Communication from the Commission to the Council on the contribution to be paid to the Promotion Fund of the International Olive Oil Council (IOOC) for the 1999/2000 information campaign to increase consumption of olive oil and table olives in non-member countries
Date: 1999-01-22
Institutions: European Commission
Subjects: consumption, financial aid, olive oil, sales promotion, third country

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 22.01.1999
COM(1999) 11 final

Communication from the Commission to the Council

on the contribution to be paid to the Promotion Fund of the International Olive
Oil Council (IOOC) for the 1999/2000 information campaign to increase
consumption of olive oil and table olives in non-member countries

Communication from the Commission to the Council

on the contribution to be paid to the Promotion Fund of the International Olive
Oil Council (IOOC) for the 1999/2000 information campaign to increase
consumption of olive oil and table olives in non-member countries

1. Article 11(1) of Council Regulation No 136/66/EEC on the establishment of a
in oils and fats1, as last amended by
common organisation in the market
Regulation (EC) No 1638/982, authorises the Community to undertake measures
directly or indirectly to provide information or to promote, in Member States or
non-member countries, the consumption of olive oil and table olives produced in
the Community.

Article 11(2) of Regulation No 136/66/EEC calls on the Commission to send the
Council a programme of the measures it contemplates undertaking during the
following marketing year(s).

2. As a full signatory to the International Agreement on Olive Oil and Table Olives
signed at Geneva in 1986, extended for five years from 1 January 1994 and
prolonged for two years until 31 December 2000, the Community must contribute
each year to the IOOC Promotion Fund for increasing olive oil and table olive
consumption in non-member countries.

Chapter B1-38 (Promotion measures) of the 1999 budget makes provision for a
contribution.

3.

For a number of years the Commission has made a compulsory and a voluntary
contribution. The amount paid has
to reach
the years
ECU 5 970 450 in 1998 for a total programme cost of ECU 6 109 400.

increased over

The programme, devoted in the main to information, education and research
activities, was gradually launched in various non-member countries. Promotional
activity began in the United States (1983/84), Australia (1989/90) and Japan
(1991/92) and has subsequently commenced in Canada (1994/95), Argentina
(1994/95), Thailand (1996/97), South-East Asia (Taiwan 1998/99) and Brazil
(1998/99).

Given the very substantial increases in olive oil consumption achieved in the
countries in which programmes have been mounted by the IOOC (see annexed
the
table) and the supply side outlook for olive oil
Commission considers it necessary to continue, in parallel with campaigns within
the Community, promotional action in certain non-member countries through the
IOOC.

in the Community,

It is therefore proposed that the Promotion Fund continue to be supported by
means of a financial contribution for the 1999/2000 programme.

1

2

OJ 172, 30.9.1966, p.3025/66.
OJ L 210, 28.7.1998, p.32.

2

4.

In July 1998 the IOOC sent
(March 1999 to February 2000) and a breakdown of the draft budget required.

the Commission its programme for 1999/2000

The programme embraces:

–

–

–

promotional and public relations activities and provision of (scientific,
nutritional and gastronomic) information in the abovementioned countries,

continuation of scientific research and dissemination of the results of research
already carried out,

production of information material and its distribution at international events
in various countries,

– market studies and assessment studies for the programmes mounted.

The cost of the programme presented by the IOOC is EUR 6 148 950, broken
down as follows:

– non-member country activities
– scientific research
– dissemination of results
– production of material and international

events

– market/assessment studies
– other (table olives, quality control, etc.)

4 325 400 EUR
400 000 EUR
171 000 EUR

510 000 EUR
120 000 EUR
622 550 EUR

6 148 950 EUR

5.

The Commission has examined the draft programme, which is a continuation of
the work of previous years. The strategy seems well adapted to the objectives in
view and the means proposed appropriate to that strategy. Further, the assessment
studies carried out in previous years confirm the effectiveness of the action
mounted.

However, given the changed economic and financial situation in the countries in
question as a result of the significant depreciation of certain currencies, and in the
interests of sound financial management,
the Commission considers that a
reduction (in euros) in the funds allocated to activities in these countries is
warranted and will not compromise the effectiveness of the action. This reduction
can be 3% (dollar zone), 8% (Japan and Brazil) and 14% (South-East Asia).

3

As a consequence the total budget proposed by the IOOC should be altered to:

– non-member country activities *
– scientific research
– dissemination of results
– production of material and international

events

– market/assessment studies
– other (table olives, quality control, etc.)

6.

The above sum is covered by:

4 054 000 EUR
400 000 EUR
171 000 EUR

474 950 EUR
120 000 EUR
616 450 EUR

5 836 400 EUR

• a compulsory contribution from IOOC members equalling EUR 500 000 (the
Community contribution amounts to EUR 405 050 in accordance with the
cost-sharing formula provided for in the Agreement),

• a voluntary contribution from the Community not exceeding EUR 5 301 400,

• estimated income of EUR 35 000 from the sale of IOOC publications.

In conclusion,
the total Community contribution for 1999/2000 equals
EUR 5 706 450, which is 4.4% down on the total contribution to the previous
programme (EUR 5 970 450).

However, the imposition of an import tax by the Argentine authorities leads the
Commission to conclude that for the moment promotional action should be
discontinued there. If the situation does not alter before the beginning of the new
programme (1 March 1999), the amount made available could be used to boost
other action under the programme, with the exception of action in producer
countries outside the EU. Should the tax be withdrawn, however, the Commission
could authorise continuation of IOOC promotional action in Argentina.

_______________

*

A budget of EUR 302 000 is scheduled for action in Argentina.

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Increase in consumption on the basis of import figures

(1.000 tonnes)

Initial consumption

Consumption at
commencement of
IOOC action

Present consumption

Consumption target
(2000/2001)

USA

JAP

AUS

CAN

ARG

BRA

ASIA

TOTAL

25

38

140

160

2

4

30

50

4

6

10

11

21

24

19

30

1

1

7

20

26

26

29

40

3

4

6

67

94

252

15

339

5