Proposal for a COUNCIL REGULATION (EC) on food aid policy and food aid management and special operations in support of food security
Date: 1995-07-14
Institutions: European Commission
Subjects: aid system, cooperation policy, developing countries, food aid, security of supply, storage

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  14.07.1995 
COM(95)  283  final 

95/0160  (SYN) 

Proposal  for a 

COUNCIL REGULATION  (EC) 

on food  aid policy  and food  aid management  and special  operations  in 
support of  food  security 

(presented by the  Commission) 

Proposal to amend Council Regulation (EEC) No 3972/86 on food  aid policy  and  food 
aid  management  and  Regulations  (EEC)  1755/84,  2507/88,  2508/88,  1930/90  and 
1420/87  on policy  and management of  instruments  for  special operations  in support of 
food  security. 

Explanatory  memorandum 

1.  The aim of the proposal is to restructure, update and adapt all the legal instruments 
of food aid policy and management, including special operations in support of food 
security  such  as  the  supply  of  inputs  and  seeds,  storage  programmes  and  early 
warning systems. 

2.  Community food aid is an essential part of our food security policy and has become 
a  major  component  of  our  development  policy.  The  way  this  instrument  has 
evolved,  its share in the overall volume of Community  aid and the importance of 
our  role  in this field  mean that the basic legal  instruments  need to be adapted  in 
line with the recent guidelines adopted by Parliament  and the Council. 

The European Union allocates more funding  to this component of our development 
policy  than  any  other  donor  in  the  world.  Community  aid  administered  by  the 
Commission  is  alone  the  biggest  source  of  funding  and  the  main  donor  for 
specialized  international and multilateral organizations. 

An  integral  part  of  the  Community's  development  aid  policy  and  an  essential 
instrument  in the fight  against poverty,  food  aid and special operations in support 
of food security target the poorest areas.  There is a strong geographical focus (sub-
Saharan Africa,  South Asia and Central America) and the emphasis on support for 
non-governmental  and multilateral  organizations  sets it apart  from  the other main 
donors. 

3.  This proposal has three main objectives. 

3.1  The  first  is to bring  the  legal  basis  into  line  with  the  Council  and  Parliament's 
guidelines, which set out to reinforce the role of food aid as an essential component 
of  long-term food  security policy. 

This  involves  giving  greater  prominence  to  development  strategies  for 
local  production,  pricing  and  marketing  policies,  commercial  imports, 
control  and  security  mechanisms,  general  macroeconomic  trends  in the 
recipient  countries,  coordinated  food  policies  and  strategies  and  an 
assessment  of  the  impact  of  food  aid  on  production  and  consumption 
patterns in the medium and long term. 

1(A 

The Commission therefore proposes to adapt the Regulation in accordance 
with the guidelines, which advocate purchasing products on the recipient 
country's  market  or  in another  developing  country  (local  and  triangular 
purchases).  The importance of such purchases has become clear as they 
help to boost the developing  countries'  agriculture and  hence  their  food 
security,  to provide products more in tune with local eating habits and to 
promote interregional  trade and economy. 

Food  aid  must  be  integrated  as  fully  as  possible  into  agricultural 
development and agri-foodstuffs  policies.  To this end, programming and 
implementation  of  food  aid  and  operations  in  support  of  food  security 
must take account of the recipient country s policies on fighting  poverty, 
nutrition, family planning, environmental protection, with special attention 
to continuity, particularly  in countries coming out of emergencies. 

Operations  in  support  of  food  security  have  proved  an  appropriate  and 
effective  means  of  encouraging  local  production  in  countries  with  a 
structural  food  shortfall  or  coming  out  of  serious  crises.  They  cart 
complement Community or other donors' food  aid or other development 
programmes. 
Such  operations  must  not,  however,  replace  rural 
development  schemes or operations  in support of food  security  financed 
by  Community  aid  as  part  of  bilateral  or  multilateral  cooperation 
agreements. 

3.2  The second set of changes concerns the legal basis, which needs to be brought into 
line with the recent geopolitical changes throughout  the world,  particularly  in the 
developing countries.  The aim of the Commission's proposal is to alter the list of 
countries eligible  to receive Community  aid.  Since the list of recipient countries 
and/or  organizations  is  restrictive,  ad  hoc  Council  Regulations  have  had  to  be 
drawn  up  for  each  operation  (particularly  in  the  countries  of  the  former  Soviet 
Union). 

- For the sake of consistency with the agreements signed by the Community 
and the Member States under the International Food Aid Convention, the 
Commission's proposal uses the same technical basis, namely the OECD 
Development  Assistance  Committee's  classification  of  developing 
countries,  taking only  the three  groups  of  most disadvantaged  countries 
(see Annex to the Regulation). 

In the interests of flexibility,  Article 22 of the Regulation also allows for 
amendments to be made to this list by the Commission after consulting the 
Committee  provided  for  in  Article  26  and  in  accordance  with  the 
procedure laid down in Article 27. 

3.3  The  third  set  of  changes  involves  amalgamating  all  the  instruments  in  a  single 
Regulation covering all the provisions of food  aid policy  and management and 

A  b 

special  operations  in  support  of  food  security.  It  is  an exercise  in  rationalization 
designed  to  bring  together  and  present  as  consistently  as  possible  all  means  of 
Community  assistance for people suffering  from a serious food crisis or a structural 
food  deficit,  the ultimate  aim being  food  security.  As  a result of  this amendment 
all the Regulations mentioned  in the title will be abolished so that there is a single, 
coordinated  legal  basis  for  Community  policy  in this  field. 

In some countries with a structural  food  deficit  the economic  reform and 
structural  adjustment  process  has  fostered  the  emergence  of  a  private 
commercial  sector  which now  imports  sometimes considerable  amounts 
of basic foodstuffs.  The Commission proposes introducing a new means 
of  action  to  support  this  process,  while  avoiding  any  disruption  or 
competition or any  net loss of foreign aid to cope with the food  shortfall 
problem.  This  would  take the  form of  a foreign-currency  facility  to be 
made  available,  under  certain  conditions,  to  private  sector  operators  in 
order to import basic  foodstuffs  (Article  12). 

4. 

In  1991  the  Commission  decided  to  set up a European humanitarian aid office  in 
order to make humanitarian aid more effective  by  harmonizing  and concentrating 
it  in a single  administrative  structure. 

The particular nature  of  food  aid  for  relief  purposes requires  a special  legal  basis 
and  decision-making  and  operational  procedures  which  are not  easily  compatible 
with  development-oriented  food  aid  operations.  The  legislative  aspects  of 
humanitarian food aid will therefore be dealt with separately  in the proposal  which 
the  Commission presents  to the  Council  on the  legal  basis  for  all  the instruments 
of  humanitarian aid policy. 

On the  other  hand,  this  proposal  covers  operations  in  response  to  a serious  food 
crisis,  namely  a famine  or an imminent danger thereof  (Article 24  (1)). 

The  Commission  has  set up  the  internal  coordination  systems  needed  to  guarantee  the 
consistency  oT the  different  humanitarian  and  development  aid  instruments*,"  and  to 
ensure,  wherever  possible,  that  humanitarian  emergency  operations  evolve 
into 
development  support. 

ic 

5.  The  Commission's  proposal  to the  Council  introduces  a simpler  decision-making 
the  aim  being  greater 

involving  smaller  sums, 

procedure  for  decisions 
administrative  and programming  flexibility  (Article 25). 

6. 

In  the  light  of  the  above,  the  Commission  proposes  that  the  Council  adopt  the 
attached draft  Regulation. 

1d 

Draft 
Council  Regulation  (EC)  No  ... 
of.. 
on  food-aid  policy  and  fcod-aid  management  and  special  operations  in  support  of 
food  security 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article  130 W, 

Having  regard  to the  proposal  from  the  Commission,1 

In  cooperation  with  the  European  Parliament 

Whereas  food  aid  is  an  essential  aspect  of  the  Community's  policy  of  cooperation  with 
the  developing  countries; 

Whereas  food  aid  must  be  integrated  into  the  developing  countries'  policies  for  the 
improvement  of their  food  security,  in particular  by the establishment  of food  strategies; 

Whereas  the  Community  and  its  Member  States  closely  coordinate  their  development 
cooperation  policies  and  consult  one another  on their  food  aid programmes; whereas  the 
Community, with  its member  States , is a party to certain international  agreements in this 
domain,  and  in particular  the  Food  Aid  Convention; 

Whereas  the~food  aid  and  operations  in  support  of  food  security  are  key  features  of 
Community development policy and must be taken into account in all Community policies 
likely  to  affect  the  developing  countries; 

Whereas  food  aid  must  be  an  effective  instrument  ensuring  access  to  an  adequate  and 
appropriate  diet  and  improving  the  availability  and  accessibility  of  foodstuffs  to  the 
public,  consistent  with  local  dietary  habits  and  production  systems,  particularly  in  food 
crises,  and  fully  integrated  into  development  policy; 

Whereas  the  food  aid  instrument  is  a  key  component  of  the  Community's  policy  on 
preventing  or helping  in  crises  in the  developing  countries; whereas  account  schould  be 
taken  in  its  implementation  of  this  fundamental  role  as  a  factor  for  social  and  political 
stabilisation; 

Whereas  food  aid operations cannot be part of a viable solution unless they are integrated 
into  development  operations  geared  to  relaunching  local  production; 

(i) 

1c 

Whereas analysis, diagnosis, programming and monitoring need to be improved to make 
food  aid  more  effective  and  avoid  adverse  effects  on  local  production,  distribution, 
transport and marketing capacities; 

Whereas  food  aid  should  be  made  a  real  instrument  of  the  Community's  policy  of 
cooperation with the developing countries, thereby enabling the Community to participate 
fully  in multiannual  development projects; 

Whereas it is therefore necessary that the Community be able to provide a steady overall 
flow  of  aid  and  be  in  a  position,  in  appropriate  cases,  to  undertake  to  supply  to  the 
developing  countries  minimum  amounts  of  products  under  specific  multiannual 
programmes  linked  to  development  policies  as  well  as  to  enter  into  undertakings  in 
relation to  international  organisations; 

Whereas the Community's  support for the developing  countries'  efforts  to achieve  food 
security  could  be enhanced  by  greater flexibility  in food  aid, granting financial support 
for operations concerning food security, and in particular the development of farming and 
food  crops,  as an alternative to food  aid in certain circumstances; 

Whereas the Community  can assist those in need in the developing  countries by helping 
finance  operations  in  support  of  food  security  through  the  purchase  of  food  products, 
seed, agricultural implements and inputs, and through storage programmes, early-warning 
systems,  mobilization,  training  and technical  assistance; 

Whereas Community food-aid policy must adjust to geopolitical change and the economic 
reforms under way  in many recipient countries; 

Whereas  a  list  should  be  drawn  up  of  the  countries  and  bodies  eligible  for  food  aid 
operations; 

Whereas to that end provision should  also be made for food  aid to be made available to 
international and non-governmental organizations; whereas such organizations must satisfy 
a number of  conditions  guaranteeing the success  of  food-aid  operations; 

Whereas,  in  order  to  facilitate  the  application  of  certain  of  the  measures  envisaged, 
provision  should  be  made  for  close  cooperation  between  the  Member  States  and  the 
Commission  within  a Food Aid  Committee; 

Whereas in determining the steps to be taken for the execution of food-aid operations the 
implementing  procedures should  be adjusted the to the specific  nature of  each recipient 
area,  though within the framework  of  a common policy  and strategy; 

Whereas,  in order to ensure better management of food  aid, aligning  it more closely on 
the interests and needs of the recipient countries, and to improve the decision-making and 
implementing  procedures,  it  is  desirable  to  replace  Council  Regulations  (EEC) 
No  3972/862  on  food-aid  policy  and  food-aid  management,  as  last  amended  by 

(2)OJNoL370,  30.12.86 

in  place  of  food-aid  deliveries,  No  2507/885  on 

Regulation  (EEC)  No  1930/903,  No  1755/844  on  the  implementation  in  relation  to  food 
of  alternative  operations 
the 
implementation  of  storage  programmes  and  early  warning  systems,  No  2508/886 on  the 
implementation  of  cofinancing  operations  for  the purchase  of  food  products  or seeds  by 
international  bodies  or  non-governmental  organizations  and  No  1420/877  laying  down 
procedures  for  the  implementation  of  Regulation  (EEC)  No  3972/86  on  food-aid  policy 
and  food-aid  management, 

( 3 )O J N oL  174/6,  7.07.90 
( 4 )O J N oL  165,  23.06.84 
( 5 )O J N oL  220,  11.08.88 
( 6 )O J N o L 2 2 0,  11.08.88 
(7) OJNoL  136/1,  26.05.87 

HAS  ADOPTED  THIS  REGULATION: 

CHAPTER  1 

Objectives  and  general  guidelines  for  food  aid  and  operations  in  support  of  food 
security 

Article  1 

Under  its  policy  of  cooperation  with  developing  countries  and  in  order  to  respond 
appropriately  to  food  crises,  the  Community  shall  carry  out  food-aid  operations  and 
operations  in support  of  food  security  in  the  developing  countries. 

TITLE  I 

Food-aid  operations 

Article  2 

1. 

The  objectives  of  the  food-aid  operations  and  operations  in  support  of  food 
security  referred  to  in  Article  1 shall,  in  particular,  be: 

to promote  food  security  in  the  recipient  countries  and  regions; 
to  raise  the  standard  of  nutrition  of  the  recipient  population; 
to  contribute  towards  the  balanced  economic  and  social  development  of 
the  recipient  countries; 
to support  the efforts  of the recipient countries to  improve their own  food 
production  and  reduce  their  dependence  on  food  imports. 

2. 

The  Community's  food  aid  shall  be  integrated  as thoroughly  as possible  into the 
development  policies,  particularly  those  on  agriculture  and  agri-foodstuffs,  and 
the  food  strategies  of  the  countries  concerned.  Food  aid  and  operations  in 
support of food  security  shall back up the recipient country's policies on poverty, 
nutrition,  family  planning,  environmental  protection  and  rehabilitation,  with 
in  a 
special  attention 
post-emergency situation. Whether sold or distributed free of charge, aid must not 
be  liable  to disrupt  the  local  market. 

the  continuity  of  programmes,  particularly 

to 

3. 

The products  supplied,  along with any  other  operation,  in the course of  food  aid 
shall  reflect  as  closely  as  possible  the  dietary  habits  of  recipient  population  and 
shall  not  adversely  affect  the  recipient  country. 

When choosing the products to be supplied  as Community  aid and the procedures 
for  the mobilization and distribution  of  that aid,  particular  account  shall be taken 
of  the  social  aspects  of  access  to  food  in  the  recipient  countries,  and  especially 
of the most  vulnerable  groups and  the role  of  women  in the household  economy. 

4. 

Food  aid  shall  primarily  be  allocated  on  the  basis  of  an  objective  evaluation  of 
the real needs justifying  such aid,  with economic  considerations  also being  taken 
into account.  To that end,  particular consideration  shall be given to the  following 
criteria,  without  excluding  other  relevant  considerations: 

food  shortfalls, 
per  capita  income  and  the  existence  of  particularly  poor  population 
groups; 
the  recipient  country's  balance-of-payments  situation; 
the  economic  and  social  impact  and  financial  cost  of  the  proposed 
operation; 
the  existence  in  the  recipient  country  of  a  long-term  policy  on  food 
security. 

5. 

The  granting  of  food  aid  shall,  where  necessary,  be  conditional  on  the  • 
implementation  of  annual  or  multiannual  development  projects,  sectoral 
operations  or  development  programmes,  and  in  particular  those  which  promote 
sustainable  long-term  food  production  in  the  recipient  countries  within  the 
framework  of  a food  policy  and  strategy.  Where  appropriate,  this aid  may  take 
the  form  of  a  direct  contribution  to  the  implementation  of  such  projects, 
operations  or  programmes.  Where  Commumty  aid  is  intended  for  sale,  such 
complementarity  must  be  ensured  by  the  use  of  counterpart  funds  for  purposes 
agreed  by  the  Community  and  the  recipient  country.  Where  aid  is provided  as 
backing  for  a development  programme  spread  over  a number of years,  it may  be 
supplied  on a multiannual  basis linked to the programme  in question.  Besides the 
allocation  of basic  foodstuffs,  aid  may  be used  for  the supply  of  seed,  fertilizer, 
tools,  other  inputs  and  commodities,  the  creation  of  reserves  and  awareness  and 
training  schemes. 

6. 

As a key  component  of  food-security  programmes  consideration  should  be  given 
to  the  creation  by  the  recipient  countries  of  buffer  stocks,  in  tandem  with  the 
setting-up  of  regional  reserves  administered  by  regional  or 
international 
organizations. 

Title  II 

Operations  in  support  of  food  security 

Article  3 

Where  circumstances  warrant  it, 
of  food  security  in developing  countries  suffering  a  food  shortfall. 

the  Commumty  may  carry  out  operations  in  support 

Such  operations  may  be  implemented  by  the  recipient  countries,  the  Commission, 
international  bodies  or  non-governmental  organizations. 

The  purpose  of  these  operations  shall  be  to  support,  using  the  resources  available,  the 
drafting  and  execution  of  a  food  strategy  or  other  measures  fostering  the  food  security 
of  the  countries  concerned  and  to  encourage  them  to  increase  their  degree  of 

self-sufficiency  in food.  The said  operations  must  help to improve the living  standards 
of  the poorest  people  in the  countries  concerned. 

Operations  in  support  of  food  security  shall  take  the  form  of  financial  and  technical 
assistance,  in accordance  with  the  criteria  and  procedures  laid  down  in this  Regulation. 
Such  operations  shall  be  appraised 
in  the  light  of  their  consistency  with,  and 
complementarity  to,  the  objectives  and  operations  financed  by  other  Community 
development-aid  instruments. 

Article  4 

A developing  country  eligible  for  food  aid  under  this  Regulation  may  receive part  or  all 
of  the  food  aid  that  has  been  -  or  may  be  -  allocated  to  it  in  the  form  of  alternative 
operations,  with particular account being taken of trends in production,  consumption and 
reserves  in that country,  the food  situation  of  its  inhabitants  and  the  food  aid granted  by 
other  donors. 

Article  5 

Operations  in  support  of  food  security  shall  take  the  form  of  technical  and  financial 
assistance aimed,  in accordance  with the objectives  laid down  in Article  1, at  improving 
food  security  by  helping  fmance,  for  example: 

the  supply  of  seed  and  inputs  crucial  to  the  production  of  food  crops; 
rural  credit  schemes; 
storage  schemes  at  the  level  of  individual  farmers  or  at  village,  local, 
regional  or  national  level; 
operations  concerning the marketing,  transport,  distribution or processing 
of  agricultural  and  food  products; 
measures  to  foster  commercial  food  imports; 
applied  research  and  field  training; 
projects  to develop  the  production  of  food  crops; 
flanking  and  awareness  operations,  in particular  field  training. 

TITLE  ffl 

Early-warning  systems  and  stora2e  programmes 

Article  6 

The Community  may cover the cost  of operating  early-warning  systems concerning  the 
food  situation  in  developing  countries. 
It  may  also  cover  the  cost  of  implementing 
storage  programmes  in  these  cotmjries  in  support  of  food-aid  operations  under  this 
Regulation  or  comparable  measures  undertaken  by  the  Member  States,  international 
bodies  or  non-governmental  organizations. 

Such operations  should  take  account  of other  Community  aid  instruments,  including  the 
use  of  counterpart  funds  generated  by  the  sale  of  food  aid,  and  be  compatible  with 
Community  development  policy. 

These  operations  are  intended  to  strengthen  the  food  security  of  the  recipient  countries. 
They  must help  improve the living  standards  of the poorest  sections of the population  in 
the countries concerned  and conform  with their development objectives,  in particular  the 
policy  on  food  crops. 

Community  participation  in  such  operations  shall  take  the  form  of  financial  and/or 
technical  assistance,  in  accordance  with  the  criteria  and  procedures  laid  down  in  this 
Regulation. 

Article  7 

Community  support  for  storage programmes and early-warning  systems may be granted, 
upon  request,  to  international  bodies  or  non-governmental  organizations  for  operations 
to  help developing  countries  eligible  for  food  aid  from  the  Community  and  its  Member 
States. 

Commumty  aid  may  help  finance  the  following  measures: 

Article  8 

early-warning  systems  and  systems  for  gathering  data  on  trends  in 
harvests,  stocks  and  markets,  with  a view  to  improving  understanding  of 
the  food  situation  in  the  countries  concerned; 
operations  aimed  at  improving  storage  systems  with  a  view  to  reducing 
waste  or  ensuring  sufficient  storage  capacity  for  emergencies; 
such 
operations  may  also  include  the  establishment  of  the  infrastructure,  and 
in particular  the  bagging,  unloading,  disinsection,  treatment  and  storage 
facilities,  needed  to handle  food  products  in these countries  in support  of 
food-aid  operations  or  operations  in  support  of  food  security, 
preparatory  studies  and  training  schemes  in  connection  with  the  above 
activities. 

CHAPTER  II 

Implementing  procedures  for  food  aid  and  operations  in  support  of  food  security 

Article  9 

1. 

The  countries  and  bodies  eligible  for  Community  aid  for  operations  under  this 
Regulation  are  listed  in the  Annex. 

The Commission may amend  that list of countries and bodies after  consulting  the 
committee  provided  for  in  Article  26  according  to  the  procedure  laid  down  in 
Article  27. 

2. 

Aid may also be made available to non-governmental  organizations that meet the 
following  criteria: 

(a) 
(b) 

(c) 
(d)) 

have  a legal  status  characteristic  of  such  organizations; 
have  their  headquarters  in  a  Member  State  of  the  Commumty,  the 
recipient  country  or,  exceptionally,  in  the  case  of  international  non 
governmental  organizations,  a third  country; 
show  that  they  can  successfully  carry  out  food-aid  operations; 
undertake to comply with the conditions laid down by the Commission  for 
the allocation  of  food  aid. 

Article  10 

1. 

2. 

3. 

The  Commumty  may  help  finance  operations  in  support  of  food  security  of  the 
kind described  in Titles I and II (chapter  I) executed  by the recipient country,  the 
Commission,  international  bodies  or  non-governmental  organizations. 

Cofinancing  operations  may  be  carried  out  at  the  request  of  recipient  countries, 
international  bodies  or  non-governmental  organizations,  where  such  operations 
seem the most appropriate  way  of enhancing  the  food  security  of  groups  without 
the  ways  and  means  to cope  with  a  food  shortfall  themselves. 

Where operations are being fmanced  in support of food  security,  the Commumty 
contribution  shall  cover  the  purchase,  in  the  Community  or  the  developing 
countries,  and  the  transport  of  food  products  and  seed,  tools  and  inputs. 

Article  11 

1. 

2. 

3. 

4. 

Products  shall  be  mobilized  on  the  Community  market  ,  in the recipient  country 
or  in  one  of  the  developing  countries  (listed  in  the  annex  to  this  regulation)  if 
possible  one belonging  to the  same  geographical  region as the recipient  country. 

Exceptionally,  products  may  be mobilized  on  the market  of a country  other  than 
those provided  for  in paragraph  1 : 

if the  requisite  type  or  quality  of product  is unavailable  on the market  of 
the Community  or  any  of  the  developine  countries; 
in  a  food  crisis,  where  such  purchases  are  likely  to  increase  the 
effectiveness  of  the  operation. 

Food  aid products  available  on  the  Community  market  may  be mobilized  on  the. 
market of a developing  country,  if the economic efficiency  of doing  so compares 
favourably  with  that  of  mobilizing  products  on  the  Community  market  and  such 
purchases  remain  within  limits  which  do  not  undermine  the  principle  of 
mobilizing  products  on  the  Community  market. 

Where  food  is purchased  in a developing  country,  steps  must  be taken to  ensure 
that  such  purchases  threaten  neither  to  disrupt  the  market  of  the  country 
concerned  or of  any  other  developing  countries  in  the  same  region  nor  to  affect 
adversely  the  supply  of  food  to  their  inhabitants.  Such  purchases  shall  be 
integrated  as  thoroughly  as  possible  into  the  implementation  of  Commumty 
development  policy  towards  that  country,  particularly  with  regard  to  the 
promotion  of  food  security  in that  country  or  at  regional  level. 

Article  12 

Where  a  recipient  country  has  partially  or  totally  liberalized  food  imports,  the 
mobilization  of  Community  aid  must  be  consistent  with  that  country's  policy  and  not 
distort  the  market. 

In  such  cases,  the  Community  contribution  may  take  the  form  of  a  foreign-currency 
facility  to be made available to private-sector  operators  in the country concerned,  subject 
to the operation being part of a sectoral policy  (including  the strategy  on the  importation 
of  basic  foodstuffs)  consistent  with  the  economic  policy  in  question. 

Such  aid  shall  be  governed  by  the  criteria  laid  down  in  Article  11. 

Article  13 

The  Community  may  cover  costs  related  to  the  transport  of  food  aid. 

In other  cases  where  the Commission  believes  that  the Commumty  should  cover 
costs  related  to  the  inland  transport  of  food  aid,  it  shall  take  account  of  the 
following  general  criteria: 

a  serious  food  crisis; 

the  delivery  of  food  aid  to  low  income  countries  suffering  from  serious 
food  shortages; 

whether  the  food  aid  is  destined  for  the  international  bodies  or  non 
governmental  organizations  referred  to  in Article  10; 

the  need  to  increase  the  efficiency  of  the  food  aid  operation  in  question. 

Where  food  aid  is  sold  in  the  recipient  country,  the  Community  should  cover 
inland  transport  costs  only  in exceptional  circumstances. 

The  Community  may  also cover  the  air  transport  costs of  food  aid  operations  in 
exceptional  circumstances. 

1. 

2. 

3. 

4. 

Article  14 

The Commumty may cover distribution costs where the smooth execution of the  food-aid 
operations  concerned  requires  it. 

Community  aid  shall  take  the  form  of  grants. 

Article  15 

Aid  may  cover  the  external  and  local  costs  of  implementing  operations,  including 
maintenance  and  operating  costs. 

Community  financing  shall  not  be  used  to pay  taxes,  duties  and  charges. 

Any  counterpart  funds  shall  be  used  in accordance  with  the objectives  laid  down  in this 
Regulation  and  in agreement  with  the  Commission. 

Article  16 

The Commumty contribution may also cover flanking  activities connected with the supply 
of  food  aid,  such  as  supervision,  distribution  and  field  training. 

10 

Article  17 

Participation  in invitations to tender and other procedures  for the award of contracts shall 
be open on equal  terms  to all natural  and  legal  persons  of the European  Community and 
the  recipient  country.  It may  be extended  by  the  Commission  to any  specific  operation 
to  natural  and  legal  persons  of  other  developing  countries  receiving  Community  aid. 

It may  exceptionally  be extended  to  natural  and  legal  persons  of  third  countries. 

The  Commission  shall,  when  implementing  this  Regulation,  guarantee  the  openness  of 
the  procedures  in question  by  publicizing  them  properly. 

Article  18 

The  Commission  may  authorize  a  representative  to conclude  cofinancing  agreements  in 
its  name. 

Article  19 

1. 

2. 

Decisions  laying  down  the  terms  for  the  implementation  of  aid  under  this 
Regulation  shall  be  adopted  by  the  Commission. 

Aid  shall  not  be  granted  to  recipients  unless  they  undertake  to  comply  with  the 
allocation,  mobilization  and  implementing  conditions  communicated  to  them  by 
the  Commission. 

Article  20 

The  Commission  shall  take  all  measures  necessary  for  the  proper  implementation  of 
food-aid  programmes  and  operations,  and  operations  in  support  of  food  security. 

To  that  end,  the  Member  States  shall  lend  it  all  necessary  assistance,  and  shall  in 
particular  provide  all  relevant  information. 

CHAPTER  III 

Procedures  for  implementing  food-aid  operations 
and  operations  in  support  of  food  security 

Article  21 

In the field  of food  aid,  the Council,acting by a qualified  majority,  on a proposal 
from  the Commission  and  after  seeking  the  opinion  of  the European  Parliament, 
shall: 

(3) 

11 

apportion  the  cereals  aid  provided  for  under  the  Food  Aid  Convention 
between  Community  and  national  operations; 

apportion  among  Member  States  the national  cereals operations under  the 
Food  Aid  Convention. 

Article  22 

The  Commission,  after  consulting  the  Committee  provided  tor  in  Article  26,  in 
accordance  with the procedure  laid down  in Article 27, and taking account of the general 
policy  guidelines  for  food  aid,  shall: 

adopt  the  list  of  products  which  may  be  mobilized  as  aid, 
establish  the total  quantities  for  each  product  on  an animal  or  multiannual  basis; 
lay  down  rules  for  mobilization,  monitoring  and  evaluation; 
determine  each  recipient's  share,  in  terms  of  quantity  and  cost,  of  the  products 
which  may  be  mobilized,  within  the  budget  limit  for  each  product; 
where  necessary,  adjust  allocations  during  die  implementation  of  programmes; 
amend,  according  to  the  procedure  laid  down  in  Articles  26  and  27,  the  list  of 
recipient  countries  and  organizations. 

Article  23 

The  Commission  shall  follow  the  procedure  laid  down  in  Article  27  when  making  a 
decision: 

granting  food  aid  or  aid  for  an  alternative  operation  and  laying  down  the 
conditions  for  the  supply  of  that  aid; 
granting a contribution to international bodies and non- governmental organizations 
for  the  financing  of  operations  in  support  of  food  security; 
granting  aid  for  a  storage  programme  or  early-warning  system. 

Article  24 

In  accordance  with  the  Council  decisions  referred  to  in  Article  21  and  the 
decisions  taken under  Article  22,  the  Commission  shall  decide  on: 

(a)  emergency  actions,  where  famine  or  an  imminent  danger  thereof  seriously 
threatens  the  lives  or  health  of  people  in  a  country  without  the  ways  and 
means  to  cope  with  a  food  shortfall  itself,  after  consulting  the  Member 
States  by  the  most  appropriate  means  and  according  them  three  working 
days  in which  to  put  forward  any  objections; 
the conditions governing the supply and implementation of aid,  in particular: 
- 

the  general  conditions  applicable  to  recipients; 

(b) 

12 

- 

initiation  of  the  procedures  governing  mobilization,  the  supply  of 
products and the implementation of other measures, and conclusion of the 
relevant  contracts. 

2. 

For  the  purposes  of  paragraph  1(a),  the  Commission  shall  be entitled  to take  all 
necessary  measures  to  speed  up  the  supply  of  food  aid. 

The  volume  of  aid  granted  in  a  given  case  shall  be  limited  to  the  quantities 
needed  by  those  affected  to  cope  with  their  situation  for  a  period  not  normally 
exceeding  six months. 

The  Commission  shall  ensure  that  priority 
is  given  at  all  stages  to  the 
mobilization of food aid for the operations provided for in paragraph  1(a) and (b). 

Article  25 

Where  operations  involve limited amounts,  the  Commission  shall grant aid according  to 
the procedures  and  within  the  limits established  beforehand  by the Committee  provided 
for  in Article 26. 

Article  26 

1. 

2. 

The Commission shall be assisted by a Food  Aid  Committee, hereinafter  referred 
to as "the Committee", composed  of the representatives of the Member States and 
chaired  by  the representative  of  the  Commission. 

The Commission must, in particular, examine carefully  the long-term implications 
of  any-proposal  to  commit  funds  for  food  security  at  national,  regional  and 
household  level  in the recipient  countries. 

3. 

The  Committee  shall  draw  up  its  own  rules  of  procedure. 

Article  27 

Where  recourse  is had  to  the  procedure  described  in  this  Article,  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  in question.  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 Member States'  representatives  within  the Committee shall be weighted 
in  the  manner  set  out  in that  Article.  The  chairman  shall  not vote. 

The  Committee  shall examine  proposed  decisions  in  terms  of  their  impact on  long-term 
food  security  and  whether  or not they  form  part  of  a consistent  food-security  policy.  It 

13 

shall study and monitor food-security  policies receiving Community funding  and examine 
proposals  for joint  initiatives. 

The  Commission  shall  adopt  measures  which  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 shall defer  application  of  the measures  which  it has adopted  for a period  of 
two  months from  the date of  communication. 

The  Council,  acting  by  a  qualified  majority,  may  take  a  different  decision  within  the 
period  laid  down  in the previous  subparagraph. 

Article  28 

The  Member  States  shall  decide  on  their  national  food  aid  programmes  and  inform  the 
Commission,  which,  after  consulting  the  Committee  and  in  accordance  with  the 
procedure laid down in Article 27,  shall  stipulate how  notification  of national  operations 
is  to  be  provided. 

The  coordination  of  the  programming  and  implementation  of  Community  and  national 
food  aid  operations  shall be the subject  of  a  regular  exchange  of  information  within  the 
Committee.  In this exchange of information,  which  shall take place at the request of the 
chairman of the Committee  or a representative  of  a Member  State, account  shall also be 
taken  of  any  known operations  by  other  donors. 

Article  29 

The  Committee  may  examine  any  other  matter  concerning  food  aid  raised.-by  its 
chairman,  either  on the  latter's  own  initiative  or  at  the  request  of  a representative  of  a 
Member  State. 

Article  30 

The  Commission  shall  undertake  regular  evaluations  of  significant  food-aid  operations 
to  establish  whether  the  objectives  laid  down  in  the  appraisal  of  those  operations  have 
been  achieved  and  to  provide  guidelines  for  improving  the  effectiveness  of  future 
operations.  The  evaluation  reports  shall  be  made  available  to  the  Committee. 

The  Commission  shall draw  up procedures  for  the  dissemination  and  communication  of 
the  conclusions  of  evaluation  exercises  to  the  internal  departments  and  external 
organizations  concerned. 

Article  31 

14 

The  European  Parliament  shall  be  informed  of  the  management  of  food  aid  by  the 
communication,  upon their adoption,  of the decisions  referred  to in Articles 21 to 25 and 
by the annual  transmission  of progress  reports  on the  various operations  in the  financial 
years  concerned. 

The decisions  referred  to  in Articles 22 to 25  and  the  reports  referred  to  in the  previous 
subparagraph  shall  be  communicated  to  the  Council  at  the  same time. 

Article  32 

Regulation  (EEC)  No  3972/86,  as  last amended  by  Regulation  (EEC)  No  1930/90,  and 
Regulations  (EEC)  No  1755/84,  No  2507/88,  No  2508/88  and  1420/87  shall  be 
repealed. 

Article  33 

This  Regulation  shall  enter  into  force  on  the  third  day  following  that  of  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 
The President 

15 

ANNEX 

1. COUNTRIES 

LLDCs 

Other LICs 

LMICs 

Iraq 
Korea 
Democratic Republic of  Lebanon 
Macao 
Marshall Islands 
Mongolia 
Micronesia 
Federated States of  Niue 
St Helena 
Syria 
Tokelau 
Turks and Caicos Islands 
Wallis and Fotuna 
States of ex-Yugoslavia 
Occupied Territories (Gaza  & 
Cisgiordania) 

India 
Nigeria 
Kenya 
Guyana 
China 
Pakistan 
Nicaragua 
Ghana 
Tajikistan 
Sri Lanka 
Honduras 
Zimbabwe 
Egypt 
Indonesia 
Eritrea 
Timor 
Vietnam 

Mozambique 
Tanzania 
Ethiopia 
Sierra Leone 
Uganda 
Nepal 
Bhutan 
Burundi 
Chad 
Malawi 
Guinea  Bissau 
Bangladesh 
Madagascar 
Rwanda 
Laos 
Zambia 
Mali 
Burkina Paso 
Niger 
Equatorial Guinea 
Sao Tome and Principe 
Togo 
Gambia 
Central  African Republic 
Benin 
Maldives 
Guinea 
Comoros 
Mauritania 
Lesotho 
Kiribati 
Solomon Islands 
Cape Verde 
Western Samoa 
Vanuatu 
Botswana 
Afghanistan 
Cambodge 
Djibouti 
Haiti 
Liberia 
Myanmar 
Somalia 
Sudan 
Tuvalu 
Yemen 
Zaire 

Bolivia 
Côte d'Ivoire 
Philippines 
Senegal 
Armenia 
Kyrgyzstan 
Cameroon 
Georgia 
Uzbekistan 
Azerbaijan 
Papua  New  Guinea 
Peru 
Guatemala 
Morocco 
Congo 
Dominican Republic 
Ecuador 
Swaziland 
Jordan 
El Salvador 
Moldova 
Turkmenistan 
Colombia 
Jamaica 
Tonga 
Paraguay 
Namibia 
Kazakhstan 
Tunisia 
Thailand 
Algeria 
Turkey 
St Vincent & the Grenadines 
Costa Rica 
Fiji 
Iran 
Belize 
Grenada 
Panama 
Dominica 
Chile 
South Africa  (Black Communities) 
Anguilla 
Angola 
Albania 
Cuba 

16 

2.  BODIES 

WFP 
ICRC 
IFRC 
UNHCR 
UNRWA 

FAO 
UNICEF 

3.  NON-GOVERNMENTAL  ORGANIZATIONS 

Non-governmental  development  organizations  of 
exceptionally,  a third  country. 

the  Community, 

the  recipient  *  country  or, 

17 

FINANCIAL  STATEMENT 

1.  TITLE  OF THE  OPERATION 

Chapter  B7-20  Food  aid  and  support  operations 

2.  BUDGET  HEADINGS  INVOLVED: 

B7  - 200  Food  aid  in  cereals 
B7  - 201  Other  aid  in the  form  of  products  and  alternative  operations 
B7  - 202  Transport,  distribution,  storage  and  support  operations 

3.  LEGAL BASIS 

Council Regulation (EEC) No  ..../95  on food  aid policy and food  aid  management 
and  special  operations  in support  of  food  security 

4.  DESCRIPTION  OF  THE  OPERATION 

4.1  Overall objective of the  operation 

Food  aid  is  one  of  the  main  components  of  Commumty  development  aid  policy, 
accounting  for  22%  of  European  official  development  aid  (ODA).  Last  year  the 
European  Union,  previously  the  world's  second-largest  food  aid  donor,  overtook 
the  United  States  and  moved  into  first  place.  The  availability  of  basic  foodsmffs 
should  remain  more  than  sufficient  for  the  Union  and  the  Member  States  to 
maintain  or,  if  need  be,  increase  current  levels  of  food  aid  supplies  of  cereals 
(3 487  000 tonnes  of cereals  in  1991/92,  or  about  8%  of  their  total  grain  exports 
or  1%  of  Commumty  production). 

Based  on Commumty  development  aid policy  and  a fundamental  instrument  in the 
fight  against  poverty,  food  aid  together  with  the  special  operations  in  support  of 
food  security,  concentrates  on  the  most  disadvantaged  regions  of  the  world  and 
possesses two features  which distinguish  it from  the other  leading donors:  its high 
degree  of  geographical  specialization  (sub-Saharan  Africa,  southern  Asia  and 
Central  America)  and  a  specific  type  of  support  for  non-governmental  and 
multilateral  organizations. 

The  aim  of  the  regulation  proposed  here  is  to  reorganize,  update  and  adapt  the 
body  of  legal  instruments  relating  to  food  aid  policy  and  management,  including 

/? 

the  special  operations  in  support  of  food  security,  such  as  distribution  of 
agricultural  inputs  and  seeds,  storage  programmes  and  early  warning  systems. 

The  proposal  has  three  main themes: 

adapting  the  legal  basis  to  the  Council  and  Parliament  guidelines  on 
strengthening  food  aid's  role  as a key  element  in  long-term  food  security  policy; 

adapting  the  legal  basis  to  recent  changes  in  the  world  map,  particularly  in 
relation  to  the  developing  countries,  and  amending  the  list  of  countries  that  may 
be  eligible  for  Community  aid; 

bringing together and rationalizing all the instruments  in a single body of rules 
which contains all the provisions  of  food  aid policy,  food  aid management and  the 
special  operations  in  support  of  food  security. 

4.2  Period  covered  and  arrangements for  renewal  or  extension:  mdeterminate 
duration 

5.  Classification  of  the  expenditure/revenue 

5.1 

B7  - 200 
B7  - 201 
B7  - 202 

compulsory  expenditure 
non-compulsory  expenditure 
non-compulsory  expenditure 

For aid to the former  Soviet republics,  see attached  additional  financial  statement. 

5.2  Differentiated  appropriations 

6.  Type  of  expenditure  or  revenue 

100%  subsidy 

7.  Financial  impact 

Food  aid  is currently  financed  in two  ways: 

1.  Aid  to  those  developing  countries  specified  by  the  Regulation  in  force 
(3972/86)  is financed  from  Chapter B7-20 as far  as prices on the world market  are 
concerned  and  from  Chapter  Bl-33  as  far  as  refunds  to  exporters  based  on  the 
regulations  governing  the  common  organization  of  markets  are  concerned. 

1995 budget  B7-20  Commitment  appropriations  ECU  591  900 000 
Differentiated  appropriations  ECU  500 000  000 

n 

2.  Food aid granted  to certain CIS countries 

For  food  aid  to  the  former  Soviet  republics,  see  attached  additional  financial 
statement. 

Bl-33  Commitment appropriations  ECU  140 000 000 
ECU  140 000 000 

Payment appropriations 

7.1 Method of calculating total cost of operation  (definition of unit costs) 

The  interinstitutional  agreement  of  29  October  1993  lays  down  the  following 
method of calculation: 
"The  institutions  agree  the  following  reference  prices  for  products  subject  to 
refunds  to be used when calculating  appropriations relating to food  aid: 

ECU  127  per tonne 
common wheat 
other cereals 
ECU 270  per tonne 
powdered milk  ECU  1 119  per tonne 
ECU  1 591  per tonne 
butteroil 
category A sugar  ECU 232  per tonne 

The  total  appropriations  relating  to  food  aid  for  the  above  products,  excluding 
transport costs, charged to heading 4 of the fmancial  perspectives will be obtained 
by multiplying together the prices fixed  above and the quantities corresponding to 
the structural food aid requirements of the third countries. The total appropriations 
relating to food  aid charged  to the EAGGF  "Guarantee"  section will be obtained 
by multiplying together the difference between the reference prices fixed above and 
the  estimated  price  on  the  Community  market  and  the  quantities  used  for  the 
previous calculation. 

In  accordance  with  the  institutions'  joint  statement  made  when  the  financial 
regulation was revised,  and  in order  to ensure  that food  aid  is properly  financed 
without  Ihe  need  for  the  fmancial  perspectives  to  be  revised,  the  principle  of 
observing  the  ceiling  on  headings  1 and  4  will  not  preclude  the  possibility  of 
transfers  between  headings  in  Chapters  Bl-33  (refunds  in  connection  with 
Community  food  aid)  and  B7-20  (food  aid).  The  criteria  for  assessing  such 
transfers are as agreed by the Parliament, the Council and the Commission in their 
statement of  12 February  1990. 

Prices  of  products  other  than  those  referred  to  above  are  based  on estimates of 
trends on the Commumty  market. 

7.1.1 Calculation  of the commitment appropriations 

Since  it  is  the  Commission's  responsibility  to  decide  on  the  apportionment  of 
quantities between recipients (Article 5 of Council Regulation (EEC) No 3972/86 
of 22 December  1986 on food  aid policy and food  aid management) and since the 

JP 

actual allocation takes place during the financial  year concerned,  the commitment 
appropriations must cover the programme  for this  financial  year in full. 

Articles  B7 - 200 and B7  - 201 

Tonnage  stipulated in the fumre  programme  * the price given at point 7.1  above. 

Article  B7 - 2020 

-  Transport costs 

Transport costs are based on estimates  of  trends on the Community market. 

-  Storage,  distribution,  support measures 

Appropriations will  be calculated  on the basis  of  estimated  requirements 

7.1.2  Calculation  of payment  appropriations 

The calculation of payment appropriations  is based on the objective  of paying the 
total  contracted  in full,  in principle  within a period  of  3 years. 

7.2  Itemized breakdown of cost 
(See  table I) 

7.3 Indicative schedule of appropriations 
(See table II) 

<2f 

FOOD AID: CALCULATION  OF COMMITMENT APPROPRIATIONS 

QUANTITIES 
1996 

DPB  1996 

PRICE 
( E C U) 

COMMITMENT 
APPROPRIATIONS  (ECL 
MILLION) 

B7-2000  FOOD  AID  CONVENTION 
CEREALS, W H E AT 
OTHER CEREALS (,) 
SUB-TOTAL B7-2000 

B 7 - 2 0 10  OTHER  PRODUCTS 
CEREALS 
MILK POWDER 
BUTTEROIL 
VEGETABLE OIL 
SUGAR 
OTHER PRODUCTS 
ALTERNATIVE OPERATIONS 

5o 

695 775 
231 925 
927 700 

429 000 
20 000 
800 
70 000 
12 000 

127 
270 

127 
1119 
1 691 
767 
232/270 

SUB-TOTAL B7-2010 

B7-2020 TRANSPORT 
CEREALS 
MILK POWDER 
BUTTEROIL 
VEGETABLE OIL 
SUGAR 
LEGUMES 

STORAGE 

SUPERVISION 

SUB-TOTAL B7-2020 

TOTAL CHAPTER B7-20 

1358 700 

20 000 
800 
70 000 
12  000 
4  373 

130 
136 
120 
150 
193 
16% OF 43,75  MIO 
ECU 

' 

98 380 
52 620 
151 000-

64 483 
22 380 
1 273 

63 890 
3 012 
43 750 
P.M. 

178 500 

176 371 

2 720 
96 
10 500 
2  316 
7  0 00 

6  800 

6  6 00 

211 400 

540 900 

(1) OTHER  CEREALS: 

,  FLOUR,  SORGHUM,  MAIZE,  ROLLED  OATS,  DURUM  WHEAT,  MILLET 

TABLE 1 

Objective:  FOOD SECURITY AND AID TO POPULATIONS THREATENED BY FAMINE. Food aid to the developing countries 
is  intended to support the development efforts  of the countries  and their people  notably  in relation to food  security  and 
aid to populations  threatened by  famine. 

Action 
1/2/3 
(a) 

1 

1 

1 

Title 

Heading(s) 
Chapter 

Type 
(1/2/3) 
(b) 

Food aid in cereals 
and rice 

Other aid in the form of 
products and alternative 
operations 

B7-2000 

B7-2010 

Transport, distribution, storage 
and support operations 

B7-2020 

2 

2 

2 

DA/ 
NDA/ 
CE/ 
NCE 

DA 
CE 

DA 

NCE 

DA 
NCE 

So 
U 

T / \ T *I  nn 
1 U 1 AL 

on 
OI-4.\J 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

CA 

PA 

BUDGET  95 

DPB  1996 

151 

130 

222.8 

210 

218.1 

160 

151 

125 

178.5 

150 

211.4 

150 

691.9 
600 

640.9 

425 

(*)  Each  programming  sheet,  like  the  one  above,  must  be  assigned  an  intermediate  objective  defined  in  advance  by  the 

Directorate  General 

(a)  1 =  in progress 

2 =  awaiting  decision  by the Commission  or Council 
3=  planned 

(b)  1 =  programme  with  a multiannual  allocation  for  which the amounts deemed  necessary  are entered  in the legal  basis. 

2=  has a legal  basis but no amount deemed  necessary 
3 =  other measure with no legal basis 

TABLE II 

8.  Fraud prevention measures - results of measures taken 

Monitoring  missions  are undertaken  in order  to make  on-the-spot  evaluations of 
food aid projects. Experts in agricultural economics are sent into the field  for two 
to three weeks precisely for that purpose. Their work involves providing those who 
programme food  aid with information  and recommendations  at every stage of its 
implementation  in order  to make  them  aware  of  the programme's  suitability  for 
achieving  its objectives,  any problems  or difficulties  encountered  and the degree 
of accomplishment  of the original  objectives.  In conjunction  with the monitoring 
missions, evaluation missions are also conducted  in the field.  These are intended 
to measure the long-term  impact  of  the  Community's  food  aid operations.  They 
take an overview of aid granted to a particular country  over a period of years. 

Pilot projects relating to new methods of transport, packaging and storage are also 
undertaken occasionally. 

Support missions are necessary  to help identify  direct aid programmes in view of 
the  growing  complexity  of  the  food  security  issue.  In  countries  undergoing* 
structural  adjustment,  for  example, using counterpart  funds  to provide budgetary 
support requires the expertise of macroeconomists and experts in public finances. 
Analysis of sectoral policies is likewise essential if programmes are to be designed 
which have a sustainable impact on food  security. 

Finally, to increase the implementation capacity of projects and programmes geared 
to food  security, permanent technical assistance  is required. 

9.  Elements of cost-effectiveness  analysis 

9.1  Specific  objectives  of the operation 

To contribute to the food  security  of developing countries. 

9.2  Grounds for the operation 

In recent years the Community's  contribution  to  international  efforts  to promote 
food  security  in  the  developing  countries  has  become  a  key  element  of  the 
Community's  development  aid  policy  and,  in  terms  of  the  fmancial  resources 
allocated,  has put the EU at the top of the list of  international donors. 

The development of the food aid instrument and other special measures to promote 
food  security and the important role played by the EU in this area require a 

w 

corresponding  change in the basic legal  instruments  so as to bring them into line 
with the recent guidelines set out by the Parliament and Council. 

9.2.1  Inspection  and monitoring,  back-up measures,  technical  assistance,  early 
warning systems 

The cost of inspection and coordination of food aid mobilization currently accounts 
for about  1 %  of the total budget - soon to be increased to 3 % - but these prove to 
be an effective  means of controlling mobilization of food  aid operations. 

Monitoring  of operations is indispensable to avoid diversion of aid or  fraud. 

Monitoring  allows better management  of the resources allocated  to food  security 
when accompanied by training measures in the recipient countries. Profile  raising 
and  public  awareness  campaigns  are  also  important  for  providing  intermediary 
businesses and the community  in the countries concerned with information  on the 
requirements and possibilities of effectively  managed EU aid. 

9.3 Monitoring and evaluation of the operation 

9.3.1  The  Commission  regularly  undertakes  ex-post  evaluation  of  the  most 
important  operations.  Supply  agreements  also  stipulate  that  the  recipients  send 
reports  at  intervals  on  the  use  and  implementation  of  food  aid  and  on  any 
difficulties  encountered.  Such evaluations and reports should indicate whether the 
target population has actually been reached and whether aid intended for  sale and 
counterpart  funds  have been used  in accordance with the agreements. 

The  results  of  evaluations  have  demonstrated  the  need  to  maintain  supplies  of 
cereals and sugar at the same level,  the possibility  of eventually  replacing aid  in 
the  form  of  animal  fats  (butteroil)  with  aid  in  the  form  of  vegetable  fats,  and 
finally  the  urgent  need  to  increase  the  quantities  of  "other  products"  (dried 
vegetables, fish). 

In several cases the food  aid managed by the Commission was shown to have had 
a  greater  impact  on  the  development  of  countries  than  bilateral  aid  (better 
management  of  the  counterpart  funds,  more  consistency  with  development 
instruments,  greater control). 

Since  1994  the  Commission  has  attached  greater  importance  to  monitoring  and 
evaluation in order to strengthen controls and reap the benefit in terms of the future 
programming of aid. 

9.3.2 Details and frequency of planned evaluations: in conjunction with operations 

M 

9.4  Coherence with financial programming 

the  operation  is  incorporated  in  the  DG's  financial  programming  for  the 
relevant years 

the objective  of the proposed  operation corresponds  to the broader objective 
defined  in the DG's financial programming entitled  "Food security and aid to 
populations threatened by  famine. " 

M* 

FINANCIAL STATEMENT 

(FF/94/013) 

Date:  13/07/1994 

1.  BUDGET  HEADING  INVOLVED:  Bl-189  APPROPRIATIONS:  ECU  112  million 

2.  TITLE OF OPERATION: 

Council  Regulation  (EC)  No  1999/94  on  the  free  supply  of  agricultural  products  to 
the  people  of  the  Caucasus  and  Central  Asia 

3.  LEGAL BASIS:  Council  Regulations  (EEC)  No  1766/92,  136/66,  804/68  and  805/68 

4. 

PURPOSE  OF  OPERATION: 
To provide target populations  threatened  by  famine  with free  supplies of  agricultural 
products,  consisting  of  cereals,  olive  oil,  milk  products  and  beef. 

FINANCIAL  IMPACT 

12-MONTH 
PERIOD 
(ECU  MILLION) 

5.0  EXPENDITURE  CHARGEABLE  T0: 

-  EC BUDGET 
(REFUNDS/INTERVENTIONS) 
-  NATIONAL  BUDGETS 
-  OTHER SECTORS 

CURRENT  FINANCIALNEXT  FINANCIAL 
YEAR  (95) 
(ECU  MILLION) 
112 

YEAR  (96) 
(ECU  MILLION) 
0 

5.1  REVENUE 

0 

0 

0 

-  EC OWN RESOURCES 
(LEVIES/CUSTOMS  DUTIES) 
-  AT NATIONAL  LEVEL 

1996 

5.0.1  ESTIMATED  EXPENDITURE  0 

5.1.1  ESTIMATED  REVENUE 

0 

5.2  METHOD  OF CALCULATION: 

1997 
0 

1998 
0 

1999 
0 

The  products  concerned  (see  point  4)  shall  be  supplied 
from  EAGGF 
intervention  stocks  unprocessed  or  in  processed  form  for  an  amount  equal  to 
the  amount  fixed  by  the  Council  in  the context  of  this  Regulation.  At  the  time 
of  their  release  from  stock,  they  will  be  priced  in  accordance  with  the 
procedure  laid  down  in  Article  13  of  Regulation  (EEC)  No  729/70.  The 
supply  costs,  including  transport,  shall  also  be  borne. 

6.0  POSSIBLE FINANCING  BY MEANS  OF  APPROPRIATIONS  ENTERED  IN THE 

RELEVANT  CHAPTER  OF THE BUDGET  CURRENTLY  BEING  IMPLEMENTED  YES 

6.1  POSSIBLE  FINANCING  BY TRANSFER  BETWEEN  CHAPTERS  OF THE 

BUDGET  CURRENTLY  BEING  IMPLEMENTED 

6.2  NEED  FOR  A SUPPLEMENTARY  BUDGET 

6.3  APPROPRIATIONS  TO ENTER  IN  FUTURE  BUDGETS 

REMARKS: 

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NO 

NO 

NO 

ISSN 0254-1475 

COM(95) 283  final 

DOCUMENTS 

EN 

11 

Catalogue number  : CB-CO-95-321-EN-C 

ISBN 92-77-90947-1 

Office for Official  Publications of the European Communities 

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