ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)486
Vol.1975/0185

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)486 final
Brussels ,1October 1975
ReportbytheCommission totheCouncil
concerning thequantities ofrawtobaccoofthe
1972croptakenoverbytheintervention agencies
C01î(75)786final.

,ReportbytheConEiissiQn -totheCouncil
,* *
concerning thequantities ofrawtobaccocfthe
1972croptakenover "bytheintervention agencies
UnderArticle13(l)ofCouncilRegulati<?n (EEC)No727/7Oof21April1970
onthecommonorganization ofthemarketinrawtobacco,itisestablished
that:
"Where,foravarietyoragroupofvarieties ,thequantities takenover
bytheintervention agencies exceed,foraparticular crop,astated
percentage ofproduction ,andinanycaseastatedquantity ,theCouncil
shallexaminethesituation onthebasisofareport^whichtheCommission
shallsubmittoitattheendofthemarketing yearandnotlater~~than -.
30Aprilofthecalendar yearfollowing ,thatofthecrop."
Thepercentages andquantities inquestion werefixedbytheCouncilin
CouncilRegulation (EEC)No1469/702of20July1970.
*
* *
Experience ofthefunctioning oftheorganization ofthemarkethas
shownthatitwasnotpossiblefortheCommission tosubmitthereport
mentioned abovebeforethefinaldateof30Apriloftheyearfollowing
thatofthecrop*
Forthe1972crop,intervention buying,whichwaslimitedtoItalian
baledtobacco,onlystartedattheendof1973,andthefiguresforthe
10JKoL94,28April1970.
OJNoL164,27July1970.

VI/2576/75-3
quantities boughtinwerecommunicated "bytheItalianintervention
agencyinMarch1575(seeAnnexi).Theyshowthat,fortheBeneventano
variety,totalquantities boughtinamounted ,to848metrictonsofbaled
tobacco.Thisfiguremustbeconverted toquantities ofleaftobacco
onthebasisoftheloss-of-weightcoefficients usedforfixingpremiums,
i.e.to942metrictons.Consequently ,onlytheupperproduction linit
of20$isexceededforthatvariety.
*
* *
Underthesecircumstances ,thesituation asregardsproduction ana
disposaloftheBeneventano varietyshouldbeexamined onthebasis
ofinformation atpresentavailable.

3 VI/2576/75-E
1»Trendsinareaundercultivation andinproduction (seeAnnexI)
TheareaonwhichtheBeneventano varietyisgrown,whichcoveredabout
5500habetween 1966and1969»wassuddenlyreducedin1970(3900ha)and
thenremained ataround3000habetween 1971and1974°
Production trends,ontheotherhand,tendtofluctuate ,becauseyields
varysoconsiderably (10.5to18.1q/ha):duringthelasttenyears,the
highestproduction (in1968)was8000metrictonsandthelowest(in1972)
was3900metric}tons.
2*Structure ofproduction (seeAnnexesIIIandTV")
TheBeneventano variety,whichiscultivated exclusively intheprovinces
ofBenevento (88j£)andAvellino,ischaracterized bys
-averylowyield(average1970-1974 =13q/ha),
-cultivation onlandoflessthanaveragefertility wheretheother
varieties oftobaccoandothercropscannotbegrownwitheconomically .
.worthwhile results(theattempttoreplacetheBeneventano varietybythe
Kentucky ,Badischer Geudertheimer andParaguayvarieties provedtobe
difficult and,inparticular ,unsatisfactory fromthequalitypointof
view),
-"coltifcatori diretti"(smallgrowers)(about8000onverysmallplots),
58tfoofwhomworkwiththeagenciesoftheMonopolyand42$withthe
Cooperatives , .
-highlabour-intensivenes3 (71$ofproduction costs)comparedwithother
s, . •u.varieties oftobacco .
3.Disposalofproduce(seeAnnexII)
1973crop :
Foraproduction of3887metrictonsofleaftobacco,intervention buying
amountedto848metrictonsofbaledtobacco,corresponding to942metric
tonsofleaftobacco(24$ofproduction).Salestonon-Italianprocessors
amountedtoabout400metrictons,of.which\wereexportedtonon-member
countries .TheItalianmonopoly consequently boughtinquantities
corresponding to2520metrictonsofleaftobacco(65$ofproduction).

VI/2576/75-E
Itshould "benoted ,that ,even ifthepercentage ceiling (20^)wasactually
exceeded ,ths -quantitative ceiling 0200metric tons )waswotreached
because ofthefall inproduction ascompared with 1970 .
1973 crop
The1973 crop hasnotyetbeen completely marketed :intervention "buying
has "barely started andafirst estimate envisages atotal of275.0metric
tons which includes about 1400metric tons ofBeneventano .Sinoe the
possibility ofintervention islimited totwoyears after theharvest
(31December 1975forthe1973crop),this figure isnotlikely toChange
considerably inthecoming sixmonths .
*
i
# *
Toconclude ,therefore ,examination oftheBeneventano situation shows thats
1•Asaresult ofaslight increase inyields (thearea under cultivation
remaining more orless stable ),production isrising (1000metric tons
more in1974than in1973)*Estimates for1975 z?®5200/550°metric tons .
\
2.Purchases bytheItalian Monopoly areshowing aconstant downward
movement (seeAnnex II).
3«Thequantities ofBeneventano bought infrom the 1972 crop exceed one
ofthetwoceilings referred toinArticle 13ofthebasic Regulation .
4.Estimates ofintervention buying forthe 1973 crop show amarked
increase (about 1400metric tons ).
5.Intra-Community trade isgrowing (14ofthe1973 crop )andexports ,
which until nowwere virtually non-existont ,should increase' asaresult
oftherefund granted ashort while ago .
6.Thestructure ofproduction (agencies oftheMonopoly andCooperatives ),
thesubstantial investments made toassociate growers with theinitial
processing stage ,andthegeographical position (Benevento andAvellino ),
clearly emphasize theeconomic andsocial importance ofthis crop at
regional level .

71/2^6/7^3
TheCommission feelsthat,1)603018©oftheveryspeci-alstructure of
production ,nodrasticstepscanbetcienintheimmediate futurewitnout
givingrisetoserioussocialconsequences inthealreadyprecarious
economicsituation obtaining inawell-specified area(provinceof
Benevento).
Itisessential ,however ,firstlytodiscourage anyincreaseinproduction
andsecondlytoencourage thesaleoftheproductinordertoreducethe
quantities offeredforintervention .Itwillbenecessary ,whilst
conducting aconservative pricepolicy,tomaintain thelevelofthe
premiumandtofurther,throughrefunds,thedisposal oftheBeneventano
varietyincertainnon-member countries ,especially Africancountries ,
whichseeminterested inthatvariety.
Obviously ,however,suchmeasureswillnotsufficetosolveaproblem
whoserootslieinboththeagricultural structures andthegeneral
economic systemoftheareasinquestion .TheCommission consequently
feelsthatthefollowing shouldbeimplemented fortheBeneventano variety
-specialmeasuresprovidedforinArticle13(4)ofRegulation (EEC)
No727/70,
–theprovisions ofArticle13(8)ofRegulation (EEC)Eo727/70.
Moreover ,endeavours willhavetobemadetoensurethebestpossible
coordination between themeasures whicharetobetakenunderboththe
commonagricultural policyandtheRegional Development Fund.
Beforethiscanbedone,astudywouldhavetobecarriedouttoexplore
thepossibilities ofrationalizing agricultural activities and/or
retraining growersforothereconomicactivities .Onlyonthebasisof
suchastudywoulditbepossible fortheCanmission topropose an
objective andrealistic programme whichwotIdtakeintoaccountallthe
socialandeconomic implications setoutinthisreport.

BSrEV2JTAN0
1964 1965 1966 1967 1968AnnexI
1969 1970 1971 1972 1973 1974 1975.

TOBACCO
A)Production andsale AnnexII
(asatMay1975)
œetriotons
B)Buying-in ofthe1972crop
(1)onthebasisofweightlosscoefficentsusedforfixingthepremiumsandderivedintervention prices
Source:Information suppliedbyMemberStates

AnnexIII
A)Structureofproduction (situation 1974)
Monopoly agenoies
S.Giorgio
BeneventoMetriotons
626
2354
298058%
Cooperatives
Consorzio Agr.SA/VA/AV
CECAS(EnteSviluppo)
Coop.Saraita(CaBaMuzzog.)
Copp.Eurotabaooo768
393
800
192
215342%
Sources Information supplied bytradeorganizations

Annex 17
A)Manpower element inthegrowing ofBeneventano compared withother
Remuneration oflabour andother faotorsofproduction asapercentage of
total coatofproduction ofBeneventano andother varieties (situation 1973 )
Variety labour ($)other faotors ofproduction (<)
47,5
41,5
48,5
29,2
Sourcex Information supplied bytrade organizations