15.12.  75 Official  Journal  of the European  Communities No C 286/41 
Opinion  on the  Commission  report  to the  Council  on the  situation  regarding  the 
production  and  marketing  of hops  — 1974  harvest,  and  on the proposal  for a Council 
Regulation  laying  down,  in respect  of hops,  the amount  of aid to producers  for the 1974 
harvest 
The text  referred  to the  Committee  was  published  in Official  Journal  of  the 
European  Communities  No  C 218  of 24 September  1975,  page  3. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 14 August  1975,  the Council  referred  the abovementioned  report  and  proposal  to 
the Economic  and  Social  Committee  under  Articles  47 and  198  of the  Treaty 
establishing  the European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 133rd  plenary  session, 
held in Brussels  on 24 and  25 September  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the Council's  request  of 14 August 
1975  for an Opinion; 
Having  regard  to Articles  47 and  198  of the Treaty 
establishing  the European  Economic  Community; 
Having  regard  to  the  decision  taken  by  the 
Committee  Chairman,  in  accordance  with  the 
urgency  procedure  laid  down  in Articles  46 and  47 
of the Rules  of Procedure,  instructing  the Section  for 
Agriculture  to prepare  the Committee's  work  on the 
matter; 
Having  regard  to its earlier  work  in this  field,  and 
more  especially  its Opinion  adopted  on 30 January 
1975  H; 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr Bernaert; 
Having  regard  to the Opinion  issued  by the Section 
for Agriculture  at its meeting  on 15 September  1975; 
Having  regard  to the discussion  at the Committee's 
meeting  on  24  September  1975  (133rd  plenary 
session  of 24 and  25 September  1975), 
(!) OJ  No C 62, 15. 3. 1975. HAS  ADOPTED  THE  FOLLOWING  OPINION 
by unanimous  vote: 
The Committee  approves  the Commission  proposals 
but has the following  comments  to make. 
1. Article  11  of the  basic  Regulation  on  the 
common  organization  of  the  market  in  hops 
stipulates  that  the Commission  has  to submit  to the 
Council  before  30 April  each  year  a report  on the 
situation  regarding  the production  and  marketing  of 
hops.  This  report  is to be used  as a basis  for 
calculating  the  aid  provided  for  in the  basic 
Regulation.  The  Committee  notes  with  satisfaction 
that considerable  progress  has  been  made  this  year 
compared  with  the past.  Although  the time  limit  laid 
down  in the Regulation  could  not  be met  this  year, 
the proposals  on aid were  available  before  the new 
harvest. 
2. The  Committee  shares  the  Commission's 
concern  about  the  problem  of surpluses  in the 
medium  term.  It considers  that  to assess  the present 
situation  properly,  account  must  be taken  of the 
existence  of large  stocks  of processed  goods,  which 
will affect  the  disposal  of future  harvests,  even 
though  the 1975  harvest  is expected  to be lower  than 
usual.  This  is a problem  that  needs  to be looked  into 
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No C 286/42 Official  Journal  of the European  Communities 15.12.  75 
thoroughly  in view  of the very  poor  elasticity  of the 
hop market.  Since  there  is only  one  outlet  for hops, 
this market  reacts  more  violently  than  the  other 
agricultural  markets  to  any  imbalance  between 
supply  and  demand. 
The Committee  considers  that  these  surpluses  are 
due in particular  to: 
— the  increase  in the  acreages  of hops  in certain 
Member  States  in recent  years, 
— the  considerable  increase  in the  use  of hop 
derivates,  which  has meant  a very  great  saving  in 
basic  products, 
— the  cutback  in the  quantity  of hops  used  per 
hectolitre, 
— the  existence  of stocks  of processed  hop  products 
(e.g. powders  and  extracts). 
3. The  Committee  recalls  that  when  it was 
drawing  up its Opinion  of 30 January  1975  on the 
1973  hop  harvest,  it asked  the Commission  to invoke 
Article  12 (4) of the  basic  Regulation  (EEC)  No 
1696/71,  and  took  note  of  the  Commission's 
intention  to solve  the  problem  of surpluses  by 
amending  the  basic  Regulation  itself.  It notes  that 
the Commission  has  not  yet  been  able  to proceed 
with  this  amendment,  and  urges  that  this  be done  as 
soon  as possible. 
The Committee  notes  that  the  Commission  now 
plans  to use  the  basic  Regulation  to exclude  areas 
newly  planted  in 1974  from  entitlement  to aid  for 
the 1974  harvest.  In view  of the  selective  nature  of 
such  measures,  the Committee  urges  the Commission 
to make  sure  that  they  cannot  result  in 
discrimination  between  different  Member  States' 
producers. 
4. The  Committee  would  reiterate  the  remarks 
made  in its last  Opinion  about  the importance  of the 
role of producers'  organizations  in providing  the 
information  necessary  for the calculation  of aid and 
in achieving  a balance  between  supply  and  demand. Furthermore,  the  Committee  is of the  view  that 
Community  breweries  could  also  play  an important 
part in this  matching  of supply  and  demand.  They 
could  develop  the  policy  of multi-year  contracts  in 
all the Member  States  where  such  a policy  has  not 
been  put into  effect  or has only  been  implemented  to 
a small  extent. 
5. The  Committee  notes  that  for the 1974  harvest, 
the Commission  has,  on average,  increased  aid  by 
16 °/o over  the amount  given  for the 1973  harvest. 
The Committee  wonders  how  the Commission  took 
increases  in  production  costs  into  account  in 
working  out  its proposals  on aid.  The  Committee 
regrets  that  it cannot  assess  the proposal  before  it, 
because  it does  not  know  what  criteria  have  been 
applied  and  what  data  the proposal  is based  on. 
The Committee  would  also  draw  the  Commission's 
attention  to the  fact  that  the  use  of the  'green' 
parities  for converting  the returns  per hectare  in the 
different  Member  States  into  units  of account  make 
it difficult  to compare  the  incomes  of producers  in 
the various  States. 
6. The  Committee  is aware  of the  reservations 
expressed  about  the returns  per hectare  worked  out 
by the  Commission  for  some  varieties  in some 
Member  States,  but  feels  that  it is not  qualified  to 
comment  on  them.  It therefore  calls  upon  the 
Commission  to look  into  the  matter  and  draw 
whatever  conclusions  are necessary. 
In addition,  the  Committee  notes  the  divergence  of 
Community  producers'  views  on the amounts  of aid 
proposed  by the Commission  for  different  varieties, 
mainly  because  of the  reasons  set out  above.  The 
Committee  does  not  believe  it should  comment  on 
these  views,  but  takes  note  of them  and  considers 
that they  should  be examined  most  carefully  by the 
Commission. 
The Committee  recommends  that  the  Commission 
should  try and  forestall  such  objections  when  it is 
drawing  up any  new  basic  Regulations. 
Done  at Brussels,  24 September  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE