COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(92) 474 final 
Brussels, 19 November 1992 
Proposal for a 
COUNCIL REGULATION (EEC) 
on the introduction of a limit to the granting of 
production aid for processed tomato products 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
Subject: Draft proposal for a Council Regulation on the 
introduction of a limit to the granting of 
production aid for processed tomato products 
Processed tomato products are currently undergoing a difficult patch in 
the face of stiff competition on the world market brought on by an 
increase in production in the two other major producer countries, i.e. 
the United states and Turkey, and a decline in demand in the eastern 
European countries, namely those formerly in the USSR, which constitute 
an important market. Processing plants have closed and will continue to 
do so. In spite of this, the processing operations in the 1992/93 
marketing year, now coming to a close, have been carried out extremely 
smoothly considering the crisis situation in which the fruit and 
vegetables sector as a whole has suddenly been plunged since the spring. 
It is generally felt that the threshold system has functioned well, and 
the data, admittedly still provisional, on the quantities processed show 
that for the main tomato products, i.e. concentrates and peeled 
tomatoes, the thresholds have not been exceeded, while for the "other 
products" they have. Overall production, however, is falling. 
According to the undertaking given in discussions at the Council 
concerning the price package 1992/931, the Commission proposes herewith 
that the quota system be reintroduced and applied in the same way as in 
the 1990/91 and 1991/92 marketing years. The threshold system is not to 
be renewed. 
As was stated at that time, the 1992/93 marketing year is not to be 
included in the three-year reference period serving as a basis for the 
allocation of quotas for processing plants. The system is introduced 
for an indefinite period so as to save the Council having to extend it 
at regular intervals, given that the data are the same from one 
marketing year to the next. 
3. The Commission will make the necessary proposals as and when the 
situation in the processing sector and the consequences for that sector 
of the reform of the CAP as regards arable crops warrant a further 
review of the policy pursued. 
The .. OUP.C :''. agrees that the qurt.a system should be reintroduced in 
1993/?' i _a,d calls upon the Comnu .. n to present a formal proposal to 
thi- i iect before the end of OctoL... this year. 
COUNCIL REGULATION (EEC) No 
on the introduction of a limit to the granting of 
production aid for processed tomato products 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to council Regulation (EEC) No 426/86 of 24 February 1986 on 
the common organization of the market in products processed from fruit and 
vegetables1, as last amended by Regulation (EEC) No 1569/922, and in 
particular Article 2(2) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Having regard to the opinion of the Economic and Social Committee, 
Whereas Council Regulation (EEC) No 989/843 of 31 March 1984, as amended 
by Regulation (EEC) No 1755/924, introduces, as from the 1985/86 marketing 
year, a system of guarantee thresholds for certain processed fruit and 
vegetable products; whereas it also appeared necessary, from the 1985/86 
marketing year, to limit the granting of production aid in producer Member 
States to certain quantities of fresh tomatoes intended for processing; 
whereas these limitation arrangements were last extended in respect of the 
1990/91 and 1991/92 marketing years by Council Regulation (EEC) 
No 1203/905 of 7 May 1990 on temporary measures relating to production 
aid for processed tomato products; 
1 OJ No L 49, 27.2.1986, p. 1. 
2 OJ No L 166, 20.6.1992, p. 5. 
3 OJ No L 103, 16.4.1984, p. 19. 
4 OJ No L 180, 1.7.1992, p. 25. 
5 OJ NO L 119, 11.5.1990, p. 68. 
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Whereas on the expiry of Regulation (EEC) No 1203/90, the system of 
guarantee thresholds in respect of the 1992/93 marketing year has again 
spontaneously produced its effects; whereas, however, in view of the 
situation in the sector, it appears preferable for the arrangements 
restricting the granting of the aid to be reapplied from the 1993/94 
marketing year; 
Whereas the quantities of fresh tomatoes which may qualify for the 
production aid should be fixed for each producer Member State; whereas, in 
view of the production target and the market situation, such quantities 
should be fixed at the same levels as those which were applied for the 
1991/92 marketing year; 
Whereas those quantities of fresh tomatoes should be broken down between 
the processing undertakings on the basis of the total quantities which they 
processed in the last three marketing years preceding the marketing year 
for which the aid is fixed; 
Whereas the undertakings which started production after the beginning of 
the second marketing year preceding the marketing year for which the aid is 
fixed have only partially benefited from the ^production aid scheme; 
whereas, under the new scheme, they should be granted a quota based on a 
suitable reference period; whereas, in order to permit some development in 
the production structures in the sector, a percentage of the overall 
quantities allocated in each Member State should be reserved for 
undertakings which start production during the marketing year for which the 
aid is fixed; whereas, in view of the fact that the quantities available 
are limited, quantities should only be allocated to those undertakings 
presenting guarantees as to the efficiency and durability of their 
activities ; 
Whereas, in order to prevent that for the 1992/93 marketing year and while 
the threshold scheme is in force processing undertakings increase their 
production in anticipation of the arrangements limiting the aid, which the 
institutions had announced would be reintroduced for the 1993/94 marketing 
year, the latter simultaneously laid down that the quantities produced in 
1992/93 would not be taken into account for the application of the rules 
for the allocation of the national limits between the processing 
undertakings, and whereas the consequences should be drawn from this for 
all -he yr. lertakings concern* up to the 1995/96 marketing year; 
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HAS ADOPTED THIS REGULATION: 
Article 1 
1. From the 1993/94 marketing year, production aid granted to all 
processing undertakings in each Member state shall be limited to the 
quantities of processed tomato products obtained from the following 
quantities in tonnes of fresh tomatoes: 
All undertakings Tomato Tinned whole 
located in concentrate peeled tomatoes Other tomato 
products 
Spain 550 000 240 000 
France 278 691 73 628 
Greece 967 003 25 000 
Italy 1 655 000 1 185 000 
Portugal 832 945 19 600 
Germany 33 700 177 050 
40 087 
21 593 
453 998 
42 192 
1 300 
2. The quantities laid down in paragraph 1 shall, without prejudice to 
paragraph 3, be divided by the Member States between the processing 
undertakings in proportion to the average quantities actually produced by 
each of them during the three marketing years preceding the marketing year 
for which the aid is fixed. 
On application by the undertaking concerned, the competent authorities of 
the Member state shall authorize one only of the following transfer 
possibilities : 
a transfer of up to 25% of quantities of peeled tomatoes, expressed in 
quantities of fresh tomatoes, to the quantities allocated for tomato 
concentrate and other tomato products, 
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- a transfer of up to 5% of quantities of tomato concentrate, expressed in 
quantities of fresh tomatoes, to the quantities allocated for the other 
products, 
- a transfer of up to 5% of the quantities of other tomato products, 
expressed in quantities of fresh tomatoes, to the quantities allocated 
for concentrate. 
3. For the granting of the aid: 
(a) processing undertakings which started production during the two 
marketing years preceding the marketing year for which the aid is 
fixed shall be granted a quota calculated on the basis of the 
average quantities produced during those marketing years; 
(b) processing undertakings which started production in the marketing 
year preceding the marketing year for which the aid is fixed shall 
be granted a quota corresponding to the quantities processed during 
that marketing year; 
(c) processing undertakings which started production of one of the 
finished tomato products mentioned in paragraph 1 during the 
marketing year for which the aid is fixed shall qualify for 
production aid under the following conditions, provided that they 
present, to the satisfaction of the competent authorities, adequate 
guarantees as to the efficiency and durability of their activities. 
The producer Member States shall reserve 2% of the total quantities 
fixed for each group of finished products for the purposes of 
allocating quotas to the undertakings referred to in the first 
subparagraph. The quota allocated to each undertaking may not 
exceed its processing capacity, less 30%. 
4. Where all the quantities defined in paragraph 1 have not been allocated, 
the remainder shall be divided fairly between the processing undertakings 
referred to in paragraph 2, taking account in particular of those 
undertakings which use new production technology. 
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Article 2 
For the first three marketing years of application of this Regulation, and 
by way of derogation from Article 1(2) and (3), the quantities produced for 
the 1992/93 marketing year shall not be taken into account for the 
calculation of the average of the quantities produced. Consequently, 
Article 1(3)(c) shall also apply to undertakings which started production 
in the 1992/93 marketing year. 
Article 3 
Detailed rules for the application of this Regulation shall be adopted in 
accordance with the procedure laid down in Article 22 of Regulation (EEC) 
No 426/86. They shall include in particular rules applicable in the case 
of mergers and changes of ownership of undertakings. 
Article 4 
This Regulation shall enter into force on the third day following its 
publication in the official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in 
all Member states. 
Done at Brussels, For the Council 
-*•-
1 
! FINANCIAL STATEMENT t 
DATE: | 
! 1. BUDGET HEADING: 1511 APPROPRIATIONS: (1993 DB) ECU 447 mio \ 
! 2. TITLE: ! 
i Council Regulation introducing a limit on aid granted for the production of processed tomato products 
! 3. LEGAL BASIS: ! 
! Regulation (EEC) Nb 426/86 \ 
i 4. AIMS OF PROJECT: ,' 
i To reintroduce frcm the 1993/94 marketing year the arrangements for limiting aid. ! 
! 5. FINANCIAL IMPLICATIONS 
| 5.0 EXPENDITURE 
,' - CHARGED TO THE EC BUDGET 
! - (REFUNDS/INTERVENTION) 
! 5.1 REVENUE 
! - OWN RESOURCES OF THE EC 
! (LEVIES/CUSTCMS DUTIES) 
! - NATIONAL 
! 5.0.1 ESTIMATED EXPENDITURE 
I 5.1.1 ESTIMATED REVENUE ! Period of 12 months 
-
1995 
-Current Financial Year 
1993 
-Following Financial Year ', 
1994 i 
- (*) ! 
1996 ! 1997 
! 1998 ; 
• 
| 5.2 METHOD OF CALCULATION: ! 
j 6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? ! 
! YESXXX ! 
! 6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? | 
! YESxxx | 
! 6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? ! 
i xxx/ND ! 
,' 6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? i 
! YESxxx J 
{ OBSERVATIONS: { 
! (*) The expenditure depends on both production within the quota and aid. The latter has rot yet been fixed ! 
i for the marketing years concerned. On the basis of aid currently applying, tomato processing costs i 
! amount to ECU 358 million (A). | 
t 
ISSN 0254-1475 
COM(92) 474 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-92-496-EN-C 
ISBN 92-77-49244-9 
)ffice for Official Publications of the European Communities 
,-2985 Luxembourg