Proposal for a COUNCIL REGULATION (EEC) on the introduction of a limit to the granting of production aid for processed tomato products
Date: 1992-11-19
Institutions: European Commission
Subjects: agricultural quota, agro-industry, fruit vegetable, production aid, vegetable product

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(92) 474 final 

Brussels, 19 November 1992 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

on the introduction of a limit to the granting of 

production aid for processed tomato products 

(presented by the Commission) 

-  ^ 

-

EXPLANATORY MEMORANDUM 

Subject: 

Draft proposal for a Council Regulation on the 
introduction of a limit to the granting of 
production aid for processed tomato products 

Processed tomato products are currently undergoing a difficult patch in 
the face of stiff competition on the world market brought on by an 
increase in production in the two other major producer countries, i.e. 
the United states and Turkey, and a decline in demand  in the eastern 
European countries, namely those formerly in the USSR, which constitute 
an important market.  Processing plants have closed and will continue to 
do so.  In spite of this, the processing operations  in the  1992/93 
marketing year, now coming to a close, have been carried out extremely 
smoothly considering  the crisis situation in which the fruit and 
vegetables sector as a whole has suddenly been plunged since the spring. 
It is generally  felt that the threshold system has functioned well, and 
the data, admittedly  still provisional, on the quantities processed show 
that for the main tomato products, i.e. concentrates and peeled 
tomatoes, the thresholds have not been exceeded, while for the "other 
products" they have.  Overall production, however, is falling. 

According to the undertaking given in discussions at the Council 
concerning  the price package  1992/931, the Commission proposes herewith 
that the quota system be reintroduced and applied  in the same way as in 
the  1990/91 and  1991/92 marketing years.  The threshold  system is not to 
be renewed. 

As was stated at that time, the  1992/93 marketing year is not to be 
included  in the three-year reference period serving as a basis for the 
allocation of quotas for processing plants.  The system is introduced 
for an indefinite period so as to save the Council having to extend it 
at regular intervals, given that the data are the same from one 
marketing year to the next. 

3. The Commission will make the necessary proposals as and when the 

situation  in the processing  sector and the consequences  for that sector 
of the reform of the CAP as regards arable crops warrant a further 
review of the policy pursued. 

The  .. OUP.C :''. agrees that the qurt.a system should be reintroduced  in 
1993/?' i _a,d calls upon the Comnu ..  n to present a formal proposal to 
thi- 

i iect before the end of OctoL... this year. 

COUNCIL REGULATION  (EEC) No 

on the introduction of a limit to the granting of 

production aid for processed tomato products 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty establishing the European Economic  Community, 

Having regard to council Regulation  (EEC) No 426/86 of 24 February  1986 on 

the common organization of the market in products processed  from fruit and 

vegetables1, as last amended by Regulation  (EEC) No  1569/922, and in 

particular Article 2(2) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

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

Whereas Council Regulation  (EEC) No 989/843 of 31 March  1984, as amended 

by Regulation  (EEC) No  1755/924, introduces, as from the 1985/86 marketing 

year, a system of guarantee thresholds for certain processed  fruit and 

vegetable products; whereas it also appeared necessary, from the  1985/86 

marketing year, to limit the granting of production aid in producer Member 

States to certain quantities of fresh tomatoes intended  for processing; 

whereas these limitation arrangements were last extended  in respect of the 

1990/91 and  1991/92 marketing years by Council Regulation  (EEC) 

No 1203/905 of 7 May  1990 on temporary measures relating to production 

aid for processed tomato products; 

1  OJ No L  49, 27.2.1986, p.  1. 

2  OJ No L  166, 20.6.1992, p.  5. 

3  OJ No L  103, 16.4.1984, p. 19. 

4  OJ No L  180,  1.7.1992, p. 25. 

5  OJ NO L  119, 11.5.1990, p. 68. 

- 2 -

Whereas on the expiry of Regulation  (EEC) No  1203/90, the system of 

guarantee thresholds in respect of the 1992/93 marketing year has again 

spontaneously produced its effects; whereas, however, in view of the 

situation in the sector, it appears preferable for the arrangements 

restricting the granting of the aid to be reapplied  from the  1993/94 

marketing year; 

Whereas the quantities of fresh tomatoes which may qualify  for the 

production aid should be fixed for each producer Member State; whereas, in 

view of the production target and the market  situation,  such quantities 

should be fixed at the same levels as those which were applied  for the 

1991/92 marketing year; 

Whereas those quantities of fresh tomatoes should be broken down between 

the processing undertakings on the basis of the total quantities which they 

processed  in the last three marketing years preceding the marketing year 

for which the aid is fixed; 

Whereas the undertakings which started production after the beginning of 

the second marketing year preceding the marketing year for which the aid is 

fixed have only partially benefited  from the ^production aid scheme; 

whereas, under the new scheme, they should be granted a quota based on a 

suitable reference period; whereas, in order to permit some development in 

the production structures in the sector, a percentage of the overall 

quantities allocated  in each Member State should be reserved for 

undertakings which start production during the marketing year for which the 

aid is fixed; whereas, in view of the fact that the quantities  available 

are limited, quantities should only be allocated to those undertakings 

presenting  guarantees as to the efficiency  and durability  of their 

activities ; 

Whereas, in order to prevent that for the  1992/93 marketing year and while 

the threshold  scheme is in force processing undertakings  increase their 

production  in anticipation of the arrangements  limiting the aid, which the 

institutions had announced would be reintroduced  for the  1993/94 marketing 

year, the latter simultaneously  laid down that the quantities produced in 

1992/93 would not be taken into account for the application of the rules 

for the allocation of the national limits between the processing 

undertakings, and whereas the consequences should be drawn from this for 

all -he yr. lertakings concern*  up to the  1995/96 marketing year; 

HAS ADOPTED THIS REGULATION: 

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Article 1 

1. From the  1993/94 marketing year, production aid granted to all 

processing undertakings in each Member state shall be limited to the 

quantities of processed tomato products obtained  from the following 

quantities  in tonnes of fresh tomatoes: 

All undertakings  Tomato 

Tinned whole 

Other tomato 

located in 

concentrate 

peeled tomatoes 

products 

Spain 

France 

Greece 

Italy 

Portugal 

Germany 

550 000 

240 000 

278 691 

967 003 

73 628 

25 000 

1 655 000 

1 185 000 

832 945 

33 700 

19 600 

177 050 

40 087 

21 593 

453 998 

42 192 

1 300 

2. The quantities laid down in paragraph  1 shall, without prejudice to 

paragraph  3, be divided by the Member States between the processing 

undertakings  in proportion to the average quantities actually produced by 

each of them during the three marketing years preceding the marketing year 

for which the aid is fixed. 

On application by the undertaking concerned, the competent authorities of 

the Member state shall authorize one only of the following transfer 

possibilities : 

a transfer of up to 25% of quantities of peeled tomatoes, expressed in 

quantities of fresh tomatoes, to the quantities allocated  for tomato 

concentrate and other tomato products, 

-  4 -

-  a transfer of up to 5% of quantities of tomato concentrate, expressed in 

quantities of fresh tomatoes, to the quantities allocated  for the other 

products, 

-  a transfer of up to 5% of the quantities of other tomato products, 

expressed  in quantities of fresh tomatoes, to the quantities  allocated 

for concentrate. 

3. For the granting of the aid: 

(a) 

processing undertakings which  started production during the two 

marketing years preceding the marketing year for which the aid is 

fixed shall be granted a quota calculated on the basis of the 

average quantities produced during those marketing years; 

(b) 

processing undertakings which started production  in the marketing 

year preceding the marketing year for which the aid is fixed shall 

be granted a quota corresponding to the quantities processed during 

that marketing year; 

(c) 

processing  undertakings which started production of one of the 

finished tomato products mentioned  in paragraph  1 during the 

marketing year for which the aid is fixed shall qualify for 

production aid under the following conditions, provided that they 

present, to the satisfaction of the competent  authorities, adequate 

guarantees as to the efficiency and durability  of their activities. 

The producer Member States shall reserve 2% of the total quantities 

fixed for each group of finished products  for the purposes of 

allocating  quotas to the undertakings referred to in the first 

subparagraph.  The quota allocated to each undertaking may not 

exceed  its processing capacity,  less 30%. 

4. Where all the quantities defined  in paragraph  1 have not been  allocated, 

the remainder  shall be divided  fairly between the processing  undertakings 

referred to in paragraph 2, taking account  in particular of those 

undertakings which use new production  technology. 

-  5 -

Article 2 

For the first three marketing years of application of this Regulation, and 

by way of derogation  from Article  1(2) and  (3), the quantities produced for 

the  1992/93 marketing year shall not be taken  into account  for the 

calculation of the average of the quantities produced.  Consequently, 

Article  1(3)(c) shall also apply to undertakings which  started  production 

in the  1992/93 marketing year. 

Article 3 

Detailed rules for the application of this Regulation  shall be adopted in 

accordance with the procedure  laid down in Article  22 of Regulation  (EEC) 

No 426/86.  They  shall include in particular rules applicable  in the case 

of mergers and changes of ownership of undertakings. 

Article 4 

This Regulation  shall enter into force on the third day  following  its 

publication  in the official Journal of the European  Communities. 

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

all Member  states. 

Done at Brussels, 

For the Council 

1 
!  FINANCIAL  STATEMENT 

- * •-

DATE: 

t 

| 

! 1. BUDGET HEADING: 1511 

APPROPRIATIONS: (1993 DB) ECU 447 mio 

\ 

! 2. TITLE: 
i Council Regulation  introducing a limit on aid granted for the production of processed tomato products 

! 3. LEGAL BASIS: 
! Regulation (EEC) Nb 426/86 

i 4. AIMS OF PROJECT: 
i To reintroduce frcm the 1993/94 marketing year the arrangements for  limiting aid. 

! 

! 
\ 

,' 
! 

! 5.  FINANCIAL  IMPLICATIONS 

! Period of 12 months 

Current Financial Year 
1993 

1994 

Following Financial Year  ', 

| 5.0 EXPENDITURE 
,'  - CHARGED TO THE EC BUDGET 
! 

- (REFUNDS/INTERVENTION) 

-

-

- (*) 

! 5.1 REVENUE 
! 
! 
! 

- NATIONAL 

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

i 

! 

! 5.0.1 ESTIMATED EXPENDITURE 
I 5.1.1 ESTIMATED REVENUE 

| 5.2 METHOD OF CALCULATION: 

1995 

-

1996 

!  1997 

1998 

; 

! 

• 

! 

j 6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED  IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?  ! 
YESXXX  ! 
! 

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

! 6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
i 

,' 6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
! 

| 
YESxxx  | 

! 
xxx/ND  ! 

i 

YESxxx J 

{ OBSERVATIONS: 
! (*) The expenditure depends on both production within the quota and aid.  The latter has rot yet been fixed  ! 
i 
! 

for the marketing years concerned.  On the basis of aid currently applying, tomato processing costs 
amount to ECU 358 million  (A). 

i 
| 

{ 

t 

ISSN 0254-1475 

COM(92) 474 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-92-496-EN-C 

ISBN 92-77-49244-9 

)ffice for Official  Publications of the European Communities 
,-2985 Luxembourg