No C 47/32 Official  Journal  of the  European  Communities 27. 2. 75 
Opinion  on the  proposal  for  a Council  Regulation  on the  common  organization  of 
the market  in sugar  and  the  proposal  for  a Council  Regulation  on the  fixing  and 
alteration  of the  basic  quotas  for  sugar 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 145  of 22 November  1974,  pages  38 to 58. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 21  October  1974,  the  Council  referred  the  abovementioned  proposal  to the 
Economic  and  Social  Committee  under  Articles  43 and  198  of the  Treaty  establishing 
the European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 126th  plenary  session, 
held in Brussels  on 19 December  1974. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  referral  on 2 September  1974 
by the Council  of the  European  Communities  of the 
proposal  for  a Council  Regulation  amending 
Regulation  No  1009/67/EEC  on  the  common 
organization  of the market  in sugar; 
Having  regard  to the referral  on 21 October  1974  by 
the Council  of the  European  Communities  of the 
proposal  for  a Council  Regulation  on the  common 
organization  of  the  market  in sugar,  and  the 
proposal  for a Council  Regulation  on the fixing  and 
alteration  of the basic  quotas  for sugar; 
Having  regard  to the Treaty  establishing  the European 
Economic  Community,  and  in particular  Articles  43 
and 198  thereof; 
Having  regard  to the  decision  of its  Bureau  of 
9 October  1974  instructing  the Section  for Agriculture 
to prepare  the Committee's  work  on the matter; 
Having  regard  to its previous  work  concerning  the 
sugar  sector,  and  in particular  its  study  of 28 
November  1974  on the common  agricultural  policy; 
Having  regard  to the  agreements  reached  at the 
Council  on 22 October  and  22 November  1974  on 
certain  basic  aspects  of the Commission's  proposals; 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr Clavel; 
Having  regard  to the  Opinion  adopted  by  the 
Section  for Agriculture  at its meeting  on 5 December 
1974; 
Having  regard  to the discussions  at its 126th  plenary 
session,  held  on 19 December  1974, HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote: 
In its  agreement  of  22  October,  the  Council 
fundamentally  modified  the  quota  system  proposed 
by the  Commission  by maintaining  the  principle  of 
assigning  the  Member  States  national  'basic 
quantities'  instead  of  allocating  'Community 
quotas'  direct  to the  sugar  undertakings  of the 
Community. 
On the  whole,  the  Commission's  proposals,  as 
modified  by the  Council,  entail  little  change  in the 
present  arrangements. 
Broadly  speaking,  the  Economic  and  Social 
Committee  approves  this  approach,  since  the present 
system  has  been  working  effectively  for most  of the 
regions  of the Community  since  1968. 
However,  the  Committee  would  make  the  following 
comments: 
1. General  comments 
1.1. Production  policy 
In view  of the  long-term  nature  of the  world  sugar 
deficit,  the prospects  of a rise  in demand  over  the 
next few  years,  and  the  state  of the  Community's 
sugar  balance,  the  Committee  considers  that  the 
Community  must  move  resolutely  towards  a policy 
which  would  ensure,  under  all  circumstances, 
security  of supplies  for European  consumers  at stable 
and reasonable  prices,  and  at the same  time  allow  a 
27. 2. 75 Official  Journal  of the  European  Communities No C 47/33 
long-term  commitment  to import  1-4  million  metric 
tons of sugar  at the  Community  price  from  the 
developing  countries  referred  to in Protocol  22 
to the Act  of Accession. 
These  guaranteed  imports  of raw  sugar  for  refining 
should  be balanced  by exports  of white  sugar,  thus 
enabling  traditional  trade  flows  to be maintained. 
Given  the  sheer  scale  of  the  agricultural  and 
industrial  investment  required  in the  sugar  sector, 
producers  must  have  adequate  guarantees  that  the 
policy  will  remain  in force  for  a sufficiently  long 
period.  Furthermore,  beet  and  sugar  prices  within 
the maximum  quota  must  be attractive  enough  to 
encourage  the  expansion  of production.  Finally,  it is 
necessary  to lay  down,  within  the  framework  of the 
single  market  price  system,  measures  designed  to 
maintain  a  minimum  level  of  output  in 
underprivileged  regions. 
1.2. Transparency  of  the market 
The present  shortage  on  the  Community  sugar 
market  is bringing  about  disturbances  which  are 
causing  discrimination  both  between  producers  and 
between  consumers.  The  Committee  considers  that 
measures  must  be taken  to ensure  that  the  market  is 
more  transparent  and  that  there  is a freer  interplay 
between  supply  and  demand,  bearing  in mind,  in 
particular,  the  Community  Decisions  made  in 
pursuance  of Articles  85 and  86 of the Treaty. 
2. Specific  comments 
2.1. Duration  of the quota  system  (Article  22) 
For the  reasons  given  above,  a five-year  period 
(1975/76  to 1979/80)  is not  long  enough.  The  period 
should  be either  10 years,  with  the  possibility  of a 
review  at the end  of the fifth  year,  or indefinite,  with 
a review  at regular  intervals  (for  instance,  every  three 
or five  years). 
Such  reviews  are  necessary  in order  to bring  the 
system  into  line  with  the  overall  trend  of production 
and demand.  They  should  be based  on Community 
criteria  and  eliminate  any  discrimination  between 
Community  producers  at the earliest  possible  date,  in 
accordance  with  the principle  laid  down  in Article  22 
of Regulation  No  1009/67/EEC. 2.2. Administration  of  quotas  (Article  23) 
The Committee  takes  note  of the  Council  Decision 
laying  down  national  quotas,  a Decision  which 
means,  among  other  things,  that  the  quotas  of 
individual  undertakings  cannot  be transferred  from 
one Member  State  to another. 
The Committee  considers  that  national  quotas  must 
be apportioned  among  undertakings  in the  Member 
States  on the basis  of Community  criteria. 
It should  also  be noted  that  Article  2 (1) of the 
proposed  Regulation  on the  fixing  and  alteration  of 
basic  quotas  allows  Member  States  to  use  a 
proportion  of the  basic  national  quantity  to make 
certain  adjustments  to the  quotas  for  individual 
undertakings. 
To ensure  consistency  throughout  the  Community, 
the Committee  considers  that  this  'margin'  must  not 
exceed  5 % (without  prejudice  to  the  special 
arrangements  laid  down  by the  Council  for  Italy) 
and that  it must  be formed  and  used  in accordance 
with  Community  criteria. 
2.3. Maximum  quota  (Article  24) 
At its meeting  on 21 October,  the  Council  decided 
that the  coefficient  for  calculating  the  maximum 
quota  is to be 1-45  for the  1975/76  marketing  year. 
This  coefficient  will  be fixed  annually  for subsequent 
marketing  years.  To  give  producers  the  necessary 
assurances,  it should  be made  clear  that  1-45  is a 
minimum  figure.  The  Committee  therefore  proposes 
that Article  24 (2) be amended  to read: 
'For the  marketing  years  from  1975/76  to 1979/ 
80, the  coefficient  referred  to in paragraph  1 
shall  not  be less  than  1-45.  It shall  be fixed  at the 
same  time  as...  (the  rest  to be left  unchanged).' 
2.4. Production  levy  (Article  26) 
In order  that  producers  may  be given  the assurances 
required  to ensure  the  appropriate  development  of 
production,  the  Committee  considers  that  the  prices 
of beet  and  'B'  sugar  must  not  be affected  by the 
costs  incurred  in marketing  the  sugar  which  would 
have  to be  exported  to balance  the  preferential 
imports  from  the ACP  States. 
2.5. Arrangement  for  sugar  produced  in  excess  of 
the maximum  quota  (Article  25) 
Sugar  produced  in excess  of the  maximum  quota 
fixed  for an undertaking  in any  given  marketing  year 
No C 47/34 Official  Journal  of the  European  Communities 27. 2. 75 
is not to be sold  on the internal  market  and  must  be 
exported.  The  producer  of this  sugar  thus  runs  a 
certain  risk  because  he is dependent  on the  world 
market  trend.  The  Committee  therefore  feels  that  if 
the Community  considers  'mobilizing'  some  of this 
'surplus-production'  sugar  to safeguard  its supply 
situation,  the decision  to do so must  be taken  by the 
Council,  bearing  in mind  the  special  status  of this 
sugar. 
2.6. Minimum  stock  (Article  17) 
This  Article  makes  it compulsory  for  each  sugar 
manufacturer  to hold  in stock  throughout  the 
marketing  year  a quantity  of sugar  which  may  not be 
less than  10 % of his actual  production  or 10 °/o of 
his basic  quota,  whichever  is the smaller. 
The Committee  stresses  the  urgent  need  for  a 
stockpiling  policy  to bring  equilibrium  to the market 
and safeguard  supplies. 
The Committee  wonders  whether  it will  be possible 
to apply  this  proposal  in the short  term  since,  given 
the state  of the Community's  sugar  balance,  it might 
jeopardize  supplies  to consumers.  Furthermore,  the 
Committee  considers  it absolutely  vital  that  account 
be taken,  in determining  the extra  sugar  production, 
of the financial  burdens  which  the proposal  involves. 
In view  of these  considerations,  the Committee  is of 
the opinion  that  the level  of the  stocks  in question, 
and the  way  in which  they  are  to be built  up, 
financed  and  administered,  must  be laid  down  at the 
appropriate  time  by  the  Council  in a separate 
Regulation. 
2.7. Refining  of sugar  imported  from  Associated 
States  (Article  33) 
The Committee  considers  that  stability  in the 
processing  of sugar  imported  from  Associated  States should  be ensured  by means  of refining  quotas,  as is 
already  the  case  for  Community  sugar  production. 
Detailed  rules  for  the  allocation  of these  quotas 
should  be laid  down  by the  Council,  taking  into 
account  the interests  of consumers,  producers  of raw 
sugar  and  the various  types  of sugar-refining  firms. 
2.8. French  overseas  departments  and  Italy 
The Committee  draws  the  attention  of the  Council 
to: 
— the  plight  of cane  sugar  producers  in the French 
overseas  departments  who  at all events  should 
not be placed  in a less-favourable  position  than 
sugar  producers  in the Associated  States; 
— the  specific  natural  and  structural  drawbacks 
affecting  beet  production  and  industrial-scale 
processing  in Italy  where,  mainly  because  of the 
climate,  yields  per  acre  are  lower  and  plant 
stands  idle  for longer  periods. 
The Committee  considers  that  these  regions  should  be 
the subject  of special  measures  similar  to those 
which  have  been  introduced  under  Article  34 of 
Regulation  No 1009/67/EEC  (in the case  of Italy  the 
measures  should  apply  in both  the  agricultural  and 
the industrial  spheres). 
Done  at Brussels,  19 December  1974. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the proposal  for a Council  Decision  on the financing  by the Community 
of certain  emergency  measures  in the  field  of animal  health 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 145  of 22 November  1974,  pages  58 and  59. 
A. LEGAL  'BASIS  FOR  THE  OPINION 
On 29 October  1974,  the  Council  referred  the  abovementioned  proposal  to the 
Economic  and  Social  Committee  under  Article  100  of the  Treaty  establishing  the 
European  Economic  Community.