Proposal for a COUNCIL REGULATION ( EEC ) amending Regulation ( EEC ) No 1360/78 on producer groups and associations thereof
Date: 1991-11-14
Institutions: European Commission
Subjects: EU financing, agricultural production policy, economic activity, harvest, producer organisation

COMMISSION OF THE EUROPEAN  COMMUNITIES 

C0MC91) 438 final 

Brussels,  14November 1991 

REPORT TQ THE ÇQUNC11 CONCERNINfi AIQ FOR 

THE FORMATION OF PRODUCER  GROUPS AND ASSOCIATIONS  THEREOF 

Proposal  for a 

COUNCU  REQUIATIQN  (ggç) 

amending Regulation (EEC) No 1360/78 

on producer  groups and associations  thereof 

(presented by the Commission) 

llifj;'^"'"^^.'.'^.''' '•'•••'%^ 

- 2 -

REPORT TO THE COUNCIL CONCERUtNft AIP FOR 

THE FORMATION OF PROPUCER 6RPMPS AMP ASSOCIATION THEREOF 

-  3 -

REPORT TO THE COUNCIL CONCERNING AID FOR 

THE FORMATION OF PRODUCER  GROUPS AND ASSOCIATIONS THEREOF 

INDEX 

INTRODUCTION 

I.  BASIC RULES 

1.1  Introduction 
1.2  Scope 
1.3  Amount  of aid 
1.4  Community  contribution 
1.5  Detailed provisions 
1.6  Duration 

II.  RESULTS OF  IMPLEMENTATION 

M .1  Recogn i zed groups 
11.2 Refunds 

III. PROPOSALS 

111.1  Extension 
111.2  Scope 
111.3  Changes 

IV.  CONCLUSIONS 

P^ge 

I 4 

j 5 
5 
5 
6 
6 
7 

8 
8 

9 
9 
10 

11 

ANNEXES 

Annex  I  Community  contribution  (p. 13) 
Annex  II  Results of  implementation  (p. 14) 
Annex  III Foundation  aid  for producer  groups and associations  thereof  (p. 15) 

- 4 -

REPORT TO THE COUNCIl CONCERN IN6 A»P FOR 

THE FORMATION OF PROPUCE* GRPVPS ANP ASSOQIATIONJI IHERIOF 

INTRODUCTION 

1. Through  Council  Regulation  (EEC)  No  1360/78,  the  Council  adopted  a  common 
measure  to deal  with  the structural  deficiencies  in the supply  and  marketing 
of certain agricultural  products  in certain Community  regions. 

2.  The arrangements adopted consist  of aid  to encourage  farmers to  join  together 
to  influence  the economic  process  through  groups or  associations which  would 
concentrate  supply  and adapt  production  to market  requirements. 

3. Aid  covers  the costs of  formation  and  administrative operation  of  groups and 
associations and  is paid  for  the first  five years  in annual  instalments  for a 
maximum of seven years following  recognition. 

4.  This  document  fulfils  the  Commission's  obligation  under  Article  13(2)  of 
Regulation  (EEC) No 1360/78 to report on  implementation of  the common  measure 
before  It expires on 31 December  1991. 

5.  It covers: 

(a) the content  of  the basic rules; 

(b) the practical  results of application of  the common measure; 

(c) the proposal  to extend  the period of  time allowed  for  the common measure; 

(d) the  amendments  proposed  to  the  scheme  of  aids  for  the  formation  of 

producer  groups and associations thereof. 

I. 

BASIC  RULES 

1.1 

Introduction 

-  5 -

6.  Regulation  (EEC)  No  1380/78  of  19  June  1978  on  producer  groups  and 
associations  thereof,  as  last  amended  by  Regulation  (EEC) No  3808/89 
of  12 December  1989,  introduced  a common  measure  to encourage  producer 
groups  in  regions  and  sectors  where  the  supply  of  agricultural 
products 
deficiencies 
characterized  by  a  very  large  number  of  holdings  which  are  small  in 
size  and  insufficiently  organized. 

structural 

suffers 

severe 

very 

from 

7.  Commission  Regulation  (EEC)  No  2083/80  of  31  July  1980,  as 
consolidated  by  Regulation  (EEC)  No  220/91  of  30  January  1991,  lays 
down detailed  rules of  application concerning  the economic activity of 
producer  groups, minimum  turnover,  volume  of  production  and  number  of 
members  and  territorial  extent. 

1.2  Scope 

8.  Originally,  the arrangements  applied  to: 

-  the  whole  of  Belgium  as  regards  the  cereals,  live  bovine  animals, 

piglets  and  lucerne sectors; 

-  the whole of  Italy  as regards all  products of  the soil  and  livestock 
products  listed  in  Annex  II  to  the  Treaty  (except  for  products 
referred  to  in Article  1(2)  of  Regulation  (EEC)  No  1035/72  on  the 
common  organization  of  the market  in the  fruit  and  vegetables,  hops 
and  silkworms  sector) and  certain  processed  agricultural  products; 

- seven  regions  of  France  as  regards  the  table  w|ne,  plants  used  in 
perfumery,  table  olives,  tropical  fruits,  beef  and  veal  and  olive 
oiI  sectors. 

9.  On  their  accession  to  the  Community,  the  Regulation  was  extended  to 
Greece, Spain  and  Portugal  as regards  the products  to which  it applied 
in  Italy. 

10.  At  the  request  of  the  Irish  and  French  authorities,  Regulation  (EEC) 
No 3875/88 of  12 December  1988 extended  the scope of  the aid  scheme  to 
the  whole  of  Ireland  for  cereals,  potatoes,  bovine  animals  and  sheep 
and  goats  and  to  the  whole  of  the  wine  sector  in  certain  regions  of 
France  already  covered  for  table wines. 

3 

Amount of aid 

11.  For  producer  groups  recognized  before  1 July  1985, aid  for  the  first, 
second  and  third  year  is  limited  to  3%, 2% and  1% respectively  of  the 
value  of  the  products  marketed,  subject  to  a  ceiling  of  the  actual 
formation  and operating  expenses. 

- 6 -

12.  The  amount  of  aid  granted  to  producer  groups  recognized  after  1  July 
1985  for  the  first  five years  following  the date of  recognition: 

-  is  limited  for  the  first,  second,  third,  fourth  and  fifth  year  to 
5%,  5%,  4%,  3%  and  2%  respectively  of  the  value  of  the  products 
marketed; 

- may  not  exceed  actual  formation  and operating  expenses; 

-  is payable  in annual  instalments  for up  to seven  years  following  the 

date of  recognition. 

13.  The amount  of  aid granted  to associations: 

-  is  limited  for  the  first,  second  and  third  year  to 60X,  40% and  20% 

respectively of  the actual  formation and operating expenses; 

- may  not, however, exceed  a total  of  50 000 units of  account. 

14.  Implementation of  the Regulation  and  the granting of  formation  aid  are 
obligatory  for  the Member  States  in the  regions  and  sectors  listed at 
1.2. 

I.4  Community  contribution 

15.  In  general,  the  Guidance  Section  of  the  EAGGF  refunds  25%  of  the 

chargeable  expenditure  to the Member  States. 

In  regions  eligible  under  Objective  1  as  defined  by  Regulation  (EEC) 
(EEC) 
No  2052/88 of  24  June  1988, refunds may,  pursuant  to  Regulation 
No 223/90 of  26 January  1990, be at  the  rate of  65% (see Annex  I) 

1.5  pétrie provisions 

16.  The  implementing  provisions  concerning  the minimum  number  of  members, 
cultivated  area,  turnover  and  volume  of  production  were  laid  down  in 
Regulation  (EEC)  No  2083/80  of  31  July  1980,  consolidated  by 
Regulation  (EEC) No 220/91  of  30 January  1991. 

In  the  case  of  products  other  than  those  listed  in  the  Annex  to 
Regulation  (EEC) No 220/91, producer  groups must  have: 

-  a turnover  of  at  least  ECU  1 million  (ECU 500 000  In Greece); 

-  at  least  50 members. 

17.  In  general,  associations  must  have  a  volume  of  production  or  a 

turnover  which  amounts  to: 

- 7 -

- at  least  three  times  the  minimum  size  for  producer  groups  in  the 

region where  their  head office  is situated; 

-  not  less than 5% of national  production. 

In the case of  the products  listed  in the Annex  to Regulation  (EEC) No 
220/91, associations must  meet  the criteria  laid down  there. 

In  each  Member  State  associations  must  also  have  the  geographical 
scope  laid down  in Article 3 of  that  Regulation. 

6 

Puratlon 

18.  In accordance  with  Article  13(1) of  Regulation  (EEC) No  1360/78; the 

common measure will  expire on 31 December  1991. 

-  8  -

I».  RESULTS OF  IMPLEMENTATION 

11.1  RtfgBnUtfl  growt 

19. On 31 December  1990 the Member  states had recognized  560 groups (see 

Annex  it). 

20. Belgium  and Portugal  are the two countries  whore  there are still no 

recognized  producer  groups,  in the case of Belgium,  changes  to  the 
thresholds  requested  by the Belgian  authorities  were  mad»  through 
Regulation  (EEC) No 3087/88  amending  the Regulation  Implementing the 
scheme.  However,  the various  sectors  of  agriculture  concerned  have 
still  expressed  no  interest  in  taking  advantage  of  this  common 
measure. 

In  the case of Portugal,  the lack of recognized  producer  groups is 
explained by the date of the implementing  regulation  (Regulation (EEC) 
No  277/88 of 7 September  1988).  The Portugueaa  author it las  intend to 
recognize 50 producer  groups between  1992 and 1996. 

in  Ireland  the implementing  regulation  dates  from  1988 and the first 
two  groups  were  recognized  in  1990.  There  will  be  82  new groups 
between  1992 and 1996. 

in Greece the number of recognized  operational  groups  is 29 and there 
will be 73 new groups between  1992 and 1996. 

The  French  authorities  have  sent  the  Commission  a  list  of 99 
recognized  groups. 

Since  the scheme  became  applicable  in Spain  in 1988, 30 groups  have 
been recognized and it is expected  that  142 will be recognized  between 
1992 and 1996. 

Following  a  slow  start  in  Italy,  the  new  responsibilities  for 
recognition  conferred on the regions mean  that  the number  of groupa, 
at  406, is now the highest  in the Community.  Producer  groupa now 
cover 1.3 million producers, or 45% of all  holdings. 

11.2  Rafunto 

21. Formation  aid  totalling  ECU 9.4  million  has been  granted  to 108 
producer  groups and by 31 December  1990 the EAGGF had refunded ECU 2.4 
mi 11 ion (see Annex  III). 

These  amounts are low compared  with the number of recognized  producer 
groups,  mainly  because  of  the  slowness  of  the  Member  States' 
administrations  in  drawing  up  implementing  rules  and  requesting 
refunds.  For example,  in Italy the regional  circulars date  from 1984. 

-  9 -

III.  PROPOSALS 

HI.1  EEttmion 

22. Those  concerned  by  this  Regulation  have  not  yet  had  time  to  benefit 
from  the most  recent  extensions of  the scope of  the common measure, to 
Spain  and  Portugal  when  they  joined  the  Community  (applicable  from 
1988)  and  In  Ireland  and  France  In  1990.  Nevertheless,  these 
countries  continue  to  suffer  from  structural  problems  arising  from 
inadequate  concentration  of  supply  and  marketing.  The  proportion  of 
agricultural  products sold  through  organizations  continues  to be  very 
low. 

Extension  of  the  scheme  would  mean  that,  as  has  happened  hitherto, 
this  structural  instrument  could  be  used  in  the  future  In  regions 
where  structural  deficiencies  regarding  the  supply  and  marketing  of 
agricultural  products have been detected.  Similarly,  the proposal  for 
a Regulation concerning  the Poseidom programme  (C0M(91) 160), approved 
by  the  Commission  on  13  May  1991  includes  extension  of  the  scope  of 
the  common  measure  in  France  to  three  new  sectors  in  the  overseas 
departments. 

The  increase  in the rate of Community  refund  in regions eligible under 
Objective  1  arising  from  the  reform  of  the  structural  Funds  should 
make  the common measure more attractive.  In certain  regions, the rate 
increased  from  25% to 65% with  effect  from  1 January  1990  and  so  the 
duration of  the common measure should  be extended  to enable  the Member 
States to take advantage of  these new conditions. 

For  these  reasons  the  Commission  considers  that  the  common  measure 
should  be  continued  so  that  farmers  can  organize  themselves  both  to 
centralize  the supply of products whose quality  depends principally on 
market  demand  and  to achieve  greater  discipline  in the  production  and 
marketing  of  agricultural  products.  Since  this  is  a  common  measure 
within  the meaning of Article  2(1) of Regulation  (EEC) No 4256/88,  its 
duration  does  not  have  to  be  limited,  as  was  the  case  before 
the 
reform of  the structural  Funds. 

II.2 Scope 

23. Belgium  has not  yet  taken advantage of  the common measure, despite the 
changes made  in the thresholds  for  implementation of  the scheme  there. 
The  Belgian  authorities  have  also  reported  that  those  concerned  are 
uninterested  in  the  very  idea  of  producer  groups  and  that,  in  the 
present  circumstances,  this  is  unlikely  to  change  in  the  future. 
Accordingly,  the  Commission  believes  it  unnecessary  to  extend 
the 
common measure  in Belgium  for  a further  period. 

H I .3  CJUDflfifi. 

-  10  -

24. Experience  of the changes  made  to the scheme  by Regulation  (EEC) No 
1760/87  as  regards  Introduction  of  new  methods  of  marketing the 
production of members of producer  groups has led the Commission to the 
view  that  there  should be rules governing  the notification by members 
to the producer  groups of information on harvests and the availabiIity 
of products for which  they are members. 

25. A technical  correction was put in place to convert  the maximum  global 
amount  of 50.000 units of account  into 60.000  ecus for aid  agreed to 
unions. 

IV. 

CONCLUSIONS 

-  11  -

26. The  main  objective  of  aid  for  the  formation  of  producer  groups  and 
associations  thereof  is  to  overcome  structural  deficiencies  in  the 
supply  and  marketing  of  agricultural  products  in  certain  regions  of 
the Community  and  in certain sectors. 

The  main  features  of  these  regions  are  the  small  numbers  of 
to  producer  organizations 
agricultural 
established  to  market  products  and  the  low  percentage  of  the  total 
value  of  the  country's  agricultural  production  marketed  by  such 
organizations. 

holdings  which  belong 

During  the period  of  operation  of  the  scheme, similar  needs  elsewhere 
in  the  Community  have  been  noted  and  so  the  scheme  has  been  extended 
to  deal  with  this  situation  by  bringing  farmers  together  in  groupe. 
However,  in  Belgium  the  scheme  has  not  been  applied  since  Its 
introduction, despite  revision  in 1989 of  the criteria  to be applied. 

Although  the measure began  slowly,  there were  560 recognized  groups on 
31  December  1990  and  new  applications  for  recognition  are  expected, 
mainly  from Spain,  Ireland  and  Portugal, where  the measure  has applied 
only  since  1988. 

The  reform  of  the  structural  Funds  resulted  in more  attractive  refund 
conditions and  the new  rates apply  from  1 January  1990. 

The  new  conditions  for  the  marketing  of  members'  products  introduced 
by  Regulation  (EEC)  No  1760/87  mean  that  the  groups  need  better 
information  about  harvesting  and  availability. 

Furthermore, 
the 
implementing  regulations  for  the  scheme  mean  that  the overall  ceiling 
on  formation aid should  be  revised. 

associations 

concerning 

thresholds 

the 

in 

Accordingly,  it  is proposed: 

-  to extend  the duration of  the scheme, except  in the case of  Belgium; 

-  to  include  in  the  general  conditions  imposed  on  producers 
notification  by  members  to  the  producer  group  of  information  on 
harvesting  and  the  availability  of  the  products  in respect  of  which 
they  are members; 

- ta ~ 

Before  1 January  1991, the Commission  will  look again at operation of  the 
aches*  and  will  report  to  the  Council,  on  the  baa la  of  information 
provided  by  the Member  States, on  the  results of  implementation  of  this 

^IF'emee^mmiPf s  *^ms^vji^s/vs)v  ^p  9 

-  13 -

ANNEX I 

community contribution 

The normal  part-financing rate  ia 25%.  in ragiona eligible under Objective 
1 aa defined by Article 1 of Regulation  (EEC) No 2062/68, this baeomea: 

I 

—• 

Member States 

Greece,  Ireland, Portugal 

- Overaeaa departments 
- Corsica 

France: 

Spa i n 
Italy 

"i 

1 

1 

Rate  (%) 

65 

60 
50 
50 
50 

-  14  -

ANNEX 

II 

HwiWH IHEI i "T.  i JMftjJeiSiOMda»Uj*u-

(Regulation (EEC) No 1960/76) 

wejepwr sxa*>ee 

Data of 

First yoar of 

Groupa recognized 

Implementation 

recognition 

iy 

31.12.1988 1989 1990 TOTAL 

Belgium 
Greece 
Spain 
Franco 
Ireland 
Italy 
Portugal* 

TOTAL 

1960 
1961 
1966 
1960/1988 
1988 
1980 
1966 

1963 
1966 
i 
1990 
1962 

21 
1 
95 

360 

96 

1 
21 
2 
2 
21 

23 
80 
99 
2 
406 

467 

4*  47 

*  Forecast for 1992 to 1996: 50 

- 15 -

ANNfcA  III 

Foundation aid for producer groupa and aigosi«tl9ni Sharaof 
(aa at 31 Deeember 1990) 

(ECU) 

Member States 

Number of 
groupe 

Expenditure by 
Member States 

EAGGF 
refunds 

Greece 
Italy 

TOTAL 

8 
100 

108 

248 744 
9 114 124 

62 186 
2 353 531 

9 362 868 

2 415 717 

- 16 -

Propoaai  for a 

amending Regulation (EEC) No 1360/78 
on producer groupa and aaaociationa  thereof 

- 17 -

EXPLANATORY frWtMQBAfflUM. 

Council  Regulation  (EEC)  No  1360/78  of  19  June  1978  on  producer  groups  and 
associations  thereof,  as  last  amended  by  Regulation  (EEC)  No  3808/89  of  12 
December  1989,  introduced  a  common  measure  to encourage  the  formation  of  groups 
of agricultural  producers. 

It  applies  to  regions  and  sectors  where  the  supply  of  agricultural  products 
suffers  from  very  severe  structural  deficiencies  characterized  by  a  very  large 
number  of  holdings which  are small  in size and  insufficiently  organized. 

Originally,  these  deficiencies were  found  to exist  in Belgium,  France  and  Italy. 
The  Regulation  was  extended  to  Greece,  Spain  and  Portugal  when  these  countries 
Joined  and  since  1988  it has also covered  Ireland. 

As  a  result  of  the  reform  of  the  structural  Funds,  the  rates  of  refund  in 
Objective  1 regions were  increased  to make  the scheme more  attractive. 

The  number  of  groups  recognized  in  the  beneficiary  countries,  other  than 
Belgium,  is 560. 

The  Commission  considers  that  the  scheme  should  continue  everywhere  apart  from 
Belgium,  where  it has  aroused  no  interest.  This will  enable  the Member  States, 
particularly  those  where  the  scheme  has  been  introduced  recently,  to  benefit 
fully  from  the common  measure  and  the new arrangements  for  refunds. 

Some  changes  are  proposed  to  improve  the  rules  concerning  information  on 
production. 

In  view  of  the  earlier  amendments  to  the  Regulation  and  those  now  proposed, a 
consolidated  version of  Regulation  (EEC) No  1360/78  is currently  being  prepared. 

The estimated  total  cost  to the EAGGF  Guidance  Section  is ECU  15,9 million. 

-  18 -

Proposal  for a 

COUNCIL  REQUIATION  (f6C) 
amending Regulation  (EEC) No  1360/78 

on producer  groupa  and aaaociationa  thereof 

THE COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to the Treaty establishing  the European  Economic Community,  and  in 

particular  Art idea  42 and 43 thereof, 

Having  regard  to the propoaai  from  the Commission, 

Having  regard  to the opinion of  the European  Parliament1, 

Having  regard  to the opinion of  the Economic  and Social  Committee2, 

Whereaa  Council  Regulation  (EEC)  No  1360/783,  as  last  amended  by  Regulation 
(EEC) No 3808/894,  introduced  a common  measure  to encourage,  in certain  regiona 

of  the Community  where  the aupply of  agricultural  producta  reflecta  very  aevere 

atrucural  deficiencies,  the  grouping  of  producers  to  concentrate  the  aupply  of 

agricultural  products and adapt  production  to market  requirements; 

Whereaa  Belgium  has  not  so  far  availed  itself  of  this  Regulation,  despite  the 

Changea  to  the  minimum  requirements  for  that  country  laid  down 
ir\  the 
implementing  regulation.  Commission  Regulation  No  220/915;  whereaa  that  Member 

State  should  therefore  no  longer  fall  within  the  ecope  of  Regulation  (EEC) 

No 1360/78; 

Whereaa  aince  the  common  meaaure  waa  adopted  the  scheme  has  been  extendad  to 

other  regions  and  sectors  with  similar  needs,  most  recently  by  Council 

Regulation  No  3875/88®  to  the  whole  of  Ireland  and  to  certain  producta  in 

France,  and  producers  in  those  regiona  should  continue  to  have  the  opportunity 

to benefit  from Community  aid; 

1 
2 
3 
4 
5 
6 

0J  No L 166, 23.6.1978, p. 1. 
OJ  No L 371, 20.12.1989, p. 8. 
OJ  NO L 26, 31.1.1991, p. 15. 
OJ NO L 346, 15.12.1988, p. 16. 

-  19 -

Whereas  under  the  reform  of  the  structural  Funds,  in  order  to  make  the 

Commission  Regulation  (EEC) 
Regulation 
No  223/907,  as  amended  by  Regulation  (EEC)  No  1941/908,  introduced  more 

more  effective 

the  future, 

in 

attractive  rates of  Community  aid  for  producer  groups  in regions eligible under 
Objective 1 as defined  in Article 1 of Council  Regulation  (EEC) No  2052/889; 

Whereas  Council  Regulation  (EEC)  No  1760/8710,  as  amended  by  Regulation  (EEC) 
No  1094/8811,  introduced  a  number  of  provisions  concerning  the  obligation  on 

members  to market  the  whole  of  their  production;  whereas  the  monitoring  powers 

conferred  on  producer  groups  as  regards  harvesting  and  the  availability  of 

producta  should  be  strengthened; 

Whereas  this  is a  common  measure  within  the meaning  of  Article  2(1) of  Council 
Regulation  (EEC)  No  4256/8812  and  consequently  its  duration  need  not  be 

limited,  as  was  the  case  before  the  reform  of  the  etructural  Funds  when  its 
legal  basis  was  Article  6(1)  of  Council  Regulation  (EEC)  No  729/7013,  as 
amended  by Regulation  (EEC) No 2048/8814; 

Whereas  to assess  the  implementation of  this Regulation, particularly  in view of 

Its  recent  extension  to  certain  parts  of  the  Community,  a  report  should  be 

submitted  to the Council  by  1 January  1997, 

HAS ADOPTED THIS REGULATION: 

Arttçia 1 

Regulation  (EEC) No 1360/78  is hereby  amended  as follows: 

1. 

The  third  indent  of Article  2  is deleted; 

7 
8 
9 
10 
11 
12 
13 
14 

OJ No L 22, 27.1.1990, p. 62. 
OJ No L 174, 7.7.1990, p. 34. 
OJ No L 185. 15.7.1988, p. 9. 
OJ No L 167, 26.6.1987, p. 1. 
OJ  No L 106, 27.4.1988, p. 28. 
0J No L 374, 31.12.1988, p. 25. 
0J No L 94, 28.4.1970, p. 13. 
0J No L 185, 15.7.1988, p. 1. 

-  20 -

2. 

The third paragraph of Article  3  is deleted; 

3. 

The  following  Indent  ia added  to Article 6(1 M b ): 

N- rulea  on  production  information,  with  particular  rogard  to  harvaatlng 

and availability."; 

4. 

Article  10(3)(b)  ia replaced  by  the  following: 

"(b) may  not, however, exceed a total  of  ECU 60 000." 

5. 

Article  13(1)  is replaced  by  the following: 

N1.  Before  1  January  1997  the  Commission  shall  submit  to  the  Council, 
on  the baaia of  information  supplied by  the Member  States, a report 
on  the reaulta of  the  implementation of  thia common meaaure.*1 

This Regulation shall  enter  into force on  1 January  1992. 

Article  2 

This Regulation  shall  be binding  In  ite entirety  and  directly  applicable  in all 
Member  States. 

Done at Brussels, 

For  the Councl 
The President 

- 21 -

FINANCIAL STATEMENT 
concerning 

the proposal  for a Council Regulation (EEC) amending Regulation (EEC) No 1360/78 
on producer groups and associations thereof. 

1. 

PMflgft holding :  (1991 nomenclature) 

82*1010 : Improvement of agricultural structures - Objective 1 
B2-1012 : Objective 5(a) 

2. 

LOGE I Dial* :  Art Idee 42 and 43 of the Treaty 

3. 

ClatalfiMtlop :  Non-compulsory expenditure 

*• 

Alat  and  tioacrlptton  of  tha  noaauro  : 

The  main  aim  of  the  proposal  is  to  remove  the  restriction  limiting 
application of the Regulation  to 31 December  1991  thereby extending  it to 
future  years  and  enabling  the Member  Statee  to benefit  fully  from  this 
measure,  which  is  Intended  to  concentrate  the  supply  of  agricultural 
products and  improve adaptation of production to market requirements. 

5. 

Hathod or calculation : 

5.1  Type of expenditure  :  Partial refund of eligible national expenditure. 
5.2  Community  contribution  : Normally  25%; up  to 65% for  regions  currently 

eligible under Objective 1. 

5.3  Calculation  : Estimated expenditure  is based on Member  States' forecasts 
of development  of  the current  scheme between  1992 and  1996, particularly 
the number of new producer groups which will be recognized. 

5. 

Financial  impact on w ar at loo, appropriations 

6.1  Schedule of commitment and payment appropriations (ECU mili ion) 

Yaar 

1992 
1993 
1994 
1995 
1996 
1997 

Commitment  ana; payment 
appropriations 

in opJactlva 1 ragiona 

2.8(a) 
3.7 
4.3 
5.1 

2.0 
2.8 
3.4 
4.1 

ISSN 0254-1475 

COM(91) 438 final 

II 

EN 

03 

Catalog»© musib&r : GlsiCO«^l-49S-EN-C 

ISÉN 92-77-77319-7 

Office for Official Publications of the European CoioxctuDities 
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