WRITTEN QUESTION E-0295/03

by Joan Vallvé (ELDR) to the Commission

(7 February 2003)

Subject: Nut production in Catalonia

According to the 1999 agricultural census, 6,35 % of Catalonia's utilised agricultural area (UAA) is used for nut production. More specifically, in some areas such as Baix Camp and Terra Alta, over 40 % of the UAA is used for nut production.

Nut production helps to maintain the environmental, rural and social equilibrium of many municipalities in these areas, and these facets of nut production are viewed as key factors in the ongoing sustainable development of rural areas.

The aid that the European Commission has been providing since 1989 for quality and marketing improvement plans has been efficacious in improving nut crops and quality. Despite this, competition from hazelnuts produced in Turkey and almonds produced in the United States has meant that nuts produced in the EU have been unable to establish a firm foothold on the market at prices which guarantee producers sufficient income, and nut production in the EU remains chronically uncompetitive. The fact that the European Commission is now to grant 40 % less aid to producers than was the case for the quality and marketing improvement plans established in 1989 will further exacerbate the situation.

Lastly, it should be emphasised that the Commission working paper entitled Analysis of the nut sector(1) shows there to be an objective lack of alternatives to nut production owing to the situation on the markets and CAP rules.

Is the Commission aware that its proposal to limit aid to EUR 100 per hectare will, even if this amount is supplemented by optional aid granted by Spain, be totally insufficient to compensate producers for their loss of income and will herald the end of nut production and trigger wholesale migration from rural areas? Will the Commission take steps to rectify this situation?

(1) SEC(2002) 797.

Answer given by Mr Fischler on behalf of the Commission

(11 March 2003)

As reminded by the Honourable Member, during 2001 and 2002, the Commission carried out a global analysis of the Community nut sector. In short, the results were:

- despite the positive effects of marketing and quality improvement plans, introduced in 1989 and gradually coming to a close, nut production in the Community remains chronically non-competitive overall;

- nut production plays a fundamental part in protecting and maintaining the environmental, social and rural balance in many regions.

The proposal recently submitted to the Council and the Parliament(1) represents a fundamental shift in policy for the nut sector. Firstly, it is a new regime and not at all a new extension of the old improvement plans. Secondly, this proposal is put forward as a market measure, while containing a strong rural development aspect.

As far as the budget is concerned, the figures proposed reflect the will to ensure budget neutrality with the current Community expenditure on improvement plans: the Community spent EUR 970 million in 12 years. It is foreseen to cover a large part of the productive area, which has been estimated at 800 000 hectares (ha). This explains the level of EUR 100/ha. The proposed cofinancing is limited and optional. The Community aid will be made available to nuts producers whether or not they are members of a producer organisation.

The proposal of the Commission therefore tries to strike a balance between those Member States who think it is excessive and others who think it is insufficient. It gives a degree of targeted support for competitive production while ensuring the continuation of sustainable production in non-competitive areas.

In addition to this scheme, the Community provides a number of tools to address this type of situation. In fact, financial assistance towards improving production and marketing is available through the operational fund schemes provided through Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables(2). Moreover, financial assistance to support the important environmental and social role of nut production can be obtained through the Rural Development measures.

Consequently, the Commission is not considering further steps as suggested by the Honourable Member.

(1) COM(2003) 23 final.

(2) OJ L 297, 21.11.1996.