragecostslevy.
TheCommunity couldthenadoptthesameapproachtotheguaranteed priceforraw
sugarastothatofwhitesugar,takingtheCommunity intervention prioeasa.
directguide.

Intheeventofasaletotheintervention agency,storagecostsare
payable "bythelatter.Thefuturemarketpricewillthusstillhaveto
"beatleastequaltotheintervention priceplusthestoragelevy.
In1976theareasownwith "beetintheCommunity againincreased by2$,
theincrease beinggreatest inItaly.Onaccountofthedrought,the
sugaryieldperhectarewasverylow,especially intheUnitedKingdom
andPrance,tosuchanextentthattotalproduction wasonly10milliont
ofwhitesugar.Thisnevertheless exceedsforeseeable consumption byover
0.5milliont.Countingpreferential imports,theCommunity hasasurplus
ofabout1.8milliontin1976/77*
Assumingthatthepresentareaunderbeet(1.88millionha)remainssubstantially
unchangedin1977/78andthatyieldsarenormal(cf19^9/75■5«8t/ha),the
Community couldwellproduce11.2milliontofwhiteBugar.Thisfigurehas
tobeseentogether withaforeseeable consumption of9*5to9*6milliont.The
totalexportable surplus,takingpreferential importsintoaccount,would
thenbe2.9milliont.Sincetherehavebeenincreasing surpluses onthe
worldmarketsincemid-1976 andpriceshavebeenlow,onlyalittlemore
thanhalftheCommunity price,seriousdifficulties aretobeexpeotedinthe
exportofsuchlargesurpluses .
Inviewofthis,themaximumquotasfor1977/78shouldbefixedat125/6of
thebasicquotas,fromJuly1978thepossibility providedforinArticle32
ofRegulation (EEC)No3330/74("mixedprice"scheme)shouldbeabolished ,the
maximumlaiddownfortheproduction levyshouldbe,asinthecurrent
marketing year,30$oftheintervention price,themaximumprovidedforin
thebasicRegulation ,andconsequently theminimumpriceforbeetproduced
overandabovethebasicquotasshouldbefixedatoftheminimumprice
forbeetproduced withinthebasicquota.
Inaddition,theCommission recallsthat,underArticle5(4)ofProtocol No3
totheLom6Convention ,guaranteed pricesforpreferential sugarimportshave
tobenegotiated annually andmustbefixedby1Mayatthelatest.Itwill
shortlypresenttotheCouncilaproposal onamandateforsuchnegotiations .

-26-
1976/77
marketing· year1977/78
market ine vear
u.a.% u.a » %
1.Minimumpriceper"tonneofbeet 24-57 10025.31 103.0
2.(a)Intervention priceper100kg
ofwhitesugar 33.14 -32.65 -
("b)Storageoostslevy (1.76)- 1.77 -
(c)Totala+b 33.14 100 34.42 IO3.9
3.(a)Targetpriceper100kgof
whitesugar 34.87 -34.37
(b)Storage·costslevy (1.76) - 1.77 -
(c)Totala+b 34.87 10036.14 103.6
4·(a)Intervention priceper100kg
ofrawsugar 28.15 -27.IO -
(b)Storagecostslevy (1.62) -I.63 –
(c)Totala+b 28.15 10028.73 102.1
5·Threshold priceper100kgof
whitesugar38.21 10039.53 IO3.5
6.Refundofstoragecostsfor
whitesugar(ql/month) O.27u.a. O.30u.a.
7·Coefficient forfixingthe
maximumquota 1.35 I.25

ISOGLUCOSE
1.Aprocesshas"beendeveloped inrecentyearsintheUnitedStates,Japan
andmorerecently inEuropeforthemanufacture ofanewsweetener ,here
called"isogluoose "(orhigh-fructose gluoose).Itisatpresentproduced
frommaizestarchandtoamuchlesserextentwheat,althoughitcanalsobe
obtained frompotatostarchandmanioc,forinstance.
Itisaliquidsugarproduced bytheconversion ofmaizestarchintoglucose
bytheactionofanenzyme,isomerase.Itsfruotosecontentexceeds20foof
thedryweightandisasaruleabout45$*Itssweetening powerissimilarto
thatofsugarproper(saccharose )forwhichitmaybesubstituted ina1:1ratio
inmostusesintheprocessing industries .IntheUnitedStates,isoglucose
production islikelytototal1.2milliontin1976/77?accordingtosomereports.
IntheCommunity production capacityattheendof1976wasestimated atabout
150000tdryweightandcouldreachabout400000tbytheendof1977.Isoglucose
production in1976isputatabout70000tdryweight,about85foofthattotalbeing
produced frommaizeand15$fromwheat.Isoglucose atpresentaccountsforlessthan
1'%oftotalsugarconsumption intheCommunity (+9500000t)butcouldrepresent
about3to4%ofconsumption in1977/78»havingregardtoisoglucose production capacity
andthepotential market,whichCouldgreatlyexceedonemilliontonsifisoglucose
weretoreplaceliquidsugarobtained fromsaccharose andrawsugarinsolution used
byprocessors .
Sinceisoglucoseisthereforeincompetition withsugaritautomatically benefits
fromthefullintervention priceforsugarwhichisguaranteed intheCommunity.
Ithasbeenpossibletofixthepriceforsugarabovetheequilibrium pricelevel
sincethequotasystemappliedtosugarpreventsanyintolerable inoreasein
production .Theadvantagegainedbyisoglucose naybeestimatedatbetween
10and15$oftheCommunity sugarprice.

Thedirect consequence ofsubstituting isoglucose forliquid sugar in
Community consumption will "bethat more sugar will "beexported ,repre­
senting anadditional burden fortheEAGGP -onthe "basis ofpresent
guarantee measures andworld prices -ofabout 150to180u.a./tforthe
requisite refunds (a .total of12million u.a.atthepresent volume of
isoglucose production andatotal cost of60million u.a.bytheendof
1977 with world prices atthecurrent level ).
2.Inthe light oftheconditions outlined above ,theCommission considers
itessential totake common measures inrespect ofisoglucose .Ithas
already proposed appropriate measures totheMember States toprohibit the
granting ofinvestment aids .TheCouncil hasalready decided toabolish
production restitutions forstarch glucose processed into isoglucose as
ftom 1August 1977 *
3.The further measures proposed totheCouncil bytheCommission are as
follows :
(a)the establishment ,foratwoyear period ,inconjunction with
the system ofquotas for sugar ,ofaproduction levy forisoglucose to
cover part ofthecost ofexport refunds ;this levy should bethe same
as that forsugar produced within thelimits ofthemaximum quota
("B"quota );
(b)theestablishment ofanappropriate trade system with third countries
taking account oftheexisting provisions applicable toglucose and
sugar .
4.TheCommission emphasizes that these measures areproposed foralimited
period .Itintends totake account oftheimplications ofthe development
ofthis newproduct initsfuture proposals onprices and other measures in
the sugar sector ,andalso intheproposals that itintends tomake before
July 1977 concerning starch .
5.The Commission also wants toremove obstacles totheutilisation of
isoglucose andtobring about fiscal harmonization inthis sector .In
this context itwill examine thefood andhealth legislation andthe excise
duties andother taxes applied bytheMember States inthis sector and
will shortly propose totheCouncil measures which itconsiders appropriate .
TheCommission also intends topursue acoherent policy inrespect of
aids inthe sector concerned .

-29
OLIVE OIL
I#Inaccordance with therequest made bytheCouncil inMarch 1974 »the
Commission will "bepresenting toitbefore July 1977 itsconclusions
regarding theproblems intheolive oilsector ,acoompanied bytheneces3ary
proposals .
Therecent developments intheCommunity market inolive oil ,particularly
asregards consumption ,andtheproblems which will arise inconnection
with theforeseeable enlargement oftheCommunity constitute newfactors
whioh will have tobegiven further consideration before achoice canbe
made astothemechanisms tobeemployed tomaintain equilibrium inthe
seotor .
HieCommission considers ,however ,that itshould putforward itsproposal
here andnowconcerning common prices inthis sector forthe 1977/78
marketing year ,including theproduoer target price which isadeterminant
faotor forproducers *incomes andwhich must therefore beconsidered inthe
context ofthediscussion onprices fortheother agricultural products .
II.Producer target price
1.Forthe1976/77marketing year this price wasfixed at185u.a./lOOkg,
1.e.thesameamount inu.a.asfor1975/76.However ,asaresult ofthe
adjustment tothevalue ofthe"green 1*lira ,this prioe rose byabout 12$
inItalian lire .Itisproposed toinorease itto186.85u.a./lOOkgfor
the1977/78marketing year .
2.3hegeneral situation inItaly ,theleading producer country ,andthe
considerable impact ofthe cost oflabour onthefinal cost ofolive oil
production justifies anincrease intheprice paid toproducers forthe
1977/78marketing year .Inview ofthemonetary measures envisaged ,it
isproposed tolimit theproducer target price inorease inu.a.to1$,
i.e. 186.85 u.a./100kgforthe1977/78marketing year .
3.Since olives areaperennial crop ,thelevel proposed forthetarget
price innowayaffeots thelevel ofproduction ofolives andhence of
olive oil *

Ill .Market target price
Forthe1976/77marketing year thisprice wasfixed at144.89 u.a./lOOkg.
Thecriteria tobeadopted with regard tothis price required that ithe
fixed atalevel atwhich Coamunity production canbemarketed normally
having regard toprices forcompeting products ,i.e. seed oils .
Itwould appear tobevery difficult atthis stage toforecast thelevel of
seed oilprices with sufficient accuracy in1978 .Theinformation available
totheCommission indicates ,however ,that they will inanycase notbe
lower than those obtaining inrecent months andthat there isreason to
hope that they will beslightly higher .
Thepredilection ofItalian and other consumers forolive oilwould suggest
that a2.5siratio ,should notbetoohigh forachieving thetarget set .
Inthelight oftheforegoing ,theCommission considers that ifinthe
1977/78marketing year theprice ofolive oilontheCommunity *smajor
consumer markets iskept atroughly thesame level asthat resulting from
the current market target price expressed innational currency ,this should
enable theCommunity production tobemarketed normally andacertain
pattern oftrade tobeestablished with non-member countries ,particularly
the associated countries .
Inview oftheag?i-nonetary measures envisaged ,itisproposed that the
market target price forthe1977/78marketing year should befixed at
141.20 u.a.,which means that itwould bekept atitspresent level interms
ofboth French francs and Italian lire .

IV•Intervention nrice
Thecurrent difference "between themarket target price andtheintervention
price is7»25u.a./lOOkg.
Thefactors taktn into consideration infixing this difference donotjustify -
anyadjustment .Ixistherefore proposed that theintervention price should
befixed at133*95 u.e.,
V.Monthly increaaea
Theamount fixed forthemonthly increases Torthe1976/77marketing year
was1.12 u.a./lOOkg.
This amount still appears tohesufficient toensure theharmonious marketing
ofCommunity production .
Itistherefore proposed that ithekept atitspresent level .

OILANDPROTEIN SEEDS
Theoilandproteinseedssector "basically comprises colzaandrape,
sunflower,soya,flaxandcottonseeds.
A.Colza,rapeandsunflower seeds
1.Eachyear,pursuanttoRegulation NoI36/66/EEC,atargetpriceanda
basiointervention pricearefixedforcolza,rapeandsunflower seeds.
Theprioesforthe1976/77marketing yearandtheproposedpricesfor
the1977/78marketingyearareasfollows:
u.a./lOOkg
1976/771977/78
(a)colzaandrapeseedBt
–targetprice 27*57 28.40
–basiointervention price 26.77 27.57
(b)sunflower seeds:
–targetprice 28.63 30.63
–basicintervention price 27.80 29.75
Theincrease proposedforcolzaandrapeseedsamountsto37°»andfor
sunflower seeds
2.Themoderate increase proposedforcolzaandrapeseedsisneeded
inviewofthedifficult marketforcolzaoilintheCommunity .
Whilethissituation persists acertaincautioniscalledforinthe
fixingofpricestopreventanyaggravation ofthedifficulties .
TheCommunity hasalwaysbeenandstillisinsubstantial deficitas
regardsvegetable oilproduction .AtthepresenttimetheCommunity
self–supplyrateforalltheseoilstogether (excluding oliveoil)is
llfo.Butforseveralyearscolzaoilhasbeenanexception tothe
generalrule,andtheCommunity has,indeed,becomeanetexporter ofthis
oil;for3-4yearsthenetquantities forexporthave,moreover ,increased
10JNo172,30.9.1976,p.3025/66.

-33-
considerably ,aathefollowing figuresahowt
Colzaoil-EUR–9 (l000t)
Year Production Consumption Surplus (quantities
forexport)
1972 588 494 94
1973 579 400 179
1974 490 320 170
1975 338 182 156
1976
(estimated )420 220 200
Themaincauseofthefallinconsumption ofcolzaoilshownaboveisto
befoundintheanti-colza campaign basedontheclaimthatcolzaoil,
becauseofitshigherucioacidcontent,mightbedetriment altothe
healthofconsumers .Thiscampaign hasbeenprimarily conducted inFrance
andItaly,theMemberStateswheretheveryconsiderable fallincolza
oilconsumption hasoccurred.
Inaddition ,itisbecoming moreandmoredifficult toexportcolzaoil,
eventotraditional markets,becauseofthepolicies pursued bycertain
non-member exporting countries .
3.Duringrecentyearstheproducers havemadeconsiderable effortsto
changeovertonewvarieties ofcolzawithalowerucioacidcontent.
Similarly ,measures havebeenintroduced atCommunity levelinorderto
facilitate thischange(exclusion oftheoldvarieties fromintervention )
andtoreviveconsumerinterestincolzaoil(restrictions ontheerucio
acidcontentofoilsandfatsforuseinfoodstuffs ).
Thesemeasures donotappearsufficient toachievetherequiredresults.
TheCommission thusintendstoproposetotheCouncil,assoonaspossible ,
thefollowing supplementary measures :
(a)inordertoensuretheconversion oftheentireCommunity production
tothenewvarieties ,aproposalthat,asfromthe1978/79marketing
year,aidshouldbegrantedonlyforthesevarieties .However,in

vieweftherequirements ofthaohemie&lindustryforaear-bainquantity
ofoilofhigherucicacidcontent,aidcouldalsobegrantedforthe
quantity ofseedsoftheoldvarieties thattheindustry camabsorb;
(b)Inordertoreviveconsumption ofcolzaoil,aproposaltomounta
consumerinformation campaign concerning thequalityofcolzaoil
obtained fromseedsofthenewvarieties .Thiscampaign mightneed
tocontinue forseveralmarketing years;
(c)Pendingtheeffectofthecampaignreferredtoin(b),aproposalto
facilitate theexportofthequantities ofcolzaoilwhichcannotbe
disposed ofontheCommunity market.
4.WhentheEuropean Parliament andtheCouncilconsidered thepriceproposals
forthe1976/77marketing yeartheCommission promisedtopresentitsconclusions
concerning inparticular theeffectsoftheabolition ofthesupplementary aid
grantedforcolzaseedsprocessed inItaly.
Thissupplementary aid,introduced forthe1967/68marketingyearasatemporary
measuretocompensate forcertaindifficulties whichtheItalianindustry
wasexperiencing asaresultofitsdistance fromtheprincipal colzaseed
production centresintheCommunity,wasabolished fromthe1974/75marketing
year.
(a)Anexamination ofthetrendofnetimportstoItalyofcolzaseedshowsthat
theseimports,whichhadinoreased considerably since1968,werealready
beginning tofalloffin1973andfellevenmorerapidlyinthelastfew
years,asthefollowing figures show:
(tonnes)
1968
1489601971
3761611973
2613711975
11828
Itisinteresting tonotethatthetrendinnetcolzaoilimportswassimilar,
althoughlessmarked.

-35-
(tonnes)
1968
227501971
4519i1973
258201975
13979
Promtheabovefiguresitoan"beconcluded thattheconsiderable fall
inimportsofcolzaseedtoItaly,whetherofCommunity originor
fromnon-member countries ,hasbeenprincipally duetoconsumer
disaffection forthisoil,becauseoftheanti-colza campaign which
hasdeveloped inItalysince1973*Infact,consumption oftheoil
fellfromalmost200000tonnesin1971to21000tonnesin1975*The
adverseeffectsofthiscampaignstillappeartopersist,inBpite
ofaslightincreaseinimportsofseedsandaboveallofcolzaoil
duringthefirstmonthsof1976(JanuarytoSeptember 1976:
12959tonnesofseedand19594tonnesofoil).
(b)Inthisconnection ,itshouldbenotedthatforsometimepast
importstoItalyofalltheprincipal liquidoilshaveshownan
upwardtrend,whichbecamemoremarkedin1976,whileinthesame
periodseedimportshavebeenrelatively stable.Thus,apartfrom
thespecific problemofconsumerdisaffection forcolzaoilinItaly,
thereappearstobeamoregeneralproblemconcerning thecrushing
industry inthatoountry.
(o)Independently oftheeconomicaspectsoftheproblem,theCommission
mustdrawtheCouncil'sattention totheobjections ofprinciple
whichitwouldhavetoanysupplementary aidbasedonthedistance
oftheusersfromtheproduction areas;theCommission hasalready
expressed theseobjections inconnection withlastyear'sprioe
proposals .
5»Asregardssunflower seeds,theproposedpriceincrease,whichis
aboveaverage,isjustified notonlybecausetheCommunity only
produces averysmallpartofitsrequirements ofthisproduct,and
itsdevelopment shouldthusbeencouraged ,butalsobecausetheeffect
ofthisinorease shouldbefeltaboveallinItalywherethedevelopment
ofthesunflower cropcouldcompensate ,atleastinpart,fortheeffects
onthecrushingindustryofanylackofsuppliesofcolzaseedof
Community origin.

-36-
Monthly increases
During thelast twomarketing years thelevel ofthemonthly increases
seems tohave "been among thefactors which have contributed toupset
therhythm ofthemarket formuch oftheCommunity production of
colza seed *
Given this situation ,itisproposed that themonthly increases should
stay attheir present level forthe1977/78marketing year .
B.Soya beans
1.Eachyear ,pursuant toRegulation (EEC)No1900/74^» "theCouncil
fixes aguide price forCommunity produced soya .This price wasfixed
at28.50 u.a./lOOkgforthe1976/77marketing year .
Itisproposed toincrease theguide price forsoya to30.50 u.a./lOOkg.
2.Thedevelopment ofthis crop ,which hasbeen supported since the
1974/75marketing year ,hasproved more difficult than wasforeseen
atthat time .This ispartly duetothelower than expected yields ,
due to "badweather conditions and toproblems ingetting produotion
started andpartly tothefact that therelationship between theguide
price forsoya andtheprioe ofproducts competing with itonthe same
land ,inparticular maize ,worked tothedisadvantage ofsoya .In
order toestablish abetter balance between theprices forthevarious
crops ,theguide prioe forsoya should beinoreased byalarger
peroentage than formaize .
Inthecircumstanoes anincrease of7%seems appropriate .
X0JKoL201,23.7.1974 ,P.5

-37-
C.Flax seeds
1.Pursuant toArticle 1ofRegulation (EEC)No569/761,aguide price
forflax seed wasfixed forthefirst time ,applying tothe1976/77
marketing year .This price was29u.a./lOOkg.Itisproposed to
increase itto31.32 u.a./lOOkgforthe1977/78marketing year .
2.When theguide price forthe197^/77marketing year wasfixed ,itwas
estimated that itslevel would permit some progress tobemade bythis
crop ,oratleast that itwould bemaintained ,taking into account the
prices fixed fortheagricultural products competing with it.
But ,although inthefirst marketing year theCounoil granted toproducers
asatransitional measure aminimum aidof125u.a./ha,thearea under
seed flax intheCommunity fell by10$ .This fall isduetothefact
that theguide price proved insufficiently attractive toproducers ,
particularly inPrance .
Taking into account also theelimination oftheminimum aidforthe1977/78
marketing year ,itisnecessary tobring theguide price forflax seed
into line with theprices forcompeting products ifafurther fall in
production ofthis seed ,ofwhioh there isasubstantial Community deficit ,
istobeavoided .
Inthese circumstances ,itisproposed toincrease theguide price by8%.
\
D.Cottonseed
Λ
1.Each year ,pursuant toArticle 1ofRegulation (EEC)Ho1516/71,aid
isgranted perheotare ofland sown andharvested with cottonseed .For
the1976/77marketing year aidwasfixed at103.20 u.a.perhectare .
Itisproposed toincrease this to104u.a./haforthe 1977/78marketing
year .
2.Itisestimated that ,taking into account theagri–monetary measures
planned forthelira atoken increase intheaidexpressed inu.a .should
besufficient tosustain aoertain interest inthis orop which isof
avery limited importance
10JNoL67,15.3.1976 ,p.29.
20JNoL160,17.7.1971 ,p.1«

-38-
DEHYDRATED FODDER
1.The1976/77marketing yearwasthesecondyearofoperation ofthe
commonorganization ofthemarket,introduced byCouncilRegulation (EEC)
No1067/74of30April1974.Thisorganization providesforthegranting
ofaidfordehydrated fodderproducedintheCommunity.Forthe1976/77
marketing year,theaidwasfixedat$u.a.pertonneanditisproposed to
increasethisamountto9*5u.a.pertonneforthe1977/78marketing year.
2.Inviewoftherathertightsituation whichmaybeexpectedin1977
onthemarketinproteins asawhole,itisverylikelythatthedehydrating
industrywillbeabletoobtainhigherpricesfortheirproductsin1977/78
thanthosewhichwerethebasisfortheaidfixedforthe1976/77marketing
year.
Thiswillenabletheindustry topayhigherpricestofarmersproducing
greenfodder.And,indeed,iffarmersarenottobediscouraged from
producing greenfodder,theymustbepaidapriceforitwhichgivesthem
anincomeperhectareinlinewithwhattheycanobtainwithcompeting crops,
suchascereals.Itseemsunlikely ,however,thattheexpected increasein
priceswillbesufficient initselftogiveproducers ofgreenfodderthe
neededincomeincrease .
Finally,following the1976drought,theproduction ofdehydrated fodderin
theCommunity hasdecreased toagreaterextentthanmostothercrops.
Stepsaretherefore neededtoensurethereoovery ofthisproduction .
Forthesereasonsitisnecessary toincrease theaidfordehydrated fodder.
Theproposed increase shouldbesufficient forthepurposesinview.
OJNo120,1.5.1974,p.2,

39
FIBRE FLAX AND HEMP
1•Fibre flax
1
1.Article 4ofRegulation (EEC)Ho1308/70provides foranannual fixed
rate ofaidperhectare .Forthe1976/77marketing year theamount ofaid
wasfixed at188.15 u.a./ha.Itisproposed toraise therate to
191.91 u.a./haforthe1977/78marketing year .
2.Inorder tomaintain interest inthecultivation offibre flax ,the
increase inthe income offlax producers must becomparable with the increases
proposed forcompeting crops intherotational cycle .Itshould bepossible
tobring about this increase inincome mainly through
(a)aprobably favourable movement offlax straw prices inview ofthe
foreseeable shortage offlax fibre ;theCommunity produotion of
flax fibres ,following thelowyields from the1976 harvest ,
islower than demand and import availabilities aretoo limited to
prevent adrawing down offibre stocks ;
(b)theincrease intheguide price forflax seed ,which also applies to
fibre flax seed .
Inthese circumstances itisconsidered that the desired increase in
producers *inoome canbeachieved bya2$increase intherate ofaid .
3.Pursuant totheprovisions onharmonization ,itisproposed toincrease
therate ofaidfortheUnited Kingdom from 143.20 u.a./hato161.34 u.a./ha.
10JNoL146,4.7.1960 ,p.1

40-
2.Hemp
A
1.Article 4ofRegulation (EEC)No1308/70provides for suaannual
rate ofaidperhectare .Forthe1976/77marketing year this amount
wasfixed at174*04 u.a. /foa.
Itisproposed toraise this amount to176u.a. /liaforthe1977/78
marketing year .
2.Itisconsidered that hemp producers will obtain asufficient increase
intheir income ,incomparison with theaverage increase proposed ,through
disposing oftheir produotion onmore favourable terms ,seeing that the
price agreed with thepapermills for the 1977 crop iswell uponthat of
the last twocrops andwill apply toallproducers ,since almost allthe
production istinder contract .
A1%increase intheaidseems necessary ,however ,inorder togive further
stimulus tothis crop ,which uptothelast fewyears hasnotbeen very
popular with farmers .
OJNoL146 ,4.7.1970 ,p.1

-41-
SEEDS
Article 3ofCouncil Regulation (EEC)No2358/71of26October 1971 onthe
common organization ofthemarket inseeds provides that where the
situation ontheCommunity market for one ormore oftheproducts listed
intheAnnex does notprovide producers with afair income ,aidmay be
granted fortheproduction ofthose species .Inview ofthedesired
increase inthe general level ofcommon agricultural prices and theproposed
agri-monetary measures ,andbearing inmind theeffects ofthedrought ,it
isproposed that ,forthe1977/78seed marketing year ,theamount ofthe
aidpreviously granted forcertain species should beslightly increased .
Theincrease proposed isbased onthefollowing :
1.Theestimated 1976 crop (about 1100000ql)iswell down on1975
(about 1700000ql)owing toareduction intheareas sown because of
thevery lowprices obtained in1975 and theeffects ofthedrought upon
yield .
In1975/76imports from non-member countries (418000ql)were well upon
1974/75(366000ql)}exports deolined from 233000qlin1974/75to
183000qlin1975/76.Compared with 1973/74»while exports have
stabilized (1973/74?199000)imports have decreased considerably
(1973/741 499000).
2.Including stocks (about 1000000ql),thequantity ofseed available
forthe1976/77marketing year will beabout 2100000ql.Since ,owing
totheexceptional circumstances created bythedrought ,consumption will
reach about 1800000qlandnormal reserve stocks equal about 30%of
normal consumption (1500000ql),thedrawing onstocks will make fora
reasonably well balanced Community market *

-42-
3.Asaresultofthissituation ,thepricesofmostspeciesareat
levelsgenerally acceptable toproducers .Thepricesofcertainspecies
(forexample,Loliumperenne,Loliummultiflorum )arenowverymuch
higherthantheverylowlevelsofpreviousyears(marketsurplus).
4.Inthelightoftheforecasts ,sincetheareassownin1977are
muchthesameasin197^»andassuming anaverageyieldandcontinued
tradewithnon-member countries ,supplies should "begenerally satisfactory
inthe1977/78marketingyear.However,therearespeciesforwhichit
has"beendifficult inthelastfewyearstomeetCommunity requirements ,
andspeciesforwhichthesupplyforecasts areunfavourable .Itisin
theCommunity *sinterests tomaintain theproduction oflegumes,in
particular ,atalevelwhiohmeetsdemand.
5.IntheCommunity ,therearesomefavourable prospects fortheproduction
ofseedflax.Inviewoftheneedtoensuresuppliesofgoodquality
varieties ofthisspecies,itshouldbeenteredintheAnnexto
Regulation (EEC)Wo2358/71.
6.Thefollowing istherefore proposed s
(a)anincreaseof
(i)1u.a./lOOkgfor-CannabissativaL.(monoica),
-MedicagosativaL.(varieties),
(ii)2u.a./lOOkgfor-FhleumpratenseL.,
-Trifolium pratense L.,
-Trifolium repensL.
(b)inclusionintheAnnextoRegulation (EEC)No2358/71ofLinum
usitatissimum L.partim(seedflax)ex12.01A.Itisproposedtogrant
aidof10u.a./lOOkgforthisspeoies.

-43-
WINE
1.Article2(2)ofCouncilRegulation (EEXJ)No816/70of28April1970
layingdownadditional provisions forthecommonorganization ofthe
marketinwine,providesforaguidepriceto"befixedannuallybefore
1Augustforeachtypeoftablewinerepresentative ofCommunity
production .
Artiole2(2)ofthesameRegulation providesfortheguidepricetobe
fixedonthebasisofaveragepricesrecordedforthetypeofwinein
question duringthetwowine-growing yearspreceding thedateoffixing
andonthebasisofpricetrendsduringthecurrent wineyear.
TrendofwinepricesintheEEC(onthebasisofcommunications
fromMemberStatesinaccordance withRegulation (EEC)Fo8l6/70)
Wine- 1RI'
growingu.a./°/hlRII'«RIII AI AII
u.a./°/hl|u.a./°/hiu.a./°/hl|u.a./°/hiAIII
u.a./°/hi
1974/751.545
1975/761.667
I976/7711.888I.55O
1.589
1.939I7.OO.1.316j20.06
19.49 1.412 j23.03
I
29.051.562 I33.0231.20
32.03
47.5O
2.Thepricesrecordedforalltypesoftablewineduringthe1975/76
wineyearandduringthefirstfivemonthsofthecurrentwineyear
werehigherthanthoserecordedin1974/75*
1
Prom7September 197° "to18January1977

-44-
Theexceptionally lowlevelofpricesin1974/75wasduetothetwo
successive veryabundantharvests of1973and1974*Despiterecourse
toalltheintervention measures providedforbythemarketrules,
andinparticular large-scale distillation ,pricesdidnotrecover.
Itwasnotuntilthe1975/76wineyear,inwhichtherewasabalance
betweenproduction andrequirements butalsoaconsiderable volume
ofstocks,thatanimprovement wasrecorded.Thistrendgathered
strengthatthebeginning ofthecurrentwineyearowingtoasimilar
sizeofharvestasin1975*
OnthebasisoftheruleslaiddowninRegulation (EEC)No816/70
andinviewofthedesiredinoreaseinthegenerallevelofagricultural
pricesandtheagri-monetary measures,a2>%increaseintheguide
pricesoftablewinesisproposedforthe1977/78wineyear.

-45-
raw¥08weeo
Article2ofCouncilRegulation (E0C)727/70of21April1970onthecommon
organization ofthemarketinrawtobaccoprovidesthatnormpricesand
intervention pricesshallbefixedeachyearbefore 1Augustforeachvariety
ofCommunity –produced leaftobacco.
Asinrecentyears,theCommission ,attherequestofthedelegations ofall
MemberStates,isalsotransmitting proposals totheCouncilforthefixing
ofthepremiums andderivedintervention pricesforthe1977crop.
Sinceageneralincrease inthecommonagricultural pricesisdesired ,andin
viewofproposedagri-monetary measures,anaverageincreaseofabout1.5/&
inpricesandyfointhepremiumsisproposedforthe1977crop.Thiscautious
pricepolicy,accompanied byarelatively largerincrease inthepremiums ,is
dictated bytheincrease inthevolumeofCommunity production andthe•
sharperdivergence between Community andworldmarketprices,despitethe
conservative pricepolicyfollowed bytheCommunity inrecentyears.
I.SITUATION ON"THEWORLDMARKST
1.Worldtrendsasregardsareaandproduction aregenerally morestableafter
theperiodofshortages andhighpricesintheyears1972–74.Afterthe
strongriseinproduction in1975»"th®resulting pricemovements ,together with
certainclimaticfactors,haveledtoanimprovement inthebalancebetween
supplyanddemand.However,pricesstillreflectthehighlevelofstocks
accumulated duringthe1975/76marketing year.
2.Amoreselective analysis ofproduction trendsandworldtradeshowthat
production isbeinggearedmoretowardstheAmericanvarieties (lighttobaccos)
andthatthedeveloping countries areparticipating toagreaterextentin
international trade.

-46-
3.Consumption oftobaccoproductscontinuedtoriseslightly (2-3'/j)asa
resultoftwocontrasting trends:
(a)relativestability intheindustrialized countries where,sometimes
asaresultofsubstantial taxincreases ,aslightdeolineoccurred
(b)increases exceeding theworldaverageinthedeveloping countries .
II.SITUATION ONTHECOMUHITY MARKET
Theconstant expansion ofCommunity production anditsgrowingintegration
intotheworldmarketoontinues togiverisetocertainmarketing problems
inviewofthechangedsupplyandpricesituation ininternational trade.
1.Areaand_product ion
Prom1970to1975production rosefrom127000tto179000"t»i.e.anaverage
annualincreaseof8fo.However,theprovisional figuresfor1976suggesta
production ofabout170000t;thedeclineascompared withtheprevious year
is,however,duetothemarkedfall–offinItaly(–9000t)resulting from
weatherconditions .TheinoreaseinCommunity production ,partlyduetothe
expansion oftheareasundertobacco,butalsotothehigherunityieldsas
aresultofimprovements inproduction techniques ,wasaccompanied byachange
inthemixofvarieties plantedinlinewithdemand.Anincrease inthe
production ofAmericanvarieties (Burley,BrightandMaryland),theParaguay
varietyandtheoriental tobaccos wasoffsetbyatrendawayfromvarieties
lessindemandbyCommunity andworldindustry (e.g.,Badischer Geudertheimer ,
Nostrano). r
2.Marketing
Although thesituation described aboveresulted inaclearimprovement inthe
marketing ofCommunity tobaccoinrecentyearsand,inparticular ,ina
considerable reduction inthequantities offeredforintervention (7–8^of
totalproduction in1970/71against2fofor1973/74)»thestrongrisein
production in1975causedrenewedmarketing difficulties

-47-
-atleastforcertainvarieties .Inaddition tovarieties forwhich
"structural "difficulties exist(e.g.Beneventano ),forothers,suchasBurleyand
theorientalvarieties inItaly,production seemstohaveexceededreal
outletpossibilities withintheE3C,takingutilization inmanufacturing
processes intoaccount.Inviewofthis,thesystemofexportrefundshas
undoubtedly helpedtoimprovethemarketoutletsforCommunity tobacco,
especially bypromoting thediversification ofexportflowstonon-member
countries .
3.Prices^
Producerpricesinthevarious MemberStatesweregenerally atsatisfactory
levels,sometimes higher 4–evenconsiderably so–thanthenormpricesfixed
bytheCommunity .
Inthisconnection ,itshouldbestressedthatproducer pricesforsomevarieties
weresohighastoconstitute aninoentive tobigincreases inproduction ;
atthesametime,thecompetitivity ofthesetobacoos oninternational markets
wasreduced *
in.PRICES AMDPREMIUMS BYVARIETY
Toconclude ,sinceCommunity production isexpanding atahigherannualrate
thanconsumption ,difficulties existinmarketing severalCommunity-produced
varieties andthereisagrowinggapbetween Community andworldpricelevels,
itisproposed thattobaccopricesshouldbeincreased toalesserextentthan
theaveragegeneralincreaseinagricultural pricesforthe1977/78marketing
year.Detailsoftheproposalsforeachvariety(seeAnnex),whichtakeinto
accounttheeffectsoftheproposed agri-monetary measures ,arebasedonthe
following considerations :
1.Formprices
–anincreaseof2–4$isproposedforvarietiesinsteadydemand,thelower
figureapplying onlytothosevarieties forwhichtheagri-monetary
measuresalreadyimplyanincreaseintermsofnationalcurrencies (Paraguay,
Mijkerk,Misionero ,BurleyBBandBright):

-48-
–azeroorifoincreaseisproposedforvarieties (e.g.Beneventano and.
theOrientalvarieties )wheresupplyand.demand ,arenotevenlymatched,
withtheexception ofBadischer Geudertheimer andBadischer Burleyfor
whichthe3$increasetakesintoaccounttheeffectsoftheproposed
agri-monetary measures .
2.Premiums
Inviewofthevariousfactorswhichdetermine thelevelofthepremium,namely:
–thelevelofthenormpriceforleaftobacco ;
–processing oosts;
–thetrendofofferpricesontheworldmarket;
–thetrendinproducerpricesintheCommunity ,
adifferent solutionisproposedforeachvariety.
Asregardsprocessing costs,onthe "basisofthepreliminary findings ofthe
Community studyonthesubject,theCommission grantedaninitial"adjustment "
of20foforvarieties wherecostsdifferedwidelyfromthosesofarassumed;
forsomeothervarieties ,increases variedbetween5a-nd10%,whilstforvarieties
wherequalities hadbeensubmitted forintervention ,noadjustment hasbeen
madetothecostsinviewoftheirautomatic repercussions ontheintervention
pricelevels.Thefollowing is,therefore proposed :
(a)ageneralincreaseinthepremiumequivalent totheeffectsofthe
highernormpricesandprocessing costs(VirginD,Bright,Maryland,
Philippin ,Semois,Paraguay ,Misionero ,KentucIcy,Nijkerk,Burley B
andBurleyI);
(l3)noincreaseinthepremium,orasmallincrease (1fo),forthose
varieties whereaconsiderable imbalance existsbetweensupplyand
demand(Beneventano ,NostranoandPerustitza );

49
(c)theusoofthefixed component ofthepremium (Article 4(b))of
Regulation (E0C)NO727/70togrant anadditional increase to
some varieties (Badischer Geudertheimer ,Badischer Burley )to
bring contraot production prices uptothe level ofthenorm
prices .
r
i

-50-
ANNEX
TOBACCO
li VARIETYiaCRBAÜBS 1977/TS
Normpricesforleaftobacco %Processing
costsioPremium
λ-
1Badischer Geudertheimer 3 0 4.5
2Badischer Burley 3 0 4.5
3Virgin D 4 20 8
4Paraguay 2 20 5
5Nijkerk 2 10 3
6Burley(B+B) 2 10 3
7Misionero 2 10 5
8Philippin 4 0ι
6
9 Semois 4 10 6
10Bright 2 5i
4I
11aBurleyI 1 0 2
111)Maryland 1 0 3
12Kentucky 1 0 3
13 Nostrano 0 0 0
14 Beneventano 0 0 0
15XantiYakà 0 0 0
16 Perustitza 0 0 1
17Erzegovina 0 0•
0
18 RoundTip 0 0 0.5
19 Brasile 3 10 8
TOTALEEC +1.5 3

FRUITMIDVEGETABLES
A.Pricesandmarketing premium
1.Bisicpricesand.buying~in prices
UnderArticle16ofCouncilRegulation (EEC)No1035/72,theCommission is
requiredtoproposea"basicpriceandabuying-in pricefortheproducts
listedinAnnexIItothatRegulation .
Forthe1976/77marketing yearbasicpricesandbuying–in priceswerefixed
insuchawaythatintervention pricesroseby8%incomparison withthe
1975/76marketing year,exceptinthecaseofapplesandpears,forwhich
theincrease wasonly
Sinceanincrease inthegenerallevelofcommonagricultural pricesis
desired,theCommission proposesforthe1977/78marketing yearinoreases
inthepricesactually paidtoproducers intheeventofmarketintervention
of5i°f°rcauliflowers ,tomatoes,peachesandlemons,3%forapplesand
pearsand2fofortablegrapes,orangesandmandarins .
Asregardsapples,pearsandgrapes,thepercentage increase inthe
intervention pricespaidtoproducers islessbecausetherearestructural
surpluses ofcertainvarieties .Asregardsgrapestheinorease shouldin
anycasebelowersoasnottocauseanimbalance withthewinesector.
Theproposed increase fororganges andmandarins islowerinorderto
encourage producers tocontinue theconversion ofexisting plantations .
Theincreaseintheintervention priceshasbeencalculated byapplying
tothebasicpricesapercentage increase whichisidentical withthat
appliedtothebuying–inprices.
Inconsequence thebuying–inpricesforallproducts arewithinthebrackets
providedforinArticle16(3)ofRegulation (EEC)No1035/72.

-52-
Such asituation ensures that producers donot suffer toogreat afall
inincome during aperiod ofmarket instability andisnotlikely toresult
instructural surpluses intheCommunity since theintervention prices are
between 40andlO/obelow thenormal market prioes ,depending ontheproduct .
2.Marketing premiums for oranges ,mandarins ,Clementines and lemons
Article 7ofCouncil Regulation (EEC)No2511/69of9December 1969 laying
down special measures forimproving theproduction andmarketing ofCommunity
citrus fruit provides that ,beginning with the1976/77marketing year ,the
amount ofthemarketing premium forCommunity oranges ,mandarins ,Clementines
and lemons istobefixed taking into account both the previous levels of
this amount andthetrend ofthebasic andbuying^-in prices oftheproducts
concerned .
Moreover ,Article 23(2 )ofRegulation (EEC)No1035/72onthecommon
organization ofthemarket infruit andvegetables provides that from the
same year reference prices forthesaid products must befixed atalevel
equal tothat oftheprevious marketing year ,adjusted asnecessary bya
percentage notexceeding thedifference between thepercentages representing
respectively thevariation inbasic andbuying^-in prices andinthe
marketing premiums provided forbyRegulation (EEC)No2511/69.
Forthe1976/77marketing year itisproposed ;
\
–toincrease themarketing premium for oranges ,mandarins andClementines
by2%,leading forexample toapremium of8.59 u.a./l00kgforthe
Moro andTarocco varieties ,
–tomaintain themarketing premium forlemons forafurther market ing
year while limiting theincrease therein to50$of "thepercentage
increase inthebasic andbuying-in prices forthis product (seebelow
reasons formaintaining this compensation forlemons ).

1-53-
Thislimited ,increaseinthemarketing premiumforlemonscomparedtothe
increaseinbasicandbuying-in priceswillpermit,ifmarketpricesjustify
it,amaximumincreaseofinreference prioes,bearinginmindthe
complementarity betweenthepremiumandthereference priceprovidedforin
thetwoabovementioned Regulations .
B.RELATSD MEASURES
1.Bloodoranges
Unlikeotherproducts ,bloodorangesarenotsuitedtothevarioususeslaid
downinArticle 21(1)ofRegulation (ESC)No1035/72forproductswithdrawn
fromthemarketunderArticle 18orboughtinunderArticle 19ofthat
Regulation ,andinparticular theuseofthefreshorprocessed productfor
animalfeed.
Thetechnical problems attachedtothemanufacture andconservation ofthe
juiceofbloodorangesareanobstacletotheotheruseprovidedforin
Regulation (EEC)NO1035/72,namelyfreedistribution oftheprocessed
producttocharitable organizations andfoundations andtheeconomically
lessfavoured .
Itistherefore proposed ,inordertofacilitate anoutletforaproduct
whichiswithdrawn inlargequantities insomeyears,toretainasanormal
andpermanent optionthesaleofthequantities withdrawn fromthemarket
toprocessing industries .
Sincethedisposal ofotherproductswithdrawn fromthemarketdoesnot
raisethesameproblems ,itisproposedthatthisoptionshouldinfuture
berestricted tobloodoranges.

2.Freshandprocessed lemons
Attheagriculture meetingoftheCouncilinLuxembourg on23and24June1975»
acompromise wasreachedinrespectofwineandfruitandvegetables
inthecontextofthenegotiations foranoverallagreement withthe
Mediterranean countries .Thisledtothedeoision thattheCommission
wouldmakeadetailed studyofthesituation ontheCommunity marketin
lemonsandwouldreporttotheCouncil,proposing measures ,asnecessary ,
toovercome anyproblemsinmarketing thisproduct,whetherfreshor
processed .
Themainconclusions ofthisstudymaybesummarized asfollows :
1.Asregardsfreshlemons,itwouldappearthattheirexternal aspect
(skinsoftnessandcolour),togetherwithaseasonalshortageofsupplies
andanimperfect marketstruoture placesItalianlemonsatadisadvantage .
Thesefactorsarelinkedinpartwiththesituation inItalyitself,where
thenumberofproducers andthesmallsizeoffarmsleadtovariations in
production andwherethe-unevenprofessional oapacity ofexporters andthe
limitedscaleonwhichsomeofthemoperate donotalwaysallowthemto
collect information onthestateofthemarketandmakethebestuseofit.
2.Italyistodatethemainsupplier oflemonjuicetotheCommunity market.
However,certainfactorsactagainsttheItalianproduct,inparticular the
relatively highcostoftherawmaterial andthefactthatsomecompeting
countries giveaidtotheindustry ortheprocessed product.
Moreover,theexportpriceofItalianjuicehasfallen(653u.a./tin1973,
553u.a./tin1974,557u.a./tin1975)astheItalianindustryhasto
competewithimportedjuice.

-55-
Asregardsfreshlemons,itisproposedthatthesystemofmarketing premiums
alreadyinexistence fororanges,whichtheCounciladoptedasatemporary
measureinSeptember 1975untiltheendofthe1975/76marketing yearand
prolonged forafurtheryearinApril1976whenfixingcertainpricesand
otheramountsapplicable intheagricultural sectorforthe1976/77
marketing year,beprolonged forthecomingmarketing year,i.e.until
theendofMay1978.
Itwouldinfactappearthatthispremiuminitsfirstyearofapplication
hadabeneficial effectonexportsofItalianlemonstootherMemberStates,
ifnotontheoverallvolumeatleastontherelative importance ofproducts
inqualityClassI,asshownbythetablebelow:
ExportstotheEEC 1973/74 1974/75 1975/76
Total 76900t 108100t 105400t
ClassI 42000 43500 91700
ClassII 34200 64300 13400
Maintaining thispremiumduringthecomingmarketing yearshouldallow
thisfavourable trendtocontinue .
\
Thepremiumwillnaturally begrantedonlyiftransport costsarenot
included whencalculating thereference price.
Inordertorestore lemonjuicetoamorecompetitive position vis–a–vis
thesameproductfromnon-member countries ,itisproposedtoaidthe
industry inaccordance withtheprinciples adoptedinrespectoforanges
inRegulation (E0C)NO2601/69,butwiththefollowingrestrictions :
–Contrarytotheprocedure fororanges,theminimumbuying-in pricepaid
totheproducer wouldbebasedonthewithdrawal priceforClassIII
alone.Fororangesthesystemappliesonlytovarieties whicharenot
suitableforconsumption whenfreshandwhicharenormally usedby
industry,whileindustry usesonlypoorqualitylemons.

-56-
–Financial compensation ,equal tothedifference between theminimum
buying~in price andtheprices paid fortherawmaterial incompeting
non-member countries ,would begranted foronly85$ofthequantities
bought inattheminimum price .This percentage corresponds to
exports ofItalian lemon juice compared with total Italian production ,
theremainder being absorbed bytheItalian market .Since the juice
ofcitrus fruits (especially lemons )hasnotbeen freed from controls
onimport into Italy ,thenational industry isnotfaced with any
competition anddoes notneed aidforthat part ofitsproduction sold
ontheinternal market .However ,theCommission should reserve the
right togrant compensation forahigher percentage iftheapplicant
proves that more than 85$ofthetotal quantity marketed byhimwas
disposed ofoutside Italy .
These twoproposals should take theform
(a)asregards thefirst ,ofanamendment toCouncil Regulation (EiDC)
No2511/69of9December 1969 laying down special measures forimproving the
production andmarketing ofCommunity citrus fruit ,extending for one
marketing year theperiod during which financial compensation maybegranted
fordeliveries offresh lemons ,andanamendment toCouncil Regulation (EEC)
No1035/72of18May1972 onthecommon organization ofthemarket infruit
andvegetables inorder tobring lemons irito line forthecoming year as
regards thefixing ofreference prices with the other citrus fruits for
which financial compensation ispaid ,namely oranges ,mandarins and
Clementines ;
(b)asregards thesecond ,oftheadoption bytheCouncil ofaRegulation
laying down measures forencouraging themarketing ofproducts processed
from lemons .

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MILK
I*Marketsituation andoutlook
InitsActionProgramme (1977–80)»C0M(76)3OO ,theCommission concludes
thatthereisasurplusofmilkdelivered todairiesintheCommunity
oftheorderoflOfo,andthatthissurplushasatendencytoincrease.
Evenwiththeimpactoftheseveredroughtin1976,milkproduction in
theEECincreased by1.7$andmilkdeliveries todairies "by2.5%.
Attheendof1976"butterstocks(intervention andprivate-aided )
amounted to260000tonsandintervention stocksofskimmedmilkpowder
to1130000tons*
In1977 "thegapbetweenproduction andutilization ofmilkanddairy
products willcontinue towidenwithmilkproduction increasing by
2–3%andmilkdeliveries increasing by3-4^*TotalEECbutter
consumption maydecrease byafurther
Evenwiththeuseofspecialmeasures alreadyeffective underpresent
regulations ,andthoseinprocessofbeingadopted,stocksofbothbutter
and,notably,skimmedmilkpowder,mayincreaseinthecourseof1977*
Thesituation ontheinternational marketalsoshowsolearsignsof
increasing imbalance betweensupplyanddemand,andatendency towards
moreprotectionist measures tohamperforeigntradeindairyproducts ,
notablyforcheese,
II•ActionProgramme flQ77-8QW Theprogressive achievement ofbalance
inthemilkmarket
(l)TheActionProgramme hasalreadybeenthoroughly discussed inthe
Councilbutnodecision hasyetbeentaken.TheCommission has
re–examined thesituation inthemilksector,takingintoaccountthe
actualstockposition ,thelikelydevelopments inthemarketin1977,and
thediscussions todateonthepackageofmeasures beforetheCouncil.
Inthelightofthisre-examination ,theCommission isoftheviewthat
themilksectorshouldhavepriorityinthediscussions onpricelevels
for1977/78.Itreiteratesitspositionthatsignificant measuresmust
beintroduced attheearliestopportunity toestablish marketbalance
inthissector,oratleastcreateatendencyinthisdirection *

-58-
Together withtheelementsoftheActionProgramme ,averyprudentprice
policymust "bepursued.Thus,itistheviewoftheCommission thatthe
priceformilkshouldincrease "bysignificantly lessthanthepricesfor
otheragricultural products.
(2)Intheframework oftheActionProgramme ,theCommission hasproposed
thefollowing measures :
(a)aco-responsibility levyandmeasuresforexpanding marketsinthe
milkandmilkproducts sector,
(b)ataxoncertainoilsandfats,
(c)temporary suspension ofcertainnational andCommunity aidinthemilk
andmilkproducts sector,
(d)supplyofmilkatreducedpricestopupilsinschools,
(e)generalrulesfortheexclusive useofbutterfat andmilkproteins ,
(f)Community eradication of"brucellosis ,tuberculosis andleucosisin
bovines,
(g)asystemofpremiumsforthenon-marketing ofmilkandmilkproducts
andfortheconversion ofdairyherds.
(3)TheCommission maintainsitsproposalfortheapplication ofaco-
responsibility levyof2.5$,asfrom16.9.1977 »"toallmilkdeliveries
exceptinmountain areas;itbeingunderstood thattheutilization of
thelevywillbesubjectofcloseconsultation withtheinterested concerned .
Itannounces itsintention tocarryoutareviewofthedairymarketinthe
autumnof1977andwill,ifnecessary ,putforwardfurtherproposals to
redress thesituation .
(4)TheCommission hasalreadyproposed ataxoncertain (vegetable and
marine)oilsandfats.However,itrecognises thatobjections havebeen
raisedtotheimplementation ofsuchatax,andindicates that,ifthe
Councilisunabletoreachagreement ,itwillbenecessary toincrease
Community expenditure byanequivalent amounttothatwhichwouldhave
resulted fromthetaxonoilsandfatsinordertoincrease theconsumption
ofdairyproducts ,andnotablybutter.

-59-
(5)Inviewofthemarketimbalance inthedairysector,itisclear
thattheoverallsizeoftheindustry willhavetohereduced.The
Commission therefore maintains itsviewthatCommunity andnational
fundsmustnotcontinue to"beusedtofacilitate further inflows of
capitalintotheindustry throughthegranting ofaid.Ittherefore
alsomaintains itsviewonthesuspension ofaid,thoughinamodified
form.Whilegranting noincrease inthemanufacturing marginsfor
skimmedmilkpowderandbutterwithinthecontextofintervention prices
fortheseproducts theCommission considers thatthefollowing measures
shouldalso "beenvisaged :
–atotal "banonaidforinvestment intheproduction andmarketing of
"butterandskimmedmilkpowder,including thepre-treatment ofmilk,
withtheexception ofaidforrestructuring butter-dairies witha
capacity oflessthan50tonnesperyear;
–inrespectoftheothermilkproducts ,abanonallinvestment aid
whichentailsanincreaseinexisting capacity formilkutilization ,
andtheprovisional retention oftheratesofinvestment aidat
presentinforceintheMemberStatespendingtheharmonization of
allaidinthelivestock sector.Anexception willbemadefor
aidforinvestment inresearch andintheproduction ofnew
products servingtoincrease thecommercial outletsformilk,and
forinvestment intheuseofliquidmilkinanimalfeed;
–theseprohibitions andrestrictions willapplyuntil31March1980;
theCommission willtakeposition withregardtothempursuant to
Artiole93(l)oftheTreaty.

-60-
TheCommission proposestorestrict thesuspension oftheprovisions
ofDirective 72/159/EECconcerning thegrantingofinvestment aid,
providedforinitsproposal CQM(76)527 finalof7October1976,
tothesuspension ofaidforthepurchase ofdairycowsintended
formilkproduction .Tothatenditpresents theattached
proposal foraCouncilRegulation .
TheCommission therefore withdrawsitsproposalinC0M(76)527 final
of7Octdber1976.
(6)TheCommission maintainsitsproposal onthegrantingofaid
forthesupplyofmilkatreduoedpricestopupilsinschools
(Doc.R/2389/1/76).
fl
(7)Whilemaintaining theobjective "behinditsproposal onexclusive
useofmilkfatandmilkproteinsindairyproducts ,andinthe
lightofthediscussions onthismatter,theCommission nowproposestopursue
alessrestrictive policy "basedontheconditions underwhichdairyproducts may
"bemarketed.Asthismodifiedproposalalsoembracesicecream,andinorderto
facilitate theicecreamindustry inadapting totheincreased
offtakeofmilkfat,theCommission statesitsintention tomake
"butteravailable atreducedpricesforthisindustry duringa
transitional period.
(8)TheCommission isstilloftheviewthattheimplementation of
aCommunity schemefortheeradication of"brucellosis ,tuberculosis
andleucosisin"bovineswilltogether -withthemeasuresindicated "below(§9),CI
helptoreducetheover-production ofmilkintheCommunity intheshort
term.Consequently ,itretainsitsproposal onthismatter#

-61-
(9)IntheCommission'sview,thenon-marketing and"beefconversion
schemesofferthegreatestpossibilities foranearlyreduction of
milkdeliveries intheCommunity .Therefore ,inprinciple ,itmaintains
itsposition withregardtothescopeofthesemeasures ;however,in
MemberStateswherethedairyherdshavealreadydeclined bya
significant amount(over20$inthelastsevenyears)theobligation to
implement thesemeasures willnotapply.TheCommission recognizes
thedifficulty forMemberStateswiththefinancial provisions as
foreseen,andtherefore proposes toincrease theCommunity contribution
totheseschemesfrom50$–asoriginally proposed–to80$,tobe
financedwith40$fromtheEA.GGFGuidanceSectionand40$fromthe
EA.GGPGuarantee Section.Thisimprovement inthecontribution from
Community fundsisproposedinthecontextofaschemewhichappliesto
allsizesofdairyfarmsandwherethemaximum premiumisrelatedto
notlessthan120000kg.
Inrecognition ofthedifficulties whicharigorouspricepolicymayhave,
notablyforsmallermilkproducers ,theCommission proposes asomewhat
higherlevelofaidforproducers withanoutputoflessthan30000kg.
^nordertoofferolderfarmerswhoseincomecomesmainlyfrommilk
deliveries asociallyacceptable anddurablealternative enablingthemto
ceasefarmingeitherimmediately orafteraperiodduringwhichthey
undertake nottomarketmilk,theCommission proposestointroducefor
suchfarmersaCommunity premiumperhectare.Thispremiumwouldbegranted
tofarmersagedbetween55and-^5atleast5°$whosegrossagricultural
productisobtainedfrommilk.Thepremiumwouldbegrantedprovidedthat,
by1October1981,thefarmershadslaughtered theirdairycowsandreplace­
mentheifers,thattheholdinghadbeenwoundupandthatthelandhadbeen
incorporated intootherexistingholdings.Thepremiumwouldamounttoat
least50andnomorethan100u.a.peryearandperhectareoffodderarea
intendedfordairyfarmusein1976;itwouldbepaiduntilthe65th
birthdayofthefarmer.
Thispremiumwouldbegrantedoverandabovetheaidmeasuresalready
introducedbytheMemberStatesinimplementation ofDirective72/160/EEC

-62-
Those farmers entitled totheCommunity premium perhectare who have
promised nottomarket their milk andwho ,"bytheendofthesecond year of
such non-marketing (1.10.80 ),undertake tocease farming asspecified above
"before theendofthethird year ofnon-marketing would receive forthethree
years ofnon-marketing anon-marketing premium equal to87.5 (instead of
75$)ofthepremium normally granted forfive years .
TheGuidance Section oftheEAGGF would bear 50$ofthecosts incurred
bytheMember States inrespect oftheCommunity premium perhectare ,upto
amaximum of1,600 u.a .perholding .
Furthermore ,theeligible amount referred tointhethird indent of
Article 2(l)(a )ofDirective 72/160/EECisincreased to1,500 u.a.,or
1,000 u.a .inthose cases where therecipient ofthis allowance isalso
receiving theCommunity premium perhectare .
(10)TheCommission hasreoently proposed totheCouncil aregulation
aimed attheutilization ofliquid skimmed milk ,tinder contract ,by
pigproducers .Inorder tofacilitate theeffective implementation
ofthescheme ,and ,inparticular ,toensure availability during the
winter months ,theCommission proposes torestrict theright to
deliver skimmed milk powder tointervention agencies fordairy
enterprises which areunwilling toenter into contracts tosupply
liquid skimmed milk topigproducers .onayear-round basis .

-63-
III#Priceproposals formilk-year 1977/78
1.Inthecontextoftheoommonorganization ofthemarketin
milkandmilkproducts asatpresentstructured ,theCouncilhasto
fixannually forthefollowing marketing year:
–thetargetpnceformilk;
–theintervention priceforbutter,skimmedmxlkpowderandcertain
cheeses ;GranapadanoandParmigiano Reggiano ;
–threshold prices;
–thefVee-at–frontier priceofcertaincheesesboundunderGATT.
2.Inthe1976/77milkyear,theCouncilincreased thetargetprice
formilktwice:
–15March1976:4«5%increaseraisingthepricefrom15*59to
16.29u.a./lOOkg;
–16September 1976:increaseof3%raisingthepricefrom16.29to
16.76u.a./lOOkg.
Takingintoaccountthecontinuing structural imbalance inthissector,
theCommission proposes thatthetargetpriceformilkshouldremain
unchanged from1April1977and"beincreased "by3%from16September 1977*
TheCommission furtherproposes thatthepricechangeshould "bemade
insuchawayastomaintain inprinciple thepresentratio "between
milkfatandskimmed milk.
3.TheCommission proposes thattheCounciladjuststhethreshold prices
"byreference totheincreaseinthetargetprice.
4.AnnexIIofRegulation (EEC)No823/68providesthatanumberof
conditions willapplytoimportsintotheCommunity ofBnmental ,Gruyere,
Sbrinz,Bergkase andAppenzell cheesesfallingwithinCommonCustoms
Tariffheading No04.04A1.Amongtheseconditions itisspecifically
stipulated thattheCommunity free-at–frontierpriceshouldberespected .
Following theincreaseinthetargetpriceformilk,thefree–at-frontier
pricewillhavetoberevised.

5.Inviewofthecontinuing declineof"butterconsumption andthe
impactofthemonetary measuresintheagriculturalsector,the
Commission proposestoprolongtheconsumer subsidyfor"butterprovided
forunderRegulation (EEC)No562/76andtoadjustthefinancial
participation oftheCommunity inthijmeasure.
6.Inthelightofthetrendofproduction andtheuseofbutterand
skimmedmilkpowder,theCommission proposestoprolongthetemporary
suspension ofinwardprocessing arrangements forbutter,butteroil and
skimmedmilkpowder.Thismeasureisdesigned toensurethatCommunity
undertakings havepriorityintheprocessing ofCommunity production .
7.Inaocordanoe withArticle52(2)(a)andtakingintoaccount
Article52(3)oftheAotofAocession ,theintervention priceofbutter
forthe1977/78marketingyearinIrelandandtheUnitedKingdomwillbe:
From 1
1April1977 16September 1977
Ireland
UnitedKingdom219.92u.a./lOOkg225.86u.a./lOOkg
199.63u.a./lOOkg205.02u.a./lOOkg
8.Tosumup,theCommission proposesthefollowing pricesand
intervention measuresforthe1977/78marketingyear:
Applicable from
1April1977
16.76(u.a./lOOkg)
(a)Targetpriceformilk16September 1977
17.26
(b)Intervention price
Butter
Ireland
UnitedKingdom
OtherMemberStates
Skimmed milkpowder
Intervention price
GranaPadano
Agedfrom30to60days
Over6months
ParmaReggiano
Agedover6months219.92
199.63
223.80
213.79
255.84
276.9691.37225.86
205.02
229.80
219.24
261.60
282.7293.6511
According toArtiole52(4)oftheActofAccession ,asfrom1January1978,
theseprioeswillbereplacedbytheoommonpriceof229.80u.a./l00kg.

BEEPANDVEAL
Prices
1.UnderCouncilRegulation (EEC)No805/68*theCommission mustpropose
aguidepriceforadult "bovineanimalsforthe1977/78marketing year;
theguidepriceforcalvesisabolished underthenewprovisions decided
onrecently asregardstradewithnon-member countries .
Bywayofderogation fromArticle4ofthesaidRegulation itisproposed
thatthe1977/78marketing year "beginonFriday1April1977tocoincide
withthedateonwhichthenewarrangements fortradewithnon-member
countries "begintoapply,insteadof"beginning )asisusual,onthe
firstMondayinApril.
2.Thecurrentguidepriceforadult "bovineanimalsis118.74u.a./lOOkg
liveweight ,this "beingtheresultofsuccessive increases of17.6f0in
1974/75(includingthe3%increasedecidedonfrom1October1974),
8.555in1975/76and8$in1976/77.
Inviewofthedesiredincreaseinthegenerallevelofcommon
agricultural pricesandinviewoftheproposedagri-monetary measures ,
theproposedguidepriceforadultbovineanimalsforthe1977/78
marketing yearis122.30u.a./lOOkgliveweight ,i.e.anincreaseof3
Ontheotherhand,inaccordance withArticle 52oftheAot,the
Commission proposes tofixtheguideprioeforadultbovineanimalsin
theUnitedKingdomandIrelandat117*70u.a./lOOkgliveweight .
CouncilRegulation (EEC)No805/68of27June1968onthecommon
organization ofthemarketinbeefandveal(OJNoL148of28June1968),
aslastamendedbyRegulation (EEC)No (OJNoLof
February 1977»P»)•

PursuanttoArticle52(4)oftheActthisguidepriceforadult
"bovineanimalswillbeinforceuntil31December 1977*
Prom1January1978 "theguidepricefixedfortheoriginal
Community andDenmarkisalsovalidfortheUnitedKingdomand
Ireland *
3.TheCouncil,atits386thmeetingheldfrom2to6March1976,
notedtheCommission 'sintention topresentbefore1November 1976
areportontherespective meritsoftheintervention systemand
thesystemofslaughter premiums andontheimplementation ofthe
calvingpremiumsystem,together withanynecessary proposals .
Thepreliminary studiesforthisreportareunderwayandthe
Commission intendstopresentthereportby1June1977*
Inthelightoftheabovementioned report,theCommission willmake
proposals fordecision bytheCounoilby31July1977ontheapplica­
tionofapremiumsystemandongeneralrulesforapplyingtheinter­
ventionsystem,induedthepercentages mentioned hereafter *
4.Inviewoftheforegoingitisproposed tocontinuefixingthe
intervention priceat90$ofthenewguideprice,i.e.at
110.0u.a./lOOkgliveweight .(intheUnitedKingdomandIreland
until31December1977at105*93u.a./lOOkg)andtoretaininforce
thepossibility whichexistedinthe1976/77marketingyearof
suspending intervention buyingwhenthemarketprioeinaMember
Statereaohesorexceeds95$oftheguideprioe\
CouncilRegulation (EEC)No568/76of15Maroh1976amendingRegulation (EEC)No805/68(OJNoL67of15March1976,p.28).

-67-
Inaddition,itisproposedtoextenduntil31July1977 "theauthorization
toMemberStatestograntavariable premiumfortheslaughter ofcertain
beefanimals*.
CouncilRegulation (EEC)NO797/76of6April1976authorizing Member
Statestograntapremiumontheslaughter ofcertainadultbovine
animalsintendedforslaughterduringthe1976/77marketingyear
(OJNoL93of8April1976.p.8).

PICIMEAT
Prices
1.UnderCouncilRegulation (EEC)No2759/751»theCommissionisrequiredto
proposeabasioprioeforpigcarcases.Thebasiopriceisfixedtaking
intoaccountthesluioegate prioeandthelevyapplicable from1August
eachyear.
Forthe1976/77marketingyearthebasioprioewasfixedat114.48u.a./lOOkg
andasanexceptional measureitwasbroughtintoforceon15March1976.
2.Itisnecessary tofixthebasiopriceatalevelatwhiohitwillhelp
tostabilize marketpricesandattheBametimeavoidcausingstructural
surpluses intheCommunity .
Theoveralltrendofthevariouscostfaotorsentering intotheproduction
ofpigcarcasescallsforanadjustment ofthebasioprioeforthisproduct
by+4fortheforthcoming marketing year.
3.Consequently ,toenablethepricesystemtocontribute stability tothe
pigmeatmarketbymitigating thecyolioalfluctuations inproduction and
prices,inviewofthedesiredinoreaseinthegenerallevelofcommon
agricultural prices,inviewalsooftheproposed agri-nnonetary measures ,
itisproposedthatthebasioprioebefixedat119.06u.a./lOOkgforthe
1977/78marketing year.Thisprioewillenterintoforceon1November 1977*
CouncilRegulation (EEC)No2759/75of29Ootober1975onthecommonorganization ofthemarketinpigmeat(OJNoL282of1November 1975)*

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SILKWORMS
1.Article2ofCouncilRegulation (EEC)No845/721providesthataidisto
befixedeachyearperboxofsilkseedemployed.Forthe1976/77marketing
yearaidwasfixedat40u.a.Thisamountwasinsufficient tocompensate
silkworm breeders forthesharpfallinthepricesofrawsilkontheworld
market.TheCouncil,whichconsidered atthetimethatthisfallwas
exceptional andtherefore temporary ,decidedtograntforthe1976/77
marketing yearsupplementary aidof15u.a.perboxtobreeders whowere
membersofaproducer group,providedthattheymarketedtheiroocoonsjointly
(Regulation (EEC)No708/762).
Forthe1977/78marketing yearitisproposed
–toretainthenormalaidat40u.a.;
–tokeepthesupplementary aidforafurthermarketing yearbuttoreduce
itto13-61u.a.
2.Itisconsidered thatthenecessary increase intheincomeofbreeders
compared withthatofotheragricultural producers maybeachieved by
increasing thepricepaidontheCommunity market,inviewoftheconsiderable
improvement inthesituation ontheworldmarket.However,theforeseeable
trendoftheworldmarketpricedoesnotyetenablethesupplementary aid
tobeabolished .ToshowtheCommission 'sintention toabolishitfrom
the1978/79marketing year,itisproposedthatthesupplementary aid
expressed inu.a.bereducedbyanamountsuchthatthetotalaidtosilkworm
breeders ,expressed innational currency,isequaltothatgrantedforthe
preoeding marketing year(silkwormbreedingisconfinedtoItaly).
1GJNoL100,27April1972,p.1.
20JNoL84,31Maroh1976,p.3.

-70-
C. Financial implications
Thefinancial consequences oftheCommission 'sproposals arelaid
down indocument CQM(77 )l50A,'v<^Jt «