PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 1117/78 ON THE COMMON ORGANIZATION OF THE MARKET IN DRIED FODDER
Date: 1989-06-29
Institutions: European Commission
Subjects: Spain, common organisation of markets, fodder, norm price

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0MC89) 329 final 

Brussels, 29 June 1989 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

amending  Regulation  (EEC) No 1117/78 on the common  organization 

of the market  in dried fodder 

(presented  by the  Commission) 

EXPLANATORY  MEMORANDUM 

Regulation  (EEC)  No  1117/78  on  the  common  organization  of  the  market  In 

dried  fodder  provides  that  aid  for  sun-dried  fodder  is equal  to the aid  for 

artificially  dried  fodder  less  an  amount  fixed  taking  Into  account  the 

difference  In the cost  of  producing  the  two categories of products. 

In  Spain,  where  the  guide  price  is  lower  than  the  common  price  and  Is 

gradually  being  aligned  with  It,  the  rule  has  led  to  a  very  low  level  of 

aid, and  In some cases no aid  at  all,  for  sun-dried  fodder, with  the  result 

that  its  competitiveness  vis-à-vis  artificially  dried  fodder  Is  not 

assured. 

As  a  result  of  this  situation,  the  undertakings  In  question  are  being 

connected  occasionally  in  difficult  circumstances,  to  the  production  of 

artificially  dried  fodder. 

In  the  first  Instance  this  Is  costly  for  the  Community  budget  since  the 

proportion of  fodder  qualifying  for  the  higher  level  of  aid  Is  Increasing. 

Secondly,  it  runs  counter  to  the  Community's  environmental  objectives 

recognized  in  the  Single  European  Act,  In  particular  the  encouragement  of 

renewable  sources of  energy. 

This  proposal  contains  provisions  for  Increasing  for  the  remainder  of  the 

transitional  period,  the  aid  applicable  to  sun-dried  fodder  produced  in 

Spain  by  an  amount  equal  to  the  residual  difference  between  the  guide 

prices. 

It  represents  a  budgetary  saving  of  ECU  0.4  million  for  1989  and 

ECU  1 million  for  1990. 

Proposai  for a 

COUNCIL REGULATION  (EEC) 

amending Regulation  (EEC) No 1117/78 on the common 

organization of  the market  In dried  fodder 

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  Article 89(1) thereof, 

Having  regard  to the proposal  from the Commission, 

Whereas  Article  120(2) of  the Act  of  Accession  sets out  the procedure  for 

adjusting the aid for dried fodder  In Spain; 

Whereas  Council  Regulation  (EEC)  No 1960/87<1>  amends  Council  Regulation 

(EEC)  No 1117/78(2),  as  last  amended  by  Regulation  (EEC)  No  3996/87<3>, 

by  providing  that  the  aid  for  fodder  dried  In other  ways  is equal  to  the 

aid  for  fodder  dried  artificially  and  by  heating,  less  an  amount  fixed 

taking  into  consideration  the  difference  In  the  cost  of  producing  the 

products  concerned;  whereas  the  Commission  fixed  that  amount  at  ECU 

43/tonne  in Regulation  (EEC) No 2334/87*4>  amending  Commission  Regulation 

(EEC)  No 1528/78  of  30  June  1978  laying  down  detailed  rules  for  the 

application  of  the  system  of  aid  for  dried  fodder(5),  as  last  amended  by 

Regulation  (EEC) No 1963/88<6>; 

(1) OJ No L 184, 3.7.1987, p. 6. 

(2) OJ No L 142, 30.5.1978, p. 1. 

(3) OJ No L 377, 31.12.1987, p. 35. 

(4) OJ NO 210, 1.8.1987, p. 63. 

(5) OJ NO L 179, 1.8.1978, p. 10. 

(6) OJ NO L 173, 5.7.1988, p. 9. 

-  2 -

Whereas  the application of Article  120 of  the Act  of Accession  has  resulted 

In the  level  of  the guide  price  for  dried  fodder  being  lower  In Spain  than 

In the other  Member  States; whereas  the  deduction  from  this  lower  price  of 

the  amount  fixed  for  the Community  results  In a  level  of  aid  for  sun-dried 

fodder  lower  than  that  needed  to ensure  the competitiveness of  that  product 

vis-à-vis artificially  dried  fodder; 

Whereas  as  a  result  of  this  situation  Spanish  operators  have  begun  to 

transform  their  facilities,  Increasing  considerably  the  production  of 

artificially  dried  fodder  and  reducing  that  of  fodder  dried  in other  ways; 

whereas  this  trend  Is harmful  to  the Community  budget  in that  It  increases 

the  proportion  of  products  qualifying  for  the  higher  level  of  aid;  whereas 

the  trend  Is  also  contrary  to  Community  policy  on  the  use  of  renewable 

sources  of  energy;  whereas  a  scheme  should  therefore  be  Introduced  which 

provides  that  during  the  transitional  period  the amount  provided  for  In the 

second  subparagraph  of  Article  5(2)  of  Regulation  (EEC)  No  1117/78  Is 

reduced,  In  the  case  of  dried  fodder  produced  In Spain,  by  the  difference 

between  the  guide  price  applicable  to  Spain  and  that  applicable  to  the 

other  Member  States;  whereas  the  said  Regulation  should  be  amended 

accordingly; 

Whereas,  In order  to  avoid  any  risk  of  disturbance  on  the  market  in dried 

fodder,  the  measure  should  apply  with  effect  from  the  beginning  of  the 

marketing  year, 

HAS AD0PTE0 THIS  REGULATION: 

Article 1 

The  following  subparagraph  is  added  to  Article  5(2)  of  Regulation  (EEC) 

No 1117/78: 

"In  the  case  of  dried  fodder  produced  in Spain,  the  amount  referred  to  In 

the  second  subparagraph  shall  be  reduced,  until  31 December  1992,  by  an 

amount  equal  to  the  difference  between  the  guide  price  applicable  to  that 

Member  State  and  that  applicable  to the other  Member  States". 

-  3 -

Article  2 

This Regulation  shall  enter  Into force on  the day of  its publication  in the 

Official  Journal  of  the European  Communities. 

This Regulation  shall  be applicable  from  1 May  1989. 

This Regulation shall  be binding  In  its entirety  and directly  applicable  In 

a 11 Member  States. 

Done at Brussels, 

For  the Council 

ANNEX 

AssumptIons: 

(a) Quantity of sun-dried  fodder: 

- 100 000 t without the measure 

- 150 000 t with the measure, the additional 50 000 t being  deducted 

from the quantities dried artificially. 

(b) Aid levels: 

- Artificially dried: ECU 82/t in 1989/90 and ECU 86/t  In 1990/91 

- Sun-dried: 

(1)  Without  the  measure:  ECU  39/t 

In  1989/90  and  ECU  43/t 

In  1990/91 

(2)  With  the  measure:  ECU  52/t  for  the  two  marketing  years. 

Calculations 

(a)  Expenditure  In  respect  of  the  products  in  question: 

(1)  Without  the  measure: 

1989/90:  (100  000  t  x  ECU 39/t)  +  (50  000  t  x  ECU 82/t)  x  1.193  -  ECU  10  m i l l i on 

1990/91:  (100  000  t  x  ECU 43/t)  +  (50  000  t  x  ECU 86/t)  x  1.193  -  ECU  10  million 

(2)  With  the  measure: 

1989/90:  150  000  t  x  ECU 52/t  x  1.193  -  ECU 9  ml 11 ion 

1990/91:  150  000  t  x  ECU 52/t  x  1.193  -  ECU 9  mi M Ion 

(b) 

implications  of  measure 

For each of the two marketing years  in question  there will be a saving 

of ECU 1 mill Ion. 

For the 1989 budget  year the saving will be only ECU 1 million x 0.35 -

0.4 ml 11 ion. 

For 1990 the saving will be ECU 1 million. 

FINANCIAL  STATEMENT 

VI/772/89 

(POLE/EN/1022) 

DATE: 27 April  1989 

1. BUDGET HEADINS: 131 Production aid for dried fodder 

APPROPRIATIONS: ECU 706 mi 11 ion 

2. TITLE: Council Regulation amending Regulation (EEC) No 1117/78 on the ccnncn organization of the 

market  in dried fodder 

3. LEGAL BASIS: Article 89(1) of the Act of Accession of Spain and Portugal 

4. AIMS OF PROJECT: To make sun-dried fodder competitive with artificially dried fodder  in Spain 

5.  FINANCIAL  IMPLICATIONS 

19 

Period  of  12 months 

Current Financial Year 
1969 

Following Financial Year 

1990 

ECU 1 ml 11 ion 

ECU 0.4 ml 11 Ion 

ECU 1 mi 11 Ion 

5.0 EXPENDITURE 

- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
- OTHER 

5.1 REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

-NATIONAL 

5.0.1 ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 

5.2 METHOD OF CALCULATION: 

See Annex 

6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES/ND 

6.1 CAN THE PROJECT BE FINANCED EY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 

6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 

6 .3  WILL  FUTURE  BUDGET APPROPRIATIONS  BE NECESSARY? 

OBSERVATIONS: 

YES/NO 

YES/NO 

YES/NO 

Commission of the  European Communities 

COM(89)  329  final 

Proposal for a 

COUNCIL  REGULATION (EEC) 

amending  Regulation  (EEC) No  1117/78 on the  common  organization of 
the market  in dried fodder 

(submitted to the Council by the Commission) 

29.6.1989 

Office for  Official  Publications of the  European Communities 
L - 2985  Luxembourg 

Series:  DOCUMENTS 

1989 -  7 pp. -  Format:  21.0 *  29.7 cm 

EN 

ISSN  0254-1475 

ISBN  92-77-51808-1 

Catalogue  number:  CB-CO-89-289-EN-C 

COM(89)  329  final 

ISSN 0254-1475 

DOCUMENTS 

Proposal for  a 

COUNCIL  REGULATION  (EEC) 

amending  Regulation  (EEC) No  1117/78 on the 
common  organization  of  the  market  in dried 
fodder 

(submitted to the  Council  by the  Commission) 

03 

Catalogue number:  CB-CO-89-289-EN-C 

ISBN  92-77-51808-1 

€ 

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

29.6.1989