Proposal for a COUNCIL REGULATION (EEC) fixing the target price for milk and the intervention prices for butter, skimmed-milk powder and Grana padano and Parmigiano reggiano cheeses for the 1992/93 milk year
Date: 1992-03-24
Institutions: European Commission
Subjects: hard cheese, intervention price, milk, skimmed milk powder, target price

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

C0M(92) 94 final  - VOL. I 

Brussels, 24  March 1992 

COMMISSION  PROPOSALS 

on  the prices for agricultural  products 
and on related  measures  (1992/93) 

VOLUME 

Explanatory  Memoranda 

- 2 -

The Commission submits herewith  its proposals for the agricultural  prices for 
1992/93 and for certain related measures. The text  is in three parts : 

Volume  I  : Explanatory memoranda 
Volume  II  : Financial  implications 
Volume  III  : Legal  Instruments 

Contents of Volume I 

Introduct ion 

A. General considerations 

I.  General economic situation 

II.  The agricultural  economy  in 1991 

M l.  Outlook for the agricultural markets 

(a) Community markets 
(b) World markets 

IV.  Price proposals and related measures for 1992/93 

market I ng year 

V.  Agr i-monetary measures 

.*. 

Vi.  Financial  implications 

B. Explanatory memoranda, by product 

1.  Cereals 
2.  Rice 
3.  Sugar 
4.  Olive oil 
5.  Oil seeds and prote i n crops 
6.  Text! le fibres 
7.  Wine 
8.  Fruit and vegetables 
9.  Tobacco 

10.  Milk sector 
11.  Beef/Veal 
12.  Sheepmeat and goatmeat 
13.  P igmeat 

Page 

4 

5 

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10 

12 

13 

14 

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29 
33 
34 
35 
36 
37 
38 
39 

- 3 -

C. Annexes 

Annex 1: Report on the operation of the system of aid 

for cot ton 

Annex 2: Commission report to the Council on the 

situation with regard to the production and 
marketing of certain varieties of tobacco 

D. Tables 

1.  Price proposals  in ecus for the various agricultural 

products 

2.  Argr(monetary proposals 1992/93 
3.  Effect of Commission proposals on support 

prices for agricultural products expressed  in 
ecus and  in national currency 

4.  Stabilizers and production thresholds 
5.  Trends  in economic  indices from 1980 

to 1990 in real terms 

E. Figures 

Fig. 1: Net value added per person employed  in 

agriculture 

Paoe 

40 

53 

58 
63 

64 
65 

68 

69 

introduction 

- 4 -

In November  1991  the Commission presented detailed proposals to the Council 
and to Parliament for the reform of several market sectors (arable crops, 
milk, beef, sheepmeat and tobacco). These proposals have been the subject of 
lengthy discussions  in the Council  and  In Parliament  and the Commission must 
insist that decisions be taken  In these matters without  further delay. In 
order  to facilitate this process - which  is essential  to enable the Community 
to come to terms with existing market  imbalances and prevent  rapid  increases 
in budgetary costs - the Commission  is putting forward a set of price 
proposals which represent  In essence the maintenance of the existing rules. 

Thus, except  in a few cases where changes have already been decided In 
principle or are provided for  in existing  legislation, the Commission  Is 
putting forward a set of price proposals which for the 1992/93 marketing year 
will maintain  In place the present stabilisers, prices and producer  levies. 

The proposals on the dismantlement of MCAs are designed  to facilitate the 
Community's single market objective to remove controls at frontiers by 
1 January 1993. 

A. 

General  considerations 

-  5  -

I- 

General  economic  situation 

1. 

As  in the  rest  of  the world, economic  growth  in the Community  slowed 
significantly  in 1991. On  average, economic  activity  Is estimated  to 
increase  by only  1.3X  in real  terms  in 1991, against  2.8X  In 1990. A 
moderate  recovery  to 2.2X  is expected  In 1992, accelerating  to 2.4X  In 
1993. 

Employment  growth  slowed  sharply  to 0.5X  In 1991  and  appears  likely  to 
reach  a standstill  in 1992. As  a result,  given  the  strong  growth  in the 
size of  the  labour  force, the  rate of  unemployment  Is forecast  to 
increase  steadily  over  the period  1991-93, reaching  9.2X  In 1993, 
compared  to 8.4%  in 1990. 

For  the Community  as a whole,  inflation  (implicit  deflator  of GDP)  is 
forecast  to  fall  from  5.7X  in 1990  to  5.5X  in 1991. During  1992 and  1993 
inflationary  pressure  is expected  to moderate,  leading  to  further  falls 
to 4.6X  and  4.4X  respectively. Nevertheless  inflation  rates  differ 
widely  within  the Community,  with  certain  Member  States  (namely  Greece 
and  Portugal) still  experiencing  double  digit  inflation  and  others 
(Denmark,  Netherlands,  France, Belgium,  Ireland  and  Luxembourg) with  a 
rate of  inflation  below  4X  in 1992. 

11.  The  agricultural  economy  in 1991 

2. 

After  the  sharp  improvement  experienced  in 1989,  1991  was  the  second 
consecutive  year  in which  the  agricultural  situation  in the  Community 
was  seriously  affected  by  the deterioration of  markets  and  a  sharp 
rebuilding  of  stocks. As  regards weather  conditions,  productivity  and 
level  of  output,  the  1991  agricultural  year, while  not  exceptional,  may 
be  counted  among  the good  years  for  Community  agriculture.  Nevertheless, 
difficulties  experienced  in some markets  hindered  the  achievement  of 
satisfactory  results  In terms of  farm  incomes. This  proves once  again 
that  restoring  a durable  equilibrium  in agricultural  markets  is a 
crucial  condition not  only  in the  positive  development  of  incomes  but 
also  if aggravation  of  the present  crisis  of  Community  agriculture  is to 
be  avoided. 

3. 

Due  to more  favourable weather  and  the  consequent  increase  in yields, 
crop  production  in 1991  was  in general  higher  than  in the  previous  year. 
Cereal  production  increased  by  almost  6X  relative  to  1990,  leading  to 
around  181  million  t  In 1991. The  highest  production  increases were  for 
durum  wheat  and  grain  maize,  rising  by  43X  and  15X  respectively  from 
1990  levels. Soft  wheat  production  exceeded  81  million  t  (4X more  than 
in  1990). 

-  6  -

Given  the  increase  in cereal  production  and  a slight  decrease  in 
consumption, especially  for  animal  feed,  the market  imbalance  already 
existing  in this sector  is expected  to  increase steadily  during  the 
current  marketing  year. Taking  into account  the carryover  of  stocks at 
the beginning  of  the  1991/92 marketing  year  one  could  estimate  that  the 
surplus of  available  supplies over  total  Internal  use of  cereals will 
approach  80 million  t  In 1991/92 compared  to 66 million  t  In 1990/91. As 
the  possibilities of  export  on  the world market  are  relatively  limited 
the  1991/92 marketing  year will  end with  a sharp  Increase of  about 
10 million  t  In cereals  stocks which  will  continue  to depress  the 
market. The  situation worsened,  in particular,  for  durum  wheat  (for 
which  self-sufficiency now exceeds  200X),  for  common  wheat  and  for 
barley. 

A  fall  In sugarbeet  area  and  yields  has  led to  lower  sugar  production 
than  the previous  year, but  it  Is still  well  above  Internal  consumption. 
Sunflower  seed  production  was  relatively  stable  at  around  4.0 million  t. 
Soya  production  fell  by 0.5 million  t.  Largely  as a  result  of  record 
yields  in France, production of  rapeseed,  excluding  production  In the 
new LSnder,  reached  a record of 6.4  million  t and  in the new LMnder 
rapeseed  production  rose  to 1 million  t. 

As  a  result  of  the spring  frost,  fruit  production  dropped  by  almost  20X. 
For  the  same  reason, wine  production  is expected  to decrease  by more 
than  10X on  average,  reflecting  particularly  the drop  In production  in 
France. 

In the  animal  products  sectors, milk production  is expected  to fall,  due 
in particular  to a 2X cut  In milk  quota  decided  in the  context  of  the 
last  price  package. Although  the drop  in milk  quotas  during  the  last  few 
years  has  reduced  the  imbalance  between  production  and  consumption,  and 
special  measures  have been  taken  to encourage  domestic  consumption,  the 
milk  balance  expressed  in milk equivalent  still  has  a surplus of  about 
15 million  t. Without  special  measures  this figure would  be 7 -  8 
million  t higher. Beef  production  continued  to  increase  in 1991  by 4  to 
5X  and  probably  reached  8.6 million  t,  in  line with  the beef  cycle  which 
is now  reaching  its peak  level. Beef  consumption,  on  the other  hand,  has 
dropped  steadily  during  the  last  few years  and  it  is now  estimated  at 
7.5  million  t,  almost  1 million  t under  the  level  of  production. 

Production  In most  sectors exceeded  the  levels  at wrTlch action  under  the 
various  stabilizer  mechanisms  is triggered.  The  cereals MGQ  was 
exceeded  by more  than  3X which will  lead  to a price  cut  of  3X  in 
1992/93.  Excesses  were  also  recorded  for wine, certain  varieties of 
tobacco,  cotton,  nectarines, peaches, milk  and  pigmeat.  In the oilseed 
and  proteins  sectors,  full  Institutional  prices were  reduced  as  a result 
of  the  application of  their  MGQs systems, by  21X  (rapeseed),  32X 
(sunflowerseed),  20X  (soya  beans) and  17X  (peas  and  beans). 

7  -

5. 

Another  sign of the  increasing market  Imbalances  for most  products is 
the continued  growth  in public stocks  In the major  sectors, after the 
sharp  reduction  in the late 1980s and  In the first  half of 1990. 
By  the end of December  1991, cereal  stocks exceeded  16 million t, 
compared  to 12.8 million t twelve months before.  In particular, stocks 
doubled  for rye and durum wheat. For the first  time  In 1991 stocks of 
rice were  also very  high  (more than 200 000 t on average). Stocks of 
butter  and sklmmed-mllk  powder which had practically  disappeared by the 
beginning of 1990 Increased  sharply  during the 1990/91  marketing year 
and  reached a peak exceeding 400 000 t and 500 000 t respectively in 
July  1991. By December  1991 stocks of both products had fallen again (to 
260 and 434 thousand t) as a result of a  large export  programme. Beef 
stocks, on the other  hand, are continuing  to  Increase.and now approach 
one million t  in spite of the extremely  favourable  pattern of exports  In 
1991  (almost  1.1 million  t ). Only  stocks of alcohol  decreased  sharply, 
due to a major  sales programme and to the drop  In production resulting 
from  the bad weather  over  the last  three marketing  years. The dramatic 
Increase  in intervention  stocks since the second  half of 1990 shows that 
we have  again entered  an era of oversupply, after  a certain  improvement 
in 1988 and  in 1989, depressing  the market  situation  and consequently 
affecting  producer  prices and farm  Incomes. 

6.  For the Community  as a whole, producer  prices are expected  to rise in 
nominal  terms by 2.7X relative to 1990. This means a fall of 3.5X In 
real  terms on average. The drop  in real  output  prices  in 1991 is a 
result of falls of 0.6X and 7.7X  in prices of crop  products and animal 
products  respectively. Sharp  falls  in real  prices are expected  for wine 
(-8.2%), milk  (-6.6X), pigs  (-6.7X),  cattle  (-10.OX) and sheep  (-13.1%). 
Real  prices of  fruit, on the other  hand, are forecast  to rise by 10.1% 
following  a poor  harvest  due to adverse weather  conditions. Cereal 
prices are relatively  stable  (-0.6X)  in real  terms. 

Nominal  input  prices, on the other  hand, are expected  to rise by 4.OX, 
which means a drop of 1.5X in real  terms  (- 0.9X for fertilizers, + 3.8X 
for  energy  and - 3.5X for animal  feedingstuffs). As purchases of goods 
and  services  account  for only 45X of agricultural  output, the fall  In 
input  price was not sufficient  to offset  the negative  effect of the 
deterioration of producer  prices on farm  incomes. 

7. 

According  to the first  estimates made by the Commission  in mid-December 
1991, on the basis of data  supplied  by the Member  States, average  farm 
incomes for the Community  are expected  to have  fallen  in real  terms in 
1991  for the second  year  running, after  a sharp  increase  in 1989. For 
the Community  as a whole, farm  income  fell  by 4.8X  in real  terms If 
agricultural  incomes are measured by the net value  added  at factor  cost 
per  work  unit, and by 9.8X  in real  terms,  If measured  by the net  Income 
per  work  unit  of the farmer  and his family,  i.e. after  deduction of 
wages,  rents and  interests. Graph  1,  in the Annex,  shows the trend in 
real  terms of agricultural  income by Member  State  since  1980, as 
measured  by net value  added at factor  cost  per annual  work  unit. 

In general,  farm  incomes declined  for almost  every  type of  farming, and 
especially  for cereals, oilseeds, dairy,  beef  and pork. 

III- Outlook  for thu agricultural  markets 

(a)  Community markets 

- 8 -

8.  As  in previous years, the Commission  has carried out an analysis of the 
medium-term prospects (1997/98 marketing year) for the main agricultural 
markets. These forecasts take  into account  the  impact on production of 
the changes  In agricultural policies adopted  In recent years (I.e. • 
quotas, stabilisers, set-aside, etc.) and are based on the assumption 
that current policies will continue unchanged.  In addition, they Include 
the  Impact of German unification. So, they could be viewed as a 
reference scenario for the future of agricultural markets  In the 
Community  in the absence of CAP reform, and assuming the continuation of 
present polIcy. 
The main conclusion which can be drawn from this analysis  Is that, 
despite several  reforms adopted during the second half of the 80's to 
Improve the balance between supply and demand  In agriculture, the 
depressed Community market situation will continue and even worsen in 
the medium term  If more effective measures are not taken. 

9.  Medium  term forecasts for cereals show that,  in spite of the price 

reductions due to stabilisers and a reduction  In area,  In particular as 
a consequence of the current  set-aside schemes, production should 
continue  to  increase although at a  lower rate than  in the past. Total 
cereal  production  Is forecast  to reach around 189 million t by 1997, 
that  is almost  10 million t more than the 1991 crop. 
As far as cereal  consumption  Is concerned,  In spite of a slight  increase 
in industrial  use and possibly  in human consumption, total  internal use 
is expected  to continue falling as a consequence of the decline in 
animal  feed use  (a drop of about 5 million t by 1997/98, which means a 
drop of 0.7 million t a year on average). Total  Internal use should 
amount  to about  140 million t in 1997/98, which would  leave some 50 
million t to be exported. 

10.  Medium  term forecasts for oilseeds have been made on the basis of the 

price and MGQ system which applied  in the period 1988/89 to 1991/92. 
These show that  the reinforced MGQ system which was  Introduced  in 1988 
and which has held production to  lower  levels than would otherwise have 
been the case, would not, had  It continued, have prevented a further, 
but more moderate, rise  in production  in the medium  term.  The full 
impact of the reform agreed  in December  1991 cannot yet be assessed but 
it seems  likely to  lead to  less  intensive production and hence to lower 
production  totals than the record  levels observed  in recent years. 

11.  The medium  term outlook for sugar will be  Influenced by any changes 

which could be  introduced  in the quota system and by the prospects for 
world market  prices. Assuming a no-change situation  in these two areas, 
the production  forecast  for 1997  is 15.8 million t while consumption 
could reach 11.9 million t.  Taking account of preferential  and other 
imports the total exportable surplus would amount  to 5.4 million t of 
which 2.2 million t would be C sugar. 

-  9 -

12.  Due  to agronomic  and  climatic  factors olive oil  production  fluctuates 

considerably  from one  year  to the next. Total  area  should  Increase 
slightly  In the  future  due to the expansion  In Spain  and  Portugal 
following  Integration  Into the Community  regime. This, added  to a small 
yield  increase, should  lead  to production of  about  1.5  million t In 
1997. On  the other  hand, overall  consumption  Is expected  to  Increase a 
little  to 1.4 million  t  in 1997, giving  a small  surplus of  production. 

13.  Despite  the Community's  efforts  to diminish  the  European wine  potential 
by means of grubbing up schemes, wine production  In the  Community 
accounts  for  some  190 million hi  in a normal  year  (of which  about  30X  Is 
quality  wine),  but  since  1988 wine production  has  fluctuated  between  160 
and  180 million  hi essentially  for climatic  reasons.  The  trend observed 
since  1977 suggests a slight  increase  in yield, compensated  for by a 
decrease  in the surface  cultivated. As a  result, production might  fall 
to an expected  level  of  170 million hi  in 1997. Wine  consumption  has 
been  steadily  falling  since  1975 and  this  trend will  probably  continue 
over  the next  decade.  If so, global  human  consumption  would  be around 
106 million  hi  in 1997/98, compared  to 123 million hi  In 1989/90. To 
this quantity  about  12 million hi  can be  added  for  Industrial  use.  With 
consumption  falling dramatically, particularly  In the  producer 
countries,  the  imbalance  which  already  exists especially  in the table 
wine  sector  is expected  to  increase  steadily  over  the coming  years and 
extend  to some  quality  wines. 

14.  In the  absence  of  the  reform  proposed  by  the Commission,  tobacco 

production  should  continue  to  Increase,  In spite of  the  stabilizer 
mechanism,  and  reach  550 000 t  In 1997/98. The  excessive  development  In 
production of  certain  varieties already  observed  in the  past  could  cause 
the most  concern  especially  in terms of  market  imbalance  and  budget 
cost. The global  reform of  this market  organisation  proposed  by  the 
Commission  should  reduce  such problems, maintaining  total  production 
within  the bounds of  the proposed  quota  (340 000 t ). 

15.  Milk  deliveries, as  recorded  in official  statistics, are,  In general, 

very  close  to the quota  level.  In the absence  of  any  further  reduction 
of  quota  and  assuming  that  difficulties  in the  application of  quotas  in 
certain  regions  are overcome, one could  assume  that  milk  production will 
be  close  to  the  total  quota  level  (97.6 million  t excluding  the  five new 
Lander). As milk  yield  per  cow  Is expected  to  increase  by  1.5X  p.a., the 
dairy  herd which  now  stands at  22.2 million  head  has  to be  reduced  by at 
least  2 million by  1998  in order  to keep  deliveries within  the quota 
Iimits. 
Assuming  that  special  measures  to promote  internal  consumption  are 
retained,  the  long  term  trend within  the  Community  Is for  the  total 
consumption  of  dairy  products  to remain  relatively  stable  at 
87.5 million  t  (without  the five new  Lander).  However, whilst  there  is 
increasing  demand  for  fresh  dairy  products, soft  cheeses  and  butter 
substitutes  with  some  dairy  content,  the  consumption  of  full-fat  milk, 
hard  cheeses  and  butter  is declining. This, coupled  with  the  ever-
increasing  fat  content  of milk  produced  (due  to better  animal  husbandry 
and  diet),  poses major  problems  as  the  Imbalance  between  production  and 
consumption  continues  to grow.  It must  also  be  remembered  that  without 
special  measures  normal  consumption of milk  would  be  about  8 million t 
below  actual  domestic use. 

- 10 -

16.  Beef production  Is expected to reach about 8.3 million t by 1998. Beef 
consumption has been stead Iy declining for several years resulting not 
only from specific reasons  leading to temporary drops  in demand, but 
probably also from a more structural  change  in consumer preferences. 
Total beef consumption dropped by almost 700 000 t between 1987 and 1990 
falling to a  level which  Is now well below the trend.  In these 
circumstances, only  If the market  Image of beef  is restored could one 
expect  that the  long term trend could continue, leading to global 
consumption of 7.7 million t In 1998. If this goal  is not achieved, beef 
consumption will probably continue to fall to a  level of about 
7.0 million t In 1998. In any case. In the absence of effective measures 
to control production and to promote demand, present market  Imbalances 
will continue and probably worsen  In the coming years. 

17.  Sheepmeat production has sharply  Increased  in recent years as a result 
of the expansion of the Community  flock. Without any change  in the 
present  legislation, we can expect production to exceed 1.25 million t 
in 1998. The expectation for sheepmeat  consumption  is of a slight 
Increase. Total consumption should be around 1.5 million t in 1998. 
The consumption of pigmeat and poultrymeat  is Increasing steadily and, 
given the ease with which production can respond to demand, a production 
forecast of 15.6 million t of pigmeat  and 7.4 million t of poultrymeat 
for 1998 can be made. This allows for exports of 0.4 million t and 
0.26 million t for pigmeat and poultrymeat  respectively with both 
sectors otherwise  in balance. 

(b)  World markets 

18.  In spite of a relative  improvement  In the second half of 1991, the 

situation and prospects of agricultural  world markets at the beginning 
of 1992 are always heavily affected by the structural disequilibrium 
which exists for most products and by the  Increasing difficulties of 
financing  imports. Many countries are currently  in a period of economic 
uncertainty.  In particular, the extent of the agricultural  problems and 
import  requirements of the former Soviet Union remains  largely unknown 
for  the short  as well  as for the medium and  long term. Nevertheless, it 
is clear  that quantities delivered will depend  largely on the 
willingness of exporting countries to grant credits or provide aid. At 
the same time, because of the  lack of hard currency, some  important 
markets  in North Africa and Eastern Europe appear  less reliable 
customers for western exports. In the  latter case  It must also be 
stressed  that some, which were traditionally net  importers, are likely 
to become net exporters of agricultural  products  in the medium  term, as 
a consequence of efforts to promote greater market orientation  for their 
economies.  In any case, the Community  has a primary responsibility to 
support  their economies and to facilitate their  integration  in a wider 
European free trade area. 

- 11 -

19.  World  cereal  production  Is forecast  to fall  by 6%  compared  to 1990, 

while still  remaining  the second-highest  harvest  on  record. Wheat  Is 
forecast  at 547 million  t, down almost 9%, and coarse grains  at 795 
million  t, down 4%. Although  still  declining  In absolute  terms, 
consumption  Is set once again  to exceed production  In 1991/92. Prices 
remain  firm  for  the moment  due  to the cut  in production, relatively  low 
stock  levels and  increased exports. The upwards  tendency  Is, however, 
being  limited  by  large harvests  In the EC and Canada  and  by  uncertainty 
over  the ability of  some major  importers  to pay  for  Imports and  to 
reimburse  credits.  In addition  the present  situation  risks  changing 
radically  during  the second  half of  the year  as a consequence of  the 
increase  in production  forecast  in the USA. 

Assuming  no change  In policies, net  export  aval IIblI Ities  in the OECD 
area  are projected  to  Increase substantially over  the period  to 1996 to 
reach  163.3 million  t, or  25X of production. When  set  against  the  likely 
commercial  Import  requirements  these  forecasts suggest  the  possibility 
of  depressed  cereal  prices and continuing  trade  tension. 

World  oilseed  production  for  1991/92  Is forecast  at  a record  222 
million  t while  consumption  will  reach about  220 million  t.  In the OECD 
area  stocks  are expected  to  increase by  1% while prices  remain stable. 

Both world  sugar  production  and  consumption  will  increase  in 1991/92 but 
at  a reduced  rate of  annual  growth. The marketing  year  will  end  roughly 
in balance or with  a slight  surplus.  In the absence  of  trade  reform  it 
appears  likely  that  In the medium  term  the market  is set  to continue  its 
present  cyclical  pattern. World  stocks should  grow  slowly while  prices 
are expected  to remain  low. 

20.  While OECD milk output  has  fallen marginally,  and  Is forecast  at  220 
million  t, consumption  has  increased  slightly  above  the  rate of 
population growth. Stocks  have  risen as a result  of  reduced  imports by 
the USSR  and  the Gulf  region, and  a fall  in butter  consumption.  Between 
1991  and  1996 OECD production  is expected  to  increase  by  2.5X  while 
milkfat  consumption  should  increase at  a higher  rate.  In spite of  this, 
export  availabilities should  exceed  1.1  million  t  in 1996,  corresponding 
to a self-sufficiency  ratio of  115%.  In addition,  as a  large  percentage 
of OECD dairy  exports  are to the  former  USSR, economic  reform  In the 
Republics and  their  financial  problems  could  have a iriajor  impact  on 
future  dairy  exports. 

Beef  production  increased  in 1991  in OECD  countries, while  demand 
weakened  as a result  of poor  economic  growth  and  changing  dietary 
habits. Consequently, stocks have  increased  and  prices  have  fallen. In 
the medium-term,  production  is set  to continue  to grow  at  a higher  rate 
than  demand. As a consequence, export  aval IibiI ities  in OECD  countries 
are expected  to  increase  from under  1 million  t to 1.3 million  t in 
1996. 

IV. Price proposals and  related measures 

-  12 -

21.  As  is clear  from  the analysis of  the current  and prospective market 

situation,  the Community  Is facing  a progressive  deterioration of market 
balances.  The precise budgetary effect  of  this deterioration will  vary 
from  time  to time depending on conjuncture I market  conditions.  This 
year  the conjunctural  situation  is somewhat  better  than  last  year, In 
particular  because.of  higher  world market  prices  for  cereals and some 
improvement  In the world  and, more particularly, the domestic market 
situation  for  dairy  products.  But  these short  term  developments do not 
in any way  remove  this need  to tackle the underlying  tendency  to greater 
market  imbalance  in the medium  and  long  term.  The Commission  has 
presented  the Council  with a series of  proposals  for  reform  designed  to 
confront  these problems as they effect  most  of  the major  market  sectors 
of  the CAP  and will  make proposals  for other  sectors when  this reform 
package  has been  accepted. 

22.  The  reform  proposals change  fundamentally  the market  organisations  in 

several  sectors, taking  into account  the need  to ensure  the 
competitivity of Community  agriculture.  Improve  the distribution of 
agricultural  support  among  farmers and  reinforce measures  to safeguard 
the environment.  The aim of  these measures  is not  Just  to reduce 
agricultural  expenses or  to adapt  in advance our  policy  to any 
international  commitment  which  could  be  taken  in the context  of GATT 
negotiations, but essentially  to have more effective  instruments  for 
bringing  the markets  into balance whilst  safeguarding  farm  incomes and 
the  rural  economy.  These proposals  have been widely  examined  and 
discussed  by  the Council  and  the Parliament  during  the  last  few months. 

23.  Formal  conclusions  have not  yet  been  reached  on  these proposals but  the 
need  for  fundamental  reform  is not  in question.  Indeed,  in the absence 
of  fundamental  reform  the Commission  would  be compelled  to propose 
drastic  changes  in prices and  support  mechanisms. Such measures would 
bring  the market  back  into balance  but  at  a heavy  cost  in terms of 
producer  incomes. 

24.  In order, however, to allow the Council  to concentrate  its attention on 

the  reform,  the attached  proposals provide  essentially  for  the 
continuance  into 1992/93 of  the prices  and  stabiliser mechanisms  as they 
existed  in 1991/92. 

v 

25.  It should  be emphasised,  however,  that  some parts of  the  proposals 

contained  In the reform proposals cannot  be delayed  and  early Council 
decisions on  the basis of  these proposals  Is presupposed  in this 
package. For  example.  In the milk  sector,  the proposal  is for  unchanged 
prices. This proposal  can only  be maintained  if, before  1st  April, when 
the existing  milk quota  system  expires, the Council  has  taken  decisions 
to extend  the quota  system  as proposed  In the  reform  package.  It would 
be quite  impractical  to support  unlimited  production  at  current  price 
levels.  Similarly, for cereals, the current  proposal  assume  acceptance 
of  the proposal  In which  has been  Included  in the  reform  package  for  the 
continuance  into 1992/93 of  the existing maximum  guaranteed  quantity and 
basic  and  supplementary  levy systems.  In the prices package  it is 
proposed  to set  the basic  levy at  5X,  the  same  level  as  In 1991/92. A 
proposal  is also made  that, as  in 1991/92, farmers who  Join a one year 
set-aside  scheme will  be exempted  from  the  levy. This proposal  is 
included  as a safeguard  in case decisions on  the  reform  are not  taken  in 
time  (before  1 June  1992) for  the set-aside  scheme  proposed  in the new 
arable  products  scheme  to apply  to the  1992/93 plantings.  If early 
decisions  are  taken on  the reform,  this proposal  will  lapse. 

- 13 -

26.  In other sectors prices, mechanisms and, where appropriate, stabiliser 
figures are carried  forward from 1991/92  Into 1992/93 except where 
changes are due to come  Into effect on the basis of existing 
legislation, adaptations are due to fulfil undertakings given  In the 
course of  last year, or  it Is necessary to take  Interim measures to 
bridge the gap between reform and the existing regime. Hence, in the 
olive oil sector there  is a transfer of aid between the consumption aid 
and production aid, as promised  last October when the consumption aid 
was  last decided and, for cotton, a change  Is proposed  to make price 
levels somewhat more predictable without weakening the effectiveness of 
the stabiliser. For tobacco, the  interim measures needed because of the 
delay  in adopting the reformed regime have been proposed  In advance of 
this package and what  Is proposed now  Is that prices and premiums should 
remain unchanged. Action  Is, however, proposed to mitigate a perverse 
effect of the existing tobacco regime which can  In some cases make low 
grade tobacco more attractive to the processor  than high grade tobacco. 

27.  This roll  forward package  is designed to allow the Council  to take rapid 

decisions and to avoid distracting  its attention from the reform of the 
CAP.  It should not, however, be misunderstood as suggesting  that,  in the 
absence of reform, the existing CAP could be rolled forward 
indefinitely. On the contrary, as explained above, were the reform 
proposals to be rejected, very drastic price measures would be 
necessary. 

V.  Agri-monetary measures 

28.  Agri-monetary proposals are based on the situation of currencies at the 

beginning of February 1992. 

As regards the currencies which are maintained within a mutual margin of 
fluctuation of 2.25X  there  is no  longer a monetary gap - the 
agricultural  conversion rates are already at the  level of the central 
rates. 

As regards the other currencies  (the drachma, peseta, escudo and pound 
sterling) the monetary gaps vary with trends on the exchange rate 
market, but  it was agreed  in July 1988 that they should be dismantled 
before 1 January  1993.  With regards to Greece, the arrangements for the 
automatic dismantling of the gaps created by monetary realignments 
provide for a final  stage, for the majority of products, which will take 
effect  at the beginning of the 1992/93 marketing year. 

In order  to  limit any further dismantling which may be needed on 
31 December  1992  it Is proposed  to reduce all  the monetary gaps existing 
at the time of the Council  decision to 1.5 points, at which  level the 
compensatory  amount no  longer applies. 

VI.  Financial  Implications 

-  14  -

29.  The  financial  Implications of  the proposals  for  prices and  related 

measures  for  EAGGF  Guidance Section expenditure  and  for  the  Community's 
own  resources of  agricultural  origin  are set  out  In Volume  II. 

30.  It  is estimated  that  the  financial  Implications of  these proposals  for 
prices  and  related measures will  be of  ECU 6 million  In 1992 and of 
ECU  45 ml 11 Ion  In 1993. 

-  la -

B. 

Explanatory memoranda by product 

1. 

CEREALS 

1.1.  Prices 

For all cereals the Commission proposes for 1992/93 maintenance of the 
1991/92 prices. 

As the transitional  period for Spain will have come to an end all Spanish 
institutional prices will henceforth be  Identical with those for the 
Community of Ten. 

Under the arrangements for the second stage of Portuguese accession the 
first step  In moving the  intervention price for common wheat to the 
Community price will be taken and the specific aids for cereals will be 
adjusted. 

Target prices are derived from the  intervention prices by adding a market 
component  and a component  representing  the cost of transport between the 
Ormes and Duisburg areas.  Updating  the transport cost entails a slight 
reduction  in target prices. 

The 1991792 overshoot of the maximum guaranteed quantity means that 
prices set by the Council for 1992/93 will automatically be reduced by 3% 
by the Commission. 

1.2.  Monthly  Increases 

Given the 3% reduction  in the  intervention prices and the prospect of 
lower  interest rates, keeping the monthly  increases at their present 
level offers the best prospects for disposal of cereals on the Community 
market  throughout  the marketing year.  Those for common wheat  flour, rye 
flour and groats and meal of durum wheat must however be adjusted to take 
account of a change  In the processing coefficients, as was done  in the 
course of 1991/92 for calculation of the export refunds. 

1.3.  Special  premium  for breadmaking. wheat  and rye  '•* 

Article 3 of the basic Regulation  (EEC) No 2727/75 requires the Council 
to set a special  premium each year for common wheat and rye with certain 
quality characteristics. 

-  16 -

For  the  last few years the common wheat premium has been 2X of the 
Intervention price. 

Given the automatic 3% reduction  In the  Intervention price from the 
beginning of 1992/93  it Is proposed to adjust  these premiums accordingly 
to ECU 3.27/t for common wheat and ECU 4.09/t for rye. 

1.4.  Durum wheat aid 

The production aid for durum wheat  is an element of producers' Incomes In 
certain production areas  In the same way as  Intervention prices.  Given 
the freeze on  institutional prices  It Is proposed to make no change in 
its amount. 

In Spain the aid will, like prices and for the same reason, be the same 
as  in the Community of Ten. 

1.5. 

S t a b i l i z e rs  and  co-resoonsiblIItv 

l ew 

Under  the CAP reform proposals for cereals  It is proposed to retain for 
1992/93 the basic and additional  co-responsibility  levies and to keep the 
maximum guaranteed quantity at the  level maintained since its 
Introduction. 

The Commission  draws attention to the need for this proposal  to be 
adopted so that  the co-responsibility  levies will be app 11 cab I e Xjrcjn 
1 June 1992. the date of commencement  of the marketing year for 
application of co-responsibtIIty  in the southern countries. 

Given the persisting  imbalance between production and the potential for 
disposal  on either  the Community or world market  it  is proposed to keep 
the basic co-responsibility  levy at a  level equivalent  to 5% of the 
intervention price for common wheat.  Since this will  automatically be 
reduced by 3% at the beginning of the new marketing year  It is proposed 
to set  the basic  levy at ECU 8.17/tonne. 

Retention of the stabilizers will  result, since 1991/92 production 
overshot  the MGQ,  in the Commission's  fixing an additional  levy of 3% for 
1992/93. 

-  17 -

1-G-  Aid for small caram  producers 

Since  it Is proposed to retain the co-responslblIIty  levies It Is 
necessary to retain the aid to small cereal growers under which the co-
responslbl I Ity levy amounts due from them are reimbursed within an 
overall budget allocation. 

Since  It Is proposed to maintain the basic co-responslblIIty  levy at 5X 
the budget allocation can be maintained at ECU 293 million, which already 
covers the additional  levy. 

1*7.  Aid scheme for amaIiproducerm of certain arable crops 

This was  Introduced for 1990/91 and  Is applied at Member States' 
discretion  Instead of the scheme for small cereal producers.  Only France 
and Portugal have taken up the option. 

Under the reform proposals  It Is proposed to continue special aid schemes 
for small producers until 1994/95. 

Since the basic and additional co-responsibility  levies are being 
temporarily maintained no change should be made  In the aid scheme for 
1992/93. 

1.8.  Production aid for canary seed, millet and buckwheat 

The scheme was  introduced from 1990/91. 

So far only some Member States, mainly northern ones, have taken  It up. 
Despite  lack of producer  Interest  it Is proposed, pending a decision on 
the reform proposals, to maintain the same aid  levels as In past years. 

1.9.  Potato starch 

There  Is no market organisation for potatoes but potato starch  Is subject 
to the same rules as cereal  starch.  The minimum price payable for 
potatoes must  therefore continue to be aligned on the price  level applied 
to maize. 

-  18 -

As regards the special premium paid to potato starch producers  It appears 
that the economic position and special conditions of production have not 
significantly changed relative to cereal starch production.  It Is 
accordingly proposed to retain  In 1992/93 the present premium of 
ECU 18.67/tonne. 

1.10.  Continuation of a special  scheme for temporary set-aside of arable land 

It  is not possible to exclude the possibility that the Council's 
decisions on the reform of the common agricultural  policy may be taken 
too  late for the new set-aside system proposed  In that context  to be 
applied to sowing for the 1993 crop.  Therefore  It Is proposed to carry 
forward  "mutatis mutandis" the temporary set-aside system which was 
applied  In 1991/92. 

-  19 -

2. 

RICE 

Prices and monthly  Increases 

It  Is proposed to keep the  intervention price and the monthly  increases 
at their present  levels. 

Updating of the factors of calculation. In particular the costs of 
transport between Vercelll and Duisburg, leads the Commission to propose 
a slight reduction  In the target price for husked rice. 

For Portugal under the arrangements applicable during the second stage of 
accession there will a second move of the rice  Intervention price towards 
the Community  level. 

-  20 -

3. 

SUGAR 

3.1.  The Commission proposes freezing the basic price for sugar-beet, the 

intervention price for white sugar and the manufacturing margin. 

This proposal  for sugar-beet  relates to the basic price and to the 
minimum prices for A and B sugar-beet which are determined on the basis 
of the ceiling fixed for the basic production  levy and for the B levy, 
the  latter without prejudice to an  Increase  later  In the celling in 
accordance with Article 28 of Regulation  (EEC) No 1785/81. 

3.2.  As regards the reimbursement of storage costs, the Commission also 

proposes to maintain the current  rate of ECU 0.52/month,  In the  light of 
the proposed freeze on prices. 

3.3.  The prices proposed for Spain have been established  In accordance with 

Articles 3, 4 and 5 of Council Regulation  (EEC) No 1716/91  (0J No  L 162, 
26.6.1991, p. 18). 

3.4.  As regards the prices proposal  for Portugal, the Commission recalls that 

at the time of the accession of Portugal  to the Community  the basic price 
for sugar-beet guaranteed by the national  regime was higher than that 
guaranteed by the Community  regime and sugar prices were  lower than those 
guaranteed by the Community regime. 

With the "classic" transition period applying  in the sugar sector, sugar 
prices are regulated by Article 238(2) of the Act of Accession of Spain 
and Portugal which provides for a seven-stage move towards alignment when 
the price of a product  is lower than the common price.  Thus, since the 
1986/87 marketing year, sugar prices have been automatically  Increased by 
part of the difference so that the common price will apply  In Portugal as 
of the seventh move to alignment, i.e. from the 1992/93 marketing year. 

In accordance with the acts of the conference which preceded Portuguese 
accession, the reference "common prices" on which Portuguese prices must 
be aligned are the derived prices applicable  in the Ireland/United 
Kingdom  region, valid for 1992/93.  This results  in a final  increase in 
the  intervention prices for white sugar of ECU 0.87/100 kg. 

- 21 -

Sugar-beet prices are regulated by Article 238(3)(a) and (b) of the Act 
of Accession of Spain and Portugal which  lays down that, where the price 
of a product  in Portugal  Is higher than the common price, alignment will 
result from the development of common prices during the seven years 
following accession and that the Council will carry out an analysis of 
the development of moves towards a price alignment, on the basis of an 
opinion from the Commission accompanied, where appropriate, by suitable 
proposals. 

Therefore,  in order to give an opinion and present suitable proposals, 
the Commission has analysed the development of prices  in the Portuguese 
sugar sector since the accession of Portugal  to the Community. 

3.5.  The circumstances under which the Treaty of Accession was negotiated have 

completely changed as regards the sugar sector.,  Thus, not only did a 
certain alignment expected as a result of  Increases  In Community prices 
for sugar-beet not occur but common prices were frozen and even reduced 
by 2.1X since then (1986).  Portuguese prices have consequently been 
adjusted  to avoid an  increase  in the gap between them and the common 
prices (Article 238(3)(a) of the Act of Accession). 

The trend  In Portuguese and Community  prices for sugar-beet  since the 
accession of Portugal  to the Community  is shown  in Table 1.  It will be 
seen that the difference existing at the time of accession has been fully 
maintained, with the Portuguese price continuing  to be higher than the 
common price and by the same amount,  i.e. ECU 1.26/tonne. 

3.6.  The Commission  thus notes that for sugar-beet  the difference of 

ECU 1.26/t between the Portuguese price and the relevant common price 
means that only 2.94% of the Portuguese price has to be made up.  Under 
Article 237 of the Act of Accession, a gap of that size  is to be classed 
as minimal  because  it is even  less than the percentage of 3% fixed by the 
said Article as minimal. 

The Commission  also emphasises that as the minimum prices for sugar-beet 
in question are determined by reference to regional  price differentiation 
in the  Ireland/United Kingdom region the sugar-beet  price applicable in 
Portugal will be greater  than the price applicable  in areas where no 
shortfal I exists. 

.,. 

The Commission  points out that the extent of sugar-beet  production 
remains reduced  (cf. Table  II), despite the transitional  quota 
arrangements applied for some years now. Since the 1987/88 season, 
production has not exceeded 2 000 tonnes. 

Therefore,  in the  light of the above, the Commission  proposes that the 
Council  decide that the alignment  in the prices of sugar-beet should 
coincide with  the alignment  in sugar prices, i.e. from the 1992/93 
marketing year. 

-  22 -

TABLE I 

COMMUNITY  AND PORTUGUESE PRICES  IN THE SUGAR  SECTOR 

86/87  87/88  88/89 

89/90  90/91  91/92  92/93 

(prop.) 

1.  Intervention 
price for 
white sugar 
(ECU/100 kg) 
-  Portugal 
-  EEC(1) 

Difference 
(ECU/100 kg) 

2. Basic  price 
for beet 
(ECU/tonne) 
-  Portugal 
-  EEC(2) 

Difference 
(ECU/tonne) 

50,12  51,00  51.88 
55.39  55.39  55.39 

51.68  52,47  53.35  54.22 
54,22  54,22  54,22 
54,31 

-5,27  -4,39  -3,51 

-2,63  -1,75  -0.87 

0 

43,72  43,72  43,72 
42,46  42,46  42,46 

42,90  42,83  42,83  41,57 
41,57  41,57  41,57 
41,64 

+1,26  +1,26  +1,26 

+1,26 

+1,26  +1.26 

0 

(1) 
(2) 

UK/IRL derived  intervention price. 
Basic price  for beet  Increased  by  the regional  price 
differentiation  in the  Ireland/United Kingdom  area. 

- 23 -

TABLE  11 

Portuoal - Quota and Sugar Production 

(tonnes) 

Mainland Portugal 

Azores 

Portugal 

. total 

Quota 

Prod. 

Quota 

Prod. 

Quota 

Prod. 

1986/87 

60.000 

1987/88 

60.000 

0 

207 

10.000 

4.328 

70.000 

4.328 

10.000 

1.663 

70.000 

1.870 

1988/89 

60.000 

176 

10.000 

839 

70,000 

1.015 

1989/90 

60.000 

656 

10.000 

1.046 

70.000 

1,702 

1990/91 

60.000 

550 

10.000 

1.100 

70.000 

1.650 

1991/92 

60.000 

(150)* 

10.000 

(1.050)* 

70.000 

(1.200)* 

(*)  Provisional  estimate. 

-  24 

-

TABLE  III 

MCE  PP.0P0SALS 1992/93  SUCA* 

for  beet 

Intervention  price 

for  A beet  <1> 
for  B beet W 

7.  Basic  price 
2.  Mini sua price 
3.  Mlnlmia  price 
4. 
5.  Target  price 
6. 
7. 
8. 
9. 
10.  Monthly  relaburseaent  of  storage  costs 

Threshold  price  for  white  sugar 
for  raw sugar 
Intervention  price 
Threshold  price 
Threshold  price 

for  raw sugar 
for  wo lasses 

for  white  sugar 

for  white  sugar 

In  Spain  (*) 

for  beet 

77.  Prices  applicable 
Basic  price 
(a) 
(b) 
Intervention  price 
12.  Prices  applicable 
Basic  price 
(a) 
Intervention  price 
(b) 

for  beet 

for  white  sugar 
In  Portugal  (*) 

for  white  sugar 

1991/92 
Price 

ECU 

1992/93 
Proposal 
ECU 

Change 
% 

t 
t 
t 
q 
q 
q 
q 
q 
q 
q 

t 
q 

t 
q 

40,00 
39,20 
27,20 
53.07 
55.79 
63.90 
43.94 
54.60 
6.89 
0,52 

46.84 
67.29 

42,83 
53.35 

40,00 
39,20 
27,20 
53.07 
55.79 
63.90 
43.94 
54,60 
6,89 
0,52 

46,08 
59,57 

47,57 
54,22 

0 
0 
0 
0 
0 
0 
0 
0 
0 
0 

-  1.6 
'2,8 

-  2.9 
*  7.6 

(1) 

(2) 

(3) 

(4) 

98  X of  the basic price  for beet. 
68  X of  the basic price for  beet, subject  to application of Article 28(5) 
of  Regulation (EEC) No 1785/81. 
Established  in accordance with Council  Regulation (EEC) No  1716/91 of  13 
June  1991  concerning the alignment of  the sugar  and beet prices 
applicable  In Spain on  the common  prices. 
Established  In accordance with Article 238 of  the Act  of Accession after 
alignment  and  including the effect of  regional  differentiation. 

-  *D  -

4. 

OLIVE Qlt 

4.1 

Prices and aids 

4.1.1  In the context of a general  freeze on prices the Commission proposes to 

maintain the target price for olive oil at the same  level as  in 1991/92. 

4.1.2  As was envisaged  In the proposal  for consumption aid for 1991/92 

(COM 91) 366 final) the Commission considers that  in the  light of market 
developments  in the sector  it is appropriate  in future to fix both the 
production aid and the consumption aid at the same time and this year to 
make some transfer  from one aid to the other.  The Council, when It 
agreed on an ECU 7 reduction  In consumption aid for 1991/92 announced Its 
agreement  to this policy, adding that the change should have no effect on 
the budget,  in the  light of the said reduction. 

4.1.3  The Commission proposes an  increase  In the production aid paid to large 

producers of ECU 12/100 kg and a reduction  in the  Intervention price also 
of ECU 12.  This change will have no effect on the  income of producers 
who market  their oil.  In the case of small  producers who consume a large 
proportion or,  in certain cases, all their output, on the farm the 
reduction of the  Intervention price will have  less, or  In some cases, no 
effect on revenue.  Bearing this and the general  policy of favouring 
small  producers  In mind, the Commission  considers that there should be 
some  increase  in the aid paid to small producers but a smaller one than 
Is proposed  for commercial  producers.  Thus the  increase  in the aid 
proposed  for small producers  is ECU 6/100 kg, which will  reduce the 
difference between the aid for small producers and that for  large 
producers to about ECU 8/100 kg. 

4.1.4  As regards consumption aid, the Commission  proposes a reduction of 

ECU 8/100 kg.  Taking  into account  the reduction  in the  intervention 
price, this will enable the representative market price to be reduced by 
ECU 4/100 kg.  This reduction, taking the representative market price 
back part of the way towards the  level prevailing  in 1990/91, reflects 
the change  in market circumstances.  With 1991/92 production having 
recovered sharply from the depressed  level of 1990/91, an  Increase In 
consumption  in the current campaign may be expected but  the 1992/93 
campaign  is likely to begin with stock  levels of a<higher  level than at 
the beginning of this year. 

-  26  -

4.1.5  In addition  to the existing  Institutional  criteria,  it  is also  proposed 

that  deductions  from aid  (for measures  to  Improve  quality,  aid  for 
professional  organizations and promotional  measures) be set on  the basis 
not  only  of  the  tasks allocated  but  also on  the basis of  the  amendments 
proposed  to the aid  and appropriations accumulated  over  previous years. 

4.1.6  With  regard  to consumption  aid  In Spain,  the  reduction  in aid  for  the 
Community  of  Ten will  result  In a smaller  Increase  in Spanish  aid  In 
accordance  with  the rules on  alignment  laid down  in Article  2 of 
Regulation  (EEC) No 3416/90. 

With  regard  to Portugal, there should  be slight  changes  to the  current 
level  of  aid  to consolidate the  level  of  consumption  in the  country. 

An  increase  in production  aid will  be affected  in the  Iberian  peninsula 
through  the normal  alignment  machinery. 

All  the Commission's  proposals  for  the  1992/93 marketing  year  are 
summarized  in the  table.  For  comparison,  the data on which  production 
aid  and  consumption  aid  in the sector  were  based  during  the  1990/91  and 
1991/92 marketing  years are also  shown. 

4.2. 

Related  measures 

In accordance  with  the abovementioned  proposal  of October  1991, the 
Commission  proposes  to the Council  that  Regulation  No  136/66/EEC be 
amended  so  that: 

all  institutional  prices  and  aids  for olive oil  are set 
simultaneously  in the price  package; 

- 

when  the  representative market  price  (and  consumption  aid) are set, 
less weight  is given  than  in the  past  to  the movement  of  seed oil 
prices. 

-  27 

Olive  oil  price  proposals 

(Ecus/100  kg) 

Type  of  price  or  aaount 

90/91 

91/92 

92/93 

1.  Target  price 

for  olive  oil 

322.01 

322,01 

322,01 

2. 

Intervention 

price  EUR-10 

-  Spain 

-  Portugal 

5.  Representative  aarket  price 

for  olive  oil 

6.  Threshold  price 

7.  Production  aid  for  olive  oil 

-  Spain 
-  Portugal 
-  Coaaunlty  of  Ten 

215.87 

215,87 

203,87 

175.12 
207.58 

785.37 
209,65 

184,63 
199,95 

190.28 

197,28 

193,28 

189,11 

194,20 

189,98 

39,61 
35,46 
70.83 

45,85 
42,53 
70,83 

55,10 
52,61 
82,83 

8.  Production  aid  to  olive  growers whose 

average  production 
olive  oil  per  aarketIng  year 

Is 

less  than  500  kg 

-  Spain 
-  Portugal 
-  Coaaunlty  of  Ten 

Consumption aid  applicable 

-  Spain 
-  Portugal 
-  Community of  Ten 

9.  Amounts withheld  on  production  aid 

-  quality 
-  aid  to  producer  organizations  and 

Improvement 

associations 

thereof 

44,36 
40,21 
81,62 

42,93 
47,92 
60,90 

51,81 
48,49 
81,62 

45,67 
49.42 
53.90 

60,76 
58,27 
87,62 

45,75 
48,25 
45,90 

2,0 
7,5 

2.0 
1,5 

1.6  % 
1.2  % 

10.  Amount withheld  on  consumption  aid 

-  promotion  measures 
-  aid  to  trade 

organizations 

4,0 
7.4 

1,0 
1,4 

0.7  % 
2.0  % 

-  28  -

5. 

OILSEEDS AND PROTEIN CROPS 

5.1.  OlIseeds 

The Council  has already taken the necessary decisions on the support 
arrangements for oilseed producers. 

5.2.  Protein Crops (Peas. Field Beans and Sweet Lupins; Dried Fodder) 

For 1992/93 the elements of the existing market organization for protein 
crops should be retained, with no changes. 

5.2.1  Stabilizer Regime: 

The Maximum Guaranteed Quantity  (MGQ) system  is applied to pulses but no 
MGQ  Is applied to dried fodder.  The  level of the MGQ was fixed for an 
initial period of three marketing years, from 1988/89 to 1990/91 and 
extended for the 1991/92 marketing year. 

The current MGQ system, as applied during the  last four maketlng years, 
results  in the Commission making adjustments  In support when production 
exceeds the MGQ. 

The Commission proposes that, for 1992/93 for pulses, the MGQ system be 
maintained unchanged. 

5.2.2  Prices: Peas, field beans, sweet  lupins (pulses) 

Under Articles 2 and 3 of Regulation  (EEC) No 1431/82. the Council  is 
requried to set. annually, various  institutional prices for pulses. 

The Commission proposes that for the 1992/93 marketing year these 
components should be maintained unchanged. 

5.2.3  Prices; Dried fodder 

The Council  is required, under Article 4 of Regulation  (EEC) No 1117/89, 
to set, annually, a guide price for dried fodder.  The Commission 
proposes that  the dried fodder guide price for the *\992/93 marketing year 
will be maintained unchanged. 

The coefficient  to be used  in the calculation of the aid has already been 
fixed by the Council at 80X for the 1992/93 marketing year. 

5.3.  Other protein crops; Lentils, chick peas and vetches 

In Regulation  (EEC) No 762/89 the Council  introduced a per hectare based 
aid system for the growers of  lentils, chick peas and vetches, which will 
expire on 30.6.1992.  It is proposed to extend this aid system until the 
end of the 1992/93 marketing year, and maintain the aid at ECU 75/ha. 

- 29 -

6. 

TEXTILE  FIBRES 

6.1 

Cotton 

6.1.1  Pursuant  to Article 3(2) of Regulation  (EEC) No 1964/87<1>, the 

Commission  presents  In Annex  I a report on the operation of the aid 
system  for cotton together with a proposal  for adapting  this system. 

6.1.2. Under  paragraph 8 of Protocol  No 4, a guide price  Is fixed each year by 
the Council  In order  to support cotton production  In Community  regions 
where  it  is Important  to the agricultural economy  and  to enable producers 
to earn a fair  income. 

In the  light of the proposals for the chief alternative crops, and taking 
Into account  the conclusions of the attached  report,  it  is proposed that 
the guide price be maintained  for 1992/93, subject, however, to a 
technical  adjustment  resulting  from the change proposed  to the standard 
quality.  It would be appropriate for the standard  quality to be brought 
into  line with  the quality of cotton effectively marketed  In the 
Community^2).  In order  to avoid a drop  In operators'  Income and not at 
the same time  increase EAGGF expenditure, the guide price for 1992/93 
should be raised  to ECU 102.79/100 kg. 

6.1.3  Under Article 9 of Council  Regulation  (EEC) No 2169/81, a minimum price 
for unginned cotton has to be fixed each year  at a  level which enables 
producers  to sell at a price as close as possible  to the guide price. 

For  1991/92 the Council  fixed the minimum  price for unginned cotton at 
95X of  the guide price.  The differential  between  the guide price and the 
minimum  price, which serves to maintain  the necessary market  fluidity, 
has not given rise to problems.  It  is therefore proposed  that the 
minimum  price for unginned cotton for 1992/93 also be fixed at 95X of the 
(adjusted) guide price.  I.e. at ECU 97.65/100 kg. 

6  1.4  As explained  in the report,  it i 

regime but  to  limit  the size of 
the course of a season, with any 
into the following season.  This 
a better  assurance of the price 
diminishing  the  long-term effect 
order  to give producers greater 
guaranteed  quantity be fixed for 
annually.  The figure proposed I 
figure as  last year but adapted 
standard qualIty. 

s proposed  to continue  the stabiliser 
the price reductions which may be made in 
excess beyond  that  limit carried  forward 
amendment  is designed  to give producers 
they will  receive  in any year but without 
iveness of  the stabilizer.  Also, in 
security,  it  is proposed  that  the maximum 

a period of  four years rather  than 

s 701 000 tonnes, effectively  the same 
to take account  of  the change  in the 

6.1.5  It  is proposed  that  the programme  for small  producers  (less than 2.5 ha) 

be extended  by four marketing years. 

(1) 
(2) 

0J No L 184, 3.7.1987, p. 14. 
This  improvement  in the standard quality  leads to a proportional 
reduction  in the quantity eligible  for aid. 

- 30 -

6.2.  Fibre flax 

Under Article 4 of Regulation  (EEC) No 1308/70<1>, a flat rate of aid 
per hectare has to be fixed each year for fibre flax to ensure an even 
balance between the necessary production and the scope for disposal.  For 
1991/92 the aid was fixed at ECU 374.36/ha, of which ECU 37.44/ha was not 
paid to the beneficiaries but earmarked  for funding promotional measures 
and the search for new markets.  Areas under  fibre flax  in the Community 
have risen  In recent years (78 900 ha  In 1990 and 1989, 73 000 in 1988, 
67 000  In 1987), which has led to a sharp drop  in flax straw prices and 
In producers' income.  To counter this market  imbalance, the areas under 
fibre flax  in the Community fell  in 1991 to reach only 55 100 ha (-30X) 
and a further decline  Is expected for 1992.  Production of flax fibre 
should consequently go down substantially  In order  to reach a new 
balance.  In view of the current and foreseeable situation on the market, 
aid of ECU 374.36/ha  is proposed also for 1992/93.  Furthermore, as far 
as the deduction of the aid for promotional measures  is concerned,  It is 
proposed  that  it be kept at 10X of the aid,  i.e. again at ECU 37.44/ha. 
Such promotional measures are necessary  to ensure the desired market 
equilibrium  in the  longer term. 

6.3. 

Flax seed 

Under Article 1 of Regulation  (EEC) No 569/76(2), the Council  fixes a 
guide price each year for flax seed  In order  to ensure a fair  income for 
producers. 

The guide price for the Community of Ten and Portugal was fixed at 
ECU 54.49/100 kg for 1991/92.  It Is proposed  that  for 1992/93 the price 
should again be fixed at ECU 54.49/100 kg for these Member States. 

6.3.2  In the  light of the proposals for alternative crops, keeping the guide 

price the same for flax seed should allow the cultivation of seed flax to 
be maintained, at  least  in production areas where suitable yields can be 
obtained.  In the case of flax seed obtained  from fibre flax, the 
proposed price should ensure a fair  Income for producers, given the 
foreseeable  recovery of the market price for flax straw and the  level of 
the flat-rate aid granted per hectare. 

6.3.3  In accordance with Article 93 of the Act of Accession of Spain and 

Portugal  it  is proposed  that the guide price for Spain be set at 
ECU 51.67/100 kg. 

(1) 
(2) 

0J No L 146, 4.7.1970, p. 1. 
0J No L 67, 15.3.1976, p. 29. 

- 31 -

6.3.4  Although no changes are proposed  in the  linseed scheme this year, the 

Commission  recognises that  It is anomalous that this oilseed  is subject 
neither  to the maximum guaranteed area system currently applying to other 
oilseeds nor to the set aside requirement  to which the producers of other 
oilseeds will be subject under the proposed new support system for 
producers of arabel crops.  A choice between these alternatives can best 
be made once the new support system for producers of arable crops has 
been adopted but the Commission wishes to take the opportunity of, 
accounclng to linseed producers that unless by the end of this calendar 
year the Iinseed has been taken  Into the proposed support system for 
arable crops  it will, from 1993/94 onwards be subject  to a maximum 
guaranteed area system based on the area sown  in 1991/92.  Under this 
system the aid will be reduced by 0.5X for each 1X Increase  In the 
planted area compared with the base year. 

6.4.  Hemp 

6.4.1  Under Article 4 of Regulation (EEC) No 1308/70, a flat rate of aid per 
hectare has to be fixed for hemp to ensure an even balance between the 
necessary production and the scope for disposal. 

For 1991/92, the aid was fixed at ECU 339.42/ha. 
For 1992/93, It Is proposed to keep the aid at  Its present  level. 

6.4.2  The Commission considers that, given the forseeable trend  in prices for 

fibres and seeds, on the one hand, and the  level of the aid for hemp seed 
as well as the prices for other crops, on the other, the proposed flat-
rate aid should enable producers' Incomes and the areas sown to be 
maintained. 

6.5.  Hemp seed 

Article 1 of Regulation (EEC) No 3698/880) provides that aid  Is to be 
fixed each year for hemp seed at a level which  Is fair to producers and 
takes account of the Community's supply requirements. 

For the 1991/92 marketing year, the aid was fixed at ECU 24.59/100 kg. 
It is proposed that for 1992/93 the aid be maintained at  its present 
level. 

• 

(1) 

OJ No L 325, 29.11.1988, p. 2. 

-  d*  -

6.6.  SiIkworms 

Article 2 of Regulation  (EEC) No 845/72<2) provides that aid  is to be 
fixed each year per box of silkworm eggs used, at a  level which helps to 
ensure a fair  Income for silkworm rearers. 

For 1991/92, the aid was fixed at ECU 111.81/box.  For 1992/93  it Is 
proposed  In view of the current and foreseeable prices for raw silk that 
It remain unchanged at ECU 111.81/box. 

(2) 

OJ No L 100, 27.4.1972, p. 1 

5) 

-  33 -

7. 

WINE 

7.1.  Prices 

The Commission  proposes to maintain the same guide price  In 1992/93 as In 
1991/92. 

7.2. 

Related measures 

The Commission  Intends to present  proposals  in the course of this year 
for the reform of  the common organization for wine. - However,  it does not 
consider  It opportune  to open this discussion whilst  the attention of the 
Council  Is concentrated on the major series of reform already  proposed  in 
other  areas of  the common agricultural  policy.  It therefore proposes to 
extend certain deadlines set out  In existing  legislation, that  is to say: 

the submission of reports on the definition of wine-growing zones, 
enrichment, the effectiveness of structural  measures on  compulsory 
distillation, the sulphur  dioxide content  of wine, sparkling wine 
and dessert  wine  (in preparation) and measures to enable groups of 
producers to be treated  in the same way as producers  for  compulsory 
distillation contracts; 

determination of the rules for calculating  the quantities  to be 
distilled  in each production  region  (uniform percentage and 
reference year), agreed  to following  the Dublin agreement  but held 
over until  31 August  1992, and  the derogation given  to allow the 
compulsory  distillation scheme  to be applied according  to special 
rules  in Greece; 

setting of  the trial  period  for certain deacidification practices 
soon to expire; 

fixing of  the period during which  that  part of  the aid  intended to 
promote  the use of grape must  for  the production of  Juice may be 
earmarked  for  the promotion of grape  Juice  (already  extended  last 
year until  31 August  1992). 

- 34 -

8. 

FRUIT AND VEGETABLES 

8.1.  Basic and buy Ino-In prices 

Pursuant  to Article 16 of Council Regulation  (EEC) No 1035/72 on the 
common organization of the market  In fruit and vegetables, each year the 
Commission proposes a basic price and a buying-in price for each of the 
products  listed  In Annex  II to the said Regulation, namely cauliflowers, 
apricots, nectarines, peaches, lemons, tomatoes, aubergines, pears, table 
grapes, apples, satsumas, mandarins, Clementines and oranges. 

It Is proposed  that the basic and buying-In prices of all products be 
kept at their present  level.  The Commission will draw the necessary 
consequences of any overshooting of the  intervention thresholds once the 
final  level of withdrawals during the 1991/92 marketing year  is known. 

In the case of Spain and Portugal, the prices will be further aligned In 
accordance with Articles 149 and 285 of the Act of Accession.  This Is 
the third alignment  for Spain and the second for Portugal. 

8.2. 

Intervention  thresholds 

The  intervention threshold  for apples  Is now set until  the end of the 
1991/92 marketing year.  With a view to ensuring the market equilibrium 
in this sector,  it Is proposed that this threshold be made permanent and 
at the rate  in force for the 1991/92 marketing year, namely 3X of the 
average production  for consumption as fresh fruit pertaining over the 
last five marketing years for which figures are available. 

8.3.  Processed  fruit  and vegetables 

The system of quotas for processed  tomatoes which has applied for the 
past  four years expires at the end of this season and the previous 
guarantee threshold system will automatically come back  into force.  Many 
in the  industry prefer  the certainty of a quota system and the Commission 
recognises that  it does have many advantages.  It  is too  late to disturb 
the  legitimate expectations that quotas will not apply  this year but the 
Commission  is prepared  to propose their re introduction next year based on 
previous  levels, not on production  in 1992/93.  In 'the meantime,  in order 
to avoid a sudden  increase  In expenditure arising from the non-
application of a quota system this year and to avoid a conflict between 
the two systems next year, the Commission  proposes that any aid reduction 
which may be needed as a result of the threshold being exceeded  this year 
will  apply this year rather  than next. 

- 35 -

9. 

TOBACCO 

9.1.  As the proposed reform of this regime cannot now be applied to the 1992 
crop, the Commission proposes to extend unchanged  the 1991  levels of the 
norm and  intervention prices, premiums, derived  intervention prices, 
refrence qualities and production areas.  Prices also remain unchanged 
for certain problematic varieties where the specific price reductions 
decided  In the past have to be continued. 

9.2.  For certain varieties, however, the proportion of the  lowest grade 

acceptable for  intervention which  is purchased by processors has risen to 
levels at which, under existing rules, the  lowest grade should now become 
the representative one.  The full application of this rule would, 
however, have a more drastic effect on the level of premla paid for these 
varieties than  Is reasonable  In the context of this final year of the 
existing regime.  As an  interim measure, therefore, a premium reduction 
will be applied  in cases where a processor purchases more than a given 
percentage of the  lowest quality.  This measure will have no effect on 
the minimum price payable to the producer. 

9.3.  Furthermore, according to Article 13 of Regulation (EEC) No 727/70 the 

Commission  presents  In Annex  II a report on the situation of production 
and marketing of certain varieties of tobacco. 

-  36 -

10. 

MILK AND MILK PRODUCTS 

10.1.  Prices 

The Commission proposes to maintain  In 1992/93 the same  level of target 
and  Intervention prices as  In 1991/92.  This proposal  assumes that the 
Council will  decide to continue the milk quota system, as the Commission 
has already proposed. 

10.2.  Price alignment  in Spain and Portugal 

In accordance with the rules of the Treaty of Accession  (Article 70(3)), 
the Commission proposes that the common  intervention prices for butter 
and skimmed-milk powder should be applied  in Spain.  For Portugal, the 
common  intervention price for butter has already been applied since the 
beginning of the 1991/92 marketing year.  For skimmed-milk powder the 
Commission proposes, as provided for  In the Treaty of Accession, that the 
difference  in price between the Azores and mainland Portugal  should be 
eliminated and therefore that the current  Intervention price  in the 
Azores should be applied to Portugal  as a whole. 

10.3.  CoresDonslblilty  lew 

Taking  Into account  the serious budgetary situation and the general 
context of maintaining  the existing price  level, the coresponsiblIty levy 
must  be maintained  at  its present  level. 

10.4.  Quotas 

The existing quota regime expires on 1 April  1992.  Proposals for quotas 
from that date onwards have been presented  In the context of the reform 
of the common agricultural  policy.  The proposal  to maintain prices at 
the same  level as  in 1991/92 presupposes that  the Council  will  reach 
decisions on the basis of these proposals before 1 April.  It would be 
quite  impossible to maintain support prices without  limits on quantities. 

10.5.  Inward processing 

Inward processing  Is currently suspended  in the milk sector, with a 
specific exemption  for certain products.  The Commission  proposes that 
both this suspension and the exemption should continue  In 1992/93. 

-  37  -

11- 

BEEF  AND  VEAL 

11.1.  Community  prices 

It  is proposed  to maintain  the guide price  at  the same  level  as  in 
1991/92,  I.e. at  ECU  200/100 kg  llveweight.  It  Is also proposed  to 
maintain  the  intervention  price at  ECU  343/100 kg carcase weight  for 
qua Iity R3. 

11.2.  Public  intervention 

Whilst  the Council  reaches decisions on  the  reform  it  is proposed  not  to 
adapt  the existing  Council  rules. 

11.3.  Promt a. 

No change  for  the special  beef premium  Is proposed,  compared  to  Its  level 
in 1991/92,  i.e. ECU  40 per  animal  (with an unchanged  maximum  of  90 
animals).  As  regards  the suckler  cow premium,  the  level  should  be  fixed 
at  the  level  existing  in 1990/91  (exclusive  of  the once-off  increase 
decided  for  1991/92),  I.e. ECU 40/cow  (without  headage  limit); with  the 
possibility  of  a national  supplement  subject  to a maximum  ECU  25/cow;  and 
the  associated  provision  for  payment  by  EAGGF  of  the  first  ECU  20/cow of 
this national  supplement  in the case of  Greece,  Ireland,  and  the  United 
Kingdom  insofar  as Northern  Ireland  Is  concerned. 

11.4.  The  Commission  remains  concerned  at  the continuing  difficulties  In the 

beef  sector  as reflected  by heavy  intervention  purchasing  and  low prices 
to producers.  Accordingly,  It expects early decisions  by  the Council  in 
the  reform  context  to redress current  trends.  The Commission  will 
continue  to monitor' the situation  closely  and,  in the absence of  the 
necessary  Council  decisions on  reform  of  the sector,  reserves  the  right 
to bring  forward  proposals  to deal  with  the situation  in the event  of a 
further  deterioration  in the market. 

-  38 -

12. 

SHEEPMEAT AND GOATMEAT 

12.1.  Institutional prices for the 1992 marketing year were fixed  in the 

1991/92 price package. 

As regards  institutional prices for 1993 the Commission wishes to stress 
that within  Its proposals for the reform of the sector  the application of 
the stabilizer mechanism  is to be frozen at 7X  (Its 1990  level).  This, 
together with the  introduction of a  limited producer guarantee for 
premium purposes and the reduction of 2X  In the basic price fixed by the 
Council  for the 1992 marketing year, should  limit the development of 
production. The Commission  therefore considers that  Its cautious 
Institutional price policy should be continued.  Under  these circumstance 
It proposes to maintain the basic price unaltered for 1993.  However, 
should  the Council  fail  to adopt  Its reform proposals, the Commission 
reserves the right  to make further proposals with  respect  to the 1993 
institutional prices. 

12.2.  In the context of the reform of the sheep sector, which has operated 

since  1990, the opening of private storage measures  is dependent  on the 
level of  the weekly seasonal!zed basic price.  However, because of the 
importance of the variable slaughter  premium  in Great  Britain, 
particularly  in budgetary  terms, the seasonal  scale of the basic price 
has been  influenced  since then more by the requirements of  the slaughter 
premium  than by those of private storage.  Since the variable slaughter 
premium no  longer applies  in Great  Britain,  it  is now opportune  to adjust 
the seasonal  scale so as to  improve  Its application  insofar  as private 
storage  Is concerned. 

12.3.  Sheepmeat  production throughout  the Community  tends towards two seasonal 

peaks, the first  in late winter  and spring  in southern parts and the 
second  in mid-summer  and autumn  in northern parts of  the Community.  Peak 
production  in the south  in spring  is relatively  high cost  as  it is 
dependent  on cereal  feeding while peak production  in the north  is less so 
as  it  is generally  grass based.  In order  to provide a reasonable measure 
of market  support  at peak production periods throughout  the Community 
while at  the same time taking some account of differing production costs, 
it  is proposed  to maintain  the overall  shape of  the seasonal  scale. 
Nevertheless,  it  Is felt  that  the extent of  the  increase or decrease in 
the seasonalized price  in comparison  to the basic price  itself should be 
reduced  considerably  from the  levels associated with  the variable 
slaughter  premium  in order  to take  Into account  the abovementioned 
differences  in peak production  throughout  the Community.  Therefore, it 
is proposed  that  the peak and trough  levels of  the 1992 seasonalized 
basic price be reduced by 25X.  Experience gained  to date  in the 
operation of  the tendering  system  for aid  to private storage would 
suggest  that eligibility  for  tendering would not  change significantly, 
consequent  to such an alteration  in the seasonal  scale. 

- 39 -

13. 

PIGMEAT 

Basic price 

The basic Regulation for pigmeat provides for the fixation of a basic 
price, the aim of which  Is to trigger market  Intervention measures (in 
practice, aids to private storage).  Such measures may be  Initiated when 
the average market price in the Community  falls below 103X of the basic 
price.  The basic price  is In force from 1 July to 30 June. 

From 1 November  1984 to June 1990 the basic price for pig carcases of 
standard quality stood at ECU 2.033.30 per tonne, and for the period 
July 9190 to June 1992 has been fixed at ECU 1.897.00 per tonne. 

it is proposed to maintain this level for the marketing year 1992/93. 

The definition of standard quality should remain at: 

(a)  carcase weighing 60 kg to less than 120 kg: grade U, 
(b)  carcase weighing 10 kg to 180kg: grade R. 

- 40 -

ANNEX t 

Report on the on«rntjQn of the system of aid for cotton 

(to be submitted to the Council by the Commission) 

1.  introduction 

Article 3(2) of Regulation (EEC) No 1964/87(1) provides that by the 
1992/93 marketing year at the latest, the Commission  Is to submit a report 
on the operation of the system of aid to the Council. If the report shows 
it to be necessary, the Council  Is to decide on any adjustments to the 
system. 

2.  Basic provisions of the system of aid for cotton 

A.  The system of production aid  Introduced for cotton by Protocol No 4 annexed 

to the Act of Accession of Greece and adjusted by Regulation (EEC) 
No 1964/87 provides basically for: 

(1) the granting of aid  In respect of a quantity of cotton of a certain 

quality  (standard quality); 

(2) the calculation of the aid on the basis of the difference between a 

norm price and a world market price fixed for unginned cotton (raw 
cotton) with a view to permitting the disposal of Community production 
at the world price;*2) 

(3) the granting of aid to ginning plants provided they have paid the 

producer a minimum price which  Is close to the norm price and takes 
account of the quality of the product  delivered; 

(4) a reduction  in the aid where production exceeds a maximum guaranteed 

quantity  (MGQ). 

(1)  Council  Regulation  (EEC) No 1964/87 adjusting the system of aid for cotton 

(OJ No L 184, 3.7.1987, p. 14). 

(2)  The report annexed  to the 1987/88 price package says that the Commission 

drew the Council's attention  in particular  to the problems  inherent In 
granting aid for unginned cotton (basically the  lack of prices for seed and 
the difficulty of assessing the cost of ginning). Noting  in addition that 
the difficulties  It experienced  in calculating the aid stemmed almost 
exclusively  from those components of the calculation not related to fibre, 
the Commission proposed to grant  the aid  In respect of the  latter. However, 
the Council did not endorse the Commission's conclusions. Noting now that 
since that  time these problems have persisted but not worsened and  In the 
light also of experience with oilseeds (soya panel), the Commission is 
refraining from proposing such an amendment  again. 

- 41 -

B. 

In addition to this system of production aid,  In 1990<1) the Council 
introduced a system of aid for small cotton producers (cultivating up to 
2.5 hectares) for the 1989/90, 1990/91 and 1991/92 marketing years to allow 
them to recover the additional costs of manual harvesting.  (They are 
unable to undertake mechanical  harvesting owing to the small size of their 
holdings.)  It appears from the development of the area cultivated by small 
producers that the additional aid granted was too attractive by comparison 
with the aid granted to other producers.  However, the effect of the 
Increase  in the area planted by small producers has been to diminish the 
aid, thus moving the scheme closer to an equilibrium and the Commission 
therefore proposes to extend  It unchanged. 

3.  The way the system of aid operates 

While  It permits reasonable expansion of Community  cotton cultivation, the 
present aid system has curbed excessive growth  In production, thus limiting 
EAGGF Guarantee expenditure on cotton and safegarding traditional 
deliveries from non-member  countries, which  Include some developing 
countr ies. 

(a) Firstly, during the three years preceding accession, areas under cotton 
amounted on average to 148 600 ha  in Greece and 54 700 ha  in Spain 
compared with 260 300 ha and 76 700 ha respectively on average during 
the period 1989 to 1991. In addition, areas under cotton  In these two 
countries, which amounted to 273 100 ha before Spain's accession and 
rose to 391 700 ha  in 1988/89, fell back from 1989/90 to 311 500 ha In 
1991/92 (Table  I). During the last five marketing years, aid for cotton 
fell on average by 14.6% (ECU 14.584/100 kg) as a result of the 
co-responsibility arrangements, thus reducing the average norm price to 
ECU 81.372/100 kg (Table  II). Community  cotton production, which rose 
substantially until  1988/89 (1 190 000 tonnes), subsequently declined 
to 850 000 tonnes (estimate) in 1991/92. 

During the period under consideration, average production was around 
1 million tonnes (1 009 000 tonnes). 

(1)  Regulation  (EEC) No 1152/90  Instituting a system of aid  in favour of small 

cotton producers  (OJ No L 116, 8.5.1990, p. 1). 

- 42 -

(b) Secondly, as regards the financial consequences of the 

co-responsibility arrangements, savings amount  In total to ECU 766 
million for the period 1987/88 to 1991/92. or ECU 153 million on 
average per marketing year  (Table  III). 

(c) As regards trade, Imports of cotton fibres Into the Community  In 1990 

were only slightly down on those  In 1986 and are still above 1 million 
tonnes (Table  IV), deliveries from Spain and  in particular  from Greece 
to both other Member States and non-member  countries did not fall 
(Table V) and the Community's self-sufficiency rate  Is only around 25X 
(Table VI). 

To conclude, experience gained since the 1987 change to the aid system 
Indicates that the  latter has operated satisfactory. For these reasons the 
Commission considers that the present system should be maintained, subject 
to certain technical adjustments to Improve the way  It functions. 

Before the 1996/97 marketing year, the Commission will submit a report to 
the Council on the future arrangements for cotton  in light of experience 
gained  in this area after the changes proposed below and after the 
introduction of the system contemplated  for major crops under the reform of 
the CAP. 

4.  Proposed changes 

A.  Stabilizer  arrangements 

While considering  that the stabilizer  arrangements have basically achieved 
their objectives, the Commission points out  that  In the framework of the 
discussions on the agricultural price proposals for 1991/92 the Council 
called on the Commission  "in the context of the upcoming revision of the 
stabilizer  for cotton, to see what measures would be appropriate for 
protecting producers against  the very substantial price fluctuations 
between one season and the next, without  thereby  Jeopardizing  the economic 
effectiveness of the system. 

The Commission  Is aware of the fact that the reduction varies greatly, 
which  Introduces great uncertainty as regards anticipated  income. During 
the period under consideration, the reduction varied'between 6X and 25X 
(Table VII); this figure would have been even higher  if a buffer had not 
existed. 

The present system, which  Is based on the calculation of estimated 
production and actual production, has not affected  the way the aid system, 
has functioned despite the differences sometimes recorded between those two 
components. 

- 43 -

Lastly, the present stabilizer arrangements provide for annual  fixing of 
the MGQ.  Although a maximum of 752 000 tonnes has always been used, this 
annual  fixing  is an additional source of uncertainty among producers. 

Under  these circumstances, to remedy the abovementioned drawbacks. It Is 
proposed: 

1.  to discontinue the annual  fixing of the MGQ; 

2.  to discontinue the progressive reductions  In bands where the MGQ Is 
exceeded but to fix a reduction resulting from the app11 cat Ion of a 
coefficient calculated on the basis of the overrun  in the MGQ; that 
coefficient  Is to be calculated so as to bring about a reduction 
comparable with the present reduction but more equitable  In the case of 
production  levels which are close to the present band of 15 000 tonnes; 

3.  to limit the reduction applicable to a marketing year to 20X while 

carrying over that part of the reduction above the 20X maximum to the 
following marketing year; such a change should provide greater 
stability for the stabilizer arrangements; 

4.  to make the MGQ equal  to 701 000 tonnes  In order  to ensure budget 

neutrality.  In view of the change  in the standard quality (see B(a) 
below). 

B.  Other chances 

(a) Determination of the standard quality 

Determining  the quantity of cotton eligible for the aid requires taking 
a sample  to record the  Impurities and moisture content  in order to 
adjust  the weight  as such of the cotton placed under supervision, 
taking account of the difference compared with a standard quality (3X 
inorganic  impurities and 14% moisture, the organic  impurities content 
not being taken  into account). 

The standard quality used has turned out  to be very different  from the 
actual  quality of cotton produced  (around 3% impurities  including 1% 
Inorganic  impurities and 10X moisture).  Substantial  adjustments to the 
contract price and to the quantity of product eligible for aid were 
therefore necessary  (Table VIII). 

Furthermore, as organic  impurities are not  taken  into account, the 
producers were not encouraged  to produce clean cotton, to the detriment 
of the quality of product  delivered. 

Under  these circumstances the Commission proposes the following 
standard quality: 3% impurities and 10X moisture, which results  in a 
reduction of 6.74x1  in the quantity eligible for aid. 

100 - (1 • 10) 

100 - (3 • 10) 

100 - (3 + 14) 

100 - (3 • 10) 

- 44 -

(b) Fixing the aid after the event 

While the Commission considers that despite the  lack of  intervention or 
other measures to facilitate disposal, the  latter has not posed major 
problems. It nevertheless notes that glnners who were not able to sell 
fibres on placing under supervision, the latest time  limit for the 
submission of aid applications, receive  Insufficient aid where there Is 
a fall  in the world price. By  introducing the possibility of applying 
for the aid after placing under supervision, the problem would be 
so Ived. 

5.  This report  Is accompanied by a proposal  for a Council Regulation: 

- 

- 

adapting for the second time the system of aid for cotton; 
amending Regulation  (EEC) No 2169/81  laying down the general rules for 
the system of aid for cotton (the aim of these two proposals  is to 
amend the stabilizer arrangements  In line with point 4.A. above); 

amending Regulation (EEC) No 1152/90 instituting a system of aid In 
favour of small cotton producers (the aim of this proposal  Is to extend 
the arrangements as  indicated  In point 2.B. above). 

- 45 -

TABLE 

L 

Change  In Coaaunltv areas  under cotton  (ha) 

GREECE 

SPAIM 

ITALY 

TOTAL 

1978/79 
1979/80 
1980/81 
9  1978/80 

1981/82 
1982/83 
1983/84 
1984/85 
1985/86 
i  1983/85 

1986/87 
1987/88 
1988/89 

1989/90 
1990/91 
1991/92 
9  1989/91 

168.232 
136.354 
141.060 
148.549 

126.300 
137.300 
168.000 
192.000 
209.000 

210.000 
202.000 
256.000 

280.000 
268.000 
233.000 

148.549 

54.657 

39.606 
60.313 
64.052 

80.583 
87.306 
735.473 

67.829 
83.881 
78.496 

260.333 

76.735 

273.052 

290.616 
283.561 
391.639 

347.922 
351.881 
311.496 
337.068 

33 
255 
166 

93 
-
-

T A 8 I E 

II 

MCO 

Product Ion 

Overrun 

Theoretlcol  reduction 

(without  carryover) 

(t< 

(tonnes) 

(tonnes) 

X 

|  EfcU/100  ko 

+ 

T 

T 

A d j u s t ed 

n o rm  price 

E C U / 1 00  kg 

Small  producers 

(ECU/100  ko) 

Aid 

Adjue. price 

1997/99 

792.000 

979.000 

123.909 

9 

| 

9.842 

87.378 

1999/99 

792.000 

1.199.998 

437.998 

20(30)  | 

19.204 

78.818 

0 

1999/90 

792.000 

1.099.947 

348.947 

24 

|  23.04S 

72.979 

9.248 

792.000 

991.743 

239.743 

18 

| 

19.338 

90.922 

8.038 

83.378 

78,818 

81.221 

88.998 

792.000 

999.912) 

139.912 

10 

| 

9,999 

99.274 

8.038<#> 

92,310 

792.000 

1.009.939 

299.933 

IS.9 

| 

19.193 

90.793 

4.084<»> 

84,897 

1990/91 

1991/92 

• 

(•)  Estimate 

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ft 
kl 

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8 8 88  8 

CM  SO  <* 

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§ 2 § gS 

5  9 S 8  8 

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8  8  3  8 :: 
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ki 

: 

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• 
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« 
CM  so  CM  K 

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Q  CM  Ok  P.  Q 
a 
n  N  a  M 
«»  K  so  co  *-

in  <o  51 

°« w  "l ** **". 

•^  SO  *0  SO  CM 

8  2  2  2  8 
»n  so  ok  CM  S 
£  8  8  8  5 

2SL5  §3 
8  §2  88 

•-  CM  CM  •-  CM 

m  p»  co  «e>  co 
p*  e>  CM 
co  so  CM  so 

S Q 
3 5  P*  so 

CM  O 

8 

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Ok  Ok  O* 

«  N  q  s 
o 
co  co  co  eo  ok 
ft 
O  O  O  O 

- 49 -

r  * g LC  y 

Deliveries  of  cotton fibres  (tonnes) 

GREECE 

SPAIM 

Intra  EC-10 

Extra  EC-10 

florid 

Intra  EC-10 

Extra  EC-10 

tor  Id 

1.518 
1.130 
5.617 
7.532 
427 

7.765 
16.407 
17.288 
27.431 
37.770 

9.283 
17.537 
22.905 
34.963 
38.197 

8.633 
24.143 

1.463 
8.325 

10.096 
32.463 

Intra  EC-12 

Extra EC-12 

World 

Intra  EC-12 

Extra  EC-12 

lorld 

14.956 
44.999 
4.355 
41.821 
19.468 

11.927 
43.594 
36.793 
66.742 
49.663 

26.883 
88.593 
41.448 
108.563 
69.150 

18.807 
19.240 
18.460 
42.474 
14.534 

5.895 
7.742 
8.736 
.  11.702 
7.579 

24.702 
26.982 
27.222 
54.176 
22.647 

1981 
1982 
1983 
1984 
1985 

1986 
1987 
1988 
1989 
1990 

Source 

:  EUROSTAT-COMEXT 

- 50 -

T A B L g 

VI 

EC self-sufficiency rate  in cotton fibres 

Production 

Exports 

Imports 

Apparent 
consumption 

Self-
suffi 
ciency 
rate 

t 

t 

t 

t 

1987 

280.195 

56.742 

1.201.837 

1.425.290 

1988 

380.757 

55.593 

1.017.376 

1.342.540 

1989 

351.535 

89.910 

1.028.266 

1.289.891 

1990 

317.374 

72.130 

1.005.528 

1.250.772 

% 

20 

28 

27 

25 

9 

332.465 

68.594 

1.063.252 

1.327.123 

25 

Source  : EC Commission. DG VI 

-  51  -

T A B LE 

V II 

Estimated  ond  octuol  Cc—unlty  unglnnod  cotton  production 

Production (t) 

Reduction X 

Eattatatod 

Actual 

Olfforonco 

Actual 

Thoorotlcol 

828.850 

875.608 

+ 46.758 

1.086.902 

1.189.866 

«f 102.964 

1.009.119 

1.098.547 

1.035.279 

991.743 

+ 89.428 

-  66.508 

888.912 

(1) 

850.000 

(1)  - 38.912 

6 

20 

18 

25 

7 

9 

20 

24 

16 

7 

15.2 

15.2 

1987/88 

1988/89 

1989/90 

1990/91 

1991/92 

0 

(1)  E»tlmot« 

- 52 -

T A B L E  V  I I I 

Total  quality and quantity eligible for aid 

GREECE 

SPAIN 

1982/83 
1983/84 
1984/85 
1985/86 
1986/87 
1987/88 
1988/89 
1989/90 
1990/91 

average 1986/87-1990/91 

1.055 
1.064 
1,064 
1.066 
1.064 
1,051 
1,075 
1,070 
1.071 
1,066 

1,080 
1,085 
1,103 
1,113 
1.115 
1,099 

- 53 -

ANNEX  II 

Commission report to the Council 
on the situation with regard to the production 
and marketing of certain varieties of. tobacco 

1. Article 13(1) of Council Regulation (EEC) No 727/70 of 21 April 1970 on 
the common organization of the market  In raw tobacco  lays down that 
where, for a variety or a group of varieties, the quantities taken over 
by the  Intervention agencies exceed, or seem  likely to exceed, a stated 
percentage of the production for two successive crops, and  In any case a 
stated quantity  (see the Annex to Regulation  (EEC) No 1469/70), the 
Commission  is to submit to the Council a report and proposals for 
measures to bring about a better balance between production and demand 
and to reduce stocks and. If necessary, for measures to enable a 
reasonable standard of  living to be maintained  for producers.  Pursuant 
to paragraph 2 of the same Article, the measures  In question are to be 
implemented when  It is apparent  that for a given single crop the 
extension of cultivated areas Is the main cause of the percentages 
and/or quantities being exceeded. 

2. The  information available regarding  Intervention stocks relates to the 
1988 and 1989 crops and points to large quantities being offered for 
intervention  (see Annex  I). 

For three varieties the quantities presented for  Intervention exceeded 
the quantity  for a single crop as referred to  in Article 13 and for ten 
varieties the quantities presented  for  intervention exceed the quantity 
stated  for two successive crops (1988 and 1989) as referred to In 
Article 13. 

Among  the varieties concerned, three have already been the subject of 
Article 13 measures.  These are the varieties hybrids of Badischer 
Geuder the inter, Tsebelia and Mavra. 

For these three varieties, the quantities presented  for  intervention for 
one or two years were massive (the  limit being exceeded by 600X to 
1260%), and the MGQs were also vastly exceeded  (by up to 1000%). 

-  54  -

3. Production of the variety Badlscher Geudertheimer  In Italy  In 1989 
totalled 85 321 tonnes, compared with an MGQ of 7 700 tonnes.  This 
situation  led the Council  to take four measures concerning this variety. 

(a)  For the 1989 crop, on the basis of the special measures provided 
for  in Article 13 of Council Regulation (EEC) No 727/70 the 
lowering of the  intervention price for variety No 1 (Badlscher 
Geudertheimer and hybrids thereof) to 75% of the norm price 
(Council Regulation (EEC) No 1330/90 of 14 May  1990). 

(b)  For the 1990 crop the reclassification of variety No 1 Badlscher 

Geudertheimer grown  in Italy under variety 11 with the designation 
hybrids  of Badlscher Geudertheimer, along with, among others, the 
variety Forchheimer Havanna, leading to a 25% cut  in the premium 
and a 35% cut  In the  Intervention price (Council Regulation (EEC) 
No 1331/90 of 14 May  1990). 

(c)  From the 1990 crop the reduction of the percentage of the 

production of tobacco presented  for  intervention triggering the 
measures provided for  In Article 13(5) of Council Regulation (EEC) 
No 727/70 from 115 to 110% (Council  Regulation  (EEC) No 1332/90 of 
14 May  1990). 

(d)  For the 1991 crop an additional  13% cut  in the prices and premiums 

(Council Regulation (EEC) No 138/91 of 13 June 1991). 

4. The  Increase  In the quantities of varieties Nos 23 Tsebelia and 24 Mavra 
offered  for  intervention  led the Council  in 1989 to cut the  intervention 
price to 75% of the norm price pursuant  to Article 13 of Regulation 
(EEC) No 727/70 (Council  Regulation  (EEC) No 1253/89).  For the 1990 
crop the Council  also reduced the  level of prices and premiums for these 
two varieties by 15% (Council Regulation (EEC) No 1331/90),  followed by 
13% for the 1991 crop (Council Regulation  (EEC) No  1738/91). 

5. For the variety Badlscher Bur ley (zone B) the ceiling was exceeded for 
the 1988 crop, while the crop area  increased significantly.  Since then 
the crop areas appear  to be stabilizing (despite a substantial  increase 
in 1990), but production  in 1990 and estimated production  In 1991 show a 
steep rise (169% up on 1988). 

* 

6. The other nine varieties come under  the category sun-cured, also known 

as oriental  varieties.  The development  in the areas cultivated  in 1988 
and 1989  Is close to the average, and the  level of production remains 
below the MGOs except  in the case of the  Italian oriental varieties, 
which exceeded  the MGQ by 9%  in 1989 only.  For the 1988 and 1989 crops 
the reason for the  increase  in intervention  is not therefore the trend 
in production but the trend  in demand for  these varieties. 

- 55 -

These varieties have, to a greater or  lesser degree, specific aromatic 
characteristics which are sought for the manufacture of American blends. 
A  large percentage of this tobacco thus finds an outlet on the world 
market and  is very sensitive to trends  in these outlets. 

The  increase  in the quantities of oriental  tobacco from the 1988 and 
1989 crops entering  intervention can thus be attributed  to a substantial 
decrease  in exports  In 1989, linked with a surplus of world stocks. It 
may also be the case  that certain speculative practices have reinforced 
this situation. 

7. The current market situation with regard to the 1990 and 1991 crops can 
be regarded as relatively satisfactory.  Having regard to greater demand 
on the world market, prices have  Improved and, according to the 
information supplied by the Member States, the quantities of tobacco 
from the 1990 crop entering  Intervention are very small.  It may 
therefore be assumed that  in general  the risk of high  Intervention 
buying  is limited and would not require special measures.  Nonetheless, 
as regards the three problem varieties mentioned  In point 3, the 
intervention potential  remains high, in view of the  limited demand on 
the market. 

8.  In October  1991 the Commission put three proposals for Regulations to 

the Council, the first on the common organization of the market  in raw 
tobacco, the second fixing the premiums and quotas, and the third 
concerning  inter-branch organizations and agreements  in the tobacco 
sector. 

However, as the adoption of this reform by Council  has been delayed, the 
existing regulations will remain  in force for the 1992 crops.  It is 
therefore proposed to roll-over, for the 1992 crop, the special measures 
taken for the varieties No 11 Forchheimer Havanna, Hybrids of Badischer 
Geudertheimer, etc.. No 23 Tsebelia and No 24 Mavra. 

-  56  -

A N N EX 

L 

Variety 

X by which  Interven 
tion quantities 
pursuant to Article 
13 are exceeded 

1988 

1989 

Percentage change 
In crop 
area 

1988 
1987 

1989 
1988 

No 1 Badlscher  Geuderthelaer 

Zone B  • 

1.260.8 

-

4  259.0 

4  15.1 

No 23 Tsebella 

925.8 

900.5 

- 

1.0 

-  0.8 

No 24 Mavra 

1102.0 

602.5 

- 

2.5 

-  6.8 

No  2 Badlsher Bur ley 

Zone B 

159.2 

-

4  92.0 

4  0.4 

No 21 Myrodata 

-

539.8 

- 

5.0 

-  10.0 

No  13 Xanthl Yaka 

149.7 

287.5 

•  15.0 

-  4.8 

No 14 Perustlza 

126.5 

77.7 

+  11.6 

- 12.1 

No  15 Erzegovlna 

97.2 

143.7 

-  37.4 

- 25.0 

No  17 Basaa 

43.9 

46.3 

- 

5.8 

4  12.4 

No  18 Katerlnl 

90.0 

20.4 

- 

5.7 

4  4.0 

No  19 Kaba Koulak CI. 

326.4 

249.5 

-  23.5 

4 36.3 

No 20 Kaba Koulak  N-CI. 

25.0 

393.6 

-  31 

-  27.3 

No 22 Zlchnoiyrodata 

477.9 

561.4 

-  17 

-  14.0 

Fron the 1990 harvest  onwards  variety No 1, Badlscher  Guederthelaer  (Zone B)  Is reclassified  under 
variety  No 11(e) hybrids of Badlscher  Guederthelier. 

-  57  -

M H EX 

LL 

Variety 

Production 
(tonnes) 

1988 

1989 

1990 

1991  (•) 

No  1 Badlscher  Geuderthelaer 

Zone B  •• 
Forchheleer  Havanna 

67.407 
6.504 

85.321 
3.954 

45.222 
25.395 

46.000 
25.000 

No 23 Tsebella 

30.084 

30.060 

21.590 

21.000 

No 24 Mavra 

13.267 

13.176 

9.163 

10.000 

No  2 Bad 1sher Bur ley 

Zone B 

3.973 

3.890 

5.443 

5.500 

No 21 Myrodata 

5.885 

6.055 

4.618 

5.000 

No 13 Xanthl  Yaka 

8.875 

10.368 

8.408 

8.500 

No  14 Perustlza 

8.815 

9.263 

8.635 

8.600 

No  15 Erzegovina 

2.164 

2.217 

1.978 

1.900 

No  17 Basia 

24.410 

23.975 

20.304 

26.000 

No  18 Katerinl 

19.226 

19.256 

18.950 

21.000 

No  19 Kaba  Koulak  CI. 

23.709 

17.373 

13.725 

13.000 

No 20 Kaba  Koulak  N-CI. 

3.362 

2.500 

1.668 

1.500 

No 22 Zlchnoayrodata 

774 

700 

397 

400 

•  Estimate. 
•* 

Froa the  1990 harvest onwards variety No  1, Badlscher Guederthelner  (Zone B ), Is reclassified 
under  variety No  11(e). hybrids of Badlscher Geudertheiier. 

- 58 -

Portugal 

H* 1 

Prlco propoaols In ecus for Indlvlduot oqrlcutturol products 

13.2.1992 

Product and typo of prlco or amount 

(Period of application) 

1 

Common wheat 

1. 7.92-30. 6.93 

- Target prlco 
-  Intervention prlco breadmaklng wheot (2) 
-  (Intervention price feed wheat) 

Barley 

1. 7.92-30. 

6.93 

- Target price 
-  Intervention 

pr 

ce 

Maize 

1. 7.92-30. 

6.93 

- Target price 
-  Intervention 

Pr 

ce 

Sorghum 

1. 7.92-30. 

6.93 

- Target price 
- Intervention 

Pr 

Ice 

1 

1991/92 
Decisions 

Proposals 
1992/93 

Spain 

Amounts 
ecus/t 

X change 

Amounts 
In eeus/t 

(D 

X 
change 

Amounts 

1991/92 

n eeus/t 
1992/93 

X 
change 

Amounts 
91/92 

n ocus/t 
1992/93 

X 
change 

9 (4) 

10(4) 

11 

I  -

233,26 
168.55 
160.13 

0.41 
0.00 
0.00 

232,76 
168.55 
160.13 

0,21 
0.00 
0,00 

233,26 
168,55 
160,13 

232,76 
168.55 
160.13 

- 0,21 
0.00 
0,00 

233.26 
210.80 
200.26 

232.76 
206,11 
195.80 

- 0,21 
- 2.22 
- 2,22 

212.33 
160,13 

I  - 0.45 
0.00 

211.83 
160.13 

0,24 
0.00 

212.33 
160,13 

211.83 
160.13 

0.24 
0.00 

212.33 
160.13 

211,83 
160.13 

0,24 
0.00 

212.33 
168.55 

-  0.45 
0.00 

211.83 
168.55 

0,24 
0,00 

212.33 
168.55 

211,83 
168.55 

0.24 
0.00 

212,33 
168,55 

211,83 
168.55 

0.24 
0.00 

212.33 
160,13 

-  0.45 
0.00 

211.83 
160,13 

0,24 
0,00 

212.33 
160,13 

211,83 
160.13 

0.24 
0.00 

212.33 
160.13 

211.83 
160,13 

0.24 
0.00 

1 Rye 
1 
1 

- Torget price 
- Intervention 

Pr 

ce  (3) 

Durum wheat 

- Target price 
-  Intervention price 
- Aid (ecue/ha) 

1. 7.92-30. 

6.93 

1. 7.92-30. 6.93 

212.33 
160.13 

-  0.45 
0,00 

211.83 
160.:3 

0,24 
0,00 

212.33 
160.13 

211.83 
160.13 

-  0.24 
0,00 

212.33 
160.13 

211,83 
160.13 

277.21 
227.70 
161.88 

-3.54 
- 3,50 
4  6.28 

276,71 
227.70 
181.88 

0,18 
0.00 
0.00 

277,21 
216.48 
148.34 

276,71 
227.70 
181,88 

- 0.18 
4 5.18 
4 24.29 

277.21 
227,70 
181.88 

276.71 
227,70 
181,88 

Rice 

1. 9.92-31. 8.93 

- Target price - hueked rice 
-  Intervention price - paddy rice 

546.13 
313.65 

0,00 
0,00 

545.52 
313.65 

0,11 
0.00 

546.13 
313,65 

545,52 
313.65 

- 0.11 
0.00 

548.13 
338.39 

545.52 
332,21 

0.24 
0.00 

0.18 
0.00 
0,00 

0,11 
1,83 

Sugar 

1. 7.92-30. 6.93 

- Basic price for sugar beet 
-  Intervention price for white sugar  (•) 

40.00 I 
53.01 I 

0.00 
0.00 

40,00 
53,01 

0.00 
0.00 

46.84 
61.29 

48.08 
59,57 

1.8 
2.8 

42.83 
53,35 

41,57 
54.22 

- 2.9 
4  1.6 

(•) ecus/q. 
(1)  Without the ogrlmonetary effect. 
(2)  For the 1991/92 marketing yeor. this prlco was Increased by  3.37 ocus/t for a higher quality.  A premium of ECO 3,27 ocut/t  It propotod for 1992/93 (^3.00X). 
(3)  For the 1991/92 marketing yeor. this prlco wot Incroasod by  4,22 ecus/t for a higher quality.  A premium of ECU 4,09 ocus/t  It propotod for 1992/W (-3X). 
(4)  Portuguese producers receive special assistance to grow common wheat, barley, maize, sorghum and rye, (R. 3653/90). 

N* 2 

Price proposols In ecus for Indlvlduol  oqrlculturol  products 

- 59 -

Product and type of price or amount 

(Period of application) 

I 
I 
I 
I 
I 
, 
i 
• 
! Olive oil 
I 
I 
I 
I 
I 

1 

- Production  target price 
- Intervention price 
- Representotive market  price 
-Production  aid 
-Consumption  aid 

1991/92 
Decisions 

I 
I 
I 
I Amounts  I  X 
I change 
I ecus/t 
1 
1 
I 
I 
1 
1 
I 
1.11.92-31.10.93  I 
I  3.220.1  I 
I  2.158,7  I 
I  1.972,8  I 
0 I 
708.3  I 
I 
539.0  I  - 11,5  I 
I 

2 

3 

I 
I 
II 

Proposals 
1992/93 

I 
I 

Spain 

I 
I 

Portugal 

I 
I 

I 

I 

5 

4 

I Amounts In  ocut/t  I  X 

I  Amounts  In  ocus/t  I  X 

I ecus/t 
1 
I 
1 
I 

I 1991/92  I 1992/93  I change 
1 
I 
1 
I 

I Amounts  I  X 
I change 
1 
1 
I 
I 
1 
1 
I 
I 
0 I  3.220,1  I 
0.0 I  3.220.1  I  3.220,1  I 
0 I  2.038,7  I  - 5,6  I  1.853.1  I  1.846,3  I  - 0,4  I  2.096.5  I  1.999.5  I 
-  I 
526,1  I 
482,5  I  - 1,4  I 

I 1991/92  I 1992/93  I change 
1 
I 
1 
I 

1 
t 
1 
I 
0,0 I  3.220.1  I  3.220.1  I 

I 
1 
I 
1 
I 
0,00 I 
- 4 ,6 I 
- I 
23,7 I 

3,7 I  1.932.8  I  - 2,0  I 
16.9  I 
828.3  I 
459,0  I  - 14,8  I 

-  I 
425,3  I 
494,2  I 

-  I 
551,0  I 
457,5  I 

-  I 
458.5  I 
456.7  I 

-  I 
20,1  I 
0,2 I 

1 
I 
1 
I 

1 
I 
1 
I 

10 

11 

7 

6 

9 

8 

I 

I Dried  fodder - Guide prlce(l) 
,_ 
I Peas and  field beans 
- Activating price 
I 
- Cuide price 
I 
I 
- Minimum price - peas 
I 
l_ 
I Lupins 
I 
I 

-Activating  price 
-Minimum  price 

- field beans 

1. 5.92-30. 4.93  I 

| 
1. 7.92-<J0. 6.93  I 
I 
I 
I 
I 
| 
1. 7.92-30. 6.93  I 
I 
I 

0 

I 
178.61  I 
1 
| 
I 
I 
440.1  I 
- 1 .5  I 
290.3  I  - 1.5  I 
253,4  f  - 1,5 I 
234,7  I  - 1.5  I 
1 
I 
423.4  I  - 1.5 I 
284.2  I  - 1.5 I 

1 
I 

178.61  I 
1 
I 
440.1  I 
290.3  I 
253,4  I 
234,7  I 
1 
I 
423,4  I 
284,2  I 

| Flax 
I 
I 

- G u i de  price  (seed) 
-Fixed-rote  aid  (fibre) (per ha) 

1. 8.92-31. 7.93  I 
I 
I  374.36  I 

I 
544,90  I  - 1.5 I 

I 
544.90  I 
I  374,36  I 

0 

I 

- Fixed-rate  old  (per  ho) 
- A id  (seed) 

| Hemp 
I 
1 
I 
I Silkworms 
I 

- A id  per  box 

1. 8.92-31. 7.93  I 

I 
I 
1 
I  339,42  I 
I  339.42  I 
I  245,90  I  - 1,5 I  245,90  I 
j 
| 
I 
1. 4.92-31. 3.93  I 
111.81  I 
I 

| 
I 
111.81  I 

I 
I 
I 

- 

0 

0 

0 I 
1 
I 
0 I 
0 I 
0 I 
0 I 
1 
I 
0 I 
0 I 

178.61  I 
1 
I 
440,1  I 
290.3  I 
253.4  I 
234.7  I 
1 
I 
423,4  I 
284,2  I 

178.61  I 
1 
I 
440,1  I 
290,3  I 
253.4  I 
234.7  I 
1 
I 
423,4  I 
284.2  I 

I 
0 I 
0 I 

I 
507.30  I 
318.87  I 

I 
516.70  I 
374.36  I 

I 
0 I 
0 I 
| 
I 
0 1 

I 
289.16  I 
245.90  I 
I 
I 
95.80  1 

I 
339,42  I 
245.90  I 
I 
I 
111.81  I 

0 I 
1 
I 
0 I 
0 I 
0 I 
0 I 
1 
I 
0 I 
0 I 

178,61  I 
1 
I 
440.1  I 
290.3  I 
253,4  I 
234,7  I 
1 
I 
423.4  I 
284.2  I 

178.61  I 
1 
I 
440,1  I 
290.3  I 
253.4  I 
234.7  I 
1 
I 
423.4  I 
284.2  I 

I 

I 
1.9 I  544,90 I  544,90  I 
374,36  I 
17,4  I  318.87  I 

I 

I 

I 
17,4  I  289.16  I 
0 I  245,90  I 
I 
I 
95.80  1 

I 
I 
16,7  1 

I 
339,42  I 
245.90  I 
\ 
I 
111,81  I 

0 I 
1 
I 
0 I 
0 I 
0 I 
0 I 
1 
I 
0 I 
0 I 

I 

0 I 
17,4 I 

I 
17.4 I 
0 I 

* 
I 
16.7 1 

(1) A 20X  reduction in aid over 2 years  Is proposed, using a coefficient of 90 X  In  1991/92 and 80 X In 1992/93. 

Product ond type of price or amount 

(Period of application) 

1. 9.92-31. 8.93 

1. 4.92-31. 3.93 

Cotton 

-  Guide  price 
-  Minimum  price 

Milk 

- Target  price 

Butter 

-  Intervention price 

Skimmed milk powder 

-  Intervention price 

Crana padano cheese 30-60 days 

-  Intervention price 
Grona pedono cheese 6 months 
-  Intervention price 

ParmlgIano-ReggIano  cheese  6  months 

-  Intervention price 

Amounts  I  X 
ecus/t 

2 

3 

I chonge 
1 
I 
1 
I 
958.6 I 
910.7 I 

I 
268,1 I 
I 
2.927.8 I 
I 
1.724.3 I 
I 
3.796,7 I 
I 
4.704.3 I 
I 
5.192.1 I 

K r i ce  p r o p o s en 

in  ecus  tor 

I n d l v i d u ol  a q n c ui  t u r ol  products 

- 00 -

1991/92 
Decltlons 

Proposals 
1992/93 

Spain 

Portugal 

Amounts  I  X 

ocus/t  I chonge 

Amounts 
1991/92 

n ocut/t 
1992/93 

X 
change 

958.6 
910.7 

1.027.9 
976.5 

7.23(0 
7.23(0 

268.1 

288.1 

0 

3.024.9 

2.927.8 

- 3 .2 

2.028.7 

1.724,3 

-  14,9 

10 

I  X 

Amounts In 
I ocus/t 
1991/92  I 
I 1992/93  I change 
1 
I 
I  11 
I 
1 
I 
I 
I 
958.6 I 
I  1.027.9  I  7.23(*) 
910.7 I 
976,5  I  7,23(*) 
I 
1 
I 
I 
I 
I 
268.1 I 
268.1  I 
I 
I 
| 
I 
2.927.8 I 
2.927.8  I 
I 
I 
I 
2.100.0(1)1 
!  2.070.0  I  -1.4 
I 
I 
I 
I 
I 
I 
I 
I 
1 
I 
I 
I 

0 

0 

1 
I 
1.027.9  I  7,23(«0 
976.5  I  7.23(») 

1 
I 
268,1 I 
I 
2.927.8 I 
I 
1.724.3 I 
I 
3.796.7 I 
I 
4.704.3 I 
I 
5.192.1 I 

I 
2.000  I 
3.430  I 
3.430  I 

I Beef/veal 
I  - Guide price for odult bovine onlmalt (2) 
I  - Intervention price quality R 3 cat. A 
I  - Intervention price quality R 3 cat. C 

2. 4.92-31. 3.93  I 
I 
I 
I 

I 
2.000  I 
3.430  I 
3.430  I 

I 
2.000 I 
3.430 I 
3.430 1 

I 
2.000  I 
3.430  I 
3.430  I 

I 
0  I 
0  I 
0  I 

I 
2.000  I 
3.430  I 
3.430  I 

1 
2.000  1 
3.430  I 
3.430  I 

I Sheepmeat 
I  - Boslc price  (carcase weight) 

7. 1.92- 6.  1.93 1  " 

I 
I  4.229,5 I 

I 
t 
I  4.229,5 I 

- 2 

I 

I 
0  I  4.229,5 I  4.229.5 i 

I 

I 

I 

0  I  4.229.5  I  4.229.5 I 

1992 

1993 

I Plgmeat 
I  - Basic price  (carcase weight) 

1.  7.92-30.  6.93  I 
I 

I 
1.897  I 

0  I 

I 
1.897  I 

I 
0  I 

I 
1.897  I 

I 
1.897  I 

I 
0  I 

I 
1.897  I 

I 
i 

1.897 

(*) Technical  adjustment  taking account of the Improvement  In the standard quolity. 
(1) For the Azoree. the Intervention price for skimmed milk powder  Is ECU 3/100 kg less than the price  Indicated, which  It applicable on the mainland. 
(2) Price per  tonne  (IIvewelght). 

5 

N« 4 

Price proposols  In ecus  for Indlvlduol  oqrlculturol  products 

- 61 -

Product  ond type of price or amount 

1991/92 
Decisions 

Proposals 
1992/93 

Spain 

0) 

Portugal (2) 

(Period of application) 

(3) 

I Amounts 
I ecus/t 

i 
I Amounts  I X 
I ecus/t 
I 
12 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 
16.11.92-28. 2.93 I 
I 
1.12.92-31. 5.93 
1. 6.92-41. 7.93 
I 
1. 7.92-31.10.92 
I 
1.12.92-15. 2.93 
I 
16.10.92-15. 1.93 
I 
1. 6.92-31. 8.92 
I 

5.92-30. 4.93 
6.92-30.11.92 
6.92-30. 9.92 
6.92-31. 5.93 
7.92-30. 4.93 
8.92-20.11.92 
8.92-31. 5.93 

- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- I) 
- 
- 

I change 
1 
13 
1 
I 
I 
I) 
I) 
I) 
I) 
I) 
I) 
I) 
I) 
I) 
I) 
I) 

1 
11 
1 
1 
1, 
1 
1, 

I) 
I) 

0 
0 
0 
0 1 
0 1 
0 
0 1 
0 1 
0 1 
0 
0 

0 

0 
0 

(3) 

% 
changs 

I Amounts  In  ecus/t 
1992/93 
I  1991/92 
•I 
I 

6 

(3) 

* 
change 

•I 
— 
I Amounts  In ecus/t 
1992/93 
t 1991/92 
.| 
I 

10 

9 

4 5.0 I 
4  13.8 I 
4  1.0 I 
4 9,7  I 
4 7.9 I 
0 I 
4 7,5 I 
4 5.6 I 
4 1,8 I 
4 8.1 I 
4 16.0 I 
0 I 
0 I 
0 I 

Fruits and vegetables - Basic  price 

- Caul If lowers 
-  Tomatoes 
-  Pooches 
-  Lemons 
-  Pears 
-  Tab I* grapes 
-  Apples 
-  Mandarins 
-  Sweet  oronges 
-  Apricots 
-  Aubergines 
-  Clementines 
-  Satsumas 
-  Nectarines 

(1)  Including price  alignment  (3rd alignment) 
(2) Including  price  alignment  (2nd alignment) 
(J) Without  the effect of intervention  thresholds. 

Table wine  (D 

1.  9.92-31.  8.93 

- Guide price Type 
- Guide price  Type 
- Guide price  Type 
- Guide price  Type 
- Guide price  Type 

I 
11 
III 
I 
II 

Guide price Type A III 

3.21 
3.21 
52.14 
3.21 
69,48 
79.35  I 

0  I 
0  I 
0  I 
0  I 
0  I 
0  I 

3,21 
3.21 
52,14 
3.21 
69.48 
79.35 

0  1 
0  1 
0  1 
0  1 
0  1 
0  1 

3.01  1 
3.01  1 
48.81  1 
3.01  I 
65.04  1 
74,28  1 

3.21  1 
3.21  1 
52.14  1 
3.21  1 
69.48  1 
79,35  1 

4  6.64  1 
4  6.64  1 
4  6.82  1 
4  6.64  I 
4  6,83  1 
4  6.83  1 

3.21  t 
3.21  1 
52.14  1 
3.21  1 
89.48  1 
79.35  1 

3.21 
3,21 
52.14 
3.21 
69.48 
79.35 

(1) R I, R II and A I expressed  In ocus/X/hl. 

R  III, A II and A III expressed  In ecus/hi. 
For Portugal  Including price alignment  (1st alignment) carried out in 1991/92. 

I * 
I change 

(3) 

I 

11 

| 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 

i 

4 3,4 
4 5.5 

0 I 

4 9.0  I 
4 8.6 
4 5.4 
4 5.0 

0  1 
4 4.5  I 
4 6.3  I 
4 5,8  I 

0 I 
0 I 
0 I 

^ 

N»  5 

-  62  -

Price proposols  In ocut  for  Indlvlduol  oqrIcultureI  productt 

Product, group ond variety 

I  Harvott  1991 - Docttlont  I Harvott  1992 - Propotolt 

I 

I 

I 

1 

Prlee/premlum/X change 

compared  with  1990 

2 

1 

I 

I 

1 

compared  with  1991 

3 

PrIee/prem tum/X chango 

I 

I 

I 

I 

I 

I Tobacco 
I 
I 
I 
I 
I 

I 

-  6X odjuttable  I OX;  oxeopt whore  tho 

I 
I)  Prtco 
I)  Premium -  6X odjuttobio  I proportion of  lowor 
I 
I 
I 

I qualities purehatod  by 
1 o processor  exceodt 
I o  specified maximum. 

I 

I 

' 
I 
| 
I 
I 
I 

^ N 

- • 3-

Toblo  2 

AC  R  I  M O N E T A RY 

f R O M f A ll 

-  P R I CI  > A C U tf 

1 1 1 2 / 13 

Applicable  ot  the  beginning of  tha  '992/93 

Ign 

MEMBER STATES 

GREEN 

PREVIOUS  SITUATION 

Product  Craup(l) 

CENTRAL 

GREEN 

RATES(2) 
( e c u -,  .nc) 

RATES 
( e c u - . . n c) 

REAL 

•JAPS 
( p o i n t s) 

APPLIED 

•JAPS 
( p o i n t s) 

DISMM4T-
LEMENT 

GREEN 
RATES 
(ecu». .nc) 

SOT  SITUATION 
REAL 
•JAPS 
( p o i n t s) 

APPLIED 
•JAPS 
( p o i n t s) 

EPPECT 
ON 
PRICES 

RELG I U M A U O M B O U RB 

48.9063 

A ll  products 

46.5963 

0.000 

0 .0 

A ll  p r o d u c ts 

A ll  p r o d u c ts 

1.97909 

7.89563 

2.38418 

t.97909 

0.000 

0 .0 

7.80963 

0.000 

0 .0 

A ll  p r o d u c ts 

2.36416 

0.000 

0 .0 

A ll  p r o d u c ts 

0.878776 

0.000 

0 .0 

0.878776 

OENMARK 

PRANCE 

CERMANY 

IRELAND 

ITALY 

A ll  p r o d u c ts 

NETHERLANDS 

A ll  p r o d u c ts 

PORTUGAL 

1761.45 

2.85256 

202.670 

1761.49 

0.000 

0 .0 

2.69256 

0.000 

0 .0 

0 

0 

0 

0 

0 

0 

0 

48.5963 

0.000 

0 .0 

0.000 

8.97980 

0.000 

0 .0 

0.000 

7.80563 

0.000 

0 .0 

0.000 

2.39418 

0.000 

0 .0 

0.000 

0.878776 

0.000 

0 .0 

0.000 

1761.49 

0.000 

0 .0 

0.000 

2.89296 

0.000 

0.0 

0.000 

A ll  p r o d u c ts 

208.676 

2.878 

1 .* 

- 1 . 3 78 

209.796 

1.500 

0 .0 

- 1 . 3 99 

UNITED  KINGDOM 

0.815203 

A ll  p r o d u c ts 

0.795423 

- 2 . 4 87 

- 1 .0 

0.907 

0.803196 

- 1 . 9 00 

0 .0 

0.972 

147.965 

270.197 

S P A IN 
S M (,  milk 
Cereals,  sugar 
Ollva  o i l.  » l n e.  drlod  fodder. 

f l e x.  hemp,  sllkeorme 

Cotton,  groin  legume* 
Sheeomeat.  other  crop  prod. 
Others 

GREECE 
Shsspmsot.  esroals.  sugar. 
v i n e,  ©live  o i l, 
tobacco. 
f i s h i ng  p r o d .,  structure 

Tomatoes,  cucumbers. 

courgettes,  aubergines 

Poultry  ( 3) 
Croln  legumes  ( 3) 
Other  crop  products  ( 3) 
Others  ( 3) 

154.136 
153.498 

149.813 
151.660 
150.828 
151.660 

4.251 
3.852 

1.487 
2.687 
2.150 
2.687 

2 .8 
2 .4 

0 .0 

0 .0 

- 2 . 7 91 
- 2 . 3 92 

0.000 
- 1 . 1 87 
- 0 . 6 50 
- 1 . 1 67 

149.832 
149.832 

149.813 
149.832 
149.832 
149.832 

1.500 
1.900 

1.467 
1.500 
1.900 
1.500 

0 .0 
0 .0 

0.0 
0 .0 
0 .0 
0 .0 

- 2 . 7 94 
- 2 . 3 88 

0.000 
- 1 . 2 09 
- 0 . 6 60 
- 1 . 2 05 

292.121 

- 7 . 1 70 

- 5 .7 

5.670 

r  266.204 

- 1 . 9 00 

0 .0 

5.566 

297.188 
256.467 
257.895 
257.188 
257.895 

- 0 . 0 96 
- 5 . 3 45 
- 4 . 7 70 
- 6 . 0 96 
- 4 . 7 70 

- 2 .2 

- 3 .3 

3.596 
3.849 
3.270 
3.996 
3.270 

266.204 
266.204 
266.204 
266.204 
266.204 

- 1 . 9 00 
- 1 . 5 00 
- 1 . 5 00 
- 1 . 5 00 
- 1 . 5 00 

3.506 
3.788 
3.222 
3.506 
3.222 

0 .0 
0 .0 

0 .0 

(1) Except plcrrot (application of Article 6a of Council Regulation (EEC) No  1676/05). 
(2) Switch-over coefficient -  1.145109 - Creen market  rate for floating currencies; »eek of  reference: 29.1.92 — 5.2.92. 
(3) The pocket price dismantlement has to be added to the automatic dismantlement taking effect ot the beginning of the 1992^3 campaign: 

Poultry 
Craln  legumes 
Other crop products 
Others 

292.121 
292.121 
252.121 
252.121 

- 7 . 1 70 
- 7 . 1 70 
- 7 . 1 70 
- 7 . 1 70 

- 2 .2 

- 9 .7 
- 9 .7 

1.825 
2.400 
2.112 
2.400 

256.467 
257.895 
257.188 
257.895 

- 9 . 3 45 
- 4 . 7 70 
- 5 . 0 58 
- 4 . 7 70 

0.0 

- 3 .6 
- 3 .3 

1.732 
2.290 
2.010 
2.290 

- 64 -

TflMe 3 

Effect of Commission proposals on support prices for 
agricultural  products expressed  in ecus and in 

national currency 

X change  in prices (1)(2) 

In ecus 

in national currency 

Belgium 

Denmark 

Germany 

Greece (4) 

Spain (5) 

France 

Ireland 

Italy 

Luxembourg 

Netherlands 

Portugal  (5) 

United Kingdom 

EUR 12 (5) 

0.0 

0.0 

0.0 

0.0 

1.2 

0.0 

0.0 

0.0 

0.0 

0.0 

0.4 

0.0 

0.1 

(3) 

0.0 

0.0 

0.0 

6.1 

-  0.4 

0.0 

0.0 

0.0 

0.0 

0.0 

-  1.0 

1'.O 

0.3 

(*) 
(1) 

(2) 

(3) 

(4) 
(5) 

Excluding  Impact of stabilizers 
Percentage variation between proposed support prices for 
1992/93 and the support prices for 1991/92 
Support price (intervention or equivalent), weighted 
according to the share of the various products  in the 
value of agricultural  production covered by common prices 
Common prices  in ecus, converted at green rates  in this 
proposal. For the currencies not respecting the narrow 
band  in the EMS calculations were done using the rates of 
the week ending on 5.2.92 
Including effect of automatic dismantlement 
Including effect of alignment of Spanish and Portuguese 
prices on common prices under accession arrangements 

- 09 -

Toble 4 - Stabilisers end production  thresholds  (without  00*) 

Ouotes or MCO 
applicable 

Market  situation 

Overrun 

1991/92 

Cereols 

MCO  : 160 million t 

Sugar 
(white 
sugar eq.) 

Ouota A : 11.187 m t 
Quota  8  : 2.488 m t 

Estlmoted  production: 
169 «lII Ion t 
(+11.6 Million t 
5 new LSnder) 

Production  (Including 
carryovers)  In  m t 
Ouota A : 10.970 
Ouota  8  i  2.412 
Sugar C :  2.158 
: 15.335 
Total 

Isoglu-
cose 

Ouoto A : 240.743 t 
Quota  0  :  90.342 t 

Estimated  production 
within  quotas 

Rape 

MCO 
EUR-10  : 4.900.000 t 

Estimated  production: 
EUR-10  : 6.376.000 t 

Spain 
Portugol 

: 12.900 t 
1,300 t 

Spain 
Portugal  : — 

: 21.000 

Sunflower 

MCO 
EUR-10 : 2.000.000 t 

Estimated  production: 
EUR-10  : 2,966.000 t 

Spain 
Portugal  : 

: 1.411.800 t 
90.000 t 

Spain 
Portugal  : 

: 1.036.000t 
39.000t 

Soya 

MCO 
EUR-12  : 1.300.000 t 

Estimated  production 
1.947.000 

overrun t million t: 
cut  In price for 92/92 of 3% 

EUR-10  : overrun of 41.7% re 
sulting  in o reduction of 
ECU 9.06/100 kg (- 20.SX) 
In the target  price 
Spain  : ECU - 6.78/100kg  In 
the  target  price  (-16.2%) 
Portugal  : no overrun 

EUR-10  : overrun of 48.3 X 
resulting  In a reduction of 
ECU  18.43/100 kg (-32.IX) In 
the  target  price 
Spain 
: no overrun 
Portugal  : no overrun 

Overrun of 19% 
resulting  In a reduction of 
ECU  11.07/100kg  In the guide 
price  for the Community  of Ten 
end ECU 4.67/100kg  for Spain 
(-9.6X) 

Pees, 
field 
beans 
and  swset 
lupins 

MCO 
EUR-12  : 3.900.000 t 

Estimated  production 
EUR-12 : 4.469.000 t 

Overrun of 27.6% resulting  In 
a  reduction of ECU 4.8/100 kg 
In the guide  prices  for peas 
and  field  beans (-16.5%) 

01 ive 
ol I 

O.M.C. 
EUR-12 

1.390.000 t 

Production will be 
estimated  In March 
1992 

No  clear  indication 

Ouantlty  covered 
by the compulsory-
distillation  scheme: 
1S.600.00Oh! 

Yes  : averoge  price  reduction 
for  compulsory  distillation : 
about  28% 

Wine 

Compulsory  distilla 
tion  : Pries bosed on 
the quantity  covered 
by  the compulsory-
distillation  scheme,as 
follows  : 50% of ths 
guide  price  for the 
equivalent  of 10% of 
the volume  used; 
7.5X  of that  price 
for  the remainder 

1992/93 

I Ouota or quantity 
lapplI cab I a/proposed 
.| 
I 
I Proposed  In the 
I context  of CAP 
I reform  : the some 
I  am for 1991/92 

I The same as for 
I 1991/92 
I 
I 
I 

I SMC : (approvsd 
I by the CounclI) 
I 
IEUR-12:  2.377.000ha 
l(wlth DDR) 
I 
I 
I 
I SMC : (approved 
I by the CounclI) 
IEUR-10:1.202.000ha 
ISpaln  :1.411,000ha 
(Portugal:122.OOOho 
I 
I 
I 
I SMC : (approved 
I by the CounclI) 
I 
I EUR-12:509.OOOho 
I 
I 
I 
I 
I MCO : the some 
I as for 1991/92 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I 
I MCO : the some 
I os for 1991/92 
I 
I 
I 
I 
I 
I 
I 
I 
i 
I 

-  06  -

1991/92 

Ouota or MCO 
applicable 

| 
1 

Market  situation  1 

Overrun 

1 

1992/93 

I 

1 

Ouota or quantity 1 
applIcable/propossdl 

1 Tobocco  I 

Overa 11 MCO 
1 
EUR  12 : 390.000  t of  1 
leaf  tobacco. 
1 
Allocated  by variety  1 

Anticipated overall  1 
production  : 
1 
EUR  12 : t490.000 t  I 

Overrun  In the case of  cer- 
teln varieties 

1 
I 

1 Cotton 

1 

MCO  : 752.000 t 
(EUR-12) 

1 
I 

Estimated production:! 
EUR-12  :  888.912 t I 

Reduction  of old by 6.710 
ECU/100 kg 

1 

1 Fresh 
1 tomatoes 

Intervention  threshold ! 
1 
EUR-12  : 599.300 t 

t Caul 1-
I flowers 

Intervention  threshold 
EUR-12  : 57.300 t 

Withdrawals  : 
52.218 
(provlslonol) 

Withdrawals  : 
26.350 
(provlslonol) 

No overrun 

1 Nectar 1-
1 tines 

Intervention  threshold 
EUR-12  : 62.400 t 

Withdrawals  : 

79.043 

(provlslonol) 

Overrun anticipated, 
(price  reduction  of  9%) 

1 Peaches 

Intervention  threshold 
EUR-12  : 269.700 t 

Withdrawals  : 

422.688 

(provlslonol) 

Overrun  anticipated, 
(price reduction  of 6%) 

Overall  quoto  :  1 
EUR  12:340.000 t  1 
ollocated by 
j 
variety and group 1 
of  varieties, 
1 
proposed  to the  1 
I 
Council 

1 
MCO  : EUR  12 
I 
701.00 t 
I 
(the same as 
I 
lost  year  but 
1 
adapt  to take 
1 
account  of  the 
chonge  In the 
| 
standard  quantity)! 

| 
Intervention 
thresholds  : 
1 
the some as for  1 
I 
1991/92 

3% of  the overage 1 
quantity  produced 1 
for coneumptIon,  1 
not  Including pro-l 
ducts  for proces- I 
elng.  In the  lest 1 
1 
five yeers 

10 X of average  1 
quantity  produced 1 
some basis as for 1 
1 
cauliflowers 

12 X of overege  1 
quantity  produced 1 
some  basis as for 1 
1 
caul iflowsrs 

the some as  In 
1991/92 

1 
1 

|-Apples 

Intervention  threshold 
EUR-12  : 240.300 t 

Marketing  year 
under way 

1 Oranges 

Intervention  threshold 
EUR-12  : 1.181.800 t 

Marketing  year 
under  way 

I Lemons 

! Intervention  threshold 
I EUR-12  : 369.400 t 

Marketing  year 

1 Sotsumos 

1 Intervention  threshold 
I EUR-12  : 34,900 t 

Marketing  year 
under way 

1 CI4m«n-
1 tines 

1 Intervention  threshold 
1 EUR-12  : 133.900 t 

Marketing  year 

1 under  way 

1 Vendor 1-
t net 

I Intervention  threshold 
I EUR-12  : 35,800 t 

1 Marketing  year 
1 under  way 

•f 

10 X of average  1 
quantity  produced 1 
1 In the  last  five  1 
1 
! years  plus 
1 
! 792.392 t 

I 10 X of average  I 
I quantity  produced I 
I In the  last  five  I 
I 
I yeors  plus 
I 
I 290.993 t 

I 10 X of avsrags  1 
1 quantity  produced 1 
1 In the  lest  five  1 
1 
1 yeers 

1 10 % of overege  1 
1 quantity  produced 1 
1 in the  lost  five  1 
1 
1 years 

1 10 % of average  1 
1 quantity  produced 1 
I In the  last  five  1 
1 
1 yeers 

Ouota or MCOs 
applIcablo 

Market  situation 

Ovc 

1991/92 

1992/93 

Ouota or  quantity 
applI coble/proposed 

Processed 
tomatoes 

Guarantee  thresholds 
Concentrate  : 
EUR-11 
Cermany 

: 4.283.699 t 
33.700 t 

Peeled 
EUR-12 

1.543.228 t 

Other 
EUR-11 
Cermony 

734.920 t 
1.300 t 

Orled 
grapes 

Cuarantee  threshold 
Currants 
68.000 t 
Sultanas 
93.000 t 
Moscotsl 
4.000 t 

Willi ome 
pears 

Cuarantee  threshold 
EUR  12  : 102.805 t 

Psochee 
In syrup 

Cuarantee  threshold 
EUR-12  : 582.000 t 

Overall  guaranteed 
quantity  (Including 
Community  reserve and 
temporary  suspension of 

4.5  X) 
EUR  11  : 98,802.551 t 
(without  Portugal) 

No claer  Indication 

No clear  Indication 

No clear  Indication 

No overrun 

Some  thresholds 
as  In 1991/92 

No overrun 

Small  overrun  expected, on  the 
fat  basis  content  (tO.SX) 

Same  thresholds 
as  In 1991/92 

Some  thresholds 
as  In  1991/92 

Propossd 
In the context 
of  the CAP 
reform : 

2X cut +of which 
IX redistri 
bution 

A proposal  mads 
In the context 
of CAP reform: 
-Individual  limit 

per  producer 
-freeze  If the 

reduction  In the 
basic  price, of 
7% 

Shsepmeot 

Maximum  guaranteed 
level  for  ewe  flock 
63.400.000 head 
18.100.000 for Croat 
Britain and 
45.300,000 for  EUR-11 
and  Northern  Ireland 

Esttmetsd  1991  flock: 
46,360,000 heed  for 
EUR-11 and  Northern 
Irelond and 
19.775.000 for Croat 
Britain 

Estimated  overrun  of  9% 
for  EUR-11  and  Northern 
Irelond  and  6%  for Croat 
Britain, reductlor-e  In the 
basic  prices of  6.45% and  8.1% 
respectively  (with  effect 
from  7 jon  1991) 

- 68 -

Table S 

Trends  In econoalc  Indices froa 1980 to 1990 In real  t e ns 
- EUR 12 -

Index base on 1980 - 100 

Years 

Expenditure 
EAGGF-Guarantee 

GNP 
total 

(D(3) 

(2) 

Final 
agrlcult. 
output 
(2) 

Eapioyi. 
In agric. 
In AlU 

Final agric. 
output per 
pers. eapi. 
(2) 

NVA 
agric. 

NVA 
per AMU 

(1) 

(1) 

1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 

100.0 
89.0 
91.7 
110.4 
121.0 
125.5 
136.9 
138.4 
160.6 
142.5 
131.9 

100.0 
100.1 
101.0 
102.7 
105.1 
107.6 
110.5 
113.8 
118.3 
122.2 
125.5 

100.0 
99.1 
104.5 
104.9 
108.0 
107.9 
110.1 
110.0 
112.1 
113.3 
113.7 

100.0 
95.0 
91.8 
89.5 
87.3 
85.9 
83.2 
80.9 
75.3 
75.0 
72.8 

100.0 
104.4 
113.8 
117.2 
123.8 
125.7 
132.3 
135.9 
143.1 
151.1 
156.1 

100.0 
97.2 
104.0 
98.4 
99.5 
93.9 
92.1 
88.1 
87.3 
92.9 
86.2 

100.0 
102.3 
113.3 
109.9 
114.0 
109.4 
110.6 
108.8 
111.5 
123.9 
118.4 

(1) In real teras (6NP deflator) 
(2) In constant prices 
(3) Budget  "1987" : froa 1 January to 31 October 1987 

Budget  "1988" : froa 1 Novenber 1987 to 15 October 1988 
Budget  "1989" : froa 16 October 1988 to 15 October 1989 
Budget  "1990" : froa 16 October 1989 to 15 October 1990 

GNP : Gross National  Product at aarket price 
NVA : Net Value Added at factor cost 
AWU : Annual Work Unit 

Source : Eurostat - DG VI 

- 69 _ 

Figure 1 

Net value added  (1) per person employed in agriculture (2) 

"1985" (3) = 100 

130r 

110 

701 
80 

81 

82 

83 

84 

85 

86 

87 

88 

89 

90 

91 

o 

< 
> 
o 
Q 
UJ 
UJ 
O 

(1) At factor cost in real terms, adjusted on the basis of the 6DP 

deflator. 

(2) Based on the number of work units. 
(3) Average 1984, 1985, 1986. 
Source: EUR0STAT - sectoral income index 

-  70 -

Net value added per person employed  in agriculture 

"1985"  =  100 

130 

110 

130 

110 

130. 

110-

/  /  /  /  / f 

Luxembourg 

130 

110 

130 

110 

Danmark 

/  /  /  /  /  f 

f  /  /  /  /  * 

130 

110 

70  1—, 

, 

, 

, 

/  J  /  f  /  .*N 

r 

130 

110 

130 

110 

70 

130-

110 

130 

110 

130 

110 

/ 

/ 

/ 

T 
A 
/ 

1 

1  T 

/ 

/ 

Nederiand 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

130 

110 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

/ 

i — i — i — i — i — i — i — i — i —r 

CEE DG VIA5 Jan.92 M.O. 

ISSN 0254-1475 

COM(92) 94/1 final 

DOCUMENTS 

EN 

03 

Catalogue number: CB-CO-92-126-EN-C 

ISBN 92-77-42341-2 

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