WRITTEN QUESTION P-0282/00

by Adriana Poli Bortone (UEN) to the Commission

(3 February 2000)

Subject: Crisis in the olive oil market: proposal to set up a Community olive oil databank

In response to the serious crisis in the olive oil market (a crisis which is due to continue during the 1999/2000 marketing year), Italy has carried out investigations at the frontiers across which large amounts of oil from EU and non-EU countries are imported.

Most oil for human consumption which is imported into Italy comes from outside the Community sometimes by means of triangular arrangements involving Spanish and Greek operators which are not always transparent.

In North African countries the cost of producing oil of various types is extremely low.

The checks carried out in Italy on imported oils have been inadequate. One of the things they have revealed are analytical values which, strangely, are always a little lower than those laid down in Annex 1 to Regulation (EEC) No 2568/91(1).

It is, therefore, reasonable to suggest that most of the oils imported into Italy are not pure but could be the result of mixing oils from North Africa with oils produced in Spain and Greece, so as to ensure that the analytical parameters laid down by law are met.

It is therefore impossible at present to establish with analytical certainty the precise geographical origin of oils imported into and marketed in Italy.

Such problems have caused (and will continue to cause) serious disruption to the market.

Having regard to Council Regulation No 136/66/EEC(2) of 22 September 1966, as last amended by Regulation (EEC) No 1638/98(3) and in particular Article 35a thereof.

Having regard to Commission Regulation (EEC) No 2815/98(4) of 22 December 1998 on olive oil marketing rules.

It has been scientifically proved (in the same way as occurred some time ago in the case of the wine-growing sector) that the chemical and analytical characteristics of olive oil vary according to the geographical area in which it is produced.

The only accurate way of determining the precise geographical origin of an oil is to set up a Community databank similar to the one which was set up in the wine-growing sector by means of Regulation (EEC) No 2348/91(5).

In view of the above facts, what decisions are to be taken as regards the setting up of a Community olive oil databank as a sole analytical instrument capable of tackling the serious problem described above?

(1) OJ L 248, 5.9.1991, p. 1.

(2) OJ 172, 30.9.1966, p. 3025.

(3) OJ L 210, 28.7.1998, p. 32.

(4) OJ L 349, 24.12.1998, p. 56.

(5) OJ L 214, 2.8.1991, p. 39.

Answer given by Mr Fischler on behalf of the Commission

(22 February 2000)

There is in fact no crisis on the olive oil market, particularly in Italy, where the 1999/2000 crop is particularly heavy and end-January 2000 prices are more than 130 % of the triggering threshold for private storage.

For the Community as a whole, sales forecasts for the crop indicate a fall in stocks in 1999/2000 and thus sustained demand. The sharp fall in prices in December 1999 appears to correspond to disposal of stocks accumulated speculatively but was followed at the beginning of January by a sharp rise in the market from which oil from the new crop has benefited.

The less than 50 000 tonnes of olive oil imported annually is too little to disturb a Community market based on estimated 1999/2000 production of 1 600 000 tonnes.

Mixtures of olive oil and seed oil, Community or not, fraudulently sold as olive oil are detected by the analytical methods given in 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. Research to improve these methods is in progress.

Blends of olive oil of various origins are not prohibited and are even indispensable where the oils of certain regions are concerned if consumers are to have the qualities of oil they want to buy. This is an important difference from the wine sector.

Research continues at Community level on a databank for olive oil as mentioned by the Honourable Member and the Commission is closely monitoring progress. But the geographical characteristics of olive oils emerge as statistical averages and absolute proof of origin for a particular lot is rarely possible. The situation is much more complex again in the case of the inevitable blends of olive oils from different varieties, soil types or geographical origins.

The Commission therefore considers that at the moment a Community olive oil databank for fraud-fighting purposes is not a priority.