WRITTEN QUESTION E-3653/97 by Alexandros Alavanos (GUE/NGL) to the Commission (19 November 1997)

Subject: Reduction in incomes of olive producers

Olive oil production in the EU for the 1996/97 period amounted to 1.9 million tonnes, mainly owing to overproduction in Spain. The maximum guaranteed volume of production had been fixed at 1.35 million tonnes, and this led to aid for Greek producers being reduced by Drs. 100 per kilo. The situation is further aggravated by the turmoil expected to engulf the olive oil market owing to overproduction and the failure to prohibit the blending of olive oil with seed oil and the marketing of this mixture as olive oil. Given that the incomes of olive producers have suffered very badly, will the Commission say what measures it intends to take to address this problem?

Answer given by Mr Fischler on behalf of the Commission (11 December 1997)

Council Regulation (EEC) No 136/66 of 22 September 1966 on the establishment of a common organisation of the market in oils and fats ((OJ 172, 30.9.1966. )) provides for the granting of production aid to olive producers. This aid varies depending on whether the recipients are small-scale producers producing less than 500 kilograms of olive oil or large-scale producers producing more than 500 kilograms of olive oil. Also, it is the aid granted only to large-scale producers which is adjusted, where appropriate, in line with the overrun of the maximum guaranteed quantity (MGQ).

Applying this stabiliser mechanism, Commission Regulation (EC) No 1979/97 of 10 October 1997 fixing the estimated production of olive oil and the amount of the unit production aid that may be paid in advance for the 1996/97 marketing year ((OJ L 278, 11.10.1997. )) fixes, on the basis of an estimated production of 1 859 400 tonnes, the amount of the production aid that may be paid in advance for the 1996/97 marketing year at ECU 90.32 per 100 kilograms. This amount, representing an advance payment, accounts for about 90% of the foreseeable amount of the aid for the marketing year in question which will be fixed in June 1998 on the basis of actual production. If at that time confirmation of the estimated production figures is provided, the reduction in the unit aid may be put at 27%.

It should be borne in mind that in Greece more than 60% of producers are considered as small-scale producers within the meaning of the basic Regulation. The stabiliser, therefore, affects less than 40% of Greek producers.

As for the ban on blending olive oil with seed oil, the Commission would remind the Honourable Member that olive oil marketed as such must correspond to the definitions set out in the Annex to Regulation No 136/66. That Annex provides that only those oils which are obtained from olives or olive residue may lay claim to the various designations of olive oil.

The Commission part-finances the operating costs of the olive oil inspection agencies in the Member States which are responsible, among other things, for ensuring compliance with the estimated production figures referred to above.

As part of the discussions on the reform of the market organisation for olive oil, the Commission will look carefully at the various aspects of the question of mixtures.