REPORT FROM THE COMMISSION TO THE COUNCIL - THE TOMATO MARKET IN THE EUROPEAN UNION
Date: 1996-06-10
Institutions: European Commission
Subjects: fresh vegetable, fruit vegetable, market, production aid, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  10.06.1996 
COM(96) 247 final 

REPORT  FROM  THE COMMISSION  TO THE COUNCIL 

THE TOMATO MARKET TN 
THE EUROPEAN TJNTON 

EXPLANATORY  MEMORANDUM 

At  the  Council  meeting  on  agriculture  on  19 and 22  June  1995  and during  discussion  of 
the  1995/96  price package, the Council  asked the Commission  to present  a report on  the 
situation  in  the  tomato  sector  in  the European  Union. 

The  Commission  is now  in a position  to send the Council  this  report,  which  was  written 
on the basis of  a survey  carried out by the Commission  in the Member States to  compare 
and confirm  existing information  and gather information  which  it did not then have  at its 
disposal. 

This  report  confines  itself  to  an  analysis  of  the  market  for  fresh  tomatoes  and  does  not 
deal  with  tomatoes  for  processing. 

There  have  been  difficulties  on  the  tomato  market  in  recent  years,  particularly  for 
greenhouse  tomatoes, which  are faced with market reorganization  resulting from  the new 
situation  which  has pertained  since  1993, when  Spain's  transitional  accession  period  for 
this  product  ended. 

This  report  also  analyses  Community  assistance  to  production  and  marketing  structures, 
which  does  not  seem  to  have  had  a significant  impact  on  production  trends. 
It  also  covers  national  aid  schemes  entirely  financed  by  Member  States  and  granted 
specifically  to  the  tomato  sector. 

One  conclusion  of  the  report  is  that  natural  market  development  should  reestablish 
sufficient  equilibrium  without  Community  intervention. 

However,  in  the  past  the  Commission  has  not  objected  to  national  aid  to  dismantle 
production  potential,  and such  aid could  be applied in the case of greenhouse production. 

I 

INTRODUCTION 

SUMMARY 

I. 

ANALYSIS OF THE COMMUNITY TOMATO MARKET 

1.-The  world market 
2.-The European market 

2.1 

relative  importance  of  the  tomato  sector  in 
horticulture 

2.2  Community production 
2.3 

Situation  and  development  of  production 
structures 
consumption and marketing 

2.4 
2.5  Producer prices 

3.-Trade 

trade within the EC 
imports to the EC 

3.1 
3.2 
3.3  Community exports 

II. 

COMMUNITY AID 

1. 

2. 

Structural aid 

National aid 

CONCLUSIONS 

ANNEXES: 

1.Production regions: 
-Belgium 
-the Netherlands 
-Spain 
-France 

2.Statistics 

3.Structural  annex 

V4 

INTRODUCTION 

At the Council meeting on agriculture of 19 and 22 June  1995, and in the context 
of discussion of the  1995/96 price package, the Council asked the Commission to 
present  a  report  on the  situation in the tomato  sector  in the  European  Union. 

This report was written on the basis of a survey carried out by the Commission in 
the  Member  States  to  compare  and  confirm  existing  information  and  gather 
information  which  it did  not then  have  at  its disposal. 

The period analysed covers the five years from 1990 to 1994. This period includes 
three  marketing  years  during  which  Spain  was  still  subject  to  the  transitional 
accession  rules  for  this  product,  and  therefore  subject  to  offer  prices,  and  two 
marketing  years,  1993  and  1994,  during  which  Spain  only  retained  a  statistical 
system  for  monitoring  consignments  (supplementary  trade  mechanism). 

This report confines itself to an analysis of the market for fresh tomatoes and does 
not  deal  with  tomatoes  for  processing,  which  are  considered  to  be  a  different 
product  as  regards  both  production  and  marketing  conditions. 

SUMMARY 

The tomato has  increasingly become a staple vegetable  in the  European diet. It 
occupies  an important  place in the Community's  agricultural economy (14.7% of 
the total volume of vegetables). It accounts for ECU 9.4 million of the Community 
budget, which are used for  Community  intervention  on the market. 

Since 1990, Community production and the area planted with tomatoes have been 
falling.  Yields,  on the  other  hand, have  been  increasing  at  a  remarkable  pace 
because  of  developments  in  growing  techniques.  The  trend  in  future  will  be 
towards  more specialised production and a reduced number of enterprises. 

The  increase  in  consumption  that  started  in  1990  seems  to  have  reached  a 
plateau. Nevertheless, the trend in consumption is towards variety and quality, with 
demand  for  new  types  and  varieties,  with  a  more  "open  air"  flavour.  Adapting 
production to this new demand appears to be one of the ways in which production 
in the northern countries can be made more dynamic and better face the strong 
competition of the southern countries. 

Major seasonal fluctuations continue to be a key feature of this sector. Overall the 
price trend on wholesale markets is falling; however, there was a relative increase 
in rates for 1994. Although definitive figures are not available, it seems that prices 
have again fallen in 1995, in particular for greenhouse tomatoes produced in the 
north of the  Community. 
This  fall  is  due  primarily  to  a  fall  in  prices  for  the  "traditional  round"  tomato, 
whereas for new "high value-added" varieties  (tomatoes on the stalk and cherry 
tomatoes), producer prices are very attractive. The volume of production of these 
new varieties  is rising. 
There is no indication that the fluctuations in value of certain weak currencies have 
any  significant  impact  on  the  price  of  tomatoes  coming  from  countries  where 
devaluation has taken place (Spain, in particular). 

Community  assistance, which has fallen overall since  1990, has been used only 
as a safety  net for  the  market  and in no instance  as a source  of  income,  since 
very  little recourse has been taken to that option (1.6% on average). 

Community trade has increased by 27% since 1990. This is mainly as a result of 
the  increase  in Spanish consignments. 
The  restructuring  of  production  calendars  is  at  the  root  of  certain  seasonal 
difficulties experienced by the sector between the northern and southern regions. 
Until  1994,  the  winter  period  (January,  February,  March)  was  almost  entirely 
covered  by  Spanish  (including  the  Canaries)  and  Moroccan  production,  while 
summer  corresponded to the production season of the northern  Member  States 
(  Belgium, the  Netherlands  and, to some extent,  France). 

When the transitional accession period finished for Spain in 1993,  restrictions on 
that country's prices also stopped, and the Spaniards  now have full rights to sell 
their products to other countries during the so-called sensitive months (April, May 
and  June),  which  has  led to  substantial  overlapping  with  marketing  of  northern 
tomatoes. 
On the other hand, greenhouse producers are trying to secure  part of the "winter 
market"  using  new  cultivation  techniques  and  high  value-added  varieties  which 
require  major  investments. 

Imports  from  third  countries,  in  particular  Morocco,  are  sold  principally  on  the 
French market. These imports do not seem to be disturbing the market.  Moreover, 
since  1995  they  have taken  place  in the context  of the  bilateral  agreement  with 
Morocco. 

Community  aid  for  production  and  marketing  structures  does  not  seem  to  be 
having  a  significant  effect  on  production  trends.  These  have  been  much  more 
influenced by normal market fluctuations, and in particular changing trends in intra-
Community trade. 

On  the  other  hand, the  Commission  does  not have  information  on  aid  schemes 
entirely financed by Member States and specifically granted to the tomato sector. 
In the  overall  context  of  national  aid, the  sector  has  benefited  from  general  aid 
schemes for agriculture  and regional  development. 

1. 

THE WORLD MARKET 

World  production  of  tomatoes  is  18% of  the  volume  of  world  vegetable 
production. According to FAO figures, world tomato production  (including 
tomatoes for processing) rose from 50 million tonnes in 1990 to 74.3 million 
tonnes in 1993. International trade in fresh tomatoes accounts for less than 
4%  of world production, while tomatoes for processing  account for  about 
30%. 

The  low  volume  of  exports  of  tomatoes  for  consumption  unprocessed 
shows  that  the  bulk  of  tomatoes  produced  in the world  are  intended for 
consumption on domestic markets. 

Indeed, certain characteristics of tomatoes mean that they are not very well 
adapted to international trade: they are very perishable and the production 
periods  in  importing  and  exporting  countries  overlap,  while  prices  vary 
greatly according to season. 
The main producers are the European Union, the United States, the former 
Soviet  Union, China and Turkey. 

The  European  Union  is the  leading  producer,  accounting for  13.4  million 
tonnes, of which 6.9 million, or 48.5% of total production, are for sale on the 
fresh  tomatoes  market.1 Trade  in fresh  tomatoes  is  highly  developed  in 
Europe,  which  also  contains  the  world's  biggest  exporters,  namely  the 
Netherlands,  Spain  and  Belgium,  and  its  biggest  importers,  namely 
Germany,  France and the United Kingdom. 

2. 

THE COMMUNITY MARKET 

2.1. 

Importance of the tomato sector in horticulture 

Fresh tomatoes are an important product in the horticultural sector. The fact 
that they are consumed by Europeans throughout the year means that they 
can  be  considered  a  "staple  vegetable".  They  account  for  14.7%  of  all 
vegetables  produced  in  the  Union.  On  average,  13%  of  the  Union's 
horticultural  area  is devoted to tomatoes. 

1 for  the period  1990 to  1994. 

The average cost to the Community budget is ECU 9.4 million2 for market 
intervention measures, accounting for 1.2% of the budget for the fresh fruit 
and vegetables  sector. 
The quantities withdrawn from  the market  have fallen  overall  since  1990 
and on average make up 1.6 % of tomatoes produced for eating fresh from 
1990 to  1994 
Over  that  period,  France withdrew  3%  of  its  production, followed  by  the 
Netherlands (2.8%)  and Italy (2.6%). 

2.2.  Community production 

On average, 48.5% of  Community  tomato  production  is for  consumption 
unprocessed. 

Italy (29.8%)  leads among Europe's fresh tomato producers, followed  by 
Spain (27.4%), Greece  (10%) and the Netherlands  ( 9%). 

Until 1990 production was increasing, but it then fell from 7 million tonnes 
that year to 6.3 million tonnes  in 1994. 
Production fell substantially from the  1993 marketing year,  in particular  in 
Spain,  Italy and the Netherlands. 
On the other hand, in Belgium and Greece production has increased since 
1990. 

Table 1:  Tomato production trends 

(tonnes) 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

Belgium 

205030 

225 220 

268 400 

313960 

329 500 

346 779 

309 334 

Greece 

Spain 

France 

Italy 

666910 

728 050 

665790 

710700 

754 940 

784 850 

757 250 

1 834 893 

1 987 763 

2 024 695 

1 793832 

1 880143 

1 912 300 

1 786 807 

417500 

421 700 

461 100 

527 300 

516 900 

643 400 

492 600 

1 594 916 

2 018 230 

2 657 083 

2 759 091 

2 712 099 

1 984 572 

2 149 074 

Netherlands 

567 029 

620 782 

640 725 

636149 

651 994 

606 612 

540 577 

Portugal 

63 893 

80 835 

86 706 

72 625 

64 267 

n.a . 

75 000 

EUR-15 

5.530.068 

6.265.710 

6.987.534 

6.993.597 

7.098.801 

6.651.347 

6.262.412 

2average  for  the  years  1990  to  1994.  In  1994  the  cost  to  the  budget  was  ECU  4.46 
million,  or 0.5  % of the budget  for  the fresh  fruit  and vegetables  sector. 

Table 2: Trends in production as a proportion of total EUR production 

(%) 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

Belgium 

Greece 

Spain 

France 

Italy 

Netherlands 

3.7 

12 

33 

7.5 

28.7 

10.2 

3.6 

11.5 

31.4 

6.7 

31.9 

9.8 

3.8 

9.4 

28.7 

6.5 

37.7 

9.1 

4.5 

10.1 

25.4 

7.5 

39.1 

9 

4.6 

10.5 

26.3 

7.2 

37.9 

9.1 

5.2 

11.7 

28.5 

9.6 

29.6 

9 

4.9 

12 

28.2 

7.8 

33.9 

8.5 

2.3.  Situation and development of production structures 

Open-air  cultivation  is practised  in the southern countries,  in particular  in 
Italy,  Spain, Greece, the south of France and Portugal. 

Growing  under  plastic  is  a  recent  variation  on  open-air  production, 
consisting  in protecting  the  crops  under  plastic tunnels.  These  are  used 
principally to protect the crops from wind and optimise production quality. 

Greenhouse cultivation is practised in the northern countries, in particular 
in the  Netherlands,  Belgium  and  part  of  France.  This  type  of  cultivation 
allows crops to be kept warm  artificially during the coldest periods. 

The total Community  area devoted to tomato production has been falling 
since  1990  (from  255 000  ha  in  1990  to  217 000  ha  in  1994).  This 
reduction is partly the result of a fall in the area used for traditional "open 
air" production in the southern countries, and coincides with an increase in 
yields and the introduction of new varieties. 
The largest area devoted to tomato growing is in Italy, which accounts for 
50.6%  of  the  total  area, followed  by  Spain with 25.5%  and  Greece  with 
14.9%. 

The  total  area  devoted  to  production  under  cover  in  the  Community 
accounts for only 9% of the total area used for fresh tomato production. 
In Belgium  and the  Netherlands,  all production area  is under  glass. That 
area  has  been  falling  steadily  in  the  Netherlands  since  1990,  while  in 
Belgium  it has increased slightly.  In Spain  16.6% of total production  area 
is under  cover,  in Italy 5.3% and in France 60%. 

The  overall area fell by  around  17.7% from  1990 to  1994. The  decrease 
was  greatest  in  France  (-38.9%),  followed  by the  Netherlands  (-29.2%), 
Greece (-20%) and Spain  (-13.4%). 

10 

Table 3: Trends in area devoted to tomato production 

(hectares) 

1990 

1991 

1992 

1993 

1994-

Belgium 

940 

945 

963 

946 

954 

Greece 

Spain 

France 

Italy 

38 513 

39 015 

36 657 

33 110 

32 083 

69 884 

59 913 

55 802 

57 111 

61 613 

6 600 

6 650 

5 960 

6 060 

4 750 

136 378 

129 669 

117 595 

113 426 

115 248 

Netherlands 

1 603 

1 570 

1 505 

.  1  390 

1 241 

The different production techniques practised lead to enormous differences 
in yield between each type of holding. 

The  tables  below  show  the difference  between  "open-air"  yields  - 50 
tonnes/ hectare - and "greenhouse" yields  -  400 tonnes/hectare. 
Overall, between 1990 and 1994 yields increased by 2% per year for both 
types of production. 

These  major  increases  in  yield  are the  result  principally  of  improved 
understanding of growing techniques, new, more productive varieties now 
on the market  and new technologies  that  have  come  into  use for crops 
under cover. 

Table 4: Trends in tomato yields 

(tonnes/ha) 

Belgium 

Greece 

Spain 

France 

Italy 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

238.8 

246.1 

285.5 

332.2 

342.2 

366.6 

324.2 

45.5 

42.8 

108.2 

41 

53.2 

44.9 

113 

45.5 

45.6 

45.2 

48.4 

44.5 

51.2 

47.4 

52.4 

49.1 

119.3 

127.7 

128.2 

145.4 

45.7 

47.7 

50.5 

48.4 

52.6 

49.8 

162 

50.4 

Netherlands 

330.6 

368 

399.7 

405.2 

433.2 

436.4 

435.6 

2.4.  Consumption and  marketing 

According to the information supplied by the Member  States, 
consumption has increased since 1990. However,  this trend is not 
necessarily  indicative for the future, for which tomato farmers tend to 
predict a levelling off of consumption. 

11 

The  average  per-capita  consumption  of fresh tomatoes  in the  European 
Union  is 24.6  kg3. This  is far  below  the  per-capita  consumption  level of 
31  kg recorded for the  OECD  countries. 

Greece  is the  biggest  consumer  of fresh tomatoes, followed  by  Italy  and 
Spain.  It should, however,  be noted that fresh tomato  consumption fell 
sharply  in Spain  in  1994. 

The  above  table  also shows that consumption  is not uniform  across the 
Community,  quite the contrary. The  differences  between  Member  States 
are  considerable.  There  is a  ratio of  1:15 between the  lowest  and the 
highest  Member  State  consumption  levels. 

There  is a fairly  marked  growth in consumer  preference for  new  varieties 
such as tomatoes  on the  stalk, cherry tomatoes  or varieties with the 
most "open-air" flavours. 

As a  rule,  Member  States with high production  levels also  have  high 
consumption  levels,  but the  latter  remain  more or less constant. 

Member  State 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
United  Kingdom 
Austria 
Finland 
Sweden 

Table 5:  Consumption  of  fresh  tomatoes 

(kg  per  capita) 

1988 

1989 

1990 

1991 

1992 

1993 

10.9 
5.9 
13.9 
66.0 
37.0 
10.0 
6.0 
59.4 
/ 
6.1 
/ 
6.4 
/ 
8.3 
1 

9.5 
/ 
14.8 
72.0 
40.8 
10.3 
6.0 
62.1 
/ 
6.2 
/ 
6.6 
/ 
8.5 
/ 

11.8 
5.5 
15.4 
65.0 
43.6 
10.4 
6.0 
64.4 
/ 
6.5 
/ 
6.4 
/ 
9.1 
/ 

14.0 
/ 
15.3 
69.0 
37.2 
10.6 
6.0 
63.3 
/ 
6.7 
/ 
5.9 
/ 
8.7 
/ 

11.7 
/ 
15.7 
73.0 
36.5 
/ 
6.0 
57.6 
/ 
6.6 
/ 
6.0 
/ 
9.0 
/ 

13.5 
5.0 
16.0 
76.0 
35.3 
/ 
/ 
57.1 
/ 
6.7 
/ 
4.5 
/ 
9.0 
'I 

1994 
/ 
/ 
14.1 
73.0 
28.3 
/ 
/ 
55.6 
/ 
6.0 
/ 
5.5 
/ 
9.7 
' 

Different  varieties of tomatoes are used to satisfy demand from  European 
consumers,  who  are  increasingly  seeking  a  wide  range  of  differentiated 
products. This means that producers  have to work  harder  to adapt  to this 
segmentation  of the  market  by growing  new varieties. 

average  for  1990 to  1994. 

12 

Over recent years the number of varieties has increased, and includes the 
"cherry"  tomato  and  tomatoes  on  the  stalk  which  have  been  very 
successful because of their flavour and the visible evidence that they are 
fresh. 

The  production  of  tomatoes  to  be  consumed  fresh,  as  opposed  to 
production for processing, is spread over the entire year, which has been 
made possible by new production techniques and new varieties of tomato. 

2.5  Producer  prices 

The  most  striking  feature  of  prices  for  fresh  tomatoes  is  their  variation 
according to season. Producer prices vary greatly according to the month 
of production and the Member State in which the tomatoes are produced. 
As  a  rule,  prices  are  higher  in winter  than  from  May  to  November  and 
remain at stable levels throughout the winter. 

Overall,  prices  for  fresh  tomatoes  fell  from  1990  to  1994,  when  they 
recovered slightly. 

In the 1991 marketing year,  prices rose above  1990 levels. 
However, they fell in Spain, Italy and Portugal. In this year production, the 
area planted with tomatoes and yield also rose overall. 

The  1992  marketing year was the first  in which  prices  fell.  They  did so 
most sharply in Spain, Belgium, the Netherlands and the United Kingdom. 

In  1993  the  downward  price  trend  continued.  Production  fell  despite  an 
increase  in the area planted. 

In 1994 prices were up on the preceding year. The rise was particularly 
marked in the Netherlands and France, where prices recovered very well, 
even going beyond 1990 levels. In Italy, Belgium and Portugal, on the other 
hand, prices recovered slightly without reaching 1990 rates.  In Spain and 
the United Kingdom, price quotations  remained at very  low levels. 

13 

Table 6 on price trends by month shows a deviation from the main trend, 
whereby for Spain, the Netherlands and Belgium May and June prices have 
risen since  1990, while March and April prices have fallen. 
However,  in 1994, March and April prices recovered  substantially. 

Table 6: Development of monthly prices in relation to 1990 
I.Spain 

1990 

1991 

1992 

1993 

1994 

March 
April 
May 
June 

2. Netherlands 

100 
100 
100 
100 

44 
79 
189 
133 

64 
72 
160 
101 

70 
116 
181 
105 

March 
April 
May 
June 

3. Belgium 

March 
April 
May 
June 

1990 

1991 

1992 

1993 

1994 

100 
100 
100 
100 

77 
110 
94 
159 

68 
79 
126 
123 

53 
74 
96 
109 

1990 

1991 

1992 

1993 

1994 

100 
100 
100 
100 

73 
106 
92 
128 

67 
85 
130 
110 

59 
77 
101 
96 

88 
95 
132 
146 

77 
91 
104 
148 

78 
86 
99 
123 

Source: Drawn up by DG VI using figures from the Ministry of Agriculture (Spain), the CBT 
and the VBT. 

Producers  in the  North complained  of falls  in prices  in  1995 which made 
businesses unprofitable. 
This situation appears to have affected  all greenhouse  production, and is 
therefore  not exclusively  associated with the tomato  sector. 
An  illustration  of  this  problem  is  provided  by  the  following  figures  for 
traditional round tomatoes in Belgium: 

costs (investments, production and labour): 1 400  to 1  500 BFR/m2. 
Normal yield is around 55 kg/m2, a high yield around 60 kg/m2; 
this means that in order to obtain a financial result sufficient to cover 
costs,  a price  level of at  least  23 BFR/kg must  be reached (1 400 
BFR costs and 60 kg production) for the very good enterprises. The 
average price  in Belgium was apparently  20 BFR/kg for  1995.4 

4Figures  provided  by  the Member  State. 

14 

"Belgian" tomatoes are in competition with "Spanish" tomatoes, which load 
price trends on the French market (55% of Belgian exports). 

An examination of Spanish prices in pesetas shows that there have been 
major changes, independently of monetary problems. In terms of trends, the 
regression line from January 1992 to April 1995 shows that developments 
in peseta prices run almost parallel to currency devaluations. On average 
over 40 months, the ecu/Pta rate increased fairly steadily by a total of 32%, 
while  prices  in  pesetas  increased,  with  major  variations,  by  51 %.  This 
means that the price of Spanish tomatoes in ecus increased by around 14% 
over that period. 

There is, therefore, no indication that devaluations of the peseta have had 
an impact on the price in ecus, or, therefore in Belgian francs, of Spanish 
tomatoes. 

Spanish  tomatoes 
Influence of monetary changes on prices 

•  1ecu=...PTA 

<•  Prix  Pte/Kg 

1  2 3 4 5 6 7 89  10 11 12 1 2 3 4 5 6 7 89  10 11 12 1 2 3 4 5 6 7 89  10 11 12 1  2 34 

January 1992/ April 1995 

15 

3. 

ANALYSIS QF TRADÇ 

3.1 

Trade within the Community 

Community trade (including the Canaries) has increased in volume by 27% 
since  1990. 
The volume of trade is 1.3 million tonnes, or 2 1% of total production . 

Spain  accounted  for  the  bulk  of  intra-Community  trade  in  1994,  with 
618 000  tonnes  of  consignments  (of  which  306  000  came  from  the 
Canaries);  it  should  also  be  noted  that  this  country  has  doubled  its 
consignments  since  1990.  The  runners-up  were  the  Netherlands  with 
410 000 tonnes and Belgium with 160 800 tonnes5. 
The  main  Community  markets  receiving  these  consignments  are  in 
Germany, the United Kingdom and France. 

Consignments from the Netherlands and Belgium have fallen since 1990, 
particularly during the 1993 marketing year, after which there was a slight 
recovery  in 1994. 
French and  Italian consignments, on the other hand, maintained their levels, 
increased in 1993, and had a "record" year in 1994. 

Table 7: Volume of intra-Community trade (tonnes) 

1990 

1991 

1992 

1993 

1994 

Spain 

291.885 

331.391 

414.630 

433.167 

618.426 

Netherlands 

545.958 

559.175 

545.010 

387.053 

409.669 

Belgium 

Italy 

France 

154.667 

172.437 

187.831 

150.403 

160.779 

17.196 

31.568 

23.884 

43.317 

28.883 

46.682 

38.832 

46.758 

64.655 

62.051 

EUR-12 

1.238.824 
Source:Eurostat-Cronos.The  figures for Spain  include the Canaries 

1.051.777 

1.142.113 

1.068.907 

1.332.080 

The increase in Spanish consignments is undoubtedly related to the end of 
the transitional period at the beginning of the 1993 marketing year and the 
accompanying  removal of  restrictions. The  increase was  consolidated  in 
1994,  a year in which production and consumption fell in Spain. It may be 
concluded that for that year consignments to other countries were made at 
the cost of sales on the domestic market. Consignments from the mainland 
(Almeria  and  Murcia)  also  increased  more  than  did  those  from  the 
Canaries. 

5Figures for  1994. 

16 

Market  calendars 

Intra-Community consignments were traditionally  made  over two  different 
periods: 

Between November and March (winter tomatoes), Spanish tomatoes 
coming from the Canaries  and  Murcia/Almeria . 
Between  April  and  September  (summer  tomatoes),  from  the 
Netherlands  and  Belgium. During this period tomatoes  produced in 
Spain went  onto the  domestic  market. 

However,  two  recent  trends  have  disrupted the traditional pattern: 

Firstly,  consignments  originating  in Spain  have  increased  in April, 
May and June (see table below), while the high volume in January, 
February  and  March  has  been  maintained. This  heralds a Spanish 
commercial  strategy  aimed  at  sharing  the  marketing  season 
traditionally  reserved for northern producers. 

Secondly,  there  has also  been  an opposite  trend  in consignments 
from the Netherlands: in 1994  consignments  increased  in January, 
February  and  March.  By contrast,  consignments  in May and June 
have fallen. 
In Belgium, consignments have increased in April and May, but also 
in February  and March. 
These changes show competition between "northern" consignments 
and those of Spanish  origin during the winter  season. 

Since  1993,  the  Community  market  has been  in  upheaval  as  regards 
traditional trade calendars. New marketing strategies are being established. 
In the Netherlands, for example, diversification has made it possible to put 
tomatoes  on the stalk  on the market  in  February.  On the other  hand, 
Spanish  production potential is enabling certain  regions to produce for 11 
months out of  12. 

This  has been  one of the key problems  on the tomato  market  in recent 
years.  Natural  market  development  should  find  a  satisfactory  balance 
without  Community  assistance  being  called for. 

Table 8:  Development of trade  calendars 

January 

February 

March 

1992 

1993 

1994 

1992 

1993 

1994 

1992 

1993 

1994 

Belgium 

1170 

527 

1076 

317 

462 

1862 

869 

2221 

2182 

Netherlands 

22762 

16510 

22830 

18125 

14760 

24694 

27301 

24878 

36776 

Spain 

105219 

76099 

95013 

50741 

108644 

97027 

68795 

89203 

88256 

17 

April 

May 

June 

Belgium 

Netherlands 

Spain 

1992 

1993 

1994 

1992 

1993 

1994 

1992 

1993 

1994 

11478 

15248 

81333 

23562 

29100 

26637 

30050 

34558 

34204 

46343 

43828 

43487 

74566 

72308 

65076 

93469 

86330 

77578 

43801 

39099 

49114 

8428 

29671 

50601 

5078 

11230 

50601 

3.2 

Trade outside the Community 

Imports 

The  principal  supplier  is  currently  Morocco,  which  distributed  148 000 
tonnes between  November and March. 

The second largest supplier, with 4 000 tonnes in 1994, is Israel. The total 
volume of Community  imports was  162 114 tonnes in 1994. 

Table 9: Community Imports 

1990 

1991 

1992 

1993 

1994 

MOROCCO 

106 319 

135808 

131920 

164360 

148 297 

TURKEY 

ISRAEL 

TOTAL 

3 014 

7 217 

-

3 230 

5 707 

-

3 926 

5 033 

1 820 

3 860 

2 829 

4 073 

152066 

179572 

162114 

Morocco 

The  area  planted with tomatoes  in Morocco  has fallen  since  1990  (from 
5500 ha in 1990 to 4000 ha in 1994), with a shift towards protected crops. 
Production has remained stable overall, despite a fall in 1994. 

The principal destination of imports from Morocco is France, which in 1994 
absorbed 85% of tomato imports from Morocco. Germany is the end market 
for 6.4% of the total volume and Belgium and the Netherlands absorb 2% 
each of Moroccan imports. Spain and Italy take less than 400 tonnes each. 

Protocol  No  1  to  the  association  agreement  concluded  with  Morocco 
provides for a fresh tomato quota of 150 676 tonnes benefiting from a zero 
acf  valorem duty  and, from  October  to  March,  from  a  preferential  entry 
price. 

18 

The agreement has not yet been implemented as far as the reduction in ad 
valorem duty  is  concerned:  imports  continue  to  benefit  from  zero  a£[ 
valorem duty under the old agreement, which is still in force, within the limit 
of a Community quota of 96 208 tonnes for 15 November 1995 to 30 April 
1996,  16 800  tonnes  of  this  during  the  period  1  to  30 April  1996.  In 
addition, Morocco benefits from a bilateral French quota at zero ad valorem 
duty of 120 000 tonnes. 

When the new agreement finally enters into force, the Community quota at 
zero  ad  valorem  duty  will  be  150 676  tonnes  and  the  bilateral  Franco-
Moroccan  quota  will  be  abolished.  The  new  quota  will  therefore  be 
equivalent to the sum of the old Community quota, the bilateral quota taken 
over  by  the  Community  and  the  quantities  allocated  as  a  result  of  the 
enlargement by three new Member States. 

The  provision  relating  to  the  annual  increase  in  the  quota  in  the  old 
agreement has been retained: each year from 1 January 1997 to 1 January 
2000 the quantity will be increased in four equal instalments amounting to 
3% of the amount. 
Lastly, outside the quota the ad valorem duty will be reduced by 60%. 

The agreement has already been implemented where the preferential entry 
price  is concerned:  it was  introduced  on  1 November  1995  by  Council 
Regulation (EC)  No 3057/95 of 22 December  1995 (OJ No L 326). 

In the period 1 November 1995 to 30 March 1996 Morocco benefited from 
an entry price of ECU 500/t for a maximum quantity of 145 676 tonnes. The 
Common Customs Tariffs entry price, applicable to all other origins, was 
ECU 688/t from 1 November to 20 December 1995, ECU 738/t from 21 to 
31  December  1995 and ECU 895/t from  1 January to 31 March 1996. 

In accordance with Article 3 of Protocol 1  to the association agreement with 
Morocco, for each period subsequent to 1 October to 31 March the country 
will benefit from the reduced entry price for a fixed maximum  quantity of 
150 676 tonnes. That quantity is staggered per month as follows: 

Periods 

October 
November to March 
of which: 

November 
December 
January 
February 
March 

Total: 

Quantities 

5 000 
145 676 

18 601 
36 170 
30 749 
33 091 
27 065 

150676 

19 

The  entry  price  -  ECU  500/t  for  1995/96  -  is  reduced  in  the  same 
proportions and at the same rate as the entry price consolidated under the 
WTO. Tolerances - 20% monthly overrun and the ability to catch up on 20% 
of  monthly quantities not used - are  provided for the period November to 
March within the  limit of the overall quantity. 
Lastly,  Morocco  notifies  the  Commission  of  weekly  exports  to  the 
Community. 

These  preferential  arrangements  relating  to  the  additional  special  duty 
retained  and refined the  provisions  introduced  in the first  quarter  of  1995 
which were  intended to guarantee that  Morocco  maintained  its traditional 
trade flows. 

For  the first year  of  application  of the  new  entry  price  arrangements,  for 
tomatoes from  1 January  1995, an agreement in the form of an exchange 
of letters between the European Community and the Kingdom of Morocco6 
fixed a preferential entry price for tomatoes at ECU  560/t. That  agreement 
was applied for the first time to the period 1 January to 31  March 1996 for 
a  maximum  81  006  tonnes  based  on  traditional  trade  flows  to  the 
Community  of 12. 
Morocco undertook not to exceed that quantity and to distribute it monthly: 
27  756,  29  594  and 23 656 tonnes  in January,  February and March  1995 
respectively  within  a  tolerance  of  10%,  and  to  notify  weekly  quantities 
exported to the  Community. 

Analysis  of  that  period  shows  that  the  agreement  was  applied  correctly: 
quantities were  strictly complied with and the various  information  sources 
tallied (see table below). In addition, prices were satisfactory, except during 
a  critical period  in February  1995. 

Information 
sources/periods 
(quantities in tonnes) 

Communication  from 
Morocco: 
exports to the EU 

Counted against  quota 
11.0990: quantities 
imported 

Comext database: 
actual imports: 

January 1995 
February 1995 
March 1995 

Totals: 

28 697 
26 063 
24463 

79 223 

28 884 
25 985 
26106 

80 975 

26189 
25 319 
25 971 

77 479 

Council  Decision  of  20 December  1994  (OJ  No  L  48,  3.3.1995,  p.  22).The 
Commission  implemented  that  agreement  by  Regulation  (EC)  No 298/95  of 
14 February  1995 (OJ No L 35, 25.2.1995,  p. 6). 

20 

Figures available for the year in progress indicate that Morocco is under-
using the preferential entry price quota. On the other  hand, prices  have 
been maintained: the standard import value has always been higher than 
the  "Morocco"  entry  price  except  during  two critical  periods  in mid-
November 1995 and mid-January 1996. 

Table 10: Development of Community Imports from Morocco 

Tomato*» 
CN code 0702 00 
in  tonnes 

Trade outside the  Community 
imports from Morocco 
into the European Union 

93 482 
93194 
80 968 
91874 
106319 
135808 
131  920 
164360 
148 297 
84 491 

21 

Exports 

Community tomato exports have been increasing constantly since 1990 for 
all Member States except the United Kingdom, going from 107 000 tonnes 
to 278 000 tonnes in 1994, an average annual increase of  24.1%. 

Table 11: Exports from the Community of 12 (in tonnes) 

1990 

1991 

1992 

1993 

1994 

2 009 

425 

25 891 

2 070 

131 

3 

0 

0 

0 

0 

4106 

1769 

29 549 

22 260 

189 

24 

0 

0 

0 

0 

3 862 

1067 

29 239 

29 959 

1 782 

15 

84 

577 

111 

0 

12782 

1  978 

34 267 

43 570 

4 668 

0 

648 

5 051 

1 481 

6  950 

12 549 

2 891 

39 816 

32 020 

4 463 

4 056 

35 759 

7 548 

6  602 

12 865 

Partners 

EU 

Canada 

Switzerland 

Poland 

Hungary 

Israel 

Russia 

Slovenia 

Croatia 

Czech Republic 

From EU 12  . 

106 904 

131  591 

147 383 

211207 

278 089 

Generally  speaking,  exports  have  opened  up  towards  the  eastern  European 
countries  such as  Russia,  Poland, the  Czech  Republic and certain parts  of  the 
former Yugoslavia, a trade flow which should continue in the future. 

22 

//. 

COMMUNITY AID 

1- 

Structural aids 

(a)  Aid to production  structures 

Until  1993, EAGGF  Guidance Section contributions  to  such aid were not 
programmed. The aid was granted as required under a system  set  up in 
each Member State and theEAGGF reimbursed expenditure notified by the 
Member  States.  Expenditure  was  eligible  provided  it  complied  with  the 
provisions  of  Council  Regulation  (EEC)  No  2328/91  on  improving  the 
efficiency  of  agricultural  structures.  Under  that  Regulation, there was  no 
specific prohibition on aid to glasshouses or tomatoes. 

After  1994, a financial guideline  existed for  Objective  5(a)  (together  with 
programming,  confined  to  aid granted  in  Objective  1 regions).  However, 
despite  the  Commission's  attempt  to  introduce  specific  programming  for 
Regulation (EEC)  No 2328/91 as a whole, the Council did not accept this 
approach.  Under  the  present  regulations,  there  is an  indicative  financial 
forecast  only  and,  as  regards  investments,  aid  to  glasshouses  and 
tomatoes can continue to be granted. 

In  view  of  this  situation  and  the  ensuing  difficulties  when  it  comes  to 
considering  the  possible  impact  of  such  aid  on  tomato  production,  the 
Member States were requested to undertake an analysis of aid granted to 
the latter. All Member States claimed it was impossible to provide accurate 
information on aid to this area.  In addition, sight should not be lost of the 
fact  that  production  structures  for  fruit  and  vegetables  vary  greatly 
(depending on whether they are protected by plastic,  netting, glass, etc.) 
and may be used for the production of several products depending on the 
season,  the  climate,  consumer  taste,  the  market,  etc.,  which  makes  an 
accurate analysis under  Objective  5(a) even more  difficult. 

However,  under  the  Operational  Programmes,  this  type  of  investment  is 
easier to identify. Thus, despite requests from a certain number of Member 
States  regarding  the  construction  of glasshouses for  tomatoes, the  reply 
has always been negative. The most recent case concerns Spain. The only 
cases  where  part-financing  has  been  agreed  to  for  glasshouses  have 
involved highly specific measures and products such as flowers and out-of-
season production. 

Outside  such  Operational  Programmes  and  in  the  absence  of  precise 
indicators, one can only venture an analysis. Since the regulations do not 
provide for a discriminating approach, some information was collected from 
the  Member  States  to  give  an  approximate  idea  of the  situation.  On the 
basis of data received, 5.5% of aid for investments under Regulation (EEC) 
No 2328/91 during the period  1990-94 was used for the construction and 

23 

modernization of glasshouses for all sorts of products, i.e. fruit, vegetables, 
flowers  and  nursery  products.  Such  investments  represent  an  overall 
burden of ECU 347.65 million on the EAGGF in 1990-94 for the Community 
as a whole. 

Using that overall figure as a basis and extrapolating therefrom, one can 
attempt to identify aid to tomatoes since this product accounts for around 
14%  of  total  fruit  and vegetable  production  only  (excluding  flowers  and 
nursery  products).  By  applying  that  percentage  to  the  total  aid  to  such 
investments,  a figure  of  ECU 48.67  million  is  arrived  at  for  the  EAGGF 
contribution for 1990-94, giving an annual average of ECU 9.73 million for 
the Community of Twelve. 

One may conclude that while some marginal utilization of glasshouses for 
tomato production cannot be ruled out, the impact of structural aid to such 
investments  on Community production is negligible. 

(b)  Aid to processing and marketing structures 

To gain a comprehensive idea of the situation, aid for the processing and 
marketing of agricultural products should also be considered. In this area 
aid  is  permitted  subject  to  precise  selection  criteria  [see  Annex].  Thus 
investments in the processing of tomatoes are prohibited or are subject to 
highly  restrictive  conditions,  such  as  a  20%  reduction  in  processing 
capacity.  However,  aid  to  marketing  (fruit  and  vegetable  markets  and 
packaging)  is generally permitted with the aim of facilitating the disposal of 
products  on the market  and is consequently  beneficial for the  production 
chain. 

For  information,  the  table  below  summarizes  aid for  the  processing  and 
marketing  of fruit  and vegetables  as a whole for  1991-93.  In view of the 
restrictive  approach  in  selection  criteria  and  the  relative  importance  of 
tomatoes in the fruit and vegetable industry as a whole, one may conclude 
that tomatoes have barely benefited from aid to processing and marketing. 

Regulation (EEC) No 866/90 - FRUIT AND VEGETABLES 
1991-93 

(ECU million) 

B. 

DK 

D 

GR 

E 

F 

IRL 

I 

L 

NL 

P 

UK 

Total 
EUR-12 

5.78 

0.11 

29.10 

22.06 

56.95 

31.40 

2.37 

74.17 

0 

4.59 

26.2 

6.64 

259.37 

1.45 

0.03 

7.28 

5.52 

14.24 

7.85 

0.59 

18.54 

0 

1.15 

6.55 

1.66 

64.84 

Member 
State 

Total  for 
1991-93 

Annual 
average 

24 

2. 

National aids 

2.1  State aid cases in the tomato sector 

The  Commission  has  no  information  about  national  aid  schemes,  solely 
financed by  Member States, which are specificaly destined for the tomato 
sector. The only known case which is linked with the actual situation in the 
tomato  market  is a  Belgian  request  for  an an  aid  scheme.This  scheme 
concerns rescue aid in the form of  interest relief and state guarantee on 
credits  for  producers  of  tomatoes,  paprika  and  cucumbers,  who  are  in 
financial difficulties. 

According to current  Commission  policy the main condition for  accepting 
such rescue aid is that it concerns investments made in the past and that 
the rescue aid in cumulation with investment aid already granted does not 
go  beyond  the  maximum  aid  levels  which  are  normally  applied  for 
investment aid. 

Further conditions for accepting rescue aid are that the financial difficulties 
of  the  enterprises  concerned  are  caused  by  external  factors  or  that  the 
aided enterprises present proof of their future viability. 

tomato 
It  has  to  be  pointed  out  that  the  current  market  problems  of 
the  only  conditions  which  may  trigger  the 
producers  in  Belgium  are 
granting  of  such  rescue  aid.  Granting 
this  such  aid  could  equally  be 
possible  as  a consequence  of  other  events  such  as  a rise  in  interest 
rates.  The  main  reason  however  for  the  Commission  not  to  raise  any 
objection to such aid is the fact that the investment aid granted in the past 
has not reached the limits normally accepted by the Commission. On this 
basis  such  aid  can  be  considered  as  an  additional  investment  aid  "ex 
posteriori". 

2.2  Aid for the tomato sector in the context of general aid schemes 

Even if no specific national aid schemes for tomato producers  are known 
to the Commission, the tomato sector can benefit from  general  State  aid 
schemes  for  horticulture  or  indeed  for  regional  schemes  which  do  not 
exclude the agricultural sector. The possibilities for such aid are however 
rather limited for the reasons laid out below: 

25 

2.2.1  The  Commission  considers 

that  national  aid  in  the  form  of  operating 
support  (aid  per  unit  of  input  or  output,  or  per  ha) 
is  normally 
incompatible with the common market because this aid has no lasting effect 
on the development  of the sector concerned. Furthermore in the case of 
products subject to common market organisation these aids risk  disturbing 
Community  support  mechanisms  and  are  consequently  considered  as 
infringements  to  the  market  organisations  concerned.  The  CMO  are 
considered  as  complete  and  exhaustive  regulations  for  the  products 
concerned which exclude any additional national aid. So if such aid were 
to exist  it would as a general rule be granted on illegal terms. 

In the  context  of  the  discussion  on  the  tomato  market  of  the  European 
Union  two  Dutch  measures  for  the  horticultural  sector  which  might  be 
thought to constitute operating aid (but which do  not necessarily fulfil the 
conditions  of Article 92 (1)) have to be mentioned: 

The  gas  tariff  system  for  Dutch  horticulture  actually  applied  is 
considered by the Commission as not giving an economic advantage 
towards  horticulture  vis-à-vis  other  sectors  of  the  Dutch  economy 
because they can obtain the same tariff if they use quantities of gas 
to the same extent as in horticulture. Consequently no State aid falls 
under Article 92 (1) in this tariff The gas price in the Netherlands is 
for all sectors  indexed to the oil price. 

Furthermore the Commission has no information about any possible 
aid in the form of tax relief for Dutch horticulture. This applies as well 
for  the  energy  tax  which  has  recently  been  approved  by  the 
Commission.  This  tax  foresees  a  partial  exemption  of  horticulture 
from  the  tax  on  energy.  The  main  reason  for  the  Commission 
accepting  this  exception for  horticulture  under  glass  was  that  "full 
taxation  would  not  allow  full  rechannelling  of  the  yield  of  the  tax 
which is a precondition of this scheme" and "on the contrary, it would 
result in a substantial increase of the tax burden" for the horticultural 
sector  (Commission decision of 20 December  1995). 

2.2.2  The  only  kind  of  operating  aid fulfilling  Aricle  92(1)  which  is  possible  as 
cofinanced aid under Council Regulation (EEC)  No 2078/92 and as State 
aid  is  aid  for  environmentally  compatible  production  methods  in 
agriculture. This aid, normally granted in form of per ha aid, is destined to 
compensate  for 
incurred  as  consequence  of  the 
undertakings for environmental protection given by the beneficiary plus an 
incentive element. It has to be mentioned that in current Commission policy 
on State aid the scale of incentive  is not circumscribed. 

loss  of 

income 

26 

Aid for  environmentally  compatible farming  practices  is often granted in 
form  of  cofinanced  aid under  the terms of  the  abovementioned Council 
regulation: As this regulation does  not exclude  State  aid granted  under 
differing  conditions  or  exceeding  the  limits  set  in  the  regulation, 
supplementary State aid schemes exist in several Member States. 

2.2.3  As concerns investment aid this aid can be granted to tomato producers 
in the context of general aid schemes.  These  aid schemes aid fall to a 
great extent within the scope of Council Regulation (EEC) No 2328/91. This 
regulation allows supplementary State aid for investments only for specific 
purposes  as  e.g.  aid  for  environmental  protection  not  linked  with  an 
increase in production capacity. 

27 

CONCLUSIONS 

1. 

On  the  basis  of  this  Community-wide  analysis  it  can  be  stated  that  the 
Community  market for fresh tomatoes seems to be balanced overall, with 
the normal fluctuations that characterise a dynamic market. 

2. 

3. 

4. 

Despite  the  increase  in  consumption  since  1990,  which  appears  to  be 
setting  in  for  the  future,  Community  production  and  areas  planted  are 
falling.  There  have,  however,  been  remarkable  innovations  in  cultivation 
techniques, which have greatly increased yields. 
There is a gradual trend towards demand for greater diversity and higher 
quality. The adjustment of supply to demand is one of the key requirements 
for keeping the market dynamic. 

There is an overall trend towards falling wholesale prices, despite a relative 
increase in 1994. The trend in 1995 seems also to be towards falling prices. 
This  reduction  is not  uniform, and "traditional" varieties  have been  more 
affected  by  it  than  new  varieties  and  forms  of  presentation,  for  which 
producer  prices  have  been  very  attractive.  There  has  been  very  little 
recourse to Community  assistance measures. 

There is no indication that the devaluation of certain currencies (the peseta 
and the lira) has affected the ecu price of tomatoes from countries with a 
weak currency  (Spain in particular). 

The growing volume of intra-Community trade indicates that the sector is 
operating  satisfactorily.  However,  there  has  been  a  redistribution  of  the 
traditional  winter/summer  consignment  calendars.  To  resolve  the  north-
south conflict, it will be essential to find a balance for the 1.3 million tonnes 
involved in this trade. 
Imports from third countries, in particular Morocco, are not disturbing the 
Community  market. 

Community aid for production and marketing structures does not seem to 
be having a significant effect on production trends. These have been much 
more influenced by normal market fluctuations, and in particular  changing 
trends  in intra-Community trade. 

The results of the analysis do not show general problems at structural level. 
The sector is proving dynamic, production cannot be said to be excessive, 
and fluctuations in trade may be considered a normal part of the operation 
of single market forces. 

5. 

The Commission does not have any information on national aids financed 
solely  by Member  States and intended specifically  for the tomato  sector. 
One aid  of the "rescue" type  has  been applied for  in the  sector  and  it is 
currently  being examined by the Commission. 

28 

RECOMMENDATIONS 

On the basis of these conclusions, the Commission considers that: 

1. 

2. 

3. 

The Community market is in the process of reorganization in response 
to the new situation which has pertained since  1993. The challenges 
to  be  faced  are,  firstly,  the  new  requirements of  the  market  and, 
secondly, the rescheduling of intra-Community trade calendars. 
Natural market developments should establish sufficient equilibrium 
without Community assistance being called for. 

The lack  of  profitability  of  certain  "greenhouse" enterprises in  the 
northern Member States does not affect only the tomato sector. These 
difficulties appear to be the result of temporary factors concerning the 
advisability of investment rather than of real changes in the balance 
of the market. 

Solutions should be  studied  on  an  appropriate case-by-case basis 
without, however, disturbing the proper  operation of  the  single 
market. 
In the past, the Commission has not objected to national aid intended 
to  dismantle  production  potential  which  could  be  applied  in  the 
particular case of greenhouses. 
This type of aid should be reserved exclusively for compensating for 
the loss of value of means of production and granted to unprofitable 
enterprises wishing to abandon horticulture. 

29 

ANNEXES 

30 

THE KEY PRODUCTION REGIONS 

ANNEX I 

1.  Belgium 

Belgian production has increased by 13% since 1990. It is concentrated in the province 
of Antwerp, in particular at Mechelen and Hoogstraten, as well as in western Flanders. 
The most common method of disposal is via cooperatives which organize marketing of 
the products. 

Turnover on the wholesale tomato market in 1994 accounted for 23.3% of the total 
value of vegetables produced in Belgium. 
Overall turnover for greenhouse-grown vegetables in 1994 was 6.1%  higher than in 
1993, with tomatoes accounting for the most significant growth. 

The number of enterprises, mostly family businesses, with an average area of 1 
hectare, has fallen since 1990, but the overall area planted has remained practically the 
same, with an increase in yield. The proportion of heated greenhouses has grown over 
the last two years at the cost of non-heated production. 

The overall trend in the sector is towards a decreasing number of enterprises and an 
increase in specialization and in the average area per enterprise. 

Average production prices (all varieties taken together) fell during the 1992 and 1993 
marketing years and recovered in 1994, which did not, however, quite bring prices back 
to 1990 levels. 
A more detailed analysis by variety shows that in 1993 prices for the traditional  round 
tomatoes  fell in relation to 1990, with a recovery in 1994. 
By contrast,  the volume of tomatoes  on the stalk  rose sharply, from 430 tonnes in 
1993 to 2 752 tonnes in 1994 marketed from February onwards, accompanied by a net 
increase in prices for this type of presentation. 
The production of tomatoes on the stalk further increased in 1995 and the trend is 
expected to continue. 
After traditional tomato cultivation stabilized in Belgium in 1992 and 1993, Belgian 
producers decided to move towards diversification of that crop. This seems to have led 
to a recovery in price levels in 1994. 

Since 1990 Belgium has increased its total volume of consignments to other Member 
States, in particular France and the United Kingdom, while consignments to Germany 
are falling. 

31 

2.The  Netherlands 

Production has fallen by 19% since  1990. The number of enterprises  has fallen by 34% over 
the last five years, as has the area used for tomato production. Yields are still rising. The bulk 
of production is in the Westland region. 
Tomato production  accounts for 37% of the total value of vegetable production. Since 1990 
sweet pepper production has increased at the cost of tomato production. 
By variety, the area devoted to production of round and beef tomatoes is falling, while there has 
been a correspondingly sharp increase (from 30 ha in 1993 to  150 ha in 1994) in the area 
devoted to the production of small tomatoes, tomatoes on the stalk and cherry tomatoes. 

Overall, prices (all varieties taken together)  have held up at 1990 levels. During the  1992 and 
1993 marketing years they fell by 15% but recovered to  1990 levels in 1994. 
By variety, the prices for "beef  tomatoes have fallen and those for tomatoes on the stalk and 
cherry tomatoes  have held up. 

Traditionally, the bulk of produce in the Netherlands  is sold by cooperatives who are also 
responsible for quality control and marketing. 
Over the last few years new strategies have focused more on market demand, leading to a 
policy of diversification  In order to develop new "value-added opportunities".  One example of 
this policy is the introduction of tomatoes on the stalk and "special flavour" tomatoes, which 
have been very successful on the market. 

More than 85% of tomatoes produced in the Netherlands are for external markets. These sales 
are carried out Dutch auction centres. Around fifteen  major supermarket  chains sell more than 
50% of Dutch tomatoes  in the countries of destination. The main destinations  are Germany, the 
United Kingdom and Sweden. 
Since 1990 consignments to Germany  have been increasing, while those to the United  Kingdom 
are falling. 

32 

3. France 

While production  in France has increased since 1990, there was a sharp fall in 
harvests in 1994. 
Greenhouse production has led to a reduction in the area used and an  increase in 
average yields. 
Greenhouse production in France currently accounts for 75% of the volume harvested. 
The average area of the enterprises, mostly family businesses, is less than 1 hectare. 
The market of almost 70% of production volume is concentrated in the hands of 45 
producer organizations. 

French production is concentrated in the regions of the south-east, south-west and 
north-west. In the south, Bouches-du-Rhône is the department with the highest 
production, accounting for 20% of total production. 
French production does not fully cover domestic demand, and its principal suppliers are 
Spain and Belgium. Imports from Spain have risen substantially, particularly for the 
winter season. Purchases of Belgian and Dutch tomatoes in the summer season are in 
direct competition with the French product. 
France provides the main market for imports from Morocco, absorbing more than 85% 
of them. 

33 

A.Soain 

The tomato, which is eaten more than any other vegetable in Spain, accounts for 25% 
of total horticultural production and is on the market all the year round. 
Since  1990 production and areas used for tomato production have fallen by  13%, while 
yields have continued to rise. 

Spanish production is carried on throughout the year, though winter production  (October 
- June)  has different  characteristics to those of summer production (June- September). 
The bulk of summer tomatoes, which are principally for the domestic market, are farmed 
in the open by small family businesses. 
Winter tomatoes, on the other hand, the production of which is concentrated  in the 
south-east  on the Mediterranean coast and in the Canaries, account for more than 85% 
of all Spanish tomato production.  Production is intensive with large and  medium-sized 
enterprises which have developed very technically specialized methods and have very 
dynamic and effective  marketing structures. All Spanish tomato exports come from the 
winter production regions. 

-The mainland: 

The main production areas are in Almeria and Murcia which account for 22% of 
Spanish fresh tomato production. Since 1990 production in that  region has increased, 
as has, to a limited extent, the area used for the production of tomatoes under cover. 
Almost 60% of enterprises grow tomatoes  under plastic covers, which makes it  possible 
to obtain a better temperature in winter and ventilation during the hot periods of the 
year. 
The introduction of new varieties has made it possible to produce tomatoes  of uniform 
quality  11 months out of 12 in this region. 
Over the last few years a model of efficient  Mediterranean production has been 
established, integrating marketing (and thus export) structures around production areas. 

-The  Canaries: 

The principal outlet for Canaries tomatoes is export, which currently  accounts for 80% of 
the islands' total production. 
There are almost  a hundred enterprises producing tomatoes, which account for 75% of 
the total value of horticultural production in the Canaries. 
The area planted and production, which have increased since  1990, now seem to  have 
reached a plateau, as does the volume of consignments to the European Union. 
Since 1990 the sector has undergone structural modernization, based largely on the 
expectations  of the European market, which is still continuing with modernization  of 
packaging and marketing strategies. This process has undoubtedly  been intensified by 
competition with Morocco. 
The opening up of competition in international transport  nevertheless  made it possible 
to achieve transport costs in 1994 that were  15% lower than in the preceding years. 
Consignments from the Canaries to the European Union increased by 29%  in 1994; 
this increase was accounted for specifically  by the United Kingdom market. 
The principal markets for consignments from the Canaries  are in the United  Kingdom 
(33.5%)  and  the Netherlands  (63%), where  a large proportion of the tomatoes are 
forwarded via Rotterdam to other destinations, within the Union or in third countries. 

34 

ANNEX II 

STATISTICS 

35 

Member State 
BELGIQUE 

DANMARK 

DEUTSCHLAND 

ELLAS 

ESPANA 

FRANCE 

IRELAND 

ITALIA 

LUXEMBOURG 

NEDERLAND 

PORTUGAL 

UNITED KINGD 

EUR  12 

production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 
production 
area 
yield 

1988 
205.030 
859 
239 
15.167 
47 
323 
19.100 
255 
75 
666.910 
36.720 
46 
1.834.893 
60.350 
43 
417.500 
6.420 
108 
13.500 
81 
167 
1.594.916 
116.013 
41 
30 
2 
15 
567.029 
1.715 
331 
63.893 

132.100 
624 
212 
5.530.068 
223.086 
133 

Tomato farming in EUR 15 

1989 
225.220 
915 
246 
17.000 

21.500 
267 
81 
728.050 
37.691 
53 
1.987.763 
66.066 
45 
421.700 
6.600 
113 
10.600 
57 
186 
2.018.230 
133.601 
46 
30 
2 
15 
620.782 
1.687 
368 
80.835 

134.000 
595 
225 
6.265.710 
247.481 
115 

1990 
298.400 
940 
286 
19.300 
00 
322 
14.500 
." 
." 
685.790 
38.513 
48 
2.024.895 
89.884 
45 
461.100 
6.600 
119 
10.500 
54 
194 
2.657.083 
136.378 
46 
35 
2 
18 
640.725 
1.603 
400 
86.706 
: 
: 
138.700 
580 
239 
6.987.534 
254.614 
143 

1991 
313.960 
945 
332 
17.500 

16.000 

710.700 
39.015 
48 
1.793.832 
59.913 
44 
527.300 
6.650 
128 
9.100 
43 
212 
2.759.091 
129.669 
48 
40 
3 
13 
636.149 
1.570 
405 
72.625 

1992 
329.500 
963 
342 
20.000 

31.306 
479 
65 
754.940 
36.657 
51 
1.880.143 
55.802 
47 
516.900 
5.960 
128 
11.700 
55 
213 
2.712.099 
117.595 
50 
52 
3 
17 
651.994 
1.505 
433 
64.267 

137.300 
556 
247 
6.993.597 
238.364 
123 

125.900 
476 
264 
7.098.801 
219.495 
134 

1993 
346.779 
946 
367 
14.666 
55 
267 
24.100 

1994 
309.334 
954 
324 
20.000 

20.700 

784.850 
33.110 
52 
1.912.300 
57.111 
49 
643.400 
6.060 
145 
0 

1.984.572 
113.426 
48 
65 
4 
19 
606.612 
1.390 
436 
221.103 
34.694 
21 
112.900 
401 
282 
6.651.347 
247.197 
140 

757.250 
32.083 
53 
1.786.807 
61.613 
50 
492.600 
4.750 
162 
0 

2.149.074 
115.248 
50 
70 
4 
20 
540.577 
1.241 
436 
75.000 

111.000 
388 
286 
6.262.412 
216.281 
115 

Source: Member states datas and EUROSTAT, table drawn up by  DG VI.E.1 

& 

Tomato farming  in EUR  15 - total production for consumption  as fresh  tomatoes 

Member State 

BELGIQUE 
DANMARK (*) 
DEUTSCHLAND 
ELLAS 
ESPANA 
FRANCE 
IRELAND 
ITALIA 
LUXEMBOURG 
NEDERLAND 
PORTUGAL 
UNITED  KINGDOM 
ÔSTERREICH 
FINLAND 
SVERIGE (**) 
EUR15 

1988 
(tonnes) 
205.030 
15.167 
19.100 
666.910 
1.834.893 
417.500 
13.500 
1.594.916 
30 
567.029 
63.893 
132.100 

30.145 

5.560.213 

(%) 
3,7 
0,3 
0,3 
12,0 
33,0 
7.5 
0,2 
28,7 
0,0 
10,2 
1,1 
2,4 
0,0 
0,5 
0,0 
100,0 

1989 
(tonnes) 
225.220 
17.000 
21.500 
728.050 
1.987.763 
421.700 
10.600 
2.018.230 
30 
620.782 
80.835 
134.000 
18.395 
28.822 
15.540 
6.328.467 

(%) 
3,6 
0,3 
0,3 
11,5 
31,4 
6,7 
0,2 
31,9 
0,0 
9,8 
1,3 
2,1 
0,3 
0,5 
0,2 
100,0 

1990 
(tonnes) 
268.400 
19.300 
14.500 
665.790 
2.024.695 
461.100 
10.500 
2.657.083 
35 
640.725 
86.706 
138.700 
18.045 
31.857 
17.887 
7.055.323 

(%) 
3,8 
0,3 
0,2 
9,4 
28,7 
6,5 
0,1 
37,7 
0,0 
9,1 
1,2 
2,0 
0,3 
0,5 
0,3 
100,0 

1991 
(tonnes) 
313.960 
17.500 
16.000 
710.700 
1.793.832 
527.300 
9.100 
2.759.091 
40 
636.149 
72.625 
137.300 
13.768 
30.014 
17.890 
7.055.269 

(%) 

4,5 
0,2 
0,2 
10,1 
25,4 
7,5 
0,1 
39,1 
0,0 
9,0 
1,0 
1,9 
0,2 
0,4 
0,3 
100,0 

1992 
(tonnes) 
329.500 
20.000 
31.306 
754.940 
1.880.143 
516.900 
11.700 
2.712.099 
52 
651.994 
64.267 
125.900 
12.330 
30.346 
17.890 
7.159.367 

(%) 

4,6 
0.3 
0,4 
10,5 
26,3 
7,2 
0,2 
37,9 
0,0 
9,1 
0,9 
1.8 
0,2 
0,4 
0,2 
100,0 

1993 
(tonnes) 
346.779 
14.666 
24.100 
784.850 
1.912.300 
643.400 

1.984.572 
65 
606.612 
221.103 
112.900 
13.620 
30.778 
18.889 
6.714.634 

(%) 

5,2 
0,2 
0,4 
11.7 
28,5 
9,6 

29,6 
0,0 
9.0 
3.3 
1.7 
0,2 
0.5 
0,3 
100,0 

1994 
(tonnes) 
309.334 
20.000 
20.700 
757.250 
1.786.807 
492.600 

2.149.074 
70 
540.577 
75.000 
111.000 
14.524 
34.608 
19.000 
6.330.544 

(%) 

4.9 
0,3 
0,3 
12,0 
28,2 
7.8 

33,9 
0.0 
8.5 
1,2 
1,8 
0.2 
0.5 
0.3 
100,0 

(*): EUROSTAT - CRONOS figures for 1989, 1991,1992,1994 
(**): EUROSTAT - CRONOS figures for 1989, 1991, 1992 

'e;\.- s 

Withdrawals trends from 1990 to 1994 

1991 

1990 
withdrawals 
18 

(%) 
0,01 

8 
62 
7783 

BELGIQUE 
DANMARK 
DEUTSCHLAND 
ELLAS 
ESPAGNE 
FRANCE 
IRELAND 
ITALIA 
LUXEMBOURG 
NEDERLAND 
PORTUGAL 
U. KINGDOM 
EUR-12 
Source: Member states balance sheets, table drawn up by  DG VI.E.1 

withdrawals production 
313960 
17500 
16000 
710700 
1793832 
527300 
9100 
2759091 
40 
636149 
72625 
137300 
60273  6993597 

production 
268400 
19300 
14500 
665790 
2024695 
461100 
10500 
2657083 
35 
640725 
86706 
138700 
135361  6987534 

312 
0 
46 
19091 
71 
26407 
47 
9072 
0 
5227 
0 
0 

0,00 
0,00 
1,69 

116367 

11123 

4,38 

1,74 

1,94 

| 

(%) 
0,1 

1992 
withdrawals 
6543 
0 
312 
3169 
49 
25528 
120 
175792 
0 
41181 
0 
3 

production 
329500 
20000 
31306 
754940 
1880143 
516900 
11700 
2712099 
52 
651994 
221103 
112900 
252697  7242637 

2,7 
0,00 
5,01 

0,33 

0,82 

0,86 

Uo 
OS 

P<..-e 

1993 
withdrawals 
5444 

(%) 
2,0 

production 
346779 
14666 
24100 
784850 
1912300 
643400 

99 
5006 
2613 
11964 
89 
5852 

1984572 
65 
606612 
221103 
112900 
50091  6651347 

18894 
130 
0 

1994 

(%) 
1,57 

7531 

withd rawalsj prod uction 
309334 
20000 
20700 
757250 
1786807 
492600 

59 
2977 
9996 
6644 
97 
13820 

2149074 
70 
540577 
75000 
111000 
50220  6262412 

8958 
138 

0,4 
0,6 
0,1 
1,9 

0,3 

3,1 
0,1 

0,8 

(%) 

2,4 

0,3 
0,4 
0,6 
1,3 

0,6 

1,7 
0,2 

0,8 

0,4 
0,0 
4,9 

6,5 

6,3 

3,5 

Production and intra-Community trade -  EUR  12 -

8 000 -, 

7 000 4 

V) 

0) c 
c 
o 
o 
o 
o 

$ 

oproduction 
o Trade 

990 

1991 

1992 

1993 

1994 

Yield trends 

e-

25 000 

20 000 

15 000  4— 

o 

SI 

5 000  4 - M— 

WRk 

Area  of tomato  production under cover  in the  EU 

[•UE 
jgBE 
I DES; 
QFR^ 
; 
BIT 
QNL 

1990 

1991 

1992 

1993 

til!! 

wm 

994 

Consumption  of fresh tomatoes  in the  EU (estimates) 

30  T 

25  •; 

a— 

20 

.c  15 

£ 

10 

1990 

1991 

1992 

1993 

1CC4 
i  *S V ** 

Variations  in monthly  prices  in comparison with  1990 

-  Spain -

o 
o I! 
o 

X 
o 

£" 

1990 
1991 
1992 
1993 
1994 

Variations  in monthly  prices  in comparison with  1990 

-  Belgium 

1990 

1991 
1992 
1993 
1994 

200 

40 

20 

( W K ^V 

j i p i ^i 

H 

200  T 

Variations  in monthly  prices  in comparison  with  1990 
-  Netheriands-

G 
O 

O 

un 

•  1990 

• • - 1 9 91 ; 
- * - 1 9 92  : 

• • - 1 9 93 

* - 1 9 9 4; 

ItvviL 

Variations in average Community prices from March to June in comparison 
with  1990 

140 T 

130 4 

ES 
«NIL 
B5; 

1990 

1991 

1992 

1993 

CC4 

Scale  of withdrawals  of tomatoes from  the  market  by  Member  State  as a 
proportion  of domestic  production  between  1990 et  1994 

Production,  intra-Community Trade and  investment  aid 
-  Belgium  -

production 
~-  trade"  • 
- aid 

2  000 

1  500 4 

o 
o 
o 

DUU  • 

1990 

1991 

1992 

1993 

1994 

Production, intra-Community trade and investment aid 

- Netherlands -

production 

ES  .  trade  ; 
- • - . .-  aid 

2 000 4 

1 500 

o 
c 

Do 

I 
8  1 ooo  4 

500 4 

1990 

1991 

1992 

1993 

1994 

2 000 

1  500 

SP» 

o 
o 
o  1  000 

Production,  intra-Community  trade  and  investment  aid 

-  Spain  -

g 
40  o. 
à 

i CZZ3 production 
\^m 
j — •— 

- trade  I 
! 
-  aid 

990 

1991 

1992 

1993 

1994 

Production, intra-Community trade and investment aid 

- France -

2 000 

1 500 

£:. 

O 
C 

i 
i 

—' production 
BB  -trade  [ 
•-•Tijd"" 

1990 

1991 

1992 

1993 

1994 

Imports to the  EU of tomatoes  from  Morocco 

£ 

o 
o 
o 

1SS0 

1991 

1992 

1993 

1994 

ANNEX III 

Selection criteria for investments in the processing and marketing of agricultural 
products under Regulation (EEC) No 866/90 

The selection criteria (Decision 94/342/EEC) relating to fruit and vegetables rule 
out the following investments: 

investments  to  increase  marketing  capacity  for  products  where  major 
withdrawals  (attendant on surplus production)  have been recorded  in the 
areas concerned over the last three years; 

all  investments  resulting  in  an  increase  in  processing  capacity,  except 
where  equal  capacity  is  abandoned  in  the  same  enterprise  or  in  other 
specified enterprises, or in the case of special products where a significant 
growth in outlets has been shown. This ban does not apply in Objective 1 
regions where insufficient  capacity has been demonstrated; 

investments  in  the  production  of  tomato  concentrate,  peeled  tomatoes, 
citrus juice, peaches in syrup and pears in syrup, except where they cover 
new processing capacity which is at least 20% below the total pre-existing 
capacity abandoned in the region concerned. 

Investments qualifying for assistance from the EAGGF Guidance Section under the 
Regulation must seek to achieve the following: 

the  rationalization  and development  of packaging, preserving, treatment, 
processing and recycling of by-products or manufacturing residues; 

better procedure for placing on the market, including greater transparency 
in price formation; 

the application of new processing techniques, including the development of 
new  products  and  by-products  or  the  opening-up  of  new  markets  and 
innovative  investments; 

improvement  in the quality of products. 

55 

ISSN 0254-1475 

COM(96) 247  final 

DOCUMENTS 

EN 

03 

Catalogue number  : CB-CO-96-256-EN-C 

ISBN92-78-04816-X 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

51