COMMISSION REPORT TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on THE QUALITY STRATEGY FOR OLIVE OIL

THE QUALITY STRATEGY FOR OLIVE OIL

TABLE OF CONTENTS

INTRODUCTION

1. ANALYSIS OF THE PRESENT SITUATION

1.1. Rules and standards

1.1.1. The idea of quality

1.1.2. Rules in force

1.2. Market situation

1.2.1. Operators and their organisations

1.2.2. Categories of olive oil produced and sold

1.3. Quality factors

1.3.1. At the level of olive production

1.3.2. At the level of virgin olive oil production

1.3.2.1. Temperature, duration and extraction additives

1.3.2.2. Disposal of residues and waste

1.3.2.3. Oils from a second mechanical extraction

1.3.3. Oils sold for consumption

1.3.3.1. Virgin oils

1.3.3.2. Refined oils and their blends with virgin oils

1.3.3.3. Mixtures of olive oils and seed oils

Box 1 : Annex to Regulation No 136/66/EEC - Descriptions and definitions of olive oil and olive-residue oils

2. SUGGESTED APPROACHES

2.1. Classification of olive oil

2.1.1. Designation of certain categories

2.1.2. Maximum limits on acidity

2.1.3. Distinction between crude olive oil and crude olive-pomace oil

2.1.4. Other aspects

2.1.5. Categories for the retail trade

2.2. Labelling of olive oil

2.2.1. Compulsory, optional and prohibited particulars

2.2.1.1. Obligation to specify the category of olive oil

2.2.1.2. Ban on the use of indications falsely implying quality

2.2.1.3. Standardisation of certain optional indications

2.2.2. Special case of origin

2.3. Analytical checks

2.3.1. Decision-schema

2.3.2. Panel test

2.3.3. Results outside the standards

2.4. Operators' organisation and activities

2.4.1. Areas of activity

2.4.1.1. Improving production quality and environmental impact

2.4.1.2. Certifying and safeguarding the quality of olive oil.

2.4.1.3. Sector and market management

2.4.2. Financing

Box 2 : Suggestion for new descriptions and definitions of olive oil and olive-pomace oils

OPERATIONAL CONCLUSIONS

1. Council Regulation

1.1. The classification of olive oil and olive-pomace oil

1.2. Operators' organisation and activities

2 Commission Regulation

2.1. Panel test

2.2. Designation of origin

2.3. Case of non-standard olive oil

2.4. Limit on package size

2.5. Labelling obligations and prohibitions

2.6. Standards for optional indications

3. Other initiatives

3.1. International bodies

3.2. Chemical research and expert work on olive oil

INTRODUCTION

In the course of the 1998 negotiations on reform of the market organisation for olive oil [1] the Council and Parliament raised a whole set of fairly technical problems linked with quality improvement at various levels. The Council and the Commission felt that these matters should be considered in a co-ordinated matter, and undertook to give:

[1] These negotiations led to the adoption of Council Regulation (EC) No 1638/98 of 20 July 1998 amending Regulation No 136/66/EEC on the establishment of a common organisation of the market in oils and fats (OJ L 210, 28.7.1998, p. 32).

"special priority to in-depth examination of matters bearing on quality strategy during the lead-up period to the proposal for definitive reform of the olive oil CMO. These matters are:

- olive quality and the existing olive oil production quality improvement programmes,

- the environmental impact of olive oil production, including mill residues,

- classification, notably creation of a "super" extra virgin category and points in connection with deodorised lampante olive oil, refined oil and olive-pomace oil,

- improvement of analysis methods for classifying and checking on olive oils,

- determination of origin and labelling,

- mixtures of olive oil and seed oils,

- traceability and quality certification,

- improvement of quality control."

Since then the Commission has held in-depth discussions on the various aspects of quality strategy. The Standing Group on Olives and Derived Products of the Advisory Committee on Specialist Products has held many discussion meetings on the subject on the basis of major written contributions by its members, representing the various groups of operators in the sector. The IOOC (International Olive Oil Council) and various trade organisations have also provided analytical documents. Lastly, the Expert Olive Oil Chemists' Group of the Management Committee for Oils and Fats has met several times to tackle the more technical aspects and the problems on the verification side.

Analysis of the main quality factors shows that progress at production and marketing levels could be generated by improving the compulsory classification and labelling rules. This supposes also advances on verification and on organisation of the sector.

Olive oil is distinguished from other fats by its special nutritional and organoleptic properties, and the market depends upon the diversity of these properties being transparent. Major items relating to improving olive oil quality are of varying technical complexity and economic importance, and fall into four main groups.

- Classification no longer corresponds very well to a market situation where at present the great majority of the oil produced is extra virgin of fairly heterogeneous characteristics. The compulsory category names using generic terms create confusion and can mislead the consumer. The borderlines between categories are the source of a range of technical difficulties relating e.g. to the reliability and precision of analysis methods and the existence of naturally non-standard olive oils.

- Labelling rules are often insufficiently precise, notably on verification of claims. The result is a proliferation of wording, sometimes misleading, that is hardly or not at all verifiable and disturbs the market.

- Fraud control is a recurrent problem, mainly concerning the basic quality declared (deodorisation of virgin lampante olive oils, blending of lampante oils and oil from mechanical treatment of pomace, mixtures with hazelnut oils etc.).

- Organisation of quality improvement, traceability and certification is lacking or needs to be better co-ordinated at the olive production, oil production and blending and residue treatment stages.

In consequence the market situation is dislocated by prices that are not always in line with the quality expected by the consumer. Even when allowance is made for the labelled claims, the price brackets for each category are very wide and overlap considerably with each other. These variations stem from normal commercial practices but are also a consequence of inadequacy of the quality rules, and of their implementation. In the longer term this inadequacy could deter consumers and create a major problem for the sector.

The measures to be undertaken require: a concerted approach over several years; a quality strategy for olive oil that involves producers, traders and industry; work by researchers and experts; the adoption of appropriate rules by the Council, the Commission and the Member States; and adaptation of international provisions at the level of the IOOC and the Codex Alimentarius.

1. ANALYSIS OF THE PRESENT SITUATION

1.1. Rules and standards

1.1.1. The idea of quality

The International Standards Organisation has given a definition of "quality" that encapsulates fairly well the general concept applicable to olive oils:

"A product's or service's quality is the range of characteristics that manifests its capacity to meet declared or implicit needs" [2].

[2] ISO EN No 8402.

Consumer choice is thus at the centre of definition of the quality of a product. But that is also conditioned by factors such as price and presentation that are not always quality-linked. Moreover, the criteria referred to in a judgement on quality vary in importance with consumer tastes and habits in different regions, with the passage of time and under the impact of information provision and fashion. Generic promotion of olive oil has an essential role to play here.

A first set of criteria concerns "basic quality", i.e. compliance with the requirement that the product be "wholesome, unadulterated and merchantable", which is of course the minimum to be guaranteed. Most of these criteria translate into objective standards that can be verified by physico-chemical analysis, e.g. ranges for various constituents characteristic of the composition of olive oil, maximum undesirable substance levels.

Second categories of criteria are those for "intrinsic quality". These often change over time, and concern the sensory and nutritional properties of olive oil. Some of these, such as acidity, are measurable in a very objective way. Others, such as organoleptic properties, are more complex to assess reliably and reproducibly. These properties, at the heart of the idea of quality, are difficult to separate out into a single scale of values since each consumer may have different preferences. There may also be an appreciation of multiplicity of olive oil tastes. "Intrinsic quality" appears to be based on implicit compromises by consumers between sensory aspects and more physico-chemical ones in which acidity features.

A third set of criteria are those for "associated quality" (i.e. associated with the product), covering aspects that are much more subjective though often not devoid of reality. It covers in particular the image of olive oil linked to culinary traditions and the Mediterranean climate and landscapes. The concern here is for values that are very difficult to objectify and are certainly not rigid. Some subsidiary aspects of "image", e.g. protection of the environment or origin of the oil, can however sometimes be monitored and assessed more concretely.

1.1.2. Rules in force

Quality designations must comply with the labelling rules set in compliance with Community legislation, notably Directive 2000/13/EC [3].

[3] Directive 2000/13/EC of the European Parliament and of the Council of 20 March 2000 on approximation of the laws of the Member States relating to the labelling, presentation and advertising of foodstuffs (OJ L109, 6.5.2000, p. 29).

However, the Annex to Council Regulation No 136/66/EEC [4] names and defines nine categories of olive oil and olive-pomace oil. Only oil of these categories and named accordingly can be marketed, and the retail trade is restricted to four of them [5] (see Box 1 annexed to Part I of this document). The same classification of olive and olive-pomace oils is used in the Community customs legislation, the IOOC Agreement and standards and the Codex Alimentarius, with some differences over recourse to organoleptic analysis and on other points of minor importance.

[4] Council Regulation No 136/66/EEC of 22 September 1966 on the establishment of a common organisation of the market in oils and fats (OJ 172, 30.9.1966, p. 3025/66). Regulation last amended by Regulation (EC) No 2702/1999 (OJ L 327, 21.12.1999, p. 7).

[5] Under Article 35(2) of Regulation No 136/66/EEC only extra virgin olive oil, virgin olive oil, olive oil and olive-pomace oil may be marketed at the retail stage.

Commission Regulation (EEC) No 2568/91 [6] further defines these nine categories and distinguishes them from each other and from other oils/fats by reference to 28 criteria requiring the use of 16 analysis methods. It is Article 35a of Regulation No 136/66/EEC that provides the possibility of setting (through the Management Committee procedure) marketing standards covering in particular quality grading, packaging and presentation, plus the analysis methods that are to be used.

[6] Commission Regulation (EEC) No 2568/91 of 11 July 1991 on the characteristics of olive oil and olive-residue oil and on the relevant methods of analysis (OJ L 248, 5.9.1991, p.1), last amended by Regulation (EC) No 379/1999 (OJ L 46, 20.2.1999, p. 15).

Most of the criteria set by Regulation (EEC) No 2568/91 are intended to guarantee that the product and declared category are authentic, and that there has been no fraud. Along with the general regulatory provisions on permitted residue limits they guarantee the basic quality to the consumer.

Other Regulation (EEC) No 2568/91 criteria such as acidity, peroxide value and the panel test are clearly concerned with "intrinsic quality" olive oil characteristics. They are dependent on the olives used, the extraction and/or refining processes and the oil storage conditions.

"Associated quality" is the subject of specific non-exhaustive rules. For the full range of agricultural products, Council Regulation (EEC) No 2092/91 [7] sets organic production rules and Council Regulation (EEC) No 2081/92 [8] covers the protection of designations of origin and geographical indications. In addition to these PDO and PGI rules valid for other products, Commission Regulation (EC) No 2815/98 [9] has provisions on designation of the origin of olive oils.

[7] Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs (OJ L 198, 22.7.1991, pp. 1-15).

[8] Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs (OJ L 208, 24.7.1992, pp. 1-8).

[9] Commission Regulation (EC) No 2815/98 of 22 December 1998 concerning marketing standards for olive oil (OJ L 349, 24.12.1998, p. 56).

Of the Regulations on quality improvement, mention must be made of Commission Regulation (EC) No 528/1999 [10] specifying the measures to be taken and procedures to be followed to improve the quality of olive oil production and its impact on the environment. These measures are financed by a 1.4% deduction from the production aid under Article 20d of Regulation No 136/66/EEC.

[10] Commission Regulation (EC) No 528/1999 of 10 March 1999 laying down measures to improve the quality of olive oil production (OJ L 62, 11.3.1999, p. 8).

Other measures, sometimes less directly linked to olive oil quality, are included (and financed) within the rural development framework.

1.2. Market situation

1.2.1. Operators and their organisations

All those operating in the olive oil sector are involved in the final quality of the products supplied to consumers. The present structure of operators in the olive oil sector can be summed up in the following table for the 1998/99 marketing year:

>TABLE POSITION>

In Spain, each producer's average individual output is around 1 500 kg of olive oil, i.e. three times that of Italian and Greek producers. In Portugal and, above all, in France, the average output per producer is very low.

In all the Member States concerned, concentration has occurred throughout the olive oil industry over the last few years. There is, however, a marked difference between Spain, where large cooperatives extract and bottle oil from their members' olives, and Italy and Greece, where a very large number of small mills located close to the growing areas often work under contract for producers, who prefer to maintain ownership of their oil. The output of Italian and Greek producers is often pooled by middlemen at the marketing stage.

The professional organisations representing the sector at European level bring together industrial firms, traders and producers, but they are not set up on an interbranch basis:

- FEDOLIVE, the Federation of the Olive Oil Industry, is a sector-specific organisation composed of representatives of the industry in the five Member States which produce olive oil: Sevitel (Greece), Assitol (Italy), Federoliva (Spain), Casa do Azeite (Portugal) and Fedico (France),

- COCERAL, the grain and feed trade committee of the EC; animal feed; oilseeds, olive oil, oils and fats and agricultural supplies in the EU, comprises different agricultural trade organisations, including the following in the olive oil sector: Federolio (Italy), Anierac (Spain), Esvite (Greece) and Fedico (France),

- COPA/COGECA represents the producer organisations and agricultural cooperative groups in the EU. COPA is made up of 29 organisations and COGECA 17 member and 4 associate organisations. The secretariat is shared between them and has 50 working groups, one of which specialises in olive oil.

At ground level, the 366 producer organisations and their 9 associations that are recognised under Regulation No 136/66/EEC help to administer production aid, but have no specific tasks in relation to quality. For the marketing years from 1998/99 to 2000/01, these producer organisations withhold 0.8% of the production aid payable to their members for the purpose of covering their running costs. The organisations account for just under half of the producers in Spain, but almost all producers in Italy and Greece.

1.2.2. Categories of olive oil produced and sold

The proportions of extra virgin olive oil and lampante virgin olive oil can vary markedly depending on conditions in the particular year, but in recent years important technical developments have permitted a considerable reduction in the lower quality categories. Up to less than ten years ago the proportion of lampante oil generally reached 30-40%.

>TABLE POSITION>

Source: Member States' statistics.

At consumption level the "virgin olive oil" and "olive-pomace oil" categories are fairly marginal. Sales are primarily of categories "extra virgin olive oil" and "olive oil", i.e. a blend of refined olive oil and virgin oils other than lampante. The relative shares of these two categories vary markedly by country, this being chiefly a matter of diversity of culinary tradition. The trend is upwards for extra virgin and downwards for virgin. "Olive oil", milder, remains appreciated for certain culinary uses and by some new consumers primarily interested in the product's nutritional qualities.

>TABLE POSITION>

(1) Orders of magnitude, according to the Member State.

1.3. Quality factors

The main factors that affect or constitute quality in olive oil operate essentially at three stages: growing of olives, production of virgin oils, and blending of the oils sold for consumption.

1.3.1. At the level of olive production

Growing conditions and olive characteristics are often determining factors for the quality of the oil and its sensory characteristics. Thus for example treatment against olive fly and harvesting conditions prevent strong acidity and certain damning organoleptic defects; varieties and their suitability to particular locations provide some of the objective bases for the regional origin idea; agricultural practices have an impact on the image of olive growing and on the environment.

Much work has already been done on improving the factors that affect the "basic" and "intrinsic" qualities of olive oils, their typicality and conservation of the environment. However, improved productivity often goes against these measures. For instance irrigation, spreading of fertilisers, excessive systematic phytosanitary treatment, and working of the soil without adequate precautions against erosion have a negative impact on quality in the wider sense.

The framing of agri-environmental rules and action programmes is rightly decentralised to regional level so that local diversity can be taken into account to the maximum. Community financing under the rural development schemes and the market organisation is provided. Better co-ordination and a general normative base appear necessary however.

A code of good olive cultivation practice would serve the purpose here. It would also serve to determine what goes beyond "good practice" and could therefore justify specific claims or specific support. The findings of certain studies [11] financed by the Commission as well as analysis presently realised by the IOOC could be used in framing such a code.

[11] The environmental impact of olive oil production in the European Union. May 2000. To be published shortly.

1.3.2. At the level of virgin olive oil production

The quality of the oil taken directly from the olives depends of course on the latter but is also affected by the extraction conditions. Many techniques and pieces of equipment serving a purpose on their own or in ideal combinations can be used. Three groups of difficulties emerge.

For the whole range of production stage problems for virgin oils, a code of good mill practice would be useful as a reference, notably for minimum conditions for certain quality claims. All industrial and commercial practices are presently under consideration within the IOOC.

Potentially useful work is in progress, and more is needed, on automatic checking of the operation of mills, and in particular of certain parameters that affect quality.

1.3.2.1. Temperature, duration and extraction additives

The appropriate temperature and duration for oil extraction depend on the state of the olives. For healthy ones a temperature below 30° allows the bulk of the oil to be extracted while optimising the organoleptic potential. For damaged olives a higher temperature is needed to obtain good extraction yields but reduces the "intrinsic" qualities and from 60° results in deterioration of the oil and its basic qualities.

A relatively low temperature can be offset from the oil yield angle by a longer period of kneading the olive paste. But too long a period, beyond 60 to 90 minutes, reduces the natural antioxidants and the vitamins in the oil.

Adjuvants such as talc and certain enzymes are increasingly being used to treat difficult pastes or improve yields at reasonable temperatures and duration. The action of talc appears to be purely mechanical and if all residues of it are eliminated there is no alteration of the oil. Enzymes on the other hand act bio-chemically and reduce the antioxidants and volatile compounds.

Owing to lack of retrospective checking procedures the Community rules are rather vague on these aspects. The definition of virgin olive oils in the Annex to Regulation No 136/66/EEC states that these are "oils obtained from the fruit of the olive tree solely by mechanical or other physical means under conditions, particularly thermal conditions, that do not lead to alterations in the oil,...".

In the absence of an effective simple method for detecting over-high temperature or excessively long kneading of the olive paste it is difficult to regulate such parameters at present. A general contribution to quality would be made however by a reasoned reduction in the acidity limits for certain oil categories.

On technical adjuvants the rules should clearly specify exclusion of all that have a chemical or biochemical action or could leave traces detectable in the olive oil and so compromise its image as a natural product.

1.3.2.2. Disposal of residues and waste

In general the oil extraction systems produce relatively dry pomace which is treated with solvent to obtain crude olive-pomace oil and leave a residue recycled as a fuel. But they also produce a large volume of liquid extracts that are polluting and difficult to eliminate.

Extraction by two-phase centrifuging, very common in Spain, uses less water and so yields fewer of the liquid extracts but gives a very moist pomace that cannot be directly treated. This is often dried by evaporation in large basins, which arouses concern about environmental risks.

There are no specific Community rules but much national and regional legislation, sometimes inconsistent, and some of the various projects implemented have received Community aid. In most cases the combination of suitable technologies is a local matter but some coherence would be achieved by common guidelines. This could be included in the code of good practice for mills.

1.3.2.3. Oils from a second mechanical extraction

Two-phase centrifuging produces from the olive paste moist and fatty pomace containing 6-to-9% oil that can be retreated, often at high temperature, using the same machinery, i.e. the centrifuge is loaded with most and fatty pomace instead of olive paste. This yields an oil and a moist exhausted pomace containing less than 4% oil. It is difficult for the extraction industry to make a profit by using solvents on this remaining pomace to yield olive-pomace oil and it constitutes a polluting residue that is costly to treat. The second extraction oils are obtained mechanically without solvent and are hence not olive-pomace oil under the present definition. But their wax content is too high for classification as virgin olive oils and they are generally diluted with lampante olive oils, so as to meet on average the standards set for that category.

Production and dilution of these oils is against the Community rules, which require virgin olive oil to come from the fruit of the olive tree, not from pomace, and not to be mixed with oils of another kind.

These oils, whether diluted or not, are not harmful to health since they are invariably refined, which eliminates the waxes in particular. But they dislocate the market quantitatively and also qualitatively since they are fraudulently sold as lampante although of lower stability than genuine lampante virgin olive oils. Storage without deterioration and refining of these oils are more difficult.

It is very difficult to tell by analysis whether a given oil has been produced by centrifuging pomace or is a mixture with such an oil or is instead a lampante olive oil, genuine but deteriorated owing e.g. to extraction at high temperature. A strong assumption can be made if the wax content increases rapidly on storage. The practice of second mechanical extraction can be detected at mills by examination of stock records or analysis of the oil content of the pomace produced.

Research on the identification parameters for oil obtained by centrifuging pomace is working towards simultaneous consideration of the values of the alcohol index and ethyl ester content on the one hand, and the quantity of waxes and erythrodiol on the other. The use of such criteria, which is fairly complex, would still have to be examined for the virgin olive oils of certain regions and would necessitate redefinition of the distinction made by Regulation No 136/66/EEC between lampante virgin olive oil and crude olive-pomace oil.

1.3.3. Oils sold for consumption

1.3.3.1. Virgin oils

Blends of virgin oils other than lampante are normal practice, generally useful or necessary from an economic point of view, but also to construct a quality esteemed by consumers or guarantee them stability of quality. The oils of certain varieties of olives, even of certain locations, have sometimes to be blended among themselves to give a product benefiting from their respective characteristics as to e.g., structure, stability and taste.

Blending also serves the purely commercial function of diluting low-quality oils, notably those of fairly high acidity.

There is no analysis method to determine the constituents of virgin olive oil blends and still less to judge the purposes, qualitative or otherwise, for which the blend was made. It is certain however that for the extra virgin category a reasonable reduction in maximum acidity would limit the possibilities of abuse.

1.3.3.2. Refined oils and their blends with virgin oils

Refined olive oils, generally from lampante olive oils, are colourless, odourless, tasteless and of very low acidity. They are sold for consumption in the form of blends with virgin oils other than lampante under the category name "olive oil".

The presence of both virgin oil and refined oil in an "olive oil" can be attested by analysis. But the total absence of virgin oil is more difficult to prove and there is no method for checking the composition of these blends. Nor is the minimum virgin oil content regulated. Hence the category displays great heterogeneity, ranging from refined oils to which a drop of virgin oil has been added to blends with marked sensory characteristics.

The unaware consumer of an olive oil is somewhat imposed on by this use of the generic name for olive oils as the name for one particular category. He may also be disconcerted by the organoleptic heterogeneity of the olive oils offered to him. There is also a market for olive oil blends containing very little virgin oil, especially for preserves and industrial cooking.

Given the difficulties of checking the composition of "olive oils", rules here are a problem, but an improvement in consumer information seems necessary.

Refining plants are able to deodorise virgin oils that are only slightly acid but graded lampante given their sensory defects. Like other types of partial refining, this gives an oil that can be fraudulently termed "virgin" or "extra virgin".

The lack of an analysis method for detecting this type of fraud (difficulties in finding one persist) mean that no figure can be put on its extent but it appears to be of more than negligible economic importance. One path to be explored is to find a tracer, with no impact on the quality of the refined oil and hence safe to human health, that would have to be added by mills to all lampante virgin olive oils and would withstand refining.

1.3.3.3. Mixtures of olive oils and seed oils

Such mixtures fraudulently declared and sold as olive oil do great harm to the sector. Analysis methods for detecting them are not always sensitive enough, notably when the oils in question are similar in fatty acid composition. This is particularly so with deodorised hazelnut oils, difficult to detect even when present in fairly high proportion in the mixture. Research is active in this area and at least some partial solutions may be available soon.

Mixtures of olive oil and seed oils declared and sold as such are not prohibited under Community rules but Member States' views on them diverge. The products must respect national legislation adopted under Directive 2000/13/EC, which stipulates:

- in Article 2, that the labelling must not be such as could mislead the purchaser to a material degree,

- in Article 7, that the quantity of an ingredient emphasised on the labelling must be stated.

Member States producing olive oil claim from past experience that the mixtures in question benefit from the repute of olive oil but are not of the same nutritional value. Thus they are sold at relatively low prices and this distorts the market. At the moment, apart from France, the producer Member States and also Belgium prohibit production for consumption on their territory of mixtures of olive oils and seed oils, on the grounds of difficulties of quantitative determination of the olive oil in the mixture. There is in fact no analysis method for doing this. But they authorise such mixtures for export to other Member States and third countries.

In the other Member States these mixtures meet consumer demand for an only slightly pronounced olive oil flavour. Their attitude is that olive oil content can be checked from stock records just as in the case of other food mixtures on the market.

Producer Member States want a Community prohibition on olive oil/seed oil mixtures but most of the others object.

From the point of view of the legislation, the Commission considers that a Community measure imposing a total, unconditional ban on mixtures of different oils could be justified only if it were regarded as essential for the operation of the common organisation of the market in olive oil. There would appear to be no such justification at present. The mixtures in question are marketed with a clear indication on the label of their composition and nature.

The argument that checks to ascertain the exact composition of the mixture are difficult does not justify such a radical measure as a ban. Such a measure would be out of proportion and would discriminate against a category of operators in the Community who otherwise comply with the rules on consumer information and who are responding to market demand.

On the other hand, in order to preserve a certain quality and a certain tradition of production at local level, a Member State might wish to maintain national rules which, without obstructing imports or exports of the mixtures, would prohibit the production of such mixtures for domestic consumption.

The present situation thus seems satisfactory in the light of the Community rules, but changes involving a general ban on mixtures of olive oil and seed oil could not be imposed.

On the other hand, in view of the importance attached to the matter, there could be Community rules specifying what is to appear on the labels of such mixtures, e.g. information as to whether the product is an olive-oil-"based" product, "contains" olive oil or has olive oil "added". This approach needs to be carefully considered, in view of the complexity it would introduce for the consumer.

2. SUGGESTED APPROACHES

2.1. Classification of olive oil

The designation and definition of olive oils and olive-pomace oils appearing in the Annex to Regulation No 136/66/EEC should be amended to correspond to the compulsory classification set out in Box 2 annexed to Part II of this document. The changes are described in points 1.1 to 1.4 below.

2.1.1. Designation of certain categories

In the Annex to Regulation No 136/66/EC, the designation virgin olive oil applies to the category of oil with an acidity of 1 to 2° but also to all oil obtained directly from olives. This creates confusion among professionals of the sector. As far as the consumer is concerned, only the categories "virgin" and "extra virgin" are known and these names give them added value and distinguish them from one another. In order to overcome the difficulties of communication within the professionals, all that is needed is to classify all the present categories lampante, ordinary, virgin and extra virgin as crude olive oil. This would bring olive oil into line with the designations in the combined nomenclature for other vegetable oils. For the consumer nothing would change.

What is more of a problem for the consumer is the use of the name "olive oil" for blends of refined olive oil and crude olive oil. Using the generic term for a particular category not only hampers communication between those in the industry but above all is misleading for the consumer who is not sufficiently well informed. Without detracting from the category "olive oil" which is nonetheless a good product from the nutritional point of view, it should be given a specific identification. When the matter was discussed on numerous occasions, suggested names for the category covering this product included "basic", "common" or "ordinary", but almost all these descriptions were deemed to have a negative connotation in one or other of the main languages concerned. It seems that the adjective "standard", which can be used in all the languages, is the best choice.

2.1.2. Maximum limits on acidity

Technical progress, particularly in olive cultivation, has enabled the relative importance of the various crude olive oil categories to grow. Currently about 70 % of total production is generally classified as "extra virgin" with less than 1° acidity. The consumer could benefit from this progress if the designation "extra virgin" was reserved for the best of these oils. This would also curb certain excesses when it comes to the parameters for oil extraction or unscrupulous blending with relatively acid crude olive oil and would restrict the quantity of lampante olive oil likely to be deodorised without deacidification. Nonetheless the cut in the acidity limit must remain moderate since this criterion contributes to quality only in connection with other, primarily organoleptic characteristics. The diversity of the best olive oils must not be reduced by setting too restrictive a limit on acidity which is too typical for certain olive varieties. It seems appropriate to reduce the limit from 1° to 0.8°.

At the other end of the acidity scale for crude olive oils, there are fewer and fewer lampante oils (over 3.3°). Oils in the "ordinary" category, with 2 to 3.3°, acidity have become increasingly rare on the market. These two categories together have decreased in quantity below the level of the lampante olive oils of the past. Unlike the "lampante" oils, which have to be refined, ordinary oils can be used for blending with "virgin", or even "extra virgin", or with refined olive oils.

In a move to improve quality in line with the market, it might be appropriate to combine "ordinary" oils with "lampante", or in other words to cut the acidity limit for lampante olive oils from 3.3° to 2°. Given the need to supply the market with enough oil for blending, the maximum acidity limit for olive oils in the "virgin" category would remain unchanged at 2°.

As far as refined olive oils are concerned, industrial progress means that it is easy to cut the maximum acidity from 0.5° to 0.3°. Consequently and in the light of the hereafter forseen reduction in the maximum acidity for blending oils (including "ordinary" oils with "lampante" oils subject to compulsory refining), the acidity of "standard" olive oils should be cut from 1.5° to 1°. The same adjustments should be applied to refined olive-pomace oil and to olive-pomace oil.

2.1.3. Distinction between crude olive oil and crude olive-pomace oil

At present the distinction between crude olive oil and crude olive-pomace oil, in accordance with the Annex to Regulation No 136/66/EEC, is whether or not solvents are used to extract the oil. However, to detect olive-pomace oil fraudulently presented as olive oil, chemical analyses provided for in Commission Regulation (EEC) No 2568/91 quantify substances such as waxes, sterols, etc.

Technical progress means that more and more oil can be obtained mechanically from olives today. Although extracted without the use of solvents, the last oil obtained from olives is similar to crude olive-pomace oil in many respects. To take these developments into account and the damage it entails for both the quality of lampante olive oils which have to be refined and for the pomace industry and its role in the elimination of a residue which can cause pollution, the definition of pomace oil should be reviewed.

It should be made clear in the Council Regulation that crude olive oils are only those which have characteristics enabling them to be classified in one of the categories defined and that crude olive-pomace oil may include, in addition to solvent-extracted oils, certain oils obtained mechanically. The Commission rules should set out the conditions for the classification as crude olive-pomace oil of certain mechanically-extracted oils.

2.1.4. Other aspects

In the definition of crude olive oil, it would be advisable to delete "particularly thermal conditions" from the conditions that must not, under Council rules, lead to alterations in the oil. By singling out this parameter among the conditions that must not lead to alterations, the definition seems to imply that other conditions are of less importance.

To take account of technological progress, it is appropriate to indicate in the definition of crude olive oils laid down by the Council that they may not be obtained using adjuvants having a chemical or biochemical action since this could damage the natural image of the product. The Commission rules should have to fix limits for residues according to the levels below which they cannot be detected by analysis.

It has been suggested that an additional category of "super extra" virgin olive oil should be created, but this is not really appropriate as it would complicate classification and checks. Defining limits for it would be a delicate matter, given the diversity of the product throughout the Community; the category would probably be insufficiently selective, and would soon include almost all oil at present in the "extra virgin" category.

2.1.5. Categories for the retail trade

All the categories of oil in the compulsory classification in the Annex to Regulation No 136/66/EEC could be presented for wholesale trade, in bulk, but only some of them could be put up for retail sale. By analogy with the present provisions in Article 35(2) of Regulation No 136/66/EEC, the compulsory designations for olive oil authorised for the retail trade would be the following:

- extra virgin olive oil,

- virgin olive oil,

- standard olive oil,

- olive-pomace oil.

However, the Commission rules should include a new feature: a maximum limit, e.g. 5 litres, on the size of packages for the retail trade, which would promote quality since small packages reduce oxidation and the possibilities of tampering.

2.2. Labelling of olive oil

Article 3 of Directive 2000/13/EC lists the compulsory indications to be given on the labelling of foodstuffs, which, in the case of olive oil are as follows:

- the name under which the product is sold in accordance with the classification laid down by Regulation No 136/66/EEC,

- the net quantity,

- the date of minimum durability,

- storage conditions,

- the name or business name and address of the manufacturer or packager, or of a seller established within the Community.

In addition, Directive 89/396/EEC [12] requires identification of the lot to which a foodstuff belongs.

[12] Council Directive 89/396/EEC of 14 June 1989 on indications or marks identifying the lot to which a foodstuff belongs (OJ L 186, 30.6.1989, p. 21).

All other indications or claims are optional, but when they are included they must not:

- be such as could mislead the purchaser, particularly as to the nature of the product, its identity, properties, composition, quantity, durability, origin or provenance or method of production,

- attribute the property of preventing, treating or curing a human disease.

Among the optional indications or claims, some, if they are included, must conform to Community rules. In the case of olive oil these are:

- nutritional claims, which must comply with Directive 90/496/EEC [13] on nutrition labelling for foodstuffs,

[13] Council Directive 90/496/EEC of 24 September 1990 on nutrition labelling for foodstuffs (OJ L 276, 6.10.1990, p. 40).

- claims relating to an organic product, which must comply with Regulation (EEC) No 2092/91,

- protected designations of origin and protected geographical indications, which must comply with Regulation (EEC) No 2081/92,

- other designations of origin, which must comply with Regulation (EEC) No 2815/98.

On the basis of these rules, a large number of expressions are proliferating on labelling. This works against transparency and adding value to recognised qualities, to the advantage of other claims which are difficult or impossible to check or of little value as an indicator of quality. In view of the importance of quality for extra virgin olive oil, market prices are being distorted.

Going to the other extreme from the current flexibility in labelling, i.e. a strictly regulated approach with an exhaustive list of authorised particulars and conditions of use does not seem sensible. In such a scenario the rules laid down would have to standardise, in a short time, all the terms for which applications were made by reason of market developments or innovations in advertising ideas. It would also be necessary to determine what checks were to be done and ensure that they were carried out, which implies a tracing system effective in all cases, whereas at present the burden of proof is on the operator taking up an option.

2.2.1. Compulsory, optional and prohibited particulars

In order to improve the situation without creating a system that is impossible to administer, what should be needed is, on the basis of the current rules, in particular Article 35a of Regulation No 136/66/EEC, to:

- add labelling obligations and prohibitions as and when necessary and also to

- standardise the definitions and proof to be furnished for optional indications which are of substantial economic significance.

For other optional indications and claims the provisions laid down in Directives 2000/13/EC and 90/496/EEC would of course still apply.

Commission Regulation (EC) No 2815/98 concerning marketing standards for olive oil would thus be supplemented in the light of market requirements. Without prejudice of the actual future Commission proposals, the following is a non-exhaustive list of the aspects that should be examined.

2.2.1.1. Obligation to specify the category of olive oil

The meaning of the four designations authorised for retail trade (extra virgin, virgin and standard olive oil and olive-pomace oil) is not always clear to new consumers. An indication established by the Commission rules should describe their significance on the basis of the definitions contained in Regulation No 136/66/EEC. The inclusion of these indications on the labelling would be compulsory.

2.2.1.2. Ban on the use of indications falsely implying quality

A case of a claim that seems to distort competition and mislead the consumer is the indication of the acidity. This criterion is easy to check but it is often erroneously taken to be a quality indicator. In actual fact it is meaningful only for a single category of oil, a single olive variety and a particular origin. The widespread use of acidity as a quality criterion could lead the consumer to believe that standard olive oils were superior to extra virgin olive oils, which is not borne out by the market.

2.2.1.3. Standardisation of certain optional indications

Certain claims should be harmonised in the same way as origin and biological indications are already. Only certain indications meeting criteria to be specified by the Commission would be covered by Community rules. Such standardisation should therefore be confined to concepts that can be judged objectively, and which have appreciable economic importance in the Community.

Where an optional indication is used, the operator concerned should produce evidence of compliance with Directive 2000/13/EC, as well as, where appropriate, any other evidence specified by the Commission in connection with its standardisation rules. Operators would be free to decide whether or not to apply the optional system, but if they did so they would be obliged to comply with the rules laid down.

A prime example of a claim that should be standardised is the indication "first cold pressing" which appears on most labels, whereas the vast majority of oils are no longer obtained by pressing but by centrifugation and the temperature "cold" is neither defined nor verifiable.

Another example of a concept it could be useful to standardise is the indication of "fruity" and other tastes, which would have to correspond to objective results. A specific panel test, which is being developed, would be needed for this purpose.

Other examples could be mixtures with seed oils, with references to minimum olive oil content, or oil obtained from specific varieties of olives.

2.2.2. Special case of origin

Up to 31 October 2001, Regulation (EC) No 2815/98 provides for an optional system of designation of origin of extra virgin and virgin olive oil within the European Community. The designation of origin of the other categories of olive oil is prohibited because there are no substantial, perceptible differences between them linked to provenance. Checks on origin have to be carried out by the Member States in approved packing plants.

Regulation (EC) No 2815/98 restricts regional designations of origin to PDOs and PGIs. The conditions are set out in specifications, in accordance with Regulation (EEC) No 2081/92.

Where the Community or a Member State is designated as the origin, this Regulation lays down that:

- the origin is determined by the place of extraction of the oil,

- all the oil in question, or at least 75% of the blend, must have been obtained in the area of origin designated; in the latter case it is compulsory to indicate that the origin is partial.

Origin is primarily a customs concept and thus has nothing to do with the concept of quality. To give merchandise origin, in the custom meaning aims at the determination of the import conditions of that merchandise in the international trade. Within the Community market it has no custom purpose but corresponds to qualities associated with the product. The two aspects must be compatible and coordinated in order to avoid total confusion between customs declarations on the one hand, and labelling on the other.

In order to determine the custom origin of merchandise and to apply the measures of the trade policy and the marking of the origin, rules on non-preferential origin are presently a matter for difficult negotiations for international harmonisation in the WTO. Even if these negotiations are not yet finalised, a principle seems to be established : the origin of an oil is related to the country in which it is either entirely obtained or extracted from the raw materials. In this way, the origin of oils is linked to the place of manufacture of oils, i.e. the mills.

Additionally, the debate is still open on the Community proposal which consists in recognising refining as an attribute to the origin. Finally, as far as blends of olive oils are concerned, no decision was taken and their origin could be determined on the basis of the major component, of the country which has contributed on a minimal percentage of the blend, or on the basis of the country in which the blend took place.

Regulation (EC) No 2815/98 adopts the principle of the origin from the country of extraction for the designation of national or Community origin. In the case of the regional origins conferred by PDOs and PGIs, the specifications place decisive importance on location, variety and local know-how, and the origin depends on where the olives were harvested. Producers in some Member States have criticised this approach and would have preferred origin to reflect where the olives were grown in all cases. Apart from the fact that that would have complicated checks, the economic significance is not very great since the total internal and external Community trade in olives for the production of oil amounted to 454 tonnes of oil in 1999, compared with total production of over 1 700 000 tonnes.

For other reasons, Regulation (EC) No 2815/98 does encounter some difficulties of application and undertakings are showing little interest in it. For one thing, the national provisions on granting approval and checks have taken a long time to establish and, for another, the mention of a national or Community origin under the Regulation has had only a limited impact. The origin can in any case be assumed from the compulsory indication on the label of the packager's name or business name and address and from the language used, and this is easier for operators. The wrong assumption may, however, be made and the consumer has no guarantee.

To remedy these difficulties, the best solution would be to make it compulsory to indicate:

- either a designation of origin in accordance with Regulation (EC) No 2815/98,

- or wording to be specified in the Regulation, clearly showing the actual situation.

2.3. Analytical checks

An impressively large number of physico-chemical analyses are needed to check olive oils, but some of them leave room for improvement in terms of their accuracy. New methods of analysis are being considered to combat fraud, and new research is under way. However, better account could be taken of the links between the various results to improve findings and/or reduce cost. Moreover, among the questions still pending, a so-called "Panel test" method is one of the most controversial.

2.3.1. Decision-schema

The classification of an olive or olive-pomace oil is currently based on the results of analyses with reference to thresholds fixed for 28 criteria. For each criterion the result is of the "all or nothing" type, below or above the threshold established, and does not take account of the other parameters analysed.

This approach is costly and takes quite a long time by reason of the need to work systematically through a large number of complex analyses. It constantly encounters various problems of limits: the "all or nothing"-type results lead to the downgrading of categories in some years and/or some regions or even exclusions from the definitions of olive oil, which appear to conform more to convention than to reality.

To improve this situation the present "all or nothing" criteria should be replaced by a "decision-schema". In such a system there would be a step-by-step approach to eliminating possible alternatives or building on hypotheses as several elements of evidence are gathered. It would thus be a matter of replacing systematic recourse to a set of independent analyses by a strict procedure for implementing analyses according to the results previously obtained. The strict procedure should of course be independent of any interpretation by the analyst.

Under such a decision-schema procedure, the costs and time taken could be reduced for all the most straightforward cases. For more complex cases classification could take into account the profile of the whole set of results so that judgement could not be based on a single one of them while others pointed to the opposite conclusion. The chemical experts on the Management Committee for Oils and Fats have started some promising work on this subject.

2.3.2. Panel test

The panel test is a sensory analysis developed to increase the objectivity of expert opinions on the organoleptic characteristics of olive oils. Research, having identified and developed the quantification of the main chemicals concerned, should work towards a physico-chemical organoleptic analysis, but there is still some way to go.

The current Community classification system for crude olive oils is based on marks for the sensory perception of a series of attributes awarded by a panel of tasters in accordance with a precise procedure. The number and subtlety of the attributes to be marked and the use of average scores make this method rather poor as regards reproducibility. Wide margins of tolerance have been allowed by the Community rules between marks distinguishing categories of oils. Implementing the method involving several tasters working within the constraints of the recovery rate of their critical faculties takes time and results in high costs.

The International Olive Oil Council (IOOC) has adopted a new panel test method, based on the assessment of a limited number of defects, the existence of a "fruity" sensation of any kind and the use of the median of marks given by panel members. This new method is more reliable if it is applied, as proposed, by a panel of well-trained tasters. But it remains time-consuming and costly. When the panel is replaced by a single expert, problems of uncertainties and disputed results can recur.

Faced with the need to certify the existence of sensory qualities in virgin and extra virgin olive oil and pending the development of a physico-chemical method, the main challenge is to achieve panel test reliability at as low a cost as possible.

The Commission might opt for the panel test method adopted by the IOOC with two levels of expertise. The first test would be done by a single accredited expert. If that expert detected an organoleptic contradiction with the category of olive oil declared, he would have to refer the matter to the arbitration of three approved panels from a Community list. Only the outcome of such arbitration would be enforceable against the operator concerned.

2.3.3. Results outside the standards

In any complex multi-criterion classification there are borderline cases showing abnormal results. Every year, in one region or another, there are olive oils that cannot be classified because they do not meet a particular criterion. These oils cannot be sold in any of the crude oil categories and, in practice, they are often secretly blended in such a way that the resulting mixture does meet the standards.

The introduction of a decision-schema as described in point 3.1. should reduce the number of such cases but it would not rule them out. Introducing a tolerance is not a solution since this could lead to abuses and frauds. There should be a procedure whereby the Commission could allow the oil in question to be brought up to standard in mills and under the supervision and responsibility of the Member States concerned.

2.4. Operators' organisation and activities

The olive oil network of producers, mills, industrial firms and traders should make a greater contribution to the organisation and operation of the sector, in particular through new activities to produce and defend product quality.

There is no general organisation capable of tracing and certifying at European, or even at all national levels the quality of all olive oils, and it would be difficult to create it from scratch in the short or medium term. Consequently, these activities should be organised within specific market segments, which would perhaps be somewhat limited at first, but would no doubt become wider as time went on. For the system to function in a credible manner, it must be based whenever possible on cooperation between the different categories of operators involved.

This approach would mean that a group of operators at local, regional or national level would be approved by the Member State to carry out programmes in one or more of the three areas described below.

2.4.1. Areas of activity

2.4.1.1. Improving production quality and environmental impact

The monitoring of good agricultural practice (cultivation, harvesting, storage) is essential since this practice influences basic quality, intrinsic quality and contributes to the image of the end product in the eyes of the public, especially where its environmental impact is concerned. The monitoring must extend to the practices of mills, which can improve, damage or even destroy the potential qualities of the olives, and to the treatment of residue, which can have substantial environmental impact.

The measures taken by the olive oil sector could be geared even more towards the preparation and implementation of the existing quality improvement programmes, which are financed by the Community through the withholding of 1.4% of aid. It could also usefully coordinate all the structural and environmental measures at local level. The programmes now presented by the Member States include measures relating to:

- improved growing conditions and pest control,

- improved conditions for harvesting, olive-processing, storage of oil and disposal of waste,

- technical assistance to olive producers and mills, especially with respect to effects on oil quality and on the environment,

- installation of "panel tests" and cooperation in research programmes on quality and the environment.

Improving production quality and environmental impact is of direct benefit to operators in the sector, even if it can take some time. For this reason, and in order to ensure that the programmes in question are more efficacious, Community financing should be limited to 75% and it would be reasonable to require operators to participate.

2.4.1.2. Certifying and safeguarding the quality of olive oil.

An important quality element, which the consumer is willing to pay for, is a guarantee that the claims stated on labels are true.

Preventing fraudulent labelling is a matter for the Member States but in addition the operators' organisations could give undertakings as to the objective truth of the indications on their products. In addition, operator organisations should track down the fraud and quality-reducing practices that are detrimental to them, and to the sector as a whole.

The operators in the sector, as the parties primarily concerned, should organise themselves with a view to setting up a tracing and certification system for quality olive oil and defending themselves, before the courts if necessary, against any abuses committed. Producers should guarantee the quality of the olives supplied and mills the quality of virgin and extra virgin oils, while the blending, refining, bottling and olive pomace oil extraction industries would vouch for the quality of their work. The programmes of activity would be based on a tracing and certification system controlled by an approved grouping, under the supervision of the Member State. This system would comprise:

- a set of specifications drawn up by those concerned, including, on the basis of the HACCP model [14], identification of the critical points and means of controlling them,

[14] The HACCP method (Hazard Analysis at Critical Control Point) is based on 7 principles:

- approval of the specifications by the national authorities in accordance with a Community regulatory framework and supervision of their implementation under a national monitoring scheme.

Such recognised operator organisations, in applying an approved set of specifications approved and supervised by the Member States, would be authorised to certify in the labelling that the product was subject to tracing guaranteeing the accuracy of all the information on the label, according to a method accepted under the Community rules.

Measures taken by operators in the sphere of quality certification and safeguards would obviously be of direct benefit to those concerned within a fairly short space of time. Community financing should be restricted to 50 % of the costs and at least 25% should be covered by the operators.

2.4.1.3. Sector and market management

Presently, the producer organisations participate in drawing up summaries of applications, checking that formal requirements are met and paying the amounts due to their members. This work is rewarded proportionnally to the production (0.8 % of the aid) but it should correspond more directly to the cost and the service rendered per aid demand.

Once the GIS (Geographical Information Systems) for olives [15] are in operation, the producers organisations will be able to identify geographically the data supplied by their members for updating their crop declarations.

[15] The Geographic Information Systems (GIS) for olives are being drawn up by the Member States in accordance with Article 2 of Regulation No 1638/98. They will provide aerial photographs so that the olive trees declared by aid applicants can be viewed and electronically counted.

Moreover, where market monitoring is concerned, the operator organisations should provide a clearer picture of the actual situation. They should in fact organise themselves with a view to supplying objective information on forecasts for the marketing year, yield estimates for small homogeneous zones and movements of stocks, including producers' stocks, so that the rate of release for consumption can be calculated. To this end, operator organisations could set up systems and methods subject to self-monitoring by the sector and providing all the parties concerned with a guarantee of the reliability of the results.

2.4.2. Financing

In order to improve the structure of operators and their participation in the running of the olive oil sector, the Community could adopt a financial instrument for programmes meeting specific criteria in three areas:

(a) sector and market management,

(b) improving production quality and environmental impact,

(c) certifying and safeguarding the quality of olive oil.

Community regulations would specify the eligible activities and the rules to be followed by programmes suitable for at least part-financing by the Community. Operators meeting the criteria would submit their programmes to the Member States for selection and approval.

The Community would provide 100% financing for management of the sector and the market, but only 75% for programmes for the improvement of output quality. Community financing of quality certification and safeguard programmes would be limited to 50% of expenditure. It should be compulsory for any participation by the Member States in the funding to be accompanied by a contribution from the operators concerned (at least 25% of expenditure for certification and safeguard).

Community financing exists at present for some of the measures concerned and comes from the sums withheld from production aid. The budgets involved are not very easy to manage since they depend on the actual amount of olive oil produced, which is not necessarily directly related to the expenditure incurred. Quality improvement programmes are financed by the 1.4% withheld from aid, i.e. a total of EUR 33 million on the basis of the National Guaranteed Quantities (NGQ), and by a possible 25% national supplement. The producer organisations deduct 0.8% of the aid granted to their members, i.e. approximately EUR 15 million, to cover their activities.

If the present scheme continued, the sums withheld in this way should be replaced by a system whereby Member States could set aside part of their National Guaranteed Quantities for the purpose of financing the programmes in question. The National Guaranteed Quantities applicable to production aid would be reduced by the relevant portion. For example, on the basis of 3% of the present NGQs, the Community funding available would be almost EUR 70 million, which would make it possible to finance the existing measures, in a reorganised and streamlined form, and the new measures planned in an initial stage.

OPERATIONAL CONCLUSIONS

The implementation of a quality strategy for olive oil calls for concerted action. Guidelines for the various parties concerned are needed so that action can be coordinated over several years. The measures summarised below would enable the scheme to be introduced gradually, starting to take effect from 2001/02 onwards. By 2003/04, all the measures might be put into practice.

1. Council Regulation

Amendment of the Council Regulation (Regulation No 136/66/EEC) is a legal prerequisite on which the preparation and adoption of most of the other measures envisaged will depend. The adjustment should concern part of the classification of olive oil and olive-pomace oil on the one hand, and the organisation of operators' activities on the other.

A period of two marketing years is needed in both cases between the adoption of the changes and their actual implementation. For classification, this period will enable the industry to adjust, old stocks to be used up, the provisions of the IOOC agreement to be made compatible and the Codex and customs regulations to be amended accordingly. For producers' organisations, the two-year period will enable the Commission to draw up detailed rules, and the operators to form groupings and draw up their programmes.

A Council Decision adopted before 1 November 2001 would enable the scheme to be introduced in the 2003/04 marketing year.

1.1. The classification of olive oil and olive-pomace oil

The changes would be as follows.

- the generic name to be used by professionals of the sector in place of "virgin olive oils" would be "crude olive oils". The words "particularly thermal conditions" would be deleted,

- the name of the category of "olive oils" authorised in the retail trade would be changed to "standard olive oils",

- the acidity of extra virgin olive oil would be cut from 1° to 0.8°, and the category of ordinary olive oil included in with lampante olive oil,

- the acidity of refined olive oil and refined olive-pomace oil would be cut from 0.5 to 0.3°, and that of standard olive oil and olive-pomace oil from 1.5 to 1,

- the limit between crude olive oil and crude olive-pomace oil would no longer necessarily be dependant on the solvent-extracted criteria,

- the use of adjuvants having a chemical or biochemical action for extracting crude olive oil would be excluded.

1.2. Operators' organisation and activities

The Council should decide, before the start of the 2001/02 marketing year, that the aid scheme to be introduced if necessary under the common market organisation in oils and fats will include, as from the 2003/04 marketing year, a possibility for the Member States to set aside funds for full or partial financing of programmes of activity relating to:

(a) sector and market management,

(b) improving production quality and environmental impact,

(c) certifying and safeguarding the quality of olive oil.

It should also decide straight away that the Community will contribute financing of 100% to sector and market management. For improving production quality and environmental impact, the financial contribution should be 75%, and for certifying and safeguarding the quality of olive oil, it should be 50%. Moreover, the operators involved would have to make a financial contribution to the programmes in receipt of Community part-financing, amounting to at least 25% of expenditure on certifying and safeguarding quality.

Lastly, the Council should state that the programmes are to be presented for certain activities, in accordance with a procedure to be determined, by groupings of operators approved in accordance with certain criteria. The procedures for programme approval, the eligible activities, and the approval criteria for groupings would be established by the Commission in the course of 2001/02.

2. Commission Regulation

Besides the arrangements to be established for organisation and activities of operators, the Commission rules could deal with the following points, on the basis of Article 35a of Regulation No 136/66/EEC.

2.1. Panel test

Inclusion within Regulation (EEC) No 2568/91 of the new IOOC panel test, to be applied by an accredited expert. Disputing of organoleptic qualities by this expert in relation to "virgin" and "extra virgin" olive oil would have to be confirmed by three approved panels to be enforceable against the person concerned.

The decision should be taken quite quickly, so that the Codex Alimentarius can be amended accordingly.

The actual application of the decision would require an adjustment period of several months to take account of existing stocks and establish the necessary organisations.

2.2. Designation of origin

Renewal after 1 November 2001 of the provisions of Regulation (EC) No 2815/98, which are in force until 31 October 2001. However, where the origin was not specified in accordance with the rules currently in force, the label would have to indicate the actual situation.

To give the sector time to adapt, the new provisions would come into force after a few months.

2.3. Case of non-standard olive oil

Introduction of a provision whereby a Member State may authorise in certain cases, under its supervision, olive oil manifestly obtained from olives but outside the norms on one criterion to be brought up to standard.

In principle, this should be applicable straight away.

2.4. Limit on package size

Olive oil sold on the retail market should be made available in packages of no more than 5 litres, with a non-re-usable seal.

In view of the changes in habit that this may involve in some regions, this requirement should be adopted in the course of the 2001/02 marketing year to give advance warning of its application from the 2003/04 marketing year.

2.5. Labelling obligations and prohibitions

Inclusion in Regulation (EC) No 2815/98 of an obligation to specify on the label the category of olive oil or olive-pomace oil for sale. It would also be prohibited to indicate the acidity of olive oil as a presumed quality criterion.

To give the sector time to adapt, these measures would not be applicable for the first few months after their adoption.

2.6. Standards for optional indications

From 2001/02 onwards, new standards for concepts of economic importance for extra virgin olive oil, as required, should be introduced into Regulation (EC) No 2815/98. For example, claims concerning first cold pressing, fruity taste, or variety of olives.

The timing of the introduction of the new standards should reflect the need to adjust to market requirements.

3. Other initiatives

3.1. International bodies

- The IOOC should be asked to go on its work and draw up a code of good practice for olive growing and a code of good practice for oil mills and other industrial and commercial levels as trade reference points to be used in particular for the purposes of laying down Community rules.

- The Codex Alimentarius rules on olive oil are to be revised in 2001. This could be an opportunity to introduce the new panel test, if the other elements of the proposed rule are accepted.

3.2. Chemical research and expert work on olive oil

- A method for detecting fraudulent mixtures of olive oil and hazelnut oil is urgently needed, and existing methods must be improved,

- a method for detecting deodorised olive oil or a tracer for lampante olive oil resistant to refining should be developed,

- a decision-schema for applying methods of analysis for olive oil and olive-pomace oil needs to be developed,

- facilities for checking quality parameters in mills need to be developed.