WRITTEN QUESTION E-0524/00

by Giovanni Pittella (PSE), Joan Colom i Naval (PSE), Paulo Casaca (PSE), Vincenzo Lavarra (PSE) and Georges Garot (PSE) to the Commission

(28 February 2000)

Subject: Protecting European nut production

The close of 1999 marked the end of the scheduled transitional period between the old rules governing nuts (Regulations (EEC) No 2159/89(1) and (EEC) No 790/89(2)) expiring and the entry into force of the general reform of the fruit and vegetables sector (Article 55 of Regulation (EC) No 2200/96(3)), which involves the inclusion of nuts (i.e almonds, hazelnuts, sweet chestnuts and walnuts) in the new COM.

So the new regulation puts an end to the special support measures which, however limited (with flat-rate aid provided for hazelnuts only), demonstrated the Community's interest in a sector which is not only significant in terms of output, but also plays an irreplaceable role in terms of maintaining agricultural and environmental balance and conserving the landscape in many regions of the EU. Failure to take this factor into account in recent years has led to a number of natural disasters in Europe. Moreover, these measures were a useful means of offsetting the difficulties encountered by farms producing nuts, either as their principal crop or as a sideline, because of the marginal nature of the land. Finally, the sector is overlooked in the course of negotiations on free trade agreements with third countries. Consequently nut production is being gradually abandoned, even though demand remains stable, thus exacerbating Europe's balance of trade deficit in these products.

What action does the Commission intend to take in connection with the new rules to ensure proper recognition of this sector, which mainly concerns regions whose development is lagging behind? Does the Commission agree that it is necessary to review the level of financial support and the nature of the aid provided to that sector, while coordinating the various organisational strategies of the new COM with the measures required to maintain precarious social and economic structures and preserve traditional agricultural and environmental features in fragile rural areas?

Could the Commission consider the possibility of maintaining flat-rate aid for hazelnuts for a set period and introducing measures to provide support per hectare, with such aid being differentiated according to the main crops and conditional on the adoption of binding land use safeguards in the context of the new rules on rural development?

(1) OJ L 207, 19.7.1989, p. 19.

(2) OJ L 85, 30.3.1989, p. 6.

(3) OJ L 297, 21.11.1996, p. 1.

Answer given by Mr Fischler on behalf of the Commission

(24 March 2000)

The Commission is well aware of the difficulties that have, in the past, beset the nut sector, including the structural deficiencies leading to low productivity and high costs. It was in direct recognition of these difficulties that financial support was granted to the sector under the provisions of Title IIa of Regulation (EEC) No 1035/72 of the Council of 18 May 1972 on

the common organisation of the market in fruit and vegetables (specific measures for nuts and locust beans). A number of important measures were made available to producers of almonds, hazelnuts, walnuts, pistachios or locust beans marketing their produce through a recognised producer organisation. The most significant measure has been the quality and marketing improvement plan, yielding Community financing over a maximum period of 10 years per plan.

This scheme represents a very significant financial commitment on behalf of the Community, considering the specific nature of the nut sector. From 1990 to 1999, total Community expenditure (excluding promotion) was 725 million. Expenditure will continue until the expiry of the last plans in 2006.

These improvement plans have met with considerable success, in terms of regrouping supply, providing income support for farmers and structural improvements.

However, it has always been stipulated that the aid for improvement plans should be temporary and degressive, in order to allow a progressive shift of financial responsibility on to the producers. To continue with a per-hectare aid would undermine such efforts made in the last 10 years. The same philosophy applies to the flat rate aid for hazelnuts, introduced in 1997 to help hazelnut producers face up to temporarily difficult economic conditions. Those producer organisations that have benefited for over 10 years from measures such as the improvement plans should have built up sufficient competitiveness to survive as successful operations. In addition they can continue to benefit from financing under the operational funds introduced by Council Regulation (EC) No 2200/96 of 28 October 1996 on the common organisation of the market in fruit and vegetables(1).

Based on these considerations, from a market point of view there is no justification for the granting of a per-hectare aid for the nut sector or the continuation of the flat-rate aid for hazelnuts.

However, the Commission would be in favour of measures which supported the social and environmental aspects of nut production. This would contribute to maintaining rural employment and maintaining plantations in less-favoured areas and on marginal land, in particular in areas where there is a real risk of erosion. Support for this type of measure would be best carried out in the framework of the rural development schemes.

(1) OJ L 118, 20.5.1972.