Proposal for a Council Regulation amending Regulation (EEC) No 2759/75 on the common organisation of the market in pigmeat
Date: 2000-04-11
Institutions: European Commission
Subjects: State aid, agricultural levy, common organisation of markets, market prices, pigmeat

29.8.2000

EN

Official Journal of the European Communities

C 248 E/121

Proposal for a Council Regulation amending Regulation (EEC) No 2759/75 on the common organi-
sation of the market in pigmeat

(2000/C 248 E/10)

COM(2000) 193 final (cid:151) 2000/0076(CNS)

(Submitted by the Commission on 13 April 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of
Committee,

the Economic and Social

Whereas:

some years now,

(1) For a long time the European Union market in pigmeat has
been subject to cyclical movements, with periods in which
the supply of pigmeat has been in balance and prices have
been satisfactory followed by periods when supplies have
been plentiful and market prices have consequently been
low. For
this cycle has been more
pronounced and the periods of recession have been leng-
thening, endangering the cash flow situation of pigfarmers.
Steps should be taken, therefore, to amend Council Regu-
lation (EEC) No 2759/75 (1), as last amended by Regulation
(EC) No 3290/94 (2), and to authorise the Member States to
establish a
for
pigfarmers, who participate on a voluntary basis, to cope
with fluctuations in market prices. To ensure the satis-
factory operation of
the funds and in particular their
financing, provision should be made for a minimum
period of participation and for the lodging of a security
by the pigfarmers concerned.

fund making it possible

regulatory

(2) In order that the funds may be established rapidly and
effectively at national
level, use should be made of
existing bodies, if any. The participation of pigfarmers in
their management and administration must be ensured. The
funds will adopt
their
operation and inform the Commission and the other
Member States thereof.

the arrangements necessary for

(3) Financing for the funds will be provided by a levy paid by
participating pigfarmers in respect of each fattening pig
produced.
In order to cover the administrative costs of
setting up the funds, Member States may grant degressive
launching aid. To supplement their financing, the funds
may seek loans from banks and other institutions on
market terms.

(4) The principal component of the fund arrangements will be
the regulatory mechanism because it establishes a levy

(1) OJ L 282, 1.11.1975, p. 1.
(2) OJ L 349, 31.12.1994, p. 105.

recession,

threshold requiring an amount to be paid to the fund,
in
during periods when market prices are satisfactory,
respect of each fattening pig, and a payment threshold
triggering the grant of an amount by the fund, during
periods of
in respect of each
to farmers
fattening pig. The two thresholds will be set by the funds
in the light of market factors and their financial situation.
In view of
in the
operation of the funds, the regulatory mechanism must
be authorised by the Commission in accordance with the
procedure laid down in Article 24 of Regulation (EEC)
No 2759/75. By
and
payments it should be possible for the funds to take
account of the structure of the sector and improve it.

its role as the principal component

adjusting

amounts

levy

the

(5) In a future recession it may happen that,

in the period
immediately following their establishment, the funds will
have to start making payments without having the oppor-
tunity to collect the necessary financial resources. In that
case, the Member State concerned must be authorised to
grant an interest-free loan that will allow the fund to carry
out its task. This loan must be reimbursed. Where the
funds have sufficient financial resources to allow them to
act in the event of a future recession, they may suspend the
collection of the levy temporarily.

(6) The establishment of

the funds in the Member States
concerned must be mirrored by certain arrangements for
the control of pigmeat production in the European Union.
Pigfarmers who participate in the funds will benefit from
certain assurances regarding their income from fattening
pigs. It is therefore reasonable to require them to comply
with production rules for improving the balance of the
market and ensuring the satisfactory operation of
the
funds. However, provision should be made for a derogation
from this provision where market prospects permit,

HAS ADOPTED THIS REGULATION:

Article 1

The following Title Ia is inserted in Regulation (EEC) No
2759/75 after Article 7:

(cid:145)TITLE Ia

REGULATORY FUND

Article 7a

1.
The Member States are authorised to establish a
regulatory fund for pigfarmers whose pigs are fattened
in their territory. The purpose of the fund shall be to
assist pigfarmers in coping with fluctuations in market
prices.

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Official Journal of the European Communities

29.8.2000

Pigfarmers

shall participate in the funds on a
2.
voluntary basis either directly or
indirectly through
producer groups or any other collective body of which
they are members. Pigfarmers and groups participating in
the funds shall give an undertaking to comply with the
rules laid down by the funds. Compliance with the rules
shall be ensured by the lodging of a security.

Article 7d

The regulatory mechanism applied by the funds shall

1.
comprise:

(cid:151) a (cid:147)levy threshold(cid:148) triggering the payment to the funds
of a levy in respect of each fattening pig by pigfarmers
during periods when price levels are satisfactory,

Pigfarmers

3.
for a
minimum of five years in respect of all their production
units in the territory of the Member State concerned.

shall participate in the funds

Article 7b

1.
The regulatory funds shall be organised and admin-
istered by existing national bodies or bodies set up for the
purpose.
the
management of the funds and their supervisory bodies.

represented

Pigfarmers

shall

be

in

The regulatory funds
and
the

2.
arrangements
membership,
procedure governing levies and payments.

shall adopt
the

in particular
regulatory mechanism and

the necessary
conditions of
the

Article 7c

The regulatory funds

shall be financed by the
1.
pigfarmers themselves, through the collection of a levy
in respect of each fattening pig, paid by the pigfarmers
or by the producer group through which they market
their pigs.

To facilitate the establishment of a regulatory fund,
2.
Member States may grant aid to meet the administrative
costs incurred during the launch of the fund. To that end,
eligible expenditure shall include the rental of premises,
including computer
the purchase of office equipment,
including
hardware and software, administrative costs,
fixed costs and miscellaneous charges.
personnel costs,
The aid amount may not exceed 100 % of
the costs
incurred during the first year, reduced by 20 percentage
points for each subsequent year, so that in the fifth and
last year it amounts to 20 % of the real costs.

3.
In order to obtain the resources needed to operate
their regulatory fund, the funds may borrow from banks
and public or private institutions. In that case, the interest
rate on loans shall be the market rate and may not include
interest subsidies constituting State aid.

(cid:151) a (cid:147)payment

threshold(cid:148) opening entitlement

to the
payment, by the funds, of an amount in respect of
each fattening pig to pigfarmers during periods of
recession.

2.
The funds shall forward to the Commission, through
the competent authorities, the regulatory mechanism and
in particular the thresholds referred to in paragraph 1, the
level of which shall be set taking into account the market
price for standard quality slaughtered pigs in the Member
State concerned, the production costs in that country, the
financial situation of the fund and the situation of the
Community market
in pigmeat. The Commission shall
authorise
the mechanism in accordance with the
procedure laid down in Article 24.

The regulatory funds may adjust

3.
the amounts
granted in respect of each fattening pig and the number
of eligible pigs per farmer in the light in particular of the
size and structure of the pig farms in the Member State
concerned. The levy may also be adjusted.

Article 7e

necessary,

1.
In order to prevent funds from failing to operate for
lack of financial resources during a three-year period from
the time they are established, Member States may, where
strictly
an
interest-free loan. Such loans shall be reimbursed by the
fund in full within a period of five years. Member States
shall inform the Commission of the amount of the loan
and its method of calculation. The Commission shall
inform the other Member States thereof.

regulatory

grant

fund

the

2. Where the regulatory funds have adequate financial
resources,
the levy
they may suspend collection of
if any, available to the
temporarily.
funds must be used for their statutory objectives.

income,

Interest

Article 7f

a

regulatory fund,
Upon becoming a member of
pigfarmers must declare the number of
their fattening
places within the territory of the Member State concerned.
to increase that
They must give an undertaking not
number during the whole of their period of membership.
However, where market prospects permit, a Member State
may, at its request, be authorised by the Commission, in
accordance with the procedure laid down in Article 24, to
derogate from this requirement.

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Official Journal of the European Communities

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Article 7g

Article 2

1. Member States shall adopt the measures necessary to
apply this Title and shall determine in particular the
procedures for establishing and managing the regulatory
funds.

This Regulation shall enter
into force on the third day
following its publication in the Official Journal of the European
Communities.

2.
They shall notify the Commission of the provisions
adopted under this Title and of any amendments thereto.
The Commission shall notify the other Member States
thereof.

It shall apply from 1 July 2000.

Article 7h

Detailed rules for the application of this Title shall be
adopted in accordance with the procedure laid down in
Article 24.(cid:146)

This Regulation shall be binding in its entirety and directly
applicable in all Member States.