Amended proposal for a COUNCIL REGULATION (EC) laying down, in respect of hops, the amount of aid to producers for the 1993 harvest
Date: 1994-09-09
Institutions: European Commission
Subjects: aid per hectare, hops, plant propagation, production aid

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(94) 379 final 
Brussels, 09.09.1994 

94/0127 (CNS) 

AMENDMENT.  TO THE 

REPORT FROM THE COMMISSION TO THE COUNCIL 

ON THE PRODUCTION AND MARKETING OF HOPS 

(1993 harvest) 

Amended proposal for a 

COUNCIL REGULATION  (EC) 

laying down, in respect of hops, the amount of aid to producers 
for the 1993 harvest 

(presented by the Commission pursuant  to Article  189 A (2) 
of  the EC-Treaty) 

I 

EXPLANATORY MEMORANDUM 

Both the text of the report and the aid amount for aromatic varieties shown 
in the Annex to the proposal for a Council Regulation need to be amended 
since new figures were submitted for France after the publication of COM(94) 
201 final. 

Amendment  to the 

REPORT FROM THE COMMISSION TO THE COUNCIL 

on the production and marketing of hops  (1993 harvest) 

(pursuant to Article 189a (2) of the Treaty) 

1. Sections 2.2.3  and 2.2.4  are replaced by the following text: 

"2.2.3. Sales and prices 

The average price for hops sold under contract was ECU  158.29/ztr, 
ECU 1.41/ztr down on the 1992 harvest, ranging from ECU  126.60/ztr in Spain • 
to ECU 2 01.02/ztr in France. Both these countries sold almost their entire 
production under contract  (see Annex, Table 6 ). on the other hand, the 
average spot price for hops sold on the free market was significantly down 
on the preceding year, at ECU 65.53/ztr as opposed to ECU  168.13/ztr in 
1992, although here too prices differed markedly  from one Member State to 
the next, ranging  from ECU 37.24/ztr in Spain to ECU 145.7 8/ztr in the 
United Kingdom. 

Of the 1993 crop 62% was sold under contract  (see Annex, Table 5 ). Belgium 
was well below this average at 45%. 

Highest average prices, both under contract and for spot sales, were made by 
the aromatic varieties  (ECU 167.36/ztr and ECU 70.79/ztr respectively). The 
varieties fetching the highest prices were Spalt, Tettnanger and W V G.  Some 
varieties grown in the United Kingdom, i.e. Fuggles, Goldings and Progress, 
also sold for prices distinctly higher than the average for the group, as 
did. Strisselspalt in France, where average contract prices were 
ECU 209.04/ztr. The variety of aromatic hops fetching the lowest price was 
undoubtedly  Hersbrucker, which accounted for about 40% of the area for this 
group of varieties. 

For bitter varieties the average price for sales under contract was 
ECU 134.77/ztr and for spot sales ECU 60.53/ztr, the varieties that fetched 
the highest prices in this group being Magnum and Northdown. 

At ECU  137.34/ztr, the Community average contract price for other varieties 
was very slightly higher than the contract price for the bitter variety 
group, but spot prices were substantially  lower at ECU 49.84/ztr. 

Although the average prices in Germany were situated well below the 
Community average  (for aromatic varieties) higher prices were obtained in 
other Member States, such as France and the United Kingdom. Apart from 
France and the United Kingdom spot prices were excessively  low  (all 
varieties taken together). 

y 

The official figures indicate that of the 1 033 893 ztr produced  in the 
Community  in 1993, only 3 394 ztr  (0.33%) remain unsold, whereas the IHGC 
reports  10 000 to 15 000 ztr unsold in Germany. Ireland is the only country 
to have sold its entire production under contract for an average price of 
ECU 230.33/ztr  (see Table 5 ), followed by France, which sold 96% of its 
production under contract for an average price of ECU 201.02/ztr. 

As was to be expected with a production surplus, the market has been very 
quiet throughout the 1993/94 marketing year. Prices have been very low on 
the free market since the beginning of the marketing  season in September 
1993, although with some differences according to production region and 
variety. 

The variety which has suffered most from this drastic  fall in prices is 
undoubtedly the Hersbrucker aromatic variety, which was previously very 
popular with the Americans, but is now suffering  from a definite slow-down 
in demand as American purchasing policy has changed to the benefit of other 
varieties such as Spalter Select and Hallertauer Tradition. Even so, the 
latter varieties have been sold on the free market at prices well below the 
Community average for aromatic varieties. While Hersbrucker has been selling 
for only DM 50/ztr on the free market, the two new aromatic varieties have 
not been fetching more than around DM 100/ztr, which is still very low. In 
this poor economic climate, it appears that pre-contracts  for the coming 
years are being concluded only very hesitantly, for shorter periods, smaller 
quantities and lower prices than in previous years, since brewers know that 
they can always find hops on the free market at prices that may well remain 
low for several years, going by harvest forecasts and the fact that, 
according to some, hops are characterized by a ten-year production cycle. 
The way to increase hop prices would be to reduce the hop cultivation area 
in the world, as the Americans have proposed, and preferably to cut the area 
producing  super alpha varieties, since the hops market has become a market 
for alpha products. 

2.2.4.  Returns 

These were lower than in 1992. The average return per hectare in full 
production  fell by  13.53% from ECU 4 858 in 1992 to ECU 4 444 in 1993. 

As already mentioned in section 2.2.3, hop prices on the free market and the 
contract market were excessively  low, and are the reason  for still lower 
returns than in 1992, which was already considered a very bad year. 

s 

At Community  level returns were highest for the aromatic variety  group 
(ECU 4 908 per ha in full production, 8.07% down on  1992). Unlike the other 
Member states, France and the United Kingdom posted increases for these 
varieties of 6.25% and 29.57% respectively. The most profitable  aromatic 
varieties were, for France, strisselspalt  (return of ECU 7 161/ha in full 
proHuction), and for the United Kingdom Bramling Cross  (return of 
ECU 7 426/ha in full production), Challenger  (ECU 7 961/ha in full 
production), Goldings  (ECU 8 618/ha in full production), Fuggles 
(ECU 7 459/ha in full production) and WVG  (ECU 8 238/ha in full production). 
The only aromatic variety which produced a lower return in the United 
Kingdom was Progress, for which the return of ECU 5 522/ha was nevertheless 
still above the Community average for this group. 

There was a similar drop in returns for the bitter variety  group, by 7.93% 
to ECU 3 939/ha in full production. All producer Member States were 
affected, some reductions being very large  (-  44.92% for Belgium), except 
France and Spain where returns increased substantially, by 9.02% and  88.07% 
respectively. In the case of France, this increase is explained by the fact 
that the yield of Brewer's Gold was very high  (44.34 ztr/ha), so that 
returns per hectare in full production were markedly higher than the average 
for the group. For Nugget prices were also well up on 1992, at ECU 5 011/ha 
in full production. The reason for the increase in Spain was the excellent 
yield of the hybrid variety H3  (45.91 ztr/ha), although prices were still 
below the Community average. Average returns for other varieties, cultivated 
principally  in Germany  (155 ha), and to a small extent in Belgium  (8.51 ha) 
and the United Kingdom  (24.80 ha),  fell by 9.60%, although there was strong 
growth in the United Kingdom due to the excellent yield of the Zenith 
variety. As these varieties are only cultivated on small areas, their impact 
on overall returns for producers was negligible." 

2. Tables C, 5 and 6 are replaced by the following tables: 

TABLE C 

Return on areas in full production, in  ECU/HA*) 

1987 

1988 

1989 

1990 

1991 

1992 

1993 

c 

1993/92 
(%) 

BY VARIETY  GROUP 

Aromatic 
Bitter 
Others 

'5.428 
4.727 
4.439 

5.586 
4.491 
4.196 

5.562 
4.633 
4.093 

5.663 
5.644 
5.365 

5.854 
5.415 
3.382 

5.339 
4.328 
3.948 

4.908 
3.939 
3.569 

-8,07% 
-8,99% 
-9.60% 

BY  COUNTRY 

Germany 
France 
Belgium 
United  Kingdom 
Ireland 
Spain 
Portugal 

5.353 
4.674 
4.199 
4.695 
4.918 
3.122 
4.763 

5.238 
6.170 
4.368 
5.001 
5.943 
3.173 
2.452 

5.307 
5.572 
3.995 
4.577 
5.283 
4.473 
4.329 

5.616 
7.450 
11.158 
5.615 
10.817 
4.456 
3.322 

5.456 
5.512 
5.931 
7.212 
7.901 
4.441 
1.715 

4.818 
6 3 20 
6.602 
5.404 
9.055 
2.605 
1.495 

4.379 
6.794 
3.317 
4.803 
7.109 
4.900 
1.203 

- 9 . 1 1% 
7,50% 
-49,76% 
-11.12% 
-21,49% 
88.10% 
-19.53% 

BY  COUNTRY  AND  BY  VARIETY  GROUP 

Aromatic 

Bitter 

Others 

1992 

1993 

1993/92 
% 

1992 

1993 

1993/92 
% 

1992 

1993 

1993/92 
% 

Germany 
France 
Belgium 
United  Kingdom 
Ireland 
Spain 
Portugal 

5.181 
6.731 
7.095 
6.083 

4.602 
7.152 
2.809 
7.882 

-11.18 
6.25 
-60,41 
29.57 

2.448 

1.609 

-34.27 

4.317 
3.526 
6.363 
5.054 
9.055 
2.606 
1.495 

-6.53 
9.02 
-44.92 
-41.25 
-21.49 
88.07 
-19.53 

4.035 
3.844 
3.505 
2.969 
7.109 
4.901 
1.203 

-

3.878 

3.597 

-7.25 

7.710 
1.701 

655 
5.305 

-91.50 
211.88 

*)Areas  newly  planted  in  1993  and  1992. were  assumed to give 40  % and 65  % respectively  of the return  on  areas 

in full  production. 

TABLE 5 

Hops sold without and under contract and average prices 
without  and under contract 1980 -  1993 

•} 

Production 

Average prices 

1 
Without 
Contract •) 
50  kg 

Under 
Contract 
50 kg 

Under 
Contract 
% 
2/(2+1) 

4 

Without contract 
ECU/50 kg 

Under contract 
ECU/50 kg 

67.385 
154.754 
363.795 
223.549 
195.478 
173.339 
202.218 
161.850 
119.035 
169.083 
70.306 
235.415 
103.879 
390.867 

723.983 
768.155 
763.131 
744.142 
728.662 
718.124 
667.937 
634.361 
632.255 
641.429 
644.352 
679.700 
622.778 
639.633 

91% 
83% 
68% 
77% 
79% 
81% 
77% 
80% 
84% 
79% 
90% 
74% 
86% 
62% 

469.00 
225.63 
65.18 
91.85 
69.61 
92.33 
62.72 
123.41 
158.55 
134.58 
468.82 
165.08 
168,13 
65.53 

133.00 
162.78 
176.93 
183.13 
189.92 
173.19 
169.93 
168.19 
169,82 
164.30 
166.61 
166.85 
159.71 
158.29 

1992 

1993 

1992 

1993 

6.397 
367.023 
2.184 
777 
0 
780 
13.705 

5.195 
481.533 
39.672 
19.773 
379 
0 
93.080 

45% 
57% 
95% 
96% 
100% 
0% 
87% 

232.90 
162.39 

224.11 

203.41 

50.82 
56.62 
37.24 
101.62 

63.31 
145,78 

168.57 
156.01 
116.16 
200.71 
239.25 

145.53 
154.59 
126.60 
201.02 
230.33 

183.17  139.33 

EEC 

1980-1993 

1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991 
1992 
1993 

B. 

1993 

Belgium 
Germany 
Spain 
France 
Irelande 
Portugal 
United Kingdom 

*)  Unsold quantities are not included 

Vî-E-3 

TABLE 6  MEMBER STATE RETURNS  -  HOPS  1993 

i 

1 
i, 
Variety 

1 
Record 
II 
i: 
II 
|| 
Zenith 

Autres 

Group C/lll 

OTHERS 

, 
| 

I 
Total 

SURFACE AREA  IN HECTARES 
nr-T 
New 
1992 

IV 
Previous 

II 
New 

1993 

1992 

SPF 

SPF 

SPF 

Origin 

I l - IV 

NP 

AP 

AP 

TABLE  6  MEMBER  STATE  RETURNS  -  HOPS  1993  (cont'd  2) 

WDDOCTJOffTSfcg = 1 Zentner) 

jj 

RETURNS  (ECU) 

AVER7PRICE (ECU) 
50 KG 

RET'J.WS  (ECU) 
ha 

......  v 
Full 
Production 
(ll*0.4)+ 
(HI-0.65) 
•  IV 

'  VI 

Production 

REC 

VII 
Yield 
50kg/ha 

Vl/I 
RDM 

Contract 

Spot 

Not sold  j  Contract 

• ^ n — p ^ r - ^ - p. 

-«fi» 

— xn  — 
Spot 

' 

XIII 
Total 

XIV 
Contract 

XV 
Spot 

SCO 

HCO 

|| 

SCO 

HCO 

PSCO 

PHCO 

V.-

(VIIMX)  Il 

X I W I II 

X V IX 

i"""" 

XI+XII+ 
(X#0,7)*XV 

XVI 
Total 
Planted 

XVII 
Full 
Production 

X I I I /I 

XIII/V 

D 
B 

CE 

137.00 
7,51 
144.51 

0,00 
0,00 
0,00 

0.00 
0,00 
0,00 

137,00 
7,51 
144,51 

137.00 
7.51 
144.51 

4.680 
144 
4.624 

34,16 
19,21 
33,75 

UK  CE 

3,70 

0,00 

0,00 

3,70 

3.70 

134 

36,22 

D 
UK 

CE 

18,00 
21,10 
39.10 

155,00 
8,51 
24,60 
188,31 

0,00 
20,10 
20,10 

0,00 
0.00 
20,10 
20,10 

1,00 
1,00 
2,00 

1,00 
1,00 
1,00 
3,00 

17.00 
0,00 
17,00 

154,00 
7.51 
3,70 
165,21 

17.65 
8,69 
26.34 

154.65 
8,16 
12,39 
175,20 

688 
20 
708 

5.368 
144 
154 
5.DOO 

38,22 
0.95 
37,15 

34,71 
19,25 
31,67 
34,23 

TOTAL 
OTHERS 

B 
UK 

t 
j 
C Ej 

2.581 
0 
2.581 

0 

476 

476 

3.057 
0 
0 
3.057 

2.099 
124 

2.223 

134 

212 

212 

2.311 
212 
134 
2.657 

0 
20 
20 

| 
| 
| 

i 

0 

: 

'
| 
i 

0 
20 
20 

0 
-68 
20 
-48 

372.758 
0 
372.758 

102.535 
4.412 
106.946 

475.293 
4.909 
480.201 

144,42 
0,00 
140,09 

48,85 
35,49 
48,44 

3.469 
654 
3.385 

3.469 
654 
3.385 

0 

22.560 

22.560 

0,00 

168,36 

6.097 

6.097 

70.768 
0
70.768 

443.526 
0 
0 
443.526 

8.105 

00 

8.105 

110.639 
4.412 
22.560 
137.611 

78.872 

78.872 

554.165 
4.909 
22.560 
581.633 

148,67 

38,23 

144,47 

37,15 

144,96 
0,00 
0,00 
137,34 

47,48 
35,56 
146,50 
49,84 

4.382 
0 
4.258 

3.586 
655 
5.305 
3.558 

4.469 
0 
4.342 

3.597 

655 j 
5.305 
3.569 

i 

GRAND 
TOTAL 

D 

F 

B 

UK 

IRL 

ESP 

P 

j! 
|i  23.015,00 
H 
j| 
I 
li 

670,17 

409,07 

1.539,00 

1.206,00 

20.270,00 

21.669,50 

848.556 

38,51 

481.533 

367.023 

0 

75.639.899 

19.281.997 

94.921.896 

154,59 

56,62 

4.143 

4.379 

40,26 

81.18 

568,73 

624,60 

21.417 

26,08 

19.773 

777 

867 

4.020.150 

67.086 

4.157.108 

201,02 

101,62 

6.366 

6.794 

48.07 

51,38 

309,62 

362.25 

11.705 

29,30 

5.195 

6.397 

113 

779.824 

325.655 

1.112.246 

145,53 

50,82 

2.791 

3.317 

3.328,97 

122,90 

198,96 

3.007,11 

3.185,59 

109.199 

33,09 

93.080 

13.705 

2.414 

12.675.214 

1.945.335 

15.132.287 

139,33 

145,78 

4.643 

4.803 

13,06 

J 
I 
il  1.142.00 
li 
il 

96,42 

1,30 

0,00 

11.76 

12,28 

379 

29,02 

379 

0 

9,00 

15,00 

1.118,00 

1.131,35 

41.857 

40,78 

39.672 

2.164 

86,50 

9,92 

0,00 

41.05 

780 

8.20 

0 

780 

0 

0 

0 

87.295 

0 

87.295 

230,33 

0,00 

6.684 

7.109 

5.032.296 

102.690 

5.134.987 

126,60 

37,24 

4.838 

4.900 

0 

49.381 

49.381 

0,00 

63,31 

512 

1.203 

i; 

CE  il  28.674,69 | 

1.847,03 

1.542,44 

•! 

I 

25.285,22! 
I 

i 

Agricultural  conversion  rate:  1.1.1994 (see Table 7) 

27.026.82 

1.033.893 

37,31 

639.633 

390.867 

3.394 

98.434.678 

21.772.143 

120.595.199 

158,29 

65,53 

A.'cM 

4.444 

0 

/M 

Amended proposal for a 

COUNCIL REGULATION  (EC) N. 

/94 

of 

laying down, in respect of hops, the amount of aid 

to producers for the 1993 harvest 

(pursuant to Article 189a  (2) of the Treaty) 

In the Annex, the amount of aid to producers for aromatic varieties of 

ECU 378/ha is replaced by the amount of ECU 395/ha. 

1. BUDGET HEADING: 181 

APPROPRIATIONS: ECU 13 million 

2. TITLE: Amendment to the proposal for a Council Regulation laying down, in respect of hops, the amount of aid 

to producers for the 199 3 harvest 

3. LEGAL BASIS: Council Regulation  (EEC) No. 1696/71  (article 12 paragraph  7) 

4. AIMS OF PROJECT: To amend the aid per hectare for the group of aromatic varieties of hops for the 

1993 harvest 

5. FINANCIAL  IMPLICATIONS 

PERIOD OF 12 MONTHS 

(ECU million) 

CURRENT  FINANCIAL 
(94) 
(ECU million) 

FOLLOWING  FINANCIAL 
(95) 
(ECU million) 

5.0. EXPENDITURE 

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

5.1. REVENUE 

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

- NATIONAL 

5.0.1. ESTIMATED  EXPENDITURE 
5.1.1. ESTIMATED REVENUE 

5.2. METHOD OF CALCULATION: 

0.3 

p.m. 

0.3 

1996 

1997 

1998 

1999 

Aromatic varieties:  15 905 ha  x  (A) ECU  (395 - 378) million  x  1.207  (DR)  =  ECU 0.3 million 

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

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

6.2. IS A SUPPLEMENTARY  BUDGET NECESSARY? 

6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

COMMENTS: 

YES 

YES 

NO 

YES 

i-**."'??7 

'  " ' . ' * .-

-7 J 
ISSN 0254-1475 

COM(94) 379  final 

DOCUMENTS 

EN 

03 

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BBN92-77-SQ504-8 

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