Proposal for a COUNCIL REGULATION (EC) on the common organization of the market in dried fodder
Date: 1994-11-18
Institutions: European Commission
Subjects: EU aid, common organisation of markets, fodder, supply, terms for aid

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(94) 508 final 
Brussels, 18.11.1994 

94/ 0260 (CNS) 

Proposal  for a 

COUNCIL REGULATION (EC) 

on the common organization of the market in dried fodder 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

When deciding on Cap reform in  1992, the Council indicated  that  it wanted 
to see the continuation of the dried  fodder support regime either by a 
scheme providing  for an aid per ton, or by inclusion of dried  fodder in the 
reformed  arable crop regime. The new dried  fodder support scheme should be 
implemented  in the  1994/95 marketing year, a date that was postponed  to 
1995/96. 

A political agreement on the new scheme was subsequently  obtained  during 
the  1994/95 agricultural prices negotiations. 

The present proposal is meant to implement this political agreement. 

It is proposed to fix a flat rate aid of 57 ecu/t for dehydrated  fodder and 
32 ecu/t for sundried  fodder. This aid level will be limited to a Maximum 
Guaranteed Quantity  (EC-12) of 4.394 million tonnes  for dehydrated  Fodder 
and 432.500 tonnes  for sundried  fodder. The Maximum Guaranteed  Quantity  is 
divided between Member states  (National Guaranteed  Quantity  - NGQ) on the 
basis of their aided production during the marketing years  1992/93 and 
1993/94. If production  in the EC-12 exceeds the MGQ, the aid will be 
reduced by  1% for each  1 percentage point overshoot  for all producers  for 
the first 5% overshoot of the MGQ. In the case of an excess above  5%, the 
aid will be reduced  in those Member States, who have exceeded their NGQ by 
more than 5%. The aid reduction will be proportionate to their excess above 
5% in such a manner that budget expenditure will not exceed the one which 
would have been attained  if the MGQ had not been exceeded. 

Since the final aid amount is only known at the end of the marketing  year 
an advance shall be payable, equal to 28.5 ecu/t for dehydrated  fodder and 
16 ecu/t  for sundried fodder. 

To take into account the Community  production  pattern  it is proposed  to 
start the marketing year  1 April and end it at 31 March. 

The provisions concerning  the quality  standards  as well as the provisions 
concerning  the entitlement to the aid remain unchanged  form those 
applicable  in Regulations  (EEC) No  1117/78 and  (EEC) No  1417/78. Regarding 
the provisions concerning  trade with third countries, the proposed  text 
takes into account the results of the Uruguay Round, entering  into force as 
soon as the Council will have decided  so. In the dried  fodder  sector the 
changes are of minor  importance, since import is levy free and most 
products  are even duty  free. 

4 Ms 

Proposal for a 

COUNCIL REGULATION  (EC) No. 

/94 

Of 

on the common organization of the market  in dried  fodder 

THE COUNCIL OF THE EUROPEAN  UNION 

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

particular Articles  42 and 43 thereof, 

Having regard to the proposal from the Commission,^) 

Having regard to the opinion of the European Parliament,(2) 

Having regard to the opinion of the Economic  and Social committee,(3) 

whereas Regulation  (EEC) No  1117/78(4), as last amended by  Regulation 

(EEC) No  3496/93<5),  set up a common organization of the market  in dried 

fodder; whereas Regulation  (EEC) No  1417/78<6), as last amended by 

Regulation  (EEC) No  1110/89(7), set out the aid system for dried fodder; 

whereas a simple  flat rate aid payment should be payable  for dried  fodder; 

whereas the rate for fodder which  is artificially heat dried  should be 

higher than that for sun-dried fodder in order to take into account the 

additional costs involved; 

whereas in order to limit Community dried fodder production, the amount for 

which aid may be granted  should be subject to maximum  limits; 

Whereas two different maximum guaranteed quantities  (MGQ) should be fixed, 

one for artificially  heat-dried  fodder and another  for sun-dried; 

(1) 
(2) 
(3) 
(4) OJ, No L  142  , 30.5.1978, p. 2 
(5) OJ, No L 319, 21.12.1993, p. 17. 
(6) OJ, No L  171, 28.6.1978, p. 1 
(7) OJ, No L  118, 29.4.1989, p. 1. 

- 2 

Whereas these MGQs should be distributed between Member  States on an 

equitable basis taking  into account, in particular, the average of their 

production  in the marketing years  1992/93 and  1993/94-according to the data 

available to the Commission  in July 1994; 

Whereas  in order to ensure that the MGQs are respected  and in order to 

discourage excess production throughout the community, in the event of an 

overshoot, the aid for dried fodder should be reduced; whereas  that 

reduction  should equally be applied  in all Member states for the first 5% 

by which the MGQ is exceeded; whereas  in the event of a larger excess, 

those Member States which have exceeded their national guaranteed quantités 

should subject to an additional reduction; 

Whereas the final amount of the aid cannot be paid until it has been 

calculated whether the MGQ has been exceeded; whereas  it is therefore 

necessary that advance payments of the aid be made after the dried  fodder 

has left the processing plant; 

Whereas the marketing year for dried fodder  for which aid is paid should be 

from  1 April each year to 31 March of the following year as production  in 

southern Member States commences  already  in April; 

whereas criteria relative to the minimum quality of dried  fodder  entitled 

to aid should be determined; 

Whereas, in order to encourage a regular  supply of green  fodder to 

processors  and to enable producers to benefit  from the aid scheme, the 

granting  of aid should  in certain cases be conditional on the conclusion of 

contracts  between producers  and processing plants; 

Whereas the contracts  should, on the one hand, promote regular  supplies for 

the processing  plants and, on the other, permit the producers to benefit 

from the aid; whereas, to this end, it should be laid down that the 

contracts  include certain information; 

Whereas processing plants should fulfil certain conditions necessary  for 

entitlment to aid; whereas these plants should therefore keep stock 

accounts, including the details necessary  for verification  of entitlment to 

aid and should furnish any other necessary proof; 

-  3 -

Whereas, where there are no contracts between the producers and the 

processing  plants, other information  should be furnished  by the latter for 

the purpose of verification of entitlement to aid; 

Whereas, in the case of special-order  contracts concerning  the processing 

of fodder delivered by the producer, provision  should be made to enable the 

aid to be passed back to the producer; 

Whereas, in order to facilitate  implementation  of the measures proposed, a 

procedure  should be provided  for which establishes  close  cooperation 

between Member States and the Commission within a Management Committee; 

Whereas, under the Uruguay Round of multilateral  trade negotiations, the 

Community  has negotiated various agreements  (hereinafter  referred to as the 

"GATT agreements"); whereas  several of those agreements concern 

agriculture, in particular the Agreement on Agriculture  (hereinafter 

referred  to as  "the Agreement"); 

Whereas, since the Agreement on Safeguards  lays down clear rules on the 

application  of protective clauses as incorporated  in the market 

organizations, the safeguard clause applicable  to dried  fodder  should be 

supplemented  by a reference to the obligations  flowing  from  international 

agreements; 

Whereas  it is necessary  to ensure that the entry  into force of the new 

rules on trade with third countries coincides with the date on which the 

obligations  for the Community  resulting  from the Multilateral  Trade 

Negotiations  of the Uruguay Round take effect; 

Whereas Regulations  (EEC) No  1117/78 and  (EEC) No  1417/78 should be 

repealed, with the exception  for the former of certain  articles which  shall 

remain  in force until the date of application of the legislation  enforcing 

the results of the negotiations of the Uruguay  Round, 

HAS ADOPTED  THIS REGULATION  : 

-  4 -

Article 1 

There shall be a common organization of the market in dried  fodder covering 

the following products: 

CN  code 

Description 

(a) ex  1214  10 00 

-Flours and pellets of lucerne  artificially 

heat-dried 

•Flour and pellets of lucerne otherwise dried 

and ground 

ex  1214 90 91 and 

ex  1214 90 99 

-Lucerne, sainfoin, clover, lupins, vetches 

and similar fodder products, artificially 

heat-dried, except hay and fodder kale and 

products containing hay 

-Lucerne, sainfoin, clover, lupins, vetches, 

honey  lotus, chickling pea and birdsfoot 

otherwise dried and ground 

(b) ex 2309  90 98 

-Protein concentrates obtained  from lucerne 

juice and from grass  juice 

-Dehydrated products obtained exclusively  from 

solid residue and  juice resulting  from the 

preparation of the concentrates referred to 

in the first indent 

Article 2 

The marketing  year  for the products referred  to in Article  1 shall 

begin on  1 April of each year and end on 31 March of the following 

year. 

-  5 -

TITLE I 

Aid system 

Article 3 

1.  Aid  shall be granted  for the products  listed  in Article  1. 

2.  Without prejudice to Article  5 the aid for the products  listed  in the 

first and third  indents of Article  1(a) and  in Article  1(b) shall be 

57 ECU/tonne. 

3.  Without prejudice to Article  5 the aid  for the products  listed  in the 

second and  fourth  indents of Article  1(a) shall be 32 ECU/tonne. 

Article 4 

A Maximum Guaranteed  Quantity  (MGQ) per marketing  year of 4.394 million 

tonnes of dried  fodder for which the aid referred  to in Article  3(2) 

may be granted  is hereby  established. 

The MGQ referred to in paragraph  1 is divided  as follows between the 

Member states taking  into account, in particular, the average of their 

production  in the marketing years  1992/93 and  1993/94, according  to the 

data available to the Commission  in July  1994, for which aid was 

received  under Article  5(2) first subparagraph  of Regulation  (EEC) 

No  1117/78 : 

Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 

National Guaranteed 
Quantity  (NGQ) 

tonnes 

8.000 
334.000 
421.000 
32.000 
1.224.000 
1.4 55.000 
5.000 
523.000 

-

285.000 
5.000 
102.000 

-  6 -

3.  A Maximum Guaranteed Quantity  (MGQ) per marketing year of  432.500 

tonnes of dried fodder for which the aid referred to in Article  3(3) 

may be granted  is hereby  established. 

4.  The MGQ referred to in paragraph 3 is divided as follows between the 

Member States taking into account the average of their production  in 

the marketing years  1992/93 and  1993/94 for which  aid was  received 

under Article  5(2) second and third  subparagraphs  of Regulation  (EEC) 

No  1117/78 : 

Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United Kingdom 

National Guaranteed 
Quantity  (NGQ) 

tonnes 

5.500 
101.000 
150.000 

151.000 

25.000 

Article 5 

Where the amount of dried fodder  for which aid is claimed under Article 

3(2) or 3(3) in any marketing year exceeds the MGQ referred to in Article 

4(1) or 4(3) respectively, the aid to be paid  in that year  shall be 

calculated  as follows : 

for the first 5 % by which the MGQ is exceeded, the aid shall be 

reduced  in all Member States by an amount which  is proportionate  to 

that excess, 

for any excess beyond  5% additional reductions  shall be made  in any 

Member State  in which production exceeds the NGQ increased  by 5% 

proportionate  to this excess. 

The reduction to be applied  shall be set by the Commission  in accordance 

with the procedure  laid down in Article  18 and shall be such as to ensure 

that expenditure expressed  in agricultural ECU does not exceed that what 

would have been attained if the relevant MGQ had not been exceeded. 

-  7 -

Article 6 

1.  Undertakings processing dried  fodder which apply  for aid under  this 

Regulation  shall be entitled to an advance payment : 

of 28.5 ECU/tonne  in the case of dried  fodder  for which the aid in 

Article  3(2) is claimed, and 

- 

of  16 ECU/tonne  in the case of dried  fodder for which the aid in 

Article  3(3) is claimed. 

Member States shall carry out the necessary  checks to ensure 

entitlement  to the advance  is justified. Once entitlement  to the 

payment  is established, payment of the advance  shall be made. 

2.  In order to qualify  for an advance payment, the dried  fodder in 

question must have left the processing plant. 

3.  Where an advance has been made, a balance  shall be paid equal to the 

difference, if any, between the amount of the advance and the total 

amount of aid due to the undertaking  processing  dried  fodder, taking 

into account the provisions of Article 5. 

Article 7 

Member States shall communicate to the Commission, at the  latest by  31 May 

of each year the quantities of dried fodder eligible  for aid under 

Article  3(2) and Article  3(3) in the preceding marketing year. 

Article 8 

The aid provided  for in Article  3 shall be granted, on application  from the 

party concerned,  in respect of dried  fodder having  left processing  plants 

and meeting the following conditions : 

a)  the maximum moisture content must  fall between  11 and  15% and may vary 

with the form of presentation of the product; 

8 -

b)  the minimum crude protein content in dry matter must not be less than : 

- 

15% in the case of the products  listed  in Article  1(a) and the 

second indent of Article 1(b), 

45%  in the cas of the products  listed  in the first indent of 

Article  1(b) ; 

c)  the dried  fodder must be of sound and fair merchantable  quality. 

Further conditions, in particular regarding  fibre, carotene content, may be 

stipulated  in accordance with the procedure  laid down in Article 18. 

Article 9 

The aid provided for in Article  3 shall be granted only to undertakings 

processing  the products  listed  in Article  1 which : 

(a) keep stock records showing at least : 

the utilized quantities of green fodder and, where applicable, 

sundried  fodder; however, where the particular circumstances  of the 

plant so require, the quantities may be estimated  on the basis of 

areas sown, 

the quantities of dried fodder produced and the quantities  and and 

quality of such fodder leaving the plant; 

(b) provide any other  supporting documents  necessary  for verifying 

entitlement to the aid; 

(c) fall into at least one of the following categories : 

- 

plants which have concluded contracts with producers of  fodder for 

drying, 

plants which have processed their own crops or, in the case of 

groups, those of their members, 

-  9 -

plants which have obtained  their  supplies  from legal or natural 

persons providing certain guarantees to be determined, who have 

concluded contracts with producers of fodder for drying; these 

legal or natural persons  shall be buyers approved  the  competent 

authorities of the Member States in which the fodder  is harvested 

under conditions  laid down pursuant to the procedure provided  for 

in Article  18. 

Article  10 

Plants which process their own crops or, in the case of groups those of 

their members  shall submit annual declarations  of the areas the  fodder 

harvest of which  is to be processed  to the competent  authorities  of the 

Member States by a date to be determined. 

Article  11 

1.  Contracts referred to in Article  9  (c) shall state not only the price 

to be paid to the producers  for the green  fodder  and, where applicable, 

for sundried  fodder, but also at least : 

the area  from which the crop  is to be delivered  to the  processing 

plant, 

the terms of supply  and payment. 

2.  Where contracts  as referred  to in the first  indent of Article  9  (c) are 

special-order  contracts  for the processing  of  fodder  supplied  by the 

producers, they  shall specify  at least the area whose crop  is to be 

deliverd  and  include a clause  laying down an obligation  on processing 

plants to pay the producers the aid specified  in Article  3 which they 

receive  for the quantities processed under the contracts. 

10 -

Article 12 

1.  Member States shall introduce a supervisory  system to check, in respect 

of each processing plant, that : 

the conditions  laid down in the preceding Articles are met, 

the quantities covered by aid applications correspond  to the 

quantities of dried fodder of the minimum quality which  leave the 

plants. 

2.  The dried fodder shall be weighed and samples taken when it leaves the 

processing plants. 

3.  The Member States  shall forward to the Commission the provisions they 

plan to apply to implement paragraph  1 before such provisions  are 

adopted. 

TITLE II 

Trade with third countries 

Article 13 

Unless this Regulation provides otherwise, the rates of duty  in the common 

customs tariff  shall apply to the products  listed  in Article  1. 

-  11 

Article  14 

1.  The general rules  for the interpretation of the Combined Nomenclature 

and the special rules for its application  shall apply to the tariff 

classification of the products covered by this Regulation; the tariff 

nomenclature  resulting  from the application of this Regulation  shall be 

incorporated  in the Combined Nomenclature. 

2.  Save as otherwise provided  for in this Regulation or pursuant to a 

provision  thereof, the following  shall be prohibited  in trade with 

third countries : 

the levying of any charge having equivalent effect to a customs 

duty, 

the application of any quantitive restriction  or measure  having 

equivalent effect. 

Article  15 

Tariff quotas  for the products  listed  in Article  1 resulting  from 

agreements concluded  in accordance with Article  22 8 of the Treaty or  from 

any other act of the Council pursuant to the Treaty  shall be opened and 

administered  in accordance with detailed rules adopted according  to the 

procedure  laid down in Article  18. Such detailed rules  shall provide  for 

annual quotas, suitably phased over the year, to be opened  and, where 

appropriate, for : 

a)  guaranties covering the nature, provenance  and origin of the product; 

b)  recognition of the document used for verifying  the guaranties  referred 

to in  a );  and 

c)  the conditions under which  import licences are  issued and their  term of 

validity. 

-  12 -

Article 16 

1.  If, by reason of an increase  in imports or exports, the  Community 

market  in one or more of the products  listed  in Article  1 is affected 

by, or is threatened with, serious disturbance  likely to jeopardize the 

achievement of the objectives  set out in Article  39 of the Treaty, the 

Commission may apply appropriate measures  in trade with third  countries 

until such disturbance or threat of disturbance has ceased. 

2.  If the situation referred to in paragraph  1 arises, the Commission 

shall, at the request  from a Member State or on its own initiative, 

decide upon the necessary measures; the Member States shall be notified 

of such measures, which shall be immediately  applicable. If the 

Commission receives a request  from a Member State, it shall take a 

decision theron within three working days  following  receipt of the 

request. 

3.  Measures decided upon by the Commission may be referred to the council 

by any Member State within three working days of the day on which they 

were notified. The Council shall meet without delay. It may, acting by 

a qualified majority, amend or annul the measure  in question. 

4.  The Commission shall adopt detailed rules  for the application of this 

Article  in accordance with the procedure  laid down  in Article 18. 

5.  This Article  shall be applied  in compliance with the  obligations 

arising  from agreements concluded  in accordance with Article  228(2) of 

the Treaty. 

TITLE III 

GENERAL PROVISIONS 

Article  17 

Save as otherwise provided  in this Regulation, Articles  92, 93 and  94 of 

the Treaty  shall apply to the production of and trade  in the products 

referred to in Article  1. 

-  13 -

Article  18 

1.  The Commission  shall be assisted by a committee composed  of the 

representatives of the Member States and chaired by the  representative 

of the Commission. 

2.  Where the procedure  laid down in this Article  is to be followed, the 

chairman shall refer the matter to the committee either on his own 

initiative or at the request of the representative of a Member  state. 

3.  The representative of the Commission  shall submit to the committee a 

draft of the measures to be taken. The committee  shall deliver  its 

opinion on the draft within a time limit which the chairman may  lay 

down according to the urgency of the matter. The opinion  shall be 

delivered  by the majority  laid down  in Article  148(2) of the Treaty  in 

the case of decisions which the Council  is required  to adopt on a 

proposal  from the Commission. The votes of the representatives  of the 

Member states within the committee  shall be weighted  in the manner  set 

out  in that Article. The chairman  shall not vote. 

4.  The Commission  shall adopt measures which  shall apply  immediately. 

However, if these measures are not in accordance with the opinion of 

the committee, they  shall be communicated  by the Commission  to the 

Council  forthwith. In that event : 

the Commission may defer application of the measures which  it has 

decided  for a period of not more than one month  from the date of  such 

communication; 

the Council, acting by a qualified majority, may take a different 

decision with the time limit referred to in the previous paragraph. 

5.  The committee may consider  any other matter raised by  its chairman 

either on his own initiative or at the request of the representative of 

a Member State. 

-  14 -

Article 19 

In accordance with the procedure  laid down in Article  18 shall be adopted : 

a)  detailed rules for the application of this Regulation, in particular 

those related to : 

the granting of the aid referred to in Article  3 and the advance 

payment foreseen in Article 6, 

the checking and establishment of entitlement to the aid,  including 

any necessary controls, which may make use of certain elements of 

the integrated  system, 

the criteria  for determining  the minimum  quality, 

the conditions to be fulfilled by the plants referred to in the 

second  indent of Article  9  (c), as well as the conditions  referred 

to in Article 10, 

the control measure to be carried out referred to in Article  12(2), 

the criteria to be fulfilled  for the conclusion of contracts 

referred to in Article 9 and the information which they must 

contain, in addition to the criteria  laid down  in Article 11, 

the Maximum Guaranteed  Quantity; 

b)  transitional measures  if they prove necessary  to facilitate the change 

from the aid system defined to in Regulation  (EEC) Nr. 1117/78 to the 

system  laid down  in this Regulation. 

Article 20 

The Member States shall communicate to the Commission the measures taken in 

order to implement this Regulation. 

-  15 -

Article 21 

Regulation  (EEC) No  1117/78  is hereby repealed with the exception of 

Articles  8 and 9 which  shall remain in force until the date determined by 

the Council Decision on the simultaneous entry  into force of the acts 

implementing  the results of the Uruguay Round of multilateral  trade 

negotiations  [1 July  1995]. 

Regulation  (EEC) No  1417/78  is hereby  repealed. 

Article 22 

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

publication  in the Official Journal of the European Communities. 

It shall apply  from  1 April  1995 with the exception of Title II which  shall 

apply as from the date determined by the Council Decision on the 

simultaneous  entry  into force of the acts implementing  the results of the 

Uruguay Round of multilateral trade negotiations  [1 July  1995]. 

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

all Member States. 

Done at Brussels, 

For the Council 

The  President 

AL 

F I N A N C I AL 

STATEMENT 

1. BUDGET HEADING: 130 Production aid for dried  fodder 

APPROPRIATIONS: ECU 280 million 

(APB 1995) 

2. TITLE: 

Council Regulation on the common organization of the market in dried  fodder 

3. LEGAL BASIS: 

Articles  42 and 43 of the Treaty 

4. AIMS OF PROJECT: 

To limit ; support in the dried  fodder  sector by means of maximum guaranteed  quantities 

5. FINANCIAL  IMPLICATIONS 

PERIOD OF 12 MONTHS 

CURRENT  FINANCIAL 

YEAR 

(1995) 

FOLLOWING  FINANCIAL 
YEAR 
(1996) 

5.0.  EXPENDITURE 

- CHARGED TO THE EC BUDGET 

(REFUNDS) 

+ECU 96 million 

-ECU 37 million 

+ECU 96 million 

-  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: 

(a) 12-month period: 

1997 

1998 

1999 

2000 

-  dehydrated: ECU  (57-40)/t x 4.394 million t x 1.207  (DT) = + ECU 90 million  (B) 

-  sun-dried:  ECU  (32-20)/t x 0.38 million t x 1.207  (DT)  = + ECU 6 million  (B) 

(b) 1995: 

-  dehydrated: ECU  (28.5-40)/t x 4.394 million t x 1.207  (DT) x 0.6 = - ECU 36 million  (B) 

-  sun-dried:  ECU  (16-20)/t x 0.38 million t x 1.207  (DT) x 0.6 

= - ECU 1 million  (B) 

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

YES 

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: 
(1)  The impact is calculated  using the Commission proposal in the 1994/95 prices package, which  is the basis 

for the 1995 preliminary  draft Budget  (APB). 
It is included  in the overall  cost of the prices package decision  indicated to the Council during  adoption 

of the compromise on 18-19.7.1994. 

Letter of amendment No 1 to the 1995 APB already  takes account of this measure. 

ISSN 0254-1475 

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