COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 366 final 
Brussels, 7 October 1991 
Proposal for a 
COUNCIL RFfllH ATIQN (EEC) 
fixing for the 1991/92 marketing year, the representative 
market price and the threshold price for olive oil, the 
levels of consumption aid in Spain and Portugal and the 
percentages of consumption aid to be retained in accordance 
with Article 11(5) and (6) of Regulation No 136/66/EEC 
(presented by the Commission) 

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EXPLANATORY MEMORANDUM 
This proposal for a Regulation concerns the fixing, for the 1991/92 
marketing year, of the representative market price and the threshold price 
•«"or olive oil, tha level of consumption aid in Spain and Portugal and the 
percentage of consumption aid to be retained with a view to financing, on the 
one hand, the recognized trade organizations and, on the other hand, measures 
to promote olive oil consumption. 
2. Article 7 of Council Regulation No 136/66/EEC lays down that "the 
representative market price shall be fixed at a level which will permit 
normal marketing of olive oi! produced, account being taken of prices for 
competing products, and in particular of the probable trend of such prices 
during the marketing year". 
3. The situation in the seed oil sector has changed relatively slightly 
compared with the situation on the world and Community markets when the aid 
was fixed for the 1990/91 marketing year: prices are presently around 13% 
higher than during the period September-October 1990 and prospects for 1991 
are for a certain stability with the price of colza drifting down and the 
prices of soya and sunflower recovering. The Commission therefore estimates 
that the average price for seed oils should be the same as or slightly higher 
than during the 1990/91 marketing year. 
4. In the olive oil sector the following should be noted: 
the present marketing year has been marked by low production and which 
should, according to latest estimates, be less than 1 200 000 tonnes, 
and by very high prices for edible oils in Greece and Italy-, 
during the 1990/91 marketing year, Community production was disposed of 
without difficulty, despite high prices in the two countries referred 
to above; 
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as regards Spain and Portugal, liberalization of the oilseed and oil 
markets following the end of the "standstill" period has not affected 
olive oil consumption in those two countries. Although demand was 
influenced by events in the Gulf at the beginning of this year, the 
introduction of consumption aid has permitted the consumption of olive 
oil in Spain and Portugal to recover. 
forecasts of a satisfactory 1991/92 harvest should result in Community 
production significantly higher than this year's and consequently lower 
supply prices to the packaging industry in the Community of Ten. 
5. The above shows that, for the Community of Ten, the present level of 
consumption aid is no longer correctly adjusted to the market situation, that 
is to say, a market where the increase in the prices of higher quality oils 
(around two-thirds of production in the Community of Ten) does not affect, 
within certain limits, the level of consumption. This is because, as a 
result, in particular, of efforts to improve quality and inform the consumer, 
the situation has changed over recent years and the market for those oils is 
tending to become a separate market less closely linked to that for other 
vegetable oils. 
Therefore, and in view, in particular, of the experience of the 1990/91 
marketing year, the Commission considers that good management of the aid 
scheme calls for a suitable adjustment to the level of aid avoiding any 
negative effects on consumption. 
In this connection, the increase in prices felt by the consumer in 1991/92 
will be practically cancelled out by the fall in the market price which 
should result from the large harvest expected this marketing year. 
6. As regards Spain, as a result of the reduction in aid for the Community 
of Ten, aid will Increase by a smaller amount in accordance with the rules on 
alignment laid down in Article 2 of Regulation (EEC) No 3416/90. In the 
light of experience gained during this year, the Commission considers that 
this level of aid will enable any difficulties in disposing of Spanish 
production of olive oil to be overcome. 
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tilth regard to Portugal, slight changes should be made to the present level 
of aid to consolidate consumption levels in the country. 
In addition, the recent launch of the fifth campaign to promote olive oil 
consumption, with a considerably increased budget in Spain and Portugal, 
should help to maintain and consolidate consumption in those two countries. 
7. As a consequence of developments on the olive oil market during recent 
years and particularly the market for better quality oils, the fixing of 
consumption aid after production aid has been fixed appears less Justified 
than in the past. 
The simultaneous fixing of the two aids should therefore be considered as 
part of the price package. 
This would not only permit the Council to fix at the same time, as it does 
for the other sectors, all the essential components of the organization of 
the olive oil market, but would also have the advantage of allowing a 
decision to be made on rebalancing the two aids. 
The Commission will present Its final thoughts on the simultaneous fixing of 
the two aids and their rebalancing as part of the 1992/93 price package. 
However the producers' total income is to be kept unchanged. 
8. Article 11(3) of Regulation No 136/66/EEC lays down that Member States 
may involve one or more recognized trade organizations in the management of 
the consumption aid arrangements. In addition, Article 11(6) of the 
abovementioned Regulation lays down that the Council is to fix the percentage 
of the consumption aid that the recognized trade organizations can retain to 
finance their work and the percentage of aid to be allocated for measures to 
promote consumption. 
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Taking into account the amount of aid resulting from this proposal as well as 
the amounts retained during previous marketing years and still available, a 
figure of 1% for the next marketing year will enable promotional measures to 
be continued and even intensified. 
In view of the amount of aid resulting from this proposal as well as past 
experience, a figure of 1.4% should maintain the overall remuneration of 
those organizations at a sufficient level for them to carry out the tasks 
with which they have been entrusted and to improve the transmission of data 
to the agencies. 
9. In the light of these considerations, the Commission puts forward the 
fo11ow i ng proposa I s : 
representative market price: ECU 197.28/100 kg (+ ECU 7/100 kg), 
consumption aid In the Community of Ten: ECU 53.90/100 kg 
(- ECU 7/100 kg), 
consumption aid in Spain: ECU 45.67/100 kg, 
consumption aid in Portugal: ECU 49.42/100 kg 
retained for promotional measures: 1%, 
retained for trade organizations: 1.4%. 
For reference, the figures on which the calculation of consumption aid for 
1988/89, 1989/90 and 1990/91 as well as those in this proposal was based are 
given in the Annex. 
10. Finally, the threshold price must be fixed so that the selling price of 
the imported product corresponds to the representative price. It is 
therefore necessary to take Into consideration landing and warehousing 
charges and the percentage of consumption aid to be retained. 
In view of the above, the threshold price is fixed at ECU 194.20/100 kg. 
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ANNEX 
1987/88 1988/89 1989/90 1990/91 1991/92 
Producer target price 322.56 322.56 322.56 322.01 322.01 
Production aid 70.95 70.95, 70.95 70.83 70.83 
Difference 251.61 251.61 251.61 251.18 251.18 
Representative market price 174.61 190.61 190.61 190.28 197.28 
Difference (consumption aid) 77.00 61.00 61.00 60.90 53.90 
m Q m 
COUNCIL REGULATION (EEC) No 
Of 
fixing for the 1991/92 marketing year, the representative 
market price and the threshold price for olive oil, the 
levels of consumption aid in Spain and Portugal and the 
percentages of consumption aid to be retained in accordance 
with Article 11(5) and (6) of Regulation No 136/66/EEC 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to the Act of Accession of Spain and Portugal, and in 
particular Articles 89(1) and 234(2) thereof, 
Having regard to Council Regulation 136/66/EEC of 22 September 1966 on the 
establishment of a common organization of the market in oils and fats1, as 
last amended by Regulation (EEC) No 1720/912, and in particular the second 
subparagraph of Article 4(4) and Article 11(6) thereof, 
Having regard to the proposal from the Commission, 
Whereas the representative market price must be fixed according to the 
criteria laid down in Article 7 of Regulation No 136/66/EEC; 
Whereas the threshold price must be fixed in such a way that the selling 
price for the imported product at the frontier crossing point determined in 
accordance with Article 9 of Regulation No 136/66/EEC is the same as the 
representative market price, account being taken of the effect of the 
measures referred to In Article 11(6) of the said Regulation; 
1 0J No L 172, 30.9.1966, p. 3025/66. 
2 0J No L 162, 26.6.1991, p. 27. 
-} 
Whereas Article 2 of Council Regulation (EEC) No 3416/90 of 
27 November 1990 on the introduction of Community aid for the consumption 
of olive oil in Spain and Portugal3, lays down criteria for adjusting this 
aid to the Community level; whereas the application of those criteria 
results In consumption aid in Spain and Portugal during the 1991/92 
marketing year being fixed at the levels given below; 
Whereas, pursuant to Article 11(5) and (6) of Regulation No 136/66/EEC, a 
certain percentage of the consumption aid during each olive oil marketing 
year is to be used, on the one hand, to finance the recognized trade 
organizations referred to in paragraph 3 of the abovementioned Article and, 
on the other hand, to finance measures to promote olive oil consumption in 
the Community; whereas the said percentages for the 1991/92 marketing year 
should be f ixed, 
HAS ADOPTED THIS REGULATION: 
Article 1 
For the 1991/92 marketing year the representative market price and the 
threshold price for olive oil shall be as follows: 
- representative market price: ECU 197.28 per 100 kilograms, 
- threshold price: ECU 194.20 per 100 kilograms. 
Art icle 2 
For the 1991/92 marketing year consumption aid for olive oil in Spain and 
Portugal shall be as follows: 
- for Spain: ECU 45.67 per 100 kilograms, 
- for Portugal: ECU 49.42 per 100 kilograms. 
3 OJ L No 330, 29.11.1990, p. 6 
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Article 3 
1. For the 1991/92 marketing year the percentage of consumption aid 
referred to in Article 11(5) of Regulation No 136/66/EEC shall be 1.4%. 
2. For the 1991/92 marketing year the percentage of consumption aid to be 
allocated to the measures referred to in Article 11(6) of 
Regulation No 136/66/EEC shall be 1%. 
Article 4 
This Regulation shall enter into force on 1 November 1991. 
This Regulation shall be binding in its entirety and directly applicable in 
a 11 Member States. 
Done at Brussels, For the Council 
& -
IHANCï AL S TATEMENT 
DATE: 
mT HiADING: B 1220 Consumption aid 
B 1221 Schemes related to consumption APPROPRIATIONS: (1992 DB) ECU 743 ml 11 ion 
ECU 30 ml I lion 
J. T'T-E: 
L: if Council Regulation fixing, for the 1991/92 marketing year, the representative market price and the 
thre•"'•old price for olive oil and the percentages of consumption aid to be retained 
LEGAL BASIS: Articles 4 and 11 of Regulation No 136/66/EEC 
4. AIMS OF PROJECT: To fix: 
- the representative market price 
- the threshold price 
- the percentages of the oonswption aid to be retained 
for the 1991/92 marketing year for ol ive oi I. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
CHARGED TO THE EC BUDGET 1220 
(REFUNDS/ INTERVENTION) 1221 
NATIONAL ADMINISTRATION 
OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL Period of 12 months 
ECU 713 mi 11 ion (B) 
ECU 7 mi 11 ion (B) 
ECU 720 mi 11 ion (B) Current Financial Year 
1991 
nil Following Financial Year 
1992 
ECU 535 mi 11 ion (B) 
ECU 5 mi 11 ion (B) 
ECU 540 mi 11 ion (B) 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE 1993 
ECU 180 mi 11 ion 1994 1995 1996 
5.2 METHOD OF CALCULATION: 
The consumption aid for 1992 under this measure is as fol lows: 
EUR-10: 775 000 t X ECU (539-5,39) /t x 1,135 (1) x 0,75 - ECU 352 mi 11 ion (B) 
Spain: 415 000 t x ECU (456,7-4,57) /t x 1,180 (1) X 0,75 - ECU 166 mi 11 ion (B) 
Portugal: 40 000 t x ECU (494.2-4,94) /t x 1,155 (1) x 0,75 - ECU 17 million (B) 
TOTAL EUR-12 ECU 535 mi 11 ion (B) 
For the record,the appropriations in the 1992 DB for the 1991/92 marketing year amount to ECU 570 mi 11 ion, 
i.e. the impact of the measure on 1992 is savings of ECU 35 mi 11 ion. 
6.0 CAN THE PROJECT BE FINANCED FRCM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YESxxx 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? xxxxxx 
6.2 IS A SUPrLBJENTARY BUDGET NECESSARY? 
xxxxxx 
6.3 WILL FUTURE BJ&GE7 APPROPRIATIONS BE NECESSARY? 
YESxxx 
OBSERVATIONS: 
It is proposed to retain "fôï, i.e. ECU 7 million, in 1991/92 to finance programnes to promote 
olive oil consurption and 1,4%, i.e. ECU 10 million, to finance the activities of the professional bodies. 
(V Couole rate coefficient. 
^° " ISSNQ254-1475 
C0M(91) 366 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-91-415-EN-C 
ISBN 92-77-75933-X 
Office for Official Publications of the European Communities 
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