Report from the Commission to the Council and the European Parliament in accordance with Article 23 of Regulation (EEC) No 3763/91 - Report on the progress made in the implementation of Poseidom from 1992 to 1998
Date: 2000-11-27
Institutions: European Commission
Subjects: Canary Islands, French overseas department and region, Structural Funds, aid to agriculture, regions of Portugal

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 29.11.2000
COM(2000) 790 final

REPORT FROM THE COMMISSION TO THE COUNCIL AND
THE EUROPEAN PARLIAMENT IN ACCORDANCE WITH ARTICLE 23
OF REGULATION (EEC) No 3763/91

Report on the progress made in the implementation of POSEIDOM from 1992 to 1998

REPORT FROM THE COMMISSION TO THE COUNCIL AND
THE EUROPEAN PARLIAMENT IN ACCORDANCE WITH ARTICLE 35
OF REGULATION (EEC) No 1600/92

Report on the progress made in the implementation of POSEIMA from 1992 to 1998

REPORT FROM THE COMMISSION TO THE COUNCIL AND
THE EUROPEAN PARLIAMENT IN ACCORDANCE WITH ARTICLE 30
OF REGULATION (EEC) No 1601/92

Report on the progress made in the implementation of POSEICAN from 1992 to 1998

(presented by the Commission)

REPORT FROM THE COMMISSION TO THE COUNCIL AND
THE EUROPEAN PARLIAMENT IN ACCORDANCE WITH ARTICLE 23
OF REGULATION (EEC) No 3763/91

Report on the progress made in the implementation of POSEIDOM from 1992 to 1998

INTRODUCTION ................................................................................................................. 3

1.

2.

Economic and Social Situation ................................................................................. 5

Implementation of the POSEIDOM agricultural framework Regulation.................... 6

2.1.

Specific supply arrangements ................................................................................... 6

2.1.1. Description of the arrangements: .............................................................................. 6

2.1.2. Comments and analyses............................................................................................ 6

2.2.

Aid for agricultural production in the French overseas departments .......................... 9

2.2.1.

Livestock production ................................................................................................ 9

2.2.2. Crop production...................................................................................................... 11

2.2.2.1. Fruit, vegetables, flowers and plants ....................................................................... 11

2.2.2.2. Sugar cane/rum....................................................................................................... 13

2.2.2.3. Rice

14

2.3.

2.4.

Budget.................................................................................................................... 15

Other measures....................................................................................................... 16

2.4.1.

The graphic symbol ................................................................................................ 16

2.4.2.

Structural derogations............................................................................................. 16

2.4.3. Veterinary and plant health measures...................................................................... 17

2.4.4.

EAGGF Guidance Section measures....................................................................... 17

3.

Conclusions............................................................................................................ 17

ANNEX 1 Socio-economic and agricultural data by department .......................................... 18

ANNEX 2 Specific supply arrangements (SSA) -- achievements.......................................... 24

ANNEX 3 Specific aid for local agricultural products .......................................................... 35

ANNEX 4 Structural derogations ......................................................................................... 44

ANNEX 5 Veterinary and plant health measures.................................................................. 46

ANNEX 6 EAGGF Guidance Section measures................................................................... 50

2

INTRODUCTION

On 22 December 1989, the Council introduced a programme of options specific to the remote
and insular nature of the French overseas departments (POSEIDOM).1

1.

2.

3.

4.

This programme aims to take account, in the application of Community policies, of
the overseas departments’ special characteristics and handicaps associated with their
insularity,
topography and climate, economic
dependence on certain products and restricted and dispersed local markets that affect
their economic and social circumstances.

remoteness, small size, difficult

For this purpose, the Council adopted a framework Regulation2 introducing
specific measures in respect of certain agricultural products for the benefit of
the French overseas departments, to develop or maintain local activities; these
measures have been implemented by a large number of Commission implementing
regulations. The Regulation was adapted, and the measures extended, by Council
Regulation (EC) No 2598/95 of 30 October 19953

.

The common declaration concerning the outermost regions of the Community,
annexed to the Treaty on European Union, confirmed the POSEIDOM approach. The
Treaty of Amsterdam introduced a new article, Article 299(2), applicable to the
outermost
regions, establishing the specific framework to be applied by the
Community to these regions. The Treaty entered into force on 1 May 1999.

Under Article 30(1) of the framework Regulation for agriculture, the Commission
must submit an annual report on the progress made in implementing the agricultural
section of POSEIDOM accompanied, where appropriate, by proposals for any
adjustments needed to achieve the programme's objectives.

Under Article 30(2) of that Regulation, at the end of the third year of application of
the programme the Commission must submit to Parliament and the Council a general
report on the economic situation of the French overseas departments showing the
impact of the measures taken under the Regulation.

5.

It has been possible to present only one report, that covering the period 1992/934.

The French authorities have sent the Commission reports on the implementation of
the programme as well as some requests for amendments of the Council Regulation.

In the context of SEM 2000, the Commission appointed an external consultant to
draw up a report evaluating the agricultural section of the POSEIDOM programme.
The consultant examined the achievement of the programme's objectives and
proposed some possible improvements.

This report takes stock of the implementation from 1992 to 1998 of Regulation
(EEC) No 3763/91, taking account of the experience gained and the impact of the
measures implemented.

1

2

3

4

Council Decision 89/687/EEC; OJ L 399, 30.12.1989, p. 39.
Council Regulation (EEC) No 3763/91, OJ L 356, 24.12.1991, p 1.
OJ L 267, 9.11.1995, p. 1.
COM(94)2000 final of 30.5.1994.

3

At present, the agricultural segment of POSEIDOM comprises 28 measures. Most of the
measures concern all four overseas departments; some, however, are intended to deal with
specific situations in one department or the other.

4

1. ECONOMIC AND SOCIAL SITUATION

Guadeloupe

Martinique

French Guiana

428 000

396 700

157 300

Population

Density (per km²)

Unemployment rate

Food Price Index

(metropolitan France = 100)

per capita GDP (EU = 100)

Total surface area (ha)

% UAA

of which: cultivated

Number of holdings:

of which: <5ha

UAA per holding

FAO (FRF million)

251

29%

128

41%

170 500

30%

47%

11 900

86%

4.2 ha

1 400

360

27%

123

54%

110 000

31%

64%

5 400

80%

6.2 ha

2 000

Réunion

697 000

277

36%

130

46%

2

22%

145

49,5%

8 353 400

252 000

0,3%

30%

4 300

90%

5.7 ha

600

17%

81%

11 000

75%

3.9 ha

2 100

livestock/plant production

20% / 80%

11% / 89%

13% / 87%

32% / 68%

Main crops

% FAO

% UAA

Number of holdings:

Banana

28 %

11 %

6 %

Cane

14 %

26 %

37 %

54 %

33 %

17 %

4 %

9 %

5 %

37,5 %

Banana

Cane

Rice

Sugar cane

Other significant crops

Melon

Pineapple, melon

GDP = Gross Domestic Product; UAA = Utilised agricultural area; FAO = final agricultural output

31 %

60 %

49 %

Pineapple,
geraniums,
vanilla

One of the salient features common to the overseas departments is that they lag
behind the rest of the EU in economic and social development. They also suffer from
production methods and traditions that result in low productivity and low levels of
output. All four overseas departments are in tropical areas subject to unstable or even
violent weather conditions, but their geographical disparity encourages differences in
agricultural produce from one department to another.

“Remoteness” does not refer simply to geographical distance; there is also a “socio-
economic remoteness” affecting supply costs, conditions of production and local
price formation, and thus conditions of competition between local products and
imports from the rest of the Union and from neighbouring developing countries. This
factor results from the size of the local population, and is directly related to the
volume of supply and thus purchasing costs. It affects infrastructure.

Annex 1 summarises the main relevant economic and agricultural data for each
French overseas department.

5

2. IMPLEMENTATION OF THE POSEIDOM AGRICULTURAL FRAMEWORK REGULATION

2.1.

Specific supply arrangements

The objective of the specific supply arrangements is to compensate for the additional
costs of supplying agricultural products to the overseas departments, due to their
insularity and remoteness. The arrangements were designed as an instrument to
ensure the development of local production and processing activity, by reducing the
cost of inputs, with a view to supplying local consumption needs.

2.1.1. Description of the arrangements:

– Forecast supply balances are drawn up each year for the agricultural products
mentioned in the Regulation, which are essential as animal feed or for human
consumption, and for local processing. These balances may be revised in the
course of the year as a function of needs in the overseas departments.

– Since the objective of lowering prices for the end user is to be achieved by
promoting competition between sources of supply, products imported from
non-member countries under the specific supply arrangements are exempt from
customs duties and the same Community products are subsidised at a rate
equivalent to the advantage resulting from this exemption. The measure should
avoid distorting traditional trade flows and safeguard the Community’s share of
supply.

the specific supply arrangements may not be re-exported or

– Special attention is paid to the economic effects of these arrangements, in
particular as regards actual spinoff through to the end-user. Products imported
re-
under
dispatched to the rest of the Community, although this does not prejudice
existing trade-flows between overseas departments. Where processing takes
place in the overseas departments, the restriction does not apply to traditional
consignments or exports. In this case, no refund is granted.

It is left up to the Member State to take all appropriate measures to check that the
benefits of the arrangements are actually passed on. It is specified that this may
involve assessing the trading margins of the various traders concerned. A local
POSEIDOM committee is set up in each department, under the authority of the
Prefect, to carry out regular examinations of the development of product prices and
to assess the impact of the measures taken pursuant to the rules. To ensure that the
benefit is passed on, security must be lodged; it is released after checks, which are
made at various stages up to that of sale to farmers, or in the industrial sectors in
receipt of aid.

2.1.2. Comments and analyses

In the period 1992-97, expenditure under the SSA accounted on average for 46.6% of
POSEIDOM expenditure (not including revenue forgone as a result of the customs
duty exemptions).

The operation of the SSA gives rise to a number of comments and analyses. The
main statistics on implementation of the supply balances can be found in the
Annex 2.

6

Supplies of cereals, cereal products and other plant products to the overseas
departments accounted for 96% of SSA expenditure, mainly wheat (31.5%), maize
(55.2%) and barley (7.9%).

For cereals, the measure provides that direct imports into the overseas departments
shall be exempt from customs duties as follows:

– when intended as animal feed: cereals originating in developing countries;

– when intended for human consumption: cereals originating in overseas

countries and territories and ACP countries.

Where exceptional difficulties arise, the exemption for cereals intended as animal
feed may be extended to products from other third countries, and that for cereals
intended for human consumption, to products originating in developing countries.

The implementation of the reform of the CAP and the signing of the GATT
agreements (Uruguay Round) led to a decrease in import duties on the products, and
a gradual closing of the gap between world and Community prices. Consequently,
since Community aid is calculated as a function of the difference between these two
price levels, the amount of aid has dwindled to nothing (1995/96) for certain cereals,
which has made third-country supplies of maize very attractive. In the circumstances,
it is possible and worthwhile to charter vessels.

This development has given rise to concern about the objective of offsetting extra
cost so as to cut production costs.

Within the constraints of the present rules, the Commission has carefully managed
the effects induced by these changes in the international environment. It has also
launched external evaluations under SEM 2000 to assess the real difficulties of
applying the SSA, and to prepare the Commission’s reports to the Council and to
Parliament on the implementation of these arrangements.

The external assessment report on the agricultural aspects of POSEIDOM concludes
that, in view of the new situation in the market, the resources provided under Council
Regulation (EEC) No 3763/91 are not always sufficient to achieve the principal
objective of the SSA, which is to compensate for additional supply costs in these
regions. Objective criteria are not available to quantify the remoteness and insularity
of these regions: the present method of calculating aid for Community products fails
to cover the extra cost of supply.

The supply of other plant products to the overseas departments has been very small
(barley malt, hops, durum wheat groats and meal, seed potatoes, vegetable oils, fruit
pulp and purée and concentrated fruit juice).

The supply of breeding animals to the overseas departments has accounted for
3% of total SSA expenditure.

To support livestock farming in the overseas departments, with a view to satisfying
consumption needs, aid is provided for supply from the Community of pure-bred
breeding animals: bovine animals, swine, sheep, goats, horses, rabbits, multiplier or
breeding chicks and hatching eggs for the production of multiplier or breeding
chicks.

7

As a rule, Réunion has made most use of this measure, because it has a more highly
developed and organised livestock sector than the other overseas departments. The
livestock sector in Guadeloupe has been facing serious problems of organisation
since the main cooperatives were wound up by the courts. Isolated livestock farmers
in Martinique and Guadeloupe are now once again starting to apply for aid, although
they would like procedures to be simplified. The measure is clearly unsuitable for
implementation in French Guiana, where breeders are most interested in West Indian
breeds, which are not eligible for aid.

Users find the level of aid inadequate in view of the new constraints introduced by
the legislation on animal welfare and of real transport costs.

The impact of the measures has been positive in terms of genetic improvement of the
herds concerned.

Import into Réunion of wheat bran from ACP countries

Within the limit of an annual quantity of 8 000 tonnes, no levy is applied to this
wheat by-product, which is used as an ingredient in certain types of animal feed (in
particular for pigs, bovine animals and rabbits), and which local mills do not produce
in sufficient quantity to satisfy demand. Utilisation of the measure has been
satisfactory, with a take-up rate of 76%, not counting the first year.

All imported bran is from Mauritius (indeed, the measure was designed in the light of
relations between the two islands), as transport costs from the other ACP countries
are prohibitive since their industries are not equipped for “pelleting” and bulk
loading. The development of cattle-farming in Mauritius might eventually lead to
supply problems.

In order to support traditional stockbreeding activities and to use available forage and
slaughtering and packing facilities to the best advantage, Article 7 of Council
Regulation (EEC) No 3763/91 provided for a specific temporary measure for
import or supply of bovine animals for fattening purposes. This measure was
originally introduced for the period 1991/92 to 1994/95, but was extended for two
further marketing years by Regulation (EC) No 2598/95 of 30 October 1995. It
expired in June 1997.

As Guadeloupe and Martinique did not request application of the measure, only
French Guiana and Réunion were concerned. Only one operation was carried out,
involving the supply of 72 animals of EU origin to French Guiana in 1992; no other
application has been received.

In economic terms, it appears that SSA aid is generally taken into account in price
forming. The technique used by the French authorities is to examine gross margins in
industry.

Operation of the arrangements raised some problems, particularly a discrepancy
between forecasts and actual requirements for some balances. These discrepancies
arose because of incomplete statistics (which did not
take account of certain
commercial transactions between metropolitan France and the overseas departments),
and some administrative teething troubles. These difficulties have been corrected, but

8

the procedural rules provided for in Commission Regulation (EC) No 131/925
need to be amended.

2.2.

Aid for agricultural production in the French overseas departments

Under the POSEIDOM programme, aid is to be granted for the production,
processing and marketing of agricultural products, in order both to maintain and
strengthen traditional activities and to develop diversification. In certain cases, this
aid is supplemented by the impact on animal feed and on breeding animals of the aid
under the supply arrangements.

From 1992 to 1997, this aid represented 53.4% of total expenditure, broken down as
follows: livestock farming: 14%; fruit, vegetables, flowers and plants: 11%; sugar
cane/rum: 69%; rice in French Guiana: 6%.

2.2.1. Livestock production

For livestock farming in the beef and veal sector, POSEIDOM (Article 5)
introduces aid to help develop traditional overseas department livestock products,
within the limits of the local consumption requirements (which are assessed in the
context of a periodic supply balance). In addition to the supply of pure-bred breeding
animals, as already mentioned, a supplement of EUR 48.3 per head is granted on top
of the fattening aid for male bovines and the premium for maintaining suckler cows
available under Regulation (EEC) No 1357/80.

Council Regulation (EC) No 2598/95 of 30 October 1995 adapts this measure to the
specific situation in the French overseas departments. Provisions relating to density,
the regional ceiling and the individual ceiling for animals held on the farm do not
apply in the overseas departments.

The premium for maintaining suckler cows, along with the special additional
premium, is granted each year for up to 35 000 suckler cows (females that have
already calved), a ceiling that can be revised as a function of the development of
consumption needs in the French overseas departments. Implementation of the
measure is summarised in Table 1 in Annex 3.

The number of animals subsidised has increased steadily by about 43% over the
period. Despite this favourable development, the low rate of identification of the herd
in the overseas departments means that not all animals eligible for the premium are
actually subsidised. The number of animals subsidised is below the ceiling fixed by
the Council. However, the introduction of basic premiums supplemented by the
additional POSEIDOM premium has helped to improve the rate of identification and
information about the herd, leading to better traceability to slaughter, and effective
preventive measures. This is a factor in quality enhancement.

The special premium for male bovine animals is granted each year for up to
10 000 animals, a flat-rate ceiling that can be revised as a function of need.
Implementation of the measure is summarised in Table 2 in Annex 3.

5

OJ L 15, 22.1.1992, p. 13.

9

There has been an overall increase in the number of animals subsidised, although
with annual fluctuations depending on dates of declaration and dates of calving
(early or late), but
the assisted population is still below the ceiling fixed. A
considerable increase was recorded in Réunion, which now accounts for half the
subsidised animals. The aid encourages the slaughter of heavier animals, to cope
with competition from imported meat.

In the beef and veal sector, these two measures have boosted livestock-farmers’
incomes and enabled them to cope better with the development problems facing the
sector in the specific situation of the overseas departments.

Aid for the human consumption of locally-produced fresh cows' milk products,
paid to dairies, is provided for in Council Regulation (EEC) No 3763/91. This
measure, targeted on consumers rather than producers, has never been implemented.

Council Regulation (EC) No 2598/95 replaces this scheme with aid for the
development of local production of cow’s milk for human consumption, with a
grant to producers of EUR 8.45 per 100 kg of whole milk. Aid is paid through the
dairies, up to a limit of 20 000 tonnes per marketing year for all the overseas
departments. Implementation of the measure is summarised in Table 3 in Annex 3.

This measure has encouraged professionalisation and the expansion of milk
collection in the overseas departments, leading to the development of processing
downstream and covering some local needs; this is especially true in Réunion, where
output doubled from 1992 to 1997. The 20 000 t limit on the payment of aid will be
reached in 2000 for the first time. However, local production covers only a small
share of local consumption. Article 6 provides for possible revision of the maximum
quantity.

To support production and marketing of local produce in the livestock sector,
Article 9a (added by Council Regulation (EC) No 2598/95) provides for aid to be
granted annually in the five-year period from 1996 to 2000 to implement regional
programmes in Martinique and Réunion. The programmes may include measures to
improve quality and hygiene, the promotion of quality products, the establishment of
intermediate stages, rationalisation of production and marketing structures and the
provision of technical assistance.

Aid granted replaces the resources previously available to interbranch organisations
in the sectors concerned in the overseas departments. Those resources were based on
contributions on imports regarded as incompatible with Community rules.

The interbranch organisations draw up a draft annual programme, in collaboration
with the national authorities, which is presented to the Commission each year. The
Commission decides whether to approve the programme. Implementation of the
measure is summarised in Table 4 in Annex 3.

The measure has more impact if it is based on structured sectors, and if farmers are
sufficiently well motivated to pursue the objectives of modernisation and spatial
planning (Réunion) or professionalisation (Martinique). It makes possible proper
organisation of local stockholdings, so as to boost the development of production by
the modern sector, i.e. the farmers who subscribe to a quality approach.

10

2.2.2. Crop production

2.2.2.1. Fruit, vegetables, flowers and plants

In the fruit and vegetables, flowers and live plants sector (but excluding bananas),
Article 13 of Council Regulation (EEC) No 3763/91 provided for aid per hectare to
be granted to producers who undertook a programme of initiatives with a view to the
development of suitable and effective production methods and the improvement of
product quality over an area of at least 0.5 ha. The maximum amount of aid was
EUR 500 if public funding from the Member State amounted to at least EUR 300 and
the producers' financing to at least EUR 200. Moreover, these initiatives should be
covered by programmes designed to run for at least three years. Implementation
procedures are bureaucratic, and the structure and amounts of aid have not had the
hoped for incentive effect. The measure was discontinued when the agricultural
provisions of POSEIDOM were revised in October 1995.

To obtain a clearer view of the real potential of the processed fruit and vegetables
sector
in the overseas departments, Article 14 of Council Regulation (EEC)
No 3763/91 provided for a contribution of up to EUR 200 000 towards the
financing of an economic analysis and forward study of the industry. The study
was to produce an economic and technical assessment of the sector, and to examine
conditions and scope for development.

The report proposed: reinforcing the competitiveness of local production to compete
with imports when the local market is promising; developing exports of products that
already have a good image; diversifying products, and creating local demand for new
products to be developed.

As a result of this study, measures were taken in favour of the sector and included in
the revised Regulation of 1995.

The SSA were extended to cover fruit pulps, purées and concentrated juices other
than those qualifying for the aid provided for in Article 14.

Council Regulation (EC) No 2598/95 amended the original Article 13, introducing
aid for the marketing of local products for the exclusive supply of the markets
of the overseas departments. The aid is paid to producers, and is granted in respect
of fruit (except bananas), vegetables, flowers and live plants, peppers, pimentos and
spices, within the limits of annual quantities established for each product category.

The aid is granted subject to the conclusion of supply contracts lasting one or more
years between producers and distributors,
local
authorities. Where supply needs so justify, the aid may be paid for supply in a
department other than that in which the product was harvested.

restaurants and the like, or

The amount of aid, fixed on a flat-rate basis by category of product, may be
increased by 5% for contracts concluded by recognised producers’ organisations or
groups. Implementation of the measure is summarised in Table 5 in Annex 3.

The loose structure of the sector hampers a rapid response to demand, in particular
demand from supermarkets and hypermarkets, which require regular supplies of
standard quality (which encourages the use of external suppliers). Although the

11

measure was not introduced until mid-1997, the number of applications lodged
shows how much interest it has aroused (see Table 6 in Annex 3).

Council Regulation (EC) No 2598/95 provides for aid of EUR 6.04 per kilogram for
the production of green vanilla used to produce dried vanilla, up to an annual
quantity of 75 tonnes.

Only one department, Réunion, has so far utilised the measure. The sector is in
difficulties: the output of green vanilla dropped from 150 tonnes in 1984 to 18 tonnes
in 1995, which compromised the existence of processing and marketing plant.

The introduction of the POSEIDOM aid scheme enabled the purchase price to be
increased, and encouraged producers: in 1995, output rose to 25 tonnes; in 1997, 48.5
tonnes were processed. However, tonnages were smaller in 1998, owing to the
plants’ growing cycle, with a smaller harvest inevitably following the high yield of
1997.

Council Regulation (EC) No 2598/95 provides for aid amounting to EUR 44.68 per
kilogram to be paid out for the production of essential geranium and vetiver oils,
up to an annual maximum of 30 tonnes in the case of the former and 5 tonnes in the
case of the latter. These products are at present specific to Réunion, the only region
in receipt of aid under this scheme.

These two sectors have declined considerably: at present there are only about 400
geranium producers, compared with 1300 in 1992; output of essential vetiver oil
declined from 12 tonnes in 1985 to under one tonne in 1995. Tonnages produced are
shown in Table 7 in Annex 3.

The implementation of this measure aroused renewed interest among producers, and
various measures have been planned to relaunch these traditional activities.

Aid for the production of processed fruit and vegetables obtained from products
harvested in the overseas departments was introduced from 1 July 1998
(Article 14). The aid is paid to processors who have paid producers not less than a
minimum price for their raw materials. The minimum price is fixed by the Member
State on the basis of the production costs involved.

The amount of aid is fixed on a flat-rate basis for each of the product categories, by
reference to the prices of the local raw materials used and the import prices for the
same raw materials. The aid is paid out within the limits of maximum annual
quantities established for each product category. Implementation of the measure is
summarised in Table 8 in Annex 3.

Under Article 15 of Council Regulation (EEC) No 3763/91, aid is granted for
products harvested in the overseas departments to be marketed in the rest of the
Community, where competition is very strong (ACP countries, GSP), especially for
flowers, fruit and vegetables.

The aid is subject to the conclusion of annual contracts between individual producers
or producer groups or associations, and operators established in the rest of the
Community, up to a limit of a volume of trade of 3 000 tonnes per product per year
and per department. The aid, granted to the purchaser, amounts to 10% of the value

12

of the produce marketed, free at destination (13% for joint ventures valid for at least
three years between producers and traders).

The products concerned are fruit (except bananas), vegetables, flowers and live
plants. Article 15 was amended by Council Regulation (EEC) No 2598/95 to extend
the aid to products processed from fruit or vegetables harvested in the overseas
departments, essential geranium and vetiver oils, dried vanilla and vanilla extracts.

In respect of melons, aid may be granted in a department for a quantity exceeding
3 000 tonnes provided that the total volume eligible for aid for all the departments is
not exceeded.

The financial balance by product, for the overseas departments taken together
(average for 1995, 1996 and 1997) shows that melons are at present the only product
with a properly organised marketing structure; in the other sectors, the scope of the
aid is still restricted to a few products for somewhat limited volumes. The total
volume for the three years was 14 557.16 tonnes, broken down as follows:

Melons

66%

Pine-
apples

12%

Other fruit and
vegetables

Flowers and
plants

Vanilla

Geranium,
vetiver

Other

13%

2%

2%

2%

2%

However, the measure has encouraged metropolitan importers to take an interest in
the products of the overseas departments, and has contributed to the establishment of
new channels of trade. The extension of the aid to processed fruit and vegetables
should give the measure new impetus, especially for fruit juice and jam.

2.2.2.2. Sugar cane/rum

There are three measures in favour of the sugar cane and rum sector.

Flat-rate aid per hectare for cane growing is paid to individual planters, planter
groups or associations of planters, under a restructuring plan presented by France.
The plan is intended to achieve the improvement of plantations and the development
of mechanisation. The Community finances the aid at a rate of 60% of eligible
expenditure, where the official contribution of the Member State is at least 15%, the
Community aid being reduced accordingly where the contribution is less.

Commission Regulation (EEC) No 1487/92 of 9 June 1992 lays down the
implementing arrangements for this measure, and in particular defines eligible
works. The total area covered was 27 400 hectares, and the restructuring plan was to
be carried out over a minimum of three and a maximum of seven years starting on
1 January 1992.

Two flat-rate aid schemes were defined: aid for planting, amounting to EUR 750 per
hectare, involving 27 400 hectares; and aid for land improvement, amounting to
EUR 1 747 per hectare, involving 9 850 hectares. The land improvement aid was
granted only for works carried out on plots on which there followed the planting of
sugar cane eligible for planting aid.

The purpose of planting aid was to reduce the investment cost of planting, and to
bring down the average age of the crop. New planting provides an opportunity to
introduce technical improvements (use of new varieties, improvement in soil fertility,

13

etc.). The improvement in the rate of new planting has led to an increase in average
yields.

Land improvement work has mainly consisted in the removal of large stones, to
enable manually cut cane to be mechanically loaded, and the removal of small
stones, to enable the mechanical cutter to be used. These works have therefore helped
to cut production costs.

The measure worked very well, although it took longer than expected to implement.
France requested an extension in December 1996. Consequently, in December 1997,
the Commission adopted a complementary three-year programme for 16 423 hectares
of new planting and 8 875 hectares of land improvement from 1 April 1997 to 31
December 1999. Implementation of the measure is summarised in Table 9 in Annex
3. Almost 80% of the area under sugar cane in Guadeloupe was replanted, 70% in
Martinique and 50% in Réunion. Yields improved by 10% in Réunion, 8% in
Martinique and 20% in Guadeloupe.

Under Article 18 of Council Regulation (EEC) No 3763/91, aid for the processing
of sugar cane into agricultural rum is paid to distillers who have paid to the sugar
cane producer a minimum price to be determined. This aid is granted up to the limit
of an overall quantity corresponding to the average quantity of agricultural rum sold
during the three marketing years 1987/88, 1988/89 and 1989/90.

Commission Regulation (EEC) No 1488/92 of 9 June 1992 defines the conditions for
granting this aid, and fixes an overall quantity of 75 600 hectolitres of agricultural
rum, expressed in pure alcohol, allocated between the four departments. Following
the adoption of Council Regulation (EC) No 2598/95, Commission Regulation (EC)
No 59/97 of 16 January 1997 changed the amount of aid to EUR 64.22 per hectolitre
of pure alcohol, without changing the overall annual quantity. The measure has not
been utilised to the same extent in all departments: Réunion has never taken up any
of its allocation of 393 hectolitres, while the other departments, and especially
Guadeloupe and French Guiana, have used the whole volume allocated.
Implementation of the measure is summarised in Table 10 in Annex 3.

The measure has enabled distilleries, threatened by competition from neighbouring
countries were sugar-cane prices are lower, to remain in business and has improved
production conditions and the quality of the rum produced (in Martinique, a
controlled designation of origin has been introduced). Distillery closures, which were
frequent until 1992, stopped when the measure was introduced.

Council Regulation (EC) No 2598/95 introduced aid for the direct processing of
sugar cane into sugar syrup. The aid is paid to manufacturers up to the limit of an
annual maximum quantity of 250 tonnes. The amount (EUR 9 per 100 kg of sugar
expressed as white sugar) and conditions of application of the aid were fixed by
Commission Regulation (EC) No 59/97 of 16 January 1997. This measure has not
yet been applied.

2.2.2.3. Rice

Two measures have been introduced to encourage rice growing and marketing in
French Guiana.

14

Aid for rice production in French Guiana was introduced by Article 3(2). The
amount of this flat-rate aid per hectare is fixed with particular reference to soil
preparation costs. The aid was granted during the marketing years from 1991/92 to
1995/96. Differentiated rates of aid were granted for three categories, from EUR 348
per hectare to EUR 1 052 per hectare, reflecting the conditions of cultivation and the
extent of soil preparation work (especially removal of the unproductive top layer,
which varies in depth from one area to another).

This measure expired in 1996. It played a major role, and enabled large-scale rice-
growing to get under way in French Guiana, with 4 900 hectares brought
into
production, or about 88% of the area initially expected (the whole area could not be
brought under cultivation within the time laid down in the Regulation).

Aid for the marketing of rice from French Guiana was introduced by Article 3(3).

The measure was originally intended to assist with disposal and marketing in
Guadeloupe and Martinique, within the limit of an annual volume of 8 000 tonnes of
wholly-milled rice equivalent.

Council Regulation (EC) No 2598/95 reinforced the measure by proposing the
extension of the aid to cover the disposal and marketing of rice in the rest of the
Community, within the limit of an annual volume of 4 000 tonnes, thus increasing
the overall limit to 12 000 tonnes.

Aid is paid to the purchaser who markets the rice harvested in French Guiana, under
annual contracts. The amount of the aid is 10% of the value of the marketed produce;
that percentage is raised to 13% if the contractor for the producers is a producer
group or association thereof.

Most of the contracts for rice marketed in the West Indies are with Guadeloupe,
where there is a major milling plant. On average, 60% of the available quota is taken
up (the best take-up having been recorded in 1995). Implementation of the measure
is summarised in Table 11 in Annex 3. Rice marketed in the rest of the Community
(the whole quota) accounts for

of output.

⅔

The is an essential measure to ensure the competitiveness and indeed the continued
existence of the rice sector in French Guiana, in view of the lack of storage facilities
locally.

2.3.

Budget

Specific budget headings have been introduced in the Community budget for
financing the agricultural section of POSEIDOM. The corresponding forecasts and
implementation are set out in Table 12 in Annex 3.

The revenue to the Community budget forgone as a result of exemption from
customs duties for products imported from non-member countries under the specific
supply arrangements should also be counted in addition to EAGGF Guarantee
Section expenditure.

According to the available information supplied by the French authorities over the
period 1992-97, expenditure under the SSA amounted to FRF 506 million from the
budget, to which should be added FRF 178 million in revenue forgone as a result of

15

exemption from customs duties (approximate estimate) for wheat bran from 1992 to
1997 for Réunion and for maize from 1994 to 1997.

The following conclusions can be drawn from this information:

– the specific supply arrangements represent around 55% of the average overall
cost of the programme for the period concerned (including revenue forgone as
a result of exemption from duty), and the agricultural measures around 45%
(with figures of 40% and 60% respectively in terms of expenditure alone, i.e.
not taking account of revenue forgone);

– owing to the reduction in the amount of aid for Community products,
expenditure under the SSA has declined; however, the decline was offset by
the increase in revenue forgone as a result of exemption from duties for
products imported from non-member countries;

– the cost of measures to support local production has broadly stabilised at about

EUR 20 million;

– the total cost of the system set up in 1992 stabilised at about EUR 35 million

on average over the period 1993-99;

– the appropriation in the EAGGF Guarantee Section budget has always
exceeded expenditure. This gap reflected the difficulty of adopting supply
balances that corresponded to real local requirements at a time when the
agricultural production aid measures were being launched and picking up
speed. All measures have now reached cruising speed and stabilised; however,
adjusting some of these measures better to the regional situation would mean
an increase in expenditure.

2.4.

Other measures

2.4.1. The graphic symbol

To stimulate greater awareness and consumption of products specific to the most
remote regions, the “POSEI” programmes provide for the introduction of a graphic
symbol, for which the Commission launched a competition in December 1993. The
logo was chosen in 1994, and its conditions of use are laid down in Commission
Regulation (EC) No 1418/966. In 1998 the Commission launched a promotion
campaign for this logo, to publicise its existence and significance, and the advantages
of using it.

2.4.2. Structural derogations

Article 21 provided for derogations from the provisions on improving the efficiency
of agricultural structures and on improving the processing and marketing
conditions for agricultural and forestry products.

This Article was deleted by the new rural development Regulation (EC) No
1257/1999 (see Annex 4 for details). Only Recital (53) of the rural development

6

Commission Regulation (EC) No 1418/96, OJ L 182, 23.7.1996, p. 9.

16

Regulation refers to the specific requirements of these regions, but there is no
operative part in the text of the Regulation. The requests for flexibility, adjustments
or derogations and the proposed solutions should be studied at the time of the review
provided for in the programming exercise.

2.4.3. Veterinary and plant health measures

Article 10(1) of Council Regulation (EEC) No 3763/91 amended Article 24 of
Council Decision 90/424/EC on expenditure in the veterinary field.

Article 11 of Regulation (EEC) No 3763/91 provided that the Community shall
contribute to financing annual programmes for the control of organisms harmful to
plants or plant products.

See Annex 5 for details.

2.4.4. EAGGF Guidance Section measures

Guidance Section funding is not included in the scope of this report but is outlined in
Annex 6 to give a comprehensive list of all Community measures in favour of
agriculture in the French overseas departments.

3. CONCLUSIONS

Agricultural measures which are innovative and adapted to the local situation are a
major aspect of the Programmes of specific orientations for remote and insular
regions. Altogether, these measures have helped to offset some of the constraints
affecting production costs. Alongside support from the CAP, they have helped to
improve the quality or increase the volume of local output.

The difficulties encountered in implementing some of the measures, and an analysis
of the French authorities’ requests to the Commission suggest certain adjustments.
Some amendments can be made by the Commission while others will require the
Council to adapt the POSEIDOM agricultural framework Regulation.

The Commission intends, following on from this report, to propose a Council
Regulation, with three aims:

– to adapt the specific supply arrangements more closely to the aims pursued in
the light of the changes in requirements noted in the regions and of the present
situation,

– to adapt the measures in the light of experience, so as to enhance their

effectiveness and their incentive effect,

– to implement new measures to take account of specific local conditions and

requirements, within the framework of the POSEIDOM objectives.

17

ANNEX 1

Socio-economic and agricultural data by department

Guadeloupe

The overseas department of Guadeloupe is an archipelago of 1 705 km² in the Lesser Antilles
island chain in the Caribbean Sea, over 6 700 km from metropolitan France, made up of eight
islands: Guadeloupe (comprising Basse-Terre and Grande-Terre, which are separated by a
narrow channel), covering an area of 1 438 km², and the neighbouring islands of La Désirade,
the Saintes, Marie-Galante, and, further north, Saint Barthélémy and the French part of Saint
Martin.

The climate of Guadeloupe is tropical, tempered by maritime influences and the Trade Winds.
The average annual temperature is 25°C, with intermittent rainfall concentrated in September
and October.

The population of Guadeloupe is 428 000, with a density of 250 to the square kilometre and
in the four overseas
an annual population growth rate of 1.5 per thousand, the lowest
departments. Unemployment is 27%.

Per capital GDP is 41% of the Community average (the lowest in the overseas departments).

GDP breaks down as follows:

–

–

–

primary sector

9%,

secondary sector

20%,

tertiary sector

71%.

Guadeloupe runs external trade deficits not only on foreign trade, but also on trade with
metropolitan France, and on trade with the rest of the Community:

GUADELOUPE’S EXTERNAL TRADE IN 1996

(in FRF million)

Exports % share Imports % share Cover ratio

European Union

717.7

74.0

8 802.5

78.3

8.2%

Greater and Lesser Antilles

49.6

5.1

215.5

2.0

23.0%

Other

TOTAL

202.9

20.9

2 218.4

19.7

970.2

11 236.4

9.1%

8.6%

Guadeloupe’s main exports are sugar, bananas and rum, and it is visited by almost 675 000
tourists each year; it must import foodstuffs, industrial products and energy.

Prices are higher than in metropolitan France; in particular, the index of food prices is 28%
higher.

18

Agriculture accounts for 6.6% of the total labour force.

The farm sector uses 50 000 hectares, or 30% of the land area; 47% of UAA is cultivated.
There are 11 900 holdings, 86% of which have less than 5 hectares. with an average of 4.2 ha
of UAA per holding.

Final agricultural output, amounting to about FRF 1 500 million in 1998, mainly consists in
crop products (78%).

The mainstay of the department’s farm economy is the banana (28% of FAO), which is also
the main export in volume terms, accounting for some 79 000 tonnes. It is estimated that
banana-growing covers 5 750 hectares, or 11% of the total utilisable agricultural area of
Guadeloupe. Some 700 holdings, accounting for 6% of the total number of holdings,
concentrate on banana production.

Sugar cane cultivation covers a much larger area: some 12 900 hectares, or 26% of UAA; it
is the second most important agricultural activity in the department, accounting for 14% of
FAO, with 90% of output being processed into sugar. The major social importance of the
sugar cane sector is clear from the number of holdings involved: 4 400 holdings, or 37% of all
agricultural holdings in the department.

Other crops are marginal, despite attempts to diversify. Horticulture occupied almost 3 900
hectares. Fruit production is inadequate as a whole to meet demand. Melons are the only fruit
that can be competitive on external markets, because they are produced in the winter. Flowers
are mainly grown for cutting.

Martinique

Martinique is the smallest of the overseas departments, with a surface area of 1 100km². It is
situated about 6 800 km from metropolitan France, in the Lesser Antilles chain of islands in
the Caribbean Sea.

The island is of volcanic origin, and is dominated by Mount Pelée (1 397 m), an active
volcano whose catastrophic eruption in 1902 destroyed the major town of Saint-Pierre, killing
an estimated 30 000 people, an event that has marked Martinique’s history.

The climate of Martinique is tropical, tempered by maritime influences and the Trade Winds.
The average annual temperature is 25°C, with intermittent rainfall concentrated in September
and October.

Martinique has a population of 395 000, with a density of 360 inhabitants per square
kilometre (the highest in the overseas departments). The annual average rate of increase of the
population is 0.86%. The constraints on the productive sector combine with strong
demographic pressure to hamper the labour market, where the rate of unemployment is 27%.

Per capita GDP is 54% of the Community average. This is the highest per capita GDP in the
overseas departments.

GDP breaks down as follows:

–

primary sector

6%,

19

–

–

secondary sector

21%,

tertiary sector

73%.

The tertiary sector is predominant, with tourism accounting for a major share.

There is a major imbalance between imports (raw materials, food products,
products) and exports:

industrial

MARTINIQUE’S EXTERNAL TRADE IN 1996

(in FRF million)

Exports % share Imports % share Cover ratio

European Union

1 241.8

92.2

8 043.4

77.0

Greater and Lesser Antilles

34.5

Other

TOTAL

69.8

1 346.1

2.6

5.2

255.6

2.4

2 153.0

20.6

10 452.0

15.4%

13.5%

3.2%

12.9%

Martinique’s main exports are agricultural, consisting in bananas, rum, pineapples and
melons; this confirms the relative importance of the primary sector, in view of the activities it
generates.

The index of food prices is 23% higher than in metropolitan France.

The utilisable agricultural area of 33 300 hectares accounts for 31% of the land area of the
department; arable land occupies 21 600 ha, or 64% of UAA.

The primary sector is the main source of export revenue for the island, and provides jobs for
7% of the labour force. There are 5 400 holdings, 80% of which have less than 5 hectares.
Average utilisable agricultural area per holding is 6.2 hectares.

Final agricultural output, amounting to about FRF 2 000 million in 1998, mainly consists in
crop products. Martinique is the overseas department where the value of agricultural output
has increased most, mainly because of banana production.

The main products are bananas and rum. The banana, with 11 000 hectares cultivated (33%
of the UAA) and 900 holdings (17% of the total number) is the main agricultural produce and
the main economic resource of the island. It accounts for 54% of final agricultural output and
provides jobs for 80% of the agricultural labour force. With exported output of 242 000
tonnes in 1998,
important agricultural export (in value terms),
generating 40% of export revenue.

is Martinique’s most

it

Sugar cane is grown over an area of 3 100 hectares (9% of the UAA), with an output of about
190000 tonnes. Rum and sugar account for approximately equal tonnages, sugar production
having declined by over 70% since the 1980s. Rum accounts for 8% of Martinique’s export
revenue, and its production is a basic industry. A controlled designation of origin was created
at the end of 1996.

The other agricultural products exported are fresh melons and preserved pineapples.

20

French Guiana

French Guiana, situated in the north-east of South America, between Suriname and Brazil,
is the largest and most densely wooded French
7 500 km from metropolitan France,
department: 94% of its 84 000 km² area is covered by Amazonian forest.

The climate of French Guiana is equatorial, with humidity of about 90%. Temperatures
average 27°C, and rainfall is heavy.

The population of French Guiana totals 160 000 (a density of less than 2 per square
kilometre). The population growth rate is the highest of all French departments (23.7 per
thousand), and the population is young (over half the inhabitants are aged under 25).

Unemployment is 19%, and per capita GDP 49.5% of the Community average.

GDP breaks down as follows:

–

–

–

primary sector

10.0%,

secondary sector

26.5%,

tertiary sector

63.5%.

The economy was given a considerable boost when the Guiana Space Centre was set up in
1964: the base at Kourou is a major contributor to the economy of French Guiana. Crop and
livestock farming depend on the land recovered from the forest and put under cultivation.
They have developed gradually over recent years, with rice as the main crop.

The trade balance shows a deficit.

FRENCH GUIANA’S EXTERNAL TRADE IN 1996 (excluding business relating to the
space centre)

(in FRF million)

Exports % share

Imports % share Cover ratio

European Union

696.0

92.8

2 010.5

62.4

34.6 %

Other

TOTAL:

54.3

7.2

1 211.5

37.6

4.5 %

750.3

3 222.0

23.2 %

The department, characterised by large tracts of forest land, is seeking to develop its assets. Its
to export a large volume of processed and
eight million hectares of forest enable it
unprocessed timber. The second most important business is fishing, practised on an industrial
scale and on a smaller scale over the 300 km of coast; the main fisheries product is the
shrimp, with a few other species sold for export on regional markets (Cayenne is the fourth
largest French fishing port).

The price level is the highest in all four overseas departments: a general index of 120, and a
food price index of 145.

Only 0.3% of the territory of French Guiana, or 24 300 hectares, is utilisable agricultural area,
30% of which is arable land.

21

Farm workers account for 9% of the labour force, and French Guiana is the only overseas
department where the agricultural population is increasing.

There are 4 500 holdings, 90% of which have less than 5 hectares, the average size per
holding being 5.7 hectares of UAA; this highlights the dual structure (large number of small
holdings, and a few very large holdings).

Final agricultural output, amounting to about FRF 600 million in 1998, mainly consists in
crop products (87%).

The main activity is rice growing (12% of FAO), providing two harvests a year, and covering
9 000 hectares (37.5% of UAA) altogether for the two growing cycles. Rice output amounts
to about 28 000 tonnes per year, with exports valued at almost FRF 50 million.

Réunion

The island of Réunion, 800 km to the east of Madagascar and 9 000 km from metropolitan
France, is part of the Mascarene group along with Mauritius and Rodriguez. The island has
many assets, including its varied ethnic population, its flora and fauna and its pivotal position
in the south-western Indian Ocean.

The island covers an area of 2 500 km², and is composed of two extremely rugged volcanic
massifs: the highest point is Le Piton des Neiges (3 069 metres).

The climate is tropical, influenced by the Trade Winds and highly variable with the locality
and altitude. The average temperature is 20°C on the coast and 14°C on the inland plain, with
night frosts at altitudes above 2 000 m. The cyclone season lasts from December to April.
Vegetation varies with the altitude and climate, from tropical forest to dry savannah.

Réunion has the largest population of all the overseas departments. It has 697 000 inhabitants
(a density of 280 per square kilometre), 40% of whom are aged under 20; the birth rate is
quite high, at 1.5%. The rate of unemployment is the highest in the overseas departments, at
37%.

Per capita GDP is 46% of the Community average.

GDP breaks down as follows:

–

–

–

primary sector

4%,

secondary sector

27%,

tertiary sector

69%.

The trade balance shows a deficit.

22

RÉUNION’S EXTERNAL TRADE IN 1996

(in FRF million)

Exports % share

Imports % share Cover ratio

European Union

1 003.0

80.2

11 051.0

77.5

Other

TOTAL

247.0

19.8

3 210.0

22.5

1 250.0

14 261.0

9.1 %

7.7 %

8.8 %

The main resources are agriculture and fisheries. Réunion’s main export is sugar, and its
imports (largely from the Community) are food, machinery, minerals, and energy and
transport equipment. Tourism is a developing sector.

Prices are higher than in metropolitan France: +16% on the general price index, and +30% on
the food price index.

An area of 46 000 hectares, or 18% of the total surface area of the island, is UAA, 80% of
which is cultivated (36 500 hectares).

There are 11 000 holdings, 75% of which have less than 5 hectares, the average size per
holding being 3.9 hectares of UAA.

Farm workers make up 6% of the total labour force. FAO amounts to about FRF 2 100
million (1998), with animal products accounting for 32%, the highest share in the overseas
departments.

Sugar cane growing, which covers 26 000 hectares (or almost 60% of UAA and 75% of
arable land), is an essential aspect of the farm sector in Réunion. Cane, mainly used for sugar
manufacture (sugar production is about 200 000 tonnes), contributes 31% of FAO. 49% of
holdings are principally engaged in sugar cane growing. In 1995, exports of sugar totalled
FRF 655 million.

The other traditional agricultural products are vanilla, essential perfume oils (geranium,
vetiver, ilang-ilang) and pineapples.

Livestock farming has developed, and cover ratios are fairly high for animal products: almost
20% for milk, about 50% for meat (and almost 65% for pigmeat and poultry), and over 90%
for eggs. Development
is continuing thanks to a policy of developing pastures at high
altitudes, and in particular the development programme for the Heights of Réunion, where
one fifth of the population lives, and where agricultural activities, herding and forestry are
gaining importance.

23

ANNEX 2

Specific supply arrangements (SSA) -- achievements

Implementation by marketing or calendar year of supply balances adopted
(source: Ministry of Agriculture)

1992 - Cereals

CN code

Product

Department Units Balance

Total
implement
ation

EU
implement
ation

Third
countries
implement
ation

1001 90

Common wheat

1003 00

Barley

1005 90

Maize

1103 11

Durum wheat groats
and meal**

1107 10

Malt

2309 90 31,41,51

Products intended as
animal feed

2309 90 33,43,53

* - 1991/92 marketing year
** - second half-year only.

Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total

t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t

60 000
2 000
10 000
50 000
122 000
10 000
1 000
10 000
20 000
41 000
20 000
2 000
20 000
110 000
152 000
0
0
1 500
0
1 500
0
0
0
0
0

5 200

5 200

300

300

53 430
92
2 150
25 670
81 342
0
55
0
11 140
11 195
7 540
399
15 710
85 370
109 019
0
0
40
0
40
0
0
0
0
0
0
1 350
0
0
1 350
0
0
0
0
0

53 430
92
2 150
25 670
81 342
0
55
0
11 140
11 195
7 540
399
15 710
85 370
109 019
0
0
40
0
40
0
0
0
0
0
0
1 350
0
0
1 350
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

24

1993 - Cereals

CN code

Product

Department Units Balance

Total
implement
ation

EU
implement
ation

Third
countries
implement
ation

0
0
0
0
0
50 170
59
780
16 070
67 079
0
78
0
12 630
12 708
10 930
1 084
17 540
94 360
123 914
0

0
1 350
0
1 350
0
0
320
1
321
0
4 593

0
0
4 593
0
35

0
0
35

0
76 000
2 000
10 000
40 000
128 000
10 000
1 000
4 000
20 000
35 000
20 000
2 000
26 000
160 000
208 000
0

0
3 000
0
3 000
1 500
0
1 000
2 000
4 500

5 700

5 700

300

300

0
50 170
59
780
16 070
67 079
0
78
0
12 630
12 708
10 930
1 084
17 540
94 360
123 914
0

0
1 350
0
1 350
0
0
320
1
321
0
4 593

0
0
4 593
0
35

0
0
35

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0

0
0
0

1001 10

Durum wheat

1001 90

Common wheat

1003 00

Barley

1005 90

Maize

1103 11

Durum wheat
and meal

groats

1107 10

Malt

2309 90 31,41,51

Products intended as
animal feed

2309 90 33,43,53

* - 1992/93 marketing year

Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe

French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French
Guiana*
Martinique
Réunion
Total
Guadeloupe
French
Guiana*
Martinique
Réunion
Total

t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t

t
t
t
t
t
t
t
t
t
t
t

t
t
t
t
t

t
t
t

25

1994 - Cereals

CN code

Product

Department Units Balance

Total
implement
ation

EU
implement
ation

Third
countries
implement
ation

1001 10

Durum wheat

1001 90

Common wheat

1003 00

Barley

1005 90

Maize

1103 11

Durum wheat
and meal

groats

1107 10

Malt

2309 90 31,41,51

Products intended as
animal feed

2309 90 33,43,53

* - 1993/94 marketing year

Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French
Guiana*
Martinique
Réunion
Total
Guadeloupe
French
Guiana*
Martinique
Réunion
Total

t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t

t
t
t
t
t

t
t
t

0
0
0
0
0
50 240
0
1 670
17 540
69 450
0
53
0
30 780
30 833
9 700
733
17 240
40 390
68 063
0
0
1 020
0
1 020
0
0
730
1 870
2 600
0
3 234

0
0
3 234
0
34

0
0
34

0
50 240
0
1 670
17 540
69 450
0
53
0
30 780
30 833
9 700
733
17 240
40 390
68 063
0
0
1 020
0
1 020
0
0
730
1 870
2 600

3 234

3 234

34

34

0
80 000
2 000
10 000
40 000
132 000
10 000
1 000
4 000
40 000
55 000
20 000
2 000
26 000
160 000
208 000
0
0
3 000
0
3 000
1 500
0
1 000
3 000
5 500

6 200

6 200

300

300

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0

0

26

1995 - Cereals

CN code

Product

Department Units Balance

Total
implement
ation

EU
implement
ation

Third
countries
implement
ation

1001 10

Durum wheat

1001 90

Common wheat

1003 00

Barley

1005 90

Maize

1103 11

Durum wheat
and meal

groats

1107 10

Malt

2309 90 31,41,51

Products intended as
animal feed

2309 90 33,43,53

Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French
Guiana**
Martinique
Réunion
Total
Guadeloupe
French
Guiana**
Martinique
Réunion
Total

t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t

t
t
t
t
t

t
t
t

0
0
0
0
0
64 080
0
660
17 820
82 560
0
13
0
11 100
11 113
10 250
1 255
14 450
93 270
119 225
0
0
1 050
0
1 050
0
0
750
1 220
1 970
0
222

0
0
222
0
0

0
0
0

0
70 000
2 000
16 000
40 000
128 000
1 000
1 000
1 000
30 000
33 000
16 000
2 000
24 000
130 000
172 000
0
0
2 500
0
2 500
200
0
1 000
3 500
4 700

0

0

* - 1994/95 marketing year
** - from 01/07/94 to 30/04/96; unregulated period.

0
64 080
0
660
17 820
82 560
0
13
0
11 100
11 113
10 250
1 255
14 450
48 210
74 165
0
0
1 050
0
1 050
0
0
750
1 220
1 970

222

222

0

0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
45 060
45 060
0
0
0
0
0
0
0
0
0
0

0

0

0

0

27

1996 - Cereals

CN code

Product

Department Units Balance

Total
implement
ation

EU
implement
ation

Third
countries
implement
ation

1001 10

Durum wheat

1001 90

Common wheat

1003 00

Barley

1005 90

Maize

1103 11

Durum wheat
and meal

groats

1107 10

Malt

1210 / 1302 13 00 Hops*

1507-16 (except
1509,10)

Vegetable oil

2309 90 31,41,51

Products intended as
animal feed

2309 90 33,43,53

* - 1995/96 marketing year
** - from 1 May

t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t

t
t
t
t
t

t
t
t

Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French
Guiana**
Martinique
Réunion
Total
Guadeloupe
French
Guiana**
Martinique
Réunion
Total

28

0
0
0
0
0
27 500
146
740
15 270
43 656
0
175
0
15 440
15 615
11 860
1 489
13 190
77 400
103 939
0
0
560
0
560
0
0
320
770
1 090
0
0
0
0
0

0
0
1 822

0
0
1 822
0
0

0
0
0

0
80 000
1 100
3 000
33 000
117 100
0
600
0
30 000
30 600
16 000
2 000
22 500
120 000
160 500
0
0
1 770
0
1 770
200
0
800
3 000
4 000

0

0

4 150

4 150

200

200

0
27 500
146
740
15 270
43 656
0
175
0
15 440
15 615
11 860
1 489
13 190
54 790
81 329
0
0
560
0
560
0
0
320
770
1 090

0

0

1 822

1 822

0

0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
22 610
22 610
0
0
0
0
0
0
0
0
0
0

0

0

0

0

0

0

1997 - Cereals

CN code

Product

Department Units Balance

Total
implement
ation

EU
implement
ation

Third
countries
implement
ation

1001 10

Durum wheat

1001 90

Common wheat

1003 00

Barley

1005 90

Maize

1103 11

Durum wheat
and meal

groats

1107 10

Malt

1210 / 1302 13 00 Hops*

1507-16 (except
1509,10)

Vegetable oil

2309 90 31,41,51

Products intended as
animal feed

2309 90 33,43,53

* - 1996/97 marketing year

t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t

Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total

29

0
0
0
0
0
52 740
1
900
25 500
79 141
0
9
0
9 030
9 039
7 710
824
15 850
102 390
126 774
0
0
710
0
710
0
0
0
2 730
2 730
0
0
0
0
0
0
0
356
4 853
5 209
0
2 106
0
0
2 106
0
0
0
0
0

0
70 000
200
2 000
30 000
102 200
0
200
0
30 000
30 200
16 000
2 000
20 000
120 000
158 000
0
0
2 000
0
2 000
200
0
800
3 000
4 000
1
0
3
11
15
0
400
2 000
8 000
10 400

6 225

6 225

300

300

0
52 740
1
900
25 500
79 141
0
9
0
9 030
9 039
7 710
824
15 850
56 470
80 854
0
0
710
0
710
0
0
0
2 730
2 730

0
0
0
356
763
1 119

2 101

2 101

0

0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
45 920
45 920
0
0
0
0
0
0
0
0
0
0

0
0
0
0
4 090
4 090

5

5

0

0

1998 - Cereals

CN code

Product

Department Units Balance

Total
implement
ation

EU
implement
ation

Third
countries
implement
ation

1001 10

Durum wheat

1001 90

Common wheat

1003 00

Barley

1005 90

Maize

1103 11

Durum wheat
and meal

groats

1107 10

Malt

1210 / 1302 13 00 Hops**

1507-16 (except
1509,10)

Vegetable oil

2309 90 31,41,51

Products intended as
animal feed

2309 90 33,43,53

Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total
Guadeloupe
French Guiana
Martinique
Réunion
Total

t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t
t

0
60 000
200
1 500
28 000
89 700

300

24 000
24 300
16 000
1 500
22 000
100 000
139 500

1 000

1 000
100

500
3 000
3 600
1
0
3
11
15
300
400
2 000
9 200
11 900

6 225

6 225

300

300

* - 1997/98 marketing year
** - 1997/98 marketing year, implementation up to 31 December 1997.

30

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Aid for the supply of breeding animals (originating in the EU)

Bovine animals:

GUADELOUPE

FRENCH
GUIANA

MARTINIQUE

RÉUNION

Total FOD

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

40

40

50

50

50

25

25

32

0

0

0

0

340

180

350

350

400

300

32

180

344

344

84

0

40

40

40

40

40

25

255

57

1 920

984

225

0

0

0

0

1

3

4

180

180

180

300

300

350

180

130

100

24

234

324

600

440

620

740

790

700

237

342

444

368

319

326

1 490

992

3 890

2 036

92/93

93/94

94/95

95/96

96/97

97/98

Total

Horses:

GUADELOUPE

FRENCH
GUIANA

MARTINIQUE

RÉUNION

Total FOD

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

10

10

10

15

15

16

76

0

6

10

5

2

0

23

16

16

16

16

16

0

80

0

0

0

0

0

0

0

42

42

42

47

47

40

260

0

6

10

5

2

0

23

92/93

93/94

94/95

95/96

96/97

97/98

Total

--

--

--

--

--

8

8

--

--

--

--

--

0

0

16

16

16

16

16

16

96

0

0

0

0

0

0

0

31

Sheep and goats:

GUADELOUPE

FRENCH
GUIANA

MARTINIQUE

RÉUNION

Total FOD

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

1992

1993

1994

1995

1996

1997

Total

0

0

0

0

0

0

0

--

--

--

--

--

--

--

0

0

0

0

60

60

120

--

--

--

--

12

0

12

0

0

0

0

15

15

30

--

--

--

--

15

0

15

0

0

0

0

0

0

0

--

--

--

--

--

--

--

0

0

0

0

75

75

150

--

--

--

--

27

0

27

Eggs and chicks:

GUADELOUPE
Implement
ation

Balan
ce

FRENCH GUIANA
Implement
Balanc
ation
e

MARTINIQUE

RÉUNION

Total FOD

Balan
ce

Implement
ation

Balanc
e

Implement
ation

Balanc
e

Implement
ation

1992

--

1993

20 000

1994

20 000

1995

20 000

1996

20 000

1997

10 000

Total

90 000

--

0

0

0

0

0

0

--

--

--

20 000

1 660

20 000

20 000

2 450

20 000

20 000

20 000

20 000

0

0

0

20 000

20 000

10 000

100 000

4 110

90 000

--

0

0

0

0

0

0

--

--

--

--

90 000

59 092

150 000

60 752

90 000

86 505

150 000

88 955

90 000

81 940

150 000

81 940

90 000

82 460

150 000

82 460

110 000

85 030

150 000

85 030

470 000

395 027

750 000

399 137

32

GUADELOUPE

FRENCH
GUIANA

MARTINIQUE

RÉUNION

Total FOD

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

--

270

270

270

270

270

--

0

--

200

--

--

192

270

250

200

200

270

0

0

0

200

200

200

77

270

200

270

86

270

--

83

0

0

4

0

--

460

460

460

460

460

--

--

223

1 200

226

1 200

460

1 200

366

1 200

402

1 200

--

498

676

537

570

488

1 350

250

1 000

755

1 350

87

2 300

1 677

6 000

2 769

Rabbits:

1992

1993

1994

1995

1996

1997

Total

Swine:

GUADELOUPE

FRENCH
GUIANA

MARTINIQUE

RÉUNION

Total FOD

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

Balan
ce

Implement
ation

1992

1993

1994

1995

1996

1997

Total

--

180

180

180

180

180

900

--

45

90

0

0

0

--

110

110

110

110

110

--

52

0

49

69

0

--

180

180

180

180

180

--

114

0

0

34

22

--

60

60

60

60

60

135

550

170

900

170

300

--

0

0

0

0

0

0

--

530

530

530

530

530

2 650

--

211

90

49

103

22

475

33

Supply of wheat bran to Réunion:

Years

(1992)

1993

1994

1995

1996

1997

1998

Average

Licences utilised (tonnes)

(425)

4 793

6 125

6 804

5 382

7 236

6 372

6 119

34

ANNEX 3

Specific aid for local agricultural products

The statistical data in this annex were supplied by the Overseas Secretariat of the Ministry of Agriculture,
unless otherwise specified

Table 1

Article 5: premium for the maintenance of the suckler cow herd
(number of animals)

1992

1993

1994

1995

1996

1997

1998

Guadeloupe

French Guiana

Martinique

Réunion

TOTAL

5 192

5 143

8 415

7 753

10 584

10 417

11 465

1 675

1 421

1 206

1 761

2 122

2 339

1 733

5 742

5 641

6 430

6 488

6 152

6 128

6 085

4 876

4 513

5 023

5 463

5 744

5 777

5 779

17 485

16 718

21 074

21 465

24 602

24 661

25 062

35

Table 2

Article 5: special premium for male bovine animals (number of animals)

Guadeloupe

French Guiana

Martinique

Réunion

TOTAL

1992

1993

1994

1995

1996

1997

1998

- -

240

723

755

342

414

401

- -

780

773

944

717

811

548

- -

517

391

1 135

624

618

412

- -

500

618

1 100

1 708

1 692

1 424

- -

2 037

2 505

3 934

3 391

3 535

2 785

Table 3

Aid for the development of local production of cows’ milk

1996/97*

1997/98*

1998/99*

French Guiana

Martinique

129.36 t

185.91 t

168.28 t

945.77 t

1 047.06 t

875.70 t

Réunion

13 490.79 t

14 774.25 t

16 000.83 t

TOTAL

14 565.92 t

16 007.22 t

17 044.81 t

* Milk years run from 1 April to 31 March.

36

1. RUMINANTS
1.1 Flat-rate aid to holdings

Bovine animals: meat
Bovine animals: milk
Sheep/ goats

1.2 Flat-rate aid for transport and collection

Bovine animals: meat
Bovine animals: milk
Sheep/ goats

1.3 Aid to improve the quality of milk
1.4 Aid for artificial insemination of bovine animals

2. INTENSIVE FARMING
2.1 Flat-rate aid to pig farms
2.2 Flat-rate aid to rabbit farms
2.3 Aid to improve the quality of poultry
2.4 Aid for transport and collection

Swine
Poultry
Rabbits

3. INTERBRANCH MEASURES
3.1 Advertising and promotion
3.2 Aid for the consumption of fresh products

Swine
Poultry
Bovine animals

3.3 Aid for cutting up of beef. veal and pigmeat
3.4 Aid for upgrading butchers’ premises
3.5 Studies

3.6 Special training

Consumption monitoring centre
Swine
Poultry:

Swine
Beef and veal. sheep. goats
Poultry
Livestock farmers
Classification

3.7 Management and application of the programme

GRAND TOTAL

Table 4a
Article 9a (interbranch) – MARTINIQUE

2000
Total
programme
(EUR million)

1999
Total
programme
(EUR million)

1998

1997

1996

Total
programme
(ECU million)

Total
implementation
(ECU million)

Total
programme
(ECU million)

Total
implementation
(ECU million)

Total
programme
(ECU million)

Total
implementation
(ECU million)

0.44
0.06
0.09

0.03
0.03
0.03

0.02
0.71

0.26
0.04
0.26

0.05
0.05
0.01
0.67

0.13
0.04

0.03
0.02

0.02
0.01
0.01

0.01
0.01
0.01
0.03

0.18
0.49
1.87

0.47
0.00
0.09

0.03
0.03
0.03
0.01

0.66

0.26
0.00
0.24

0.05
0.06
0.02
0.63

0.14

0.06
0.08
0.00

0.02

0.04

0.18
0.52
1.81

0.45
0.06
0.09

0.03
0.03
0.03
0.01
0.02
0.72

0.24
0.05
0.23

0.05
0.05
0.02
0.63

0.14

0.03
0.02
0.01
0.03
0.09

0.01
0.01

0.01
0.02

0.14
0.50
1.85

37

0.50
0.00
0.07

0.03
0.03
0.03

0.66

0.26
0.00
0.18

0.05
0.02
0.01
0.52

0.10

0.00
0.00

0
0.02
0.01
0.14
0.26
1.44

0.42
0.00
0.08

0.02
0.03
0.03

0.58

0.22
0.00
0.21

0.04
0.04
0.04
0.55

0.27

0.06
0.05
0.00

0.04

0.42

0.08

0.02
0.03
0.03

0.59

0.17

0.19

0.05
0.01
0.01
0.42

0.10

0.004
0.004

0.04

0.42
0.00
0.08

0.02
0.03
0.03

0.58

0.22
0.00
0.21

0.04
0.04
0.04
0.55

0.27
0.11
0.06
0.05
0.00

0.04

0.00

0.00

0.01

0.10

0.10

0.10

0.14
0.66
1.79

0.16
0.40
1.42

0.14
0.66
1.79

0.03
0.04
0.04

Table 4b: Article 9a (interbranch) – REUNION

2000
Total
programme(E
UR million)

1999
Total
programme(E
UR million)

1998

1997

1996

Total
programme(E
CU million)

Total
implementati
on
(ECU million)

Total
programme
(ECU million)

Total
implementati
on
(ECU million)

Total
programme(E
CU million)

Total
implementati
on
(ECU million)

1. BEEF AND VEAL, MILK AND MILK PRODUCTS
1.1

genetic improvement

Flat-rate aid to cattle farms on the island heights
of
which:
Flat-rate aid for collection and batching
of
which:

1.2

- milk collection (collection points x 130 coll./year)

- collection and batching of lean bovine animals (head)

2. INTENSIVE FARMING
2.1
2.2
2.3

Aid for management of pigmeat regulation stocks
Aid for processing fresh pigmeat
Aid for transport of poultry and swine from the farm to the
abattoir
of
which:

Swine

Poultry

2.4
2.5

Aid to improve the quality of poultry
Aid for traceability and quality (pigmeat)

3. INTERBRANCH MEASURES
Advertising and promotion
3.1
of
which:

beef and veal/swine/milk (ARIBEV)

poultry (ARIV)

4
4.1

STUDIES
Studies
of
which:

beef and veal/swine/milk (ARIBEV)

poultry (ARIV)

PROGRAMME MANAGEMENT AND IMPLEMENTATION

5
5.1 Management and application of programmes

beef and veal/swine/milk (ARIBEV)

of
which:

poultry (ARIV)

Grand Total

2.13

0.71

2.84

0.07
0.21

0.39

0.40
0.61

1.68

0.40

0.13
0.53

0.08

0.27

0.35
5.40

2.16

0.76
0.45

0.31
2.92

0.32
0.15

0.39

0.42
0.63

1.90

0.19

0.05
0.24

0.05

0.02
0.07

0.24

0.08
0.32
5.46

2.21

0.74

2.94

0.30
0.12

0.45

0.44
0.64

1.94

0.22

0.07
0.29

0.07

0.25

0.32
5.50

2.06

0.76
0.45

0.31
2.82

0.32
0.15

0.39

0.42
0.63

1.90

0.16

0.05
0.21

0.03

0.03
0.03

0.24

0.08
0.32
5.29

2.27

0.53
0.45

0.31
2.79

0.68
0.00

0.17

0.18
0.27

1.29

0.317
0.16

0.05
0.21

0.045

0.045

0.245
0.24

0.08
0.61
4.69

2.07

0.76
0.45

0.31
2.83

0.31
0.15

0.39

0.44
0.65

1.93

0.19

0.05
0.24

0.05

0.02
0.07

0.24

0.08
0.32
5.39

(0.3)

(0.3)

2.07

0.76

2.83

0.28
0.12

0.39

0.44
0.65
0.06
1.94

0.19

0.05
0.24

0.05

0.02
0.07

0.24

0.08
0.32
5.40

2.07

0.76
0.45

0.31
2.83

0.28
0.12

0.39

0.44
0.65
0.06
1.94

0.19

0.05
0.24

0.05

0.02
0.07

0.24

0.08
0.32
5.40

38

Table 5

Aid for the marketing of local products exclusively intended
to supply the markets of the overseas departments

The table shows details of products by category, and indicates planned quantities
and the amount of aid provided for in the implementation rules

Category
Category A:

Category B

Category C

Products

Potatoes, carrots, cucumbers, chayotes, plantains,
pineapples, watermelon
Tropical flowers (standard anthurium, alpinia, heliconia,
torch lily, strelitzia)
Tomatoes, onions, cabbages, head lettuce, salad
vegetables other than lettuce and endive, aubergines,
sweet potatoes, yams, taro or dasheen, peppers and
pimentos, turban squash, avocados, mangoes, citrus fruit,
melons, pawpaws, lychees, guavas.
Garlic, runner beans, turmeric, strawberries, rambutan,
passion fruit, ginger
Roses, tropical flowers (canna pendula, orchids, hybrid
anthurium)

Quantity

Aid

10 350 tonnes

EUR 0,15/kg

6 600 000
pieces
12 400 tonnes

EUR 0.15/piece

EUR 0.23/kg

375 tonnes

EUR 0.30/kg

500 000 pieces

EUR 0.30 /piece

Table 6

Aid for the marketing of local products exclusively intended
to supply the markets of the overseas departments

This table shows the number of applications received

Category A:

Category B

Category C

1997

1998

1997

1998

1997

1998

Guadeloupe

Fruit and vegetables (tonnes)
Flowers(units)
Martinique
Fruit and vegetables (tonnes)
Flowers (units)
Réunion

Fruit and vegetables (tonnes)
Flowers (units)
French Guiana

Fruit and vegetables (tonnes)
Flowers (units)
Total fruit + vegetables (t)
(Total quota)
%
Total flowers(units)
(Total quota)
%

-------------
79 113

266
261 771

718
-------------

1 294
-------------

-----------
40

----------
26 493

1 008
-------------

1 200
181 153

1 361
------------

1 674
------------

1,7
455 000

4,0
172 591

109
------------

596
---------------

608
-------------

1 489
-------------

46
33 890

48
63 686

-------------
-------------
1 117
(10 350)
10.8%
79 113
(6 600 000)
1.2%

--------------
--------------
2 602
(10 350)
25.1%
442 924
(6 600 000)
6.7%

-------------
-------------
2 687
(12 400)
21.7%

25
-------------
4 482
(12 400)
36.1%

-----------
-----------
47.7
(375)
12.7%
488 930
(500 000)
97.8%

-----------
-----------
52.0
(375)
13.9%
262 770
(500 000)
52.6%

39

Table 7

Production of geranium and vetiver

Geranium

(1985)

(22.9 t)

1995

5.2 t

1996

4.13 t

1997

5.28 t

1998

6.20 t

Vetiver

(12.0 t)

0.96 t

0.75 t

0.47 t

0.23 t

Table 8

Article 14: aid for processing fruit and vegetables

This table shows details of eligible products, quantities and amounts of aid per category

Raw materials

A: onion and carrots for
“rougail” and “achard”;
chayotes, breadfruit, other root
vegetables; plantains;
pineapples; strawberries;
guavas; ambarella.
B: cabbage for “rougail” and
“achard”; manioc; sweet
potatoes; dasheen; turban
squash; mandarins; tangors;
limes; pawpaws; jackfruit;
lychees; carambola; West
Indian apricot; rambutan;
Cayenne cherry; soursop.
C: garlic and beans for
“rougail” and “achard”;
peppers, pimentos, yams;
mangoes; passion fruit;
combava.

Quantities
(tonnes)

8 320

Amount
(EUR/100 kg)

21.56

1 550

35.44

Processed products

Preserves vegetables and
vacuum-sterilised vegetables;
frozen uncooked vegetables;
dried vegetables

Fruit and vegetables, prepared
or preserved by vinegar or
acetic acid frozen vegetables;
preserved vegetables;
crystallised fruit.

560

41.21

Jams, jellies, marmalades,
purées and pastes of fruit; fruit
pulps; fruit juices.

40

Table 9

Aid for sugar cane growing

This table shows the breakdown of eligible areas by overseas department
and annual balances for areas subsidised (in hectares)

Guadeloupe

Martinique

Réunion

Total FOD

P

I

1 566

1 246

2 054

2 215

2 200

1 955

2 147

---------

285

245

451

351

157

177

P

694

445

394

231

211

379

499

I

61

69

42

16

28

80

46

P

2 472

2 920

3 382

2 961

3 066

2 721

20 780

I

2 335

2 163

2 063

1 816

1 875

1 513

1 104

P

4 732

4 611

5 830

5 407

5 477

5 055

23 426

I

2 396

2 517

2 350

2 283

2 254

1 750

1 327

13 383

1 666

2 853

342

38 302

12 869

54 538

14 877

1992

1993

1994

1995

1996

1997

1998

Total

In Réunion, it was decided to reduce aid per hectare so as to subsidise a larger area with the same budget.

*
P = plantation
I = land improvement

Table 10

Aid for processing cane into agricultural rum

Martinique

Guadeloupe

French Guiana

TOTAL:

(volume in hl)

1992

1993

1994

1995

1996

1997

1998

Average

Quotas

Implementation

59 950

55 360

57 855

52 194

56 131

56 708

57 031

56 461

60 230

94%

778

778

778

778

778

778

778

778

778

100%

74 928

70 338

72 833

67 172

71 109

71 686

72 009

71 439

75 208

95%

14 200

14 200

14 200

14 200

14 200

14 200

14 200

14 200

14 200

100%

41

Table 11

Aid for marketing rice from French Guiana

Quantitative balances by marketing year (Antilles) are shown in this table

Marketing year

Quantity (tonnes)
(milled equivalent)

% of quota utilised

1992

1993

1994

1995

1996

1997

1998*

Average

4 480.22

4 642.87

4 366.37

6 368.10

4 317.30

3 953.88

5 791.53

4 845.75

56.0

58.0

54.6

79.6

54.0

49.4

72.4

60.6

*

in 1998 aid was requested for 6 425.56 tonnes of husked rice, but as the application was incomplete, it was
returned; consequently, definitive results cannot yet be given.

42

Table 12

Budget forecasts and implementation for items in financing
of agricultural aspects of POSEIDOM

Financial year

Marketing year

1992

1993

1994

1995

1996

1997

1998

1999

91/92

92/93

93/94

94/95

95/96

96/97

97/98

98/99

Average19

1993-1999

(EUR million)

Expenditure, comprising:

Heading 1830; Crop

products

– - supply

– - other aid

Heading 2510; Animal

products

– - supply

– - other aid

Supply total

Other aid, total

% specific supply

arrangements/other aid

Initial budget appropriation,

comprising:

Heading 1830, plant

products

Heading 2510, livestock

products

8.4

8.4

38.0

37.2

34.1

31.9

32.2

30.2

26.3

23.7

25.1

17.3

30.7

20.9

32.5

22.4

23.1

17.2

14.0

7.5

5.1

4.0

9.5

14.1

15.0

16.2

16.2

12.2

16.9

12.9

0.0

0.8

0.0

0.8

1.9

0.0

1.9

1.7

0.6

1.1

23.1

17.2

14.6

2.6

0.6

2.0

8.1

7.8

0.2

7.6

5.3

9.8

0.6

9.2

4.6

10.1

0.3

9.8

9.8

14.9

16.9

17.3

18.2

19.8

26.1

22.7

31.2

26.3

11.5

14.8

4.9

0.3

4.6

11.8

19.4

61/39

50/50

46/54

31/69

21/79

15/85

30/70

38/62

45

47

50

35

61

49

34

45

42

3

45

2

47

3

31

4

48

13

36

13

22

12

33

12

46

37

9

Source: EAGGF Guarantee Section

43

ANNEX 4

Structural derogations

On structural aid for holdings, Article 21 of Council Regulation (EEC) No 3763/91
derogates from Council Regulation (EEC) No 2328/91 (superseded by Regulation (EC) No
950/97) on improving the efficiency of agricultural structures. The derogations are as follows.

–

–

–

–

–

There is a derogation, for pig production, from the principle laid down in Article 6(4)
of Regulation (EC) No 950/97, according to which investment aid to holdings that
would extend production capacity is restricted by conditions defined for each sector.
With regard to eggs and poultry production, in view of the need to ensure balanced
development in the overseas departments, aid is authorised for family farms.

There is a single rate for modernisation aid in the overseas departments, applicable
irrespective of the type of asset, movable or immovable, for which the aid is paid; on
a reasoned request, it may be decided to derogate from the investment ceiling
referred to in Article 8.

In the overseas departments, expenditure relating to initial stock purchases of pigs
and poultry may eligible under the system of investment aid.

The derogations apply only in so far as livestock production on pig and poultry farms
is undertaken in a manner compatible with animal welfare and environment
protection requirements and provided that the production is for the domestic market
of the departments concerned.

The compensatory allowance referred to in Article 17 may be granted for all crops,
provided they are cultivated in a way compatible with environmental protection
requirements and subject to a maximum income per holding to be determined.

Cows whose milk is intended for the domestic market of the departments concerned
may be taken into consideration for the calculation of the compensatory allowance
up to a maximum number of 20 livestock units.

For measures concerning aid to improve processing and marketing of agricultural and
forestry products, the derogations in Article 21 of Council Regulation (EEC) No 3763/91
relate to Regulation (EEC) No 866/90, replaced by Council Regulation (EC) No 951/97 of 20
May 1997 for agricultural products, and to Council Regulation (EEC) No 867/90 of 29 March
1990 for forestry products.

Commission Decision 94/173/EC of 22 March 1994 provides for the selection criteria to be
specially adapted to the overseas departments. Prohibitions on financing investment in the
animal feedingstuffs sector are not applicable, as long as the production is intended for local
supply.

Moreover, pursuant to Commission Decision 97/37/EC of 18 December 1996:

–

investment in the processing or marketing of products from third countries may be
financed, provided the processed and/or marketed products resulting from the

44

investments financed are intended exclusively for the market in the French overseas
departments,

–

–

for cereals and oilseeds/protein crops, investments relating to silos are eligible in
Réunion and Martinique, where the maximum capacity of 20 000 tonnes for animal
feed facilities does not apply,

for Martinique and French Guiana, neither the obligation to reduce poultry slaughter
capacity nor the prohibition on an increase in egg packaging capacity applies.

Article 21 was deleted by the new rural development Regulation (EC) No 1257/1999. Only
Recital (53) of the rural development Regulation refers to the specific requirements of these
in the text of the Regulation. The requests for
regions, but there is no operative part
flexibility, adjustments or derogations and the proposed solutions should be studied at the
time of the review provided for in the programming exercise.

45

ANNEX 5

Veterinary and plant health measures

Article 10(1) of Council Regulation (EEC) No 3763/91 amends Article 24 of Council
Decision 90/424/EC on expenditure in the veterinary field. It enables the Community to
contribute up to 50% to specific veterinary measures, inspection measures in the veterinary
field and programmes for the eradication and monitoring of animal diseases.

By Decision 94/148/EC (OJ of 8 March 1994),
the Commission approved a common
programme for Guadeloupe and Martinique, for the eradication of cowdriosis and babesiosis,
and a programme for the eradication of anaplasmosis and babesiosis in Réunion (in practice,
these programmes organise the control of ticks and insect vectors of the diseases).

The Guadeloupe programme had to be interrupted; following the reorganisation of the
departments health protection groups, a new programme was presented to the Commission for
1999.

French Guiana, which was previously unable to take part in the scheme, should be presenting
a programme in 1999. Only Martinique and Réunion have been able to take part in the
scheme since the outset.

The programme in Martinique comprises two measures:

–

–

census and identification of the herd: at the end of 1998, the herd of 70% of the 4 158
stockfarmers registered with the Chamber of Agriculture could be identified, an
increase of 27% on the previous year; the number of registered animals increased
from 22 218 to 27 774, an increase of 25%,

de-ticking: either by dipping, spraying or “pour on” (insecticide poured on to the
animal’s back). The aim for 1998 is to de-tick 100% of the cattle herd. Arrangements
are being introduced to assess the programme, in particular through tick counting and
a serological review.

In Réunion, the first part of the programme is to carry out a census of the herd; the aim for
1998 is to bring the census up to date and to identify over 90% of the bovine herd. Measures
include chemical control (with the aim of achieving 75% coverage of herds) and biological
control involving the breeding of parasitised stomoxys larvae, stinging insects, to be released
at their reproduction sites (this method was introduced in a pilot area in 1997,and the aim for
1998 is its generalisation). A final serological review is planned as an assessment tool.

Derogations from health rules

In view of the exceptional health situation in the overseas departments, Article 31a of
Directive 91/496/EEC provides that public health requirements laid down for imports of
bovine animals and swine and fresh meat from third countries may be waived for imports into
the overseas departments.

Only one application for this derogation has been received by the French authorities: in June
1996, a request was made for the import from the United States to Martinique of breeding
bulls of the Brahman breed. The justification given was the need to introduce animals of high

46

genetic quality while avoiding the risk of consanguinity. It was argued that French Guiana’s
bovine herd, with similar features to that of Martinique, could also benefit from the genetic
input from the US.

The Commission rejected the application because of the presence of catarrhal fever,
considering that the derogation represented a danger for the level of health in Martinique and
the operation of the internal market.

Plant-health programmes

Article 11 of Regulation (EEC) No 3763/91 provides that the Community shall contribute to
financing annual programmes for the control of organisms harmful to plants or plant products,
covering up to 60% of eligible expenditure (measures to protect banana cultivation are
excluded). The eligible measures were defined by Commission Decision 93/522 of
30 September 1993. Other programmes were approved for subsequent years.

A review of the measures shows positive results on the whole, with the reinforcement of the
activities of the Departmental Federations of pest control groups, whose membership is
growing, with much more involvement on the part of farmers. The application of new means
has enabled control programmes to be intensified, especially defence against rodents, and
boosted information campaigns (plant health leaflets, summary of products in use,
dissemination of information on control methods).

The main types of measure, by department, are as follows.

Martinique: methods for the detection of pests (fruit-fly, pink mealybug, citrus leafminer);
control of crop pests (deratisation, consciousness raising);
in
horticulture (consciousness raising and support, testing and demonstration of products),
setting up and running a laboratory for the analysis of pesticide residues, organic and
integrated crop management.

integrated pest control

Réunion: organisation of assessment, analysis, and diagnosis of plant health risks
(consultancy diagnosis, publication, integrated organic protection and action, improvement of
vanilla plantations); development of methods for the control of the main enemies of crops
(support for compulsory control of fruitfly, collective compulsory control of locusts, fire ants,
tomato yellow leaf curl virus); control of citrus mealybug and leafminer; applied research on
harmful organisms.

French Guiana: development of analytical and diagnostic structures (setting up of itinerant
laboratories in several cases) to create synergy between research bodies and development
structures; observation and alarm networks, in particular installation of traps (fruitfly), to
improve knowledge of the plant health situation; campaign for the detection of certain
quarantine viruses; development of control methods for major pests through training of
farmers and decentralised availability of plant health equipment and products; reasoned
control of weeds and pests in the rice-growing sector.

Guadeloupe: disease and pest control (corn borer, leaf-cutter ant, scale, giant snail etc.);
establishment of a floral quarantine site in Guadeloupe.

47

Budgets and expenditure (ECU thousand)

1993
Guadeloupe

Martinique

French Guiana

Réunion

EEC

323.2

268.3

193.7

267.1

Total

1052.3

1994
Guadeloupe

Martinique

French Guiana

Réunion

EEC

251.2

263.9

104.7

380.2

Total

1000.0

1995
Guadeloupe

Martinique

French Guiana

Réunion

Total

1996
Guadeloupe

Martinique

French Guiana

Réunion

Total

EC

230.287

254.859

102.218

362.636

950.000

EC

157.000

192.700

90.500

259.800

700.000

Total
National

223.6

254.4

93.2

157.8

729.0

Total
National

167.5

176.0

69.8

253.4

666.7

Total
National

191.986

186.653

74.387

272.229

724.855

Total
National

105.208

128.466

60.463

173.696

467.833

Total

546.8

522.7

286.9

424.9

1781.3

Total

418.7

439.9

174.5

633.6

1.666.7

Total

421.873

441.512

176.605

634.865

1 674.855

Total

262.208

321.166

150.963

433.496

1 167.833

48

1997
Guadeloupe

Martinique

French Guiana

Réunion

Total

1998
Guadeloupe

Martinique

French Guiana

Réunion

Total

EC

170.455

223.295

102.530

253.720

750.000

EEC

168.000

222.000

124.800

235.200

750.000

Total
National

130.994

171.603

78.791

194.986

576.374

Total
National

112.000

148.000

83.200

156.800

500.000

Total

301.449

394.898

181.321

448.706

1 326.374

Total

280.000

370.000

208.000

392.000

1 250.000

49

ANNEX 6

EAGGF Guidance Section measures

EAGGF Guidance Section financing is not covered by this report on the agricultural aspects
of POSEIDOM; this paragraph provides a summary description, with a view to providing a
consistent presentation of all Community measures in favour of the agricultural sector in the
overseas departments, since it is essential to coordinate them.

Period 1989-1993

To make up for the shortage of Structural Fund resources in the period, and to enable
POSEIDOM to be implemented upon submission of a project by the French authorities, two
one-year programmes were adopted (1992 and 1993) for specific measures in the banana
sector in favour of Martinique and Guadeloupe, and in the sugar cane sector in favour of
Martinique, Guadeloupe and Réunion.

These two programmes, common to the three departments (one decision per year) involved
EAGGF appropriations of ECU 12 million and ECU 18 million respectively. Uptake was
close to 100%.

Period 1994-1999

The appropriation (SPD and Regis II) was much higher than previously.

EAGGF-Guidance Section funding for the overseas departments:

Réunion

EUR 152.773 million

Guadeloupe

EUR 76.860 million

Martinique

EUR 67.923 million

French Guiana EUR 27.400 million.

Period 2000-2006

SPDs for the four overseas departments cover rural development measures for the period
2000-06 on the basis of Regulation (EC) No 1257/1999. Measures financed under the
amended Article 17 of Regulation (EEC) No 3763/91 are re-entered in the SPD, and the
Member State has proposed new Article 17 content (aid for management and for transport).
Requests for derogations from the requirements of Regulation (EC) No 1257/1999 (higher
rate of public aid for investment
in agricultural holdings and for processing of local
agricultural products, eligibility of public or state-owned forest other than municipal) for
certain projects were withdrawn in the course of negotiations, and the SPDs are in the process
of being adopted in line with current rules in force.

50

For information, the EAGGF-Guidance Section allocation for 2000-2006, by department, is as
follows:

Réunion

EUR 300 million

Guadeloupe

EUR 140 million

Martinique

EUR 100 million

French Guiana EUR 63 million.

51

REPORT FROM THE COMMISSION TO THE COUNCIL AND
THE EUROPEAN PARLIAMENT IN ACCORDANCE WITH ARTICLE 35
OF REGULATION (EEC) No 1600/92

Report on the progress made in the implementation of POSEIMA from 1992 to 1998

INTRODUCTION ............................................................................................................... 53

1.

1.1.

1.2.

2.

2.1.

2.2.

Economic and Social Situation ............................................................................... 55

Background ............................................................................................................ 55

Agriculture ............................................................................................................. 56

Implementation of the POSEIMA agricultural framework regulation...................... 57

Specific supply arrangements (SSA)....................................................................... 57

Aid for agricultural products in the Azores and Madeira ......................................... 60

2.2.1. Measures common to the two regions ..................................................................... 60

2.2.2. Measures to assist agricultural production in Madeira............................................. 61

2.2.3. Measures to assist agricultural production in the Azores ......................................... 63

2.3.

Other measures....................................................................................................... 66

2.3.1.

The graphic symbol ................................................................................................ 66

2.4.

2.5.

2.6.

3.

4.

Budget.................................................................................................................... 66

Structural derogations............................................................................................. 67

Plant health measures ............................................................................................. 67

EAGGF Guidance Section measures....................................................................... 67

Conclusions............................................................................................................ 67

ANNEX 1 Specific supply arrangements (SSA) ................................................................... 69

ANNEX 2 Specific aid for local agricultural products .......................................................... 78

ANNEX 3 Derogations applicable to structural measures..................................................... 91

ANNEX 4 Plant health measures.......................................................................................... 92

ANNEX 5 EAGGF Guidance Section measures................................................................... 93

52

1.

2.

3.

4.

5.

6.

7.

7

8

INTRODUCTION

By virtue of the Act of Accession of Portugal to the European Communities the
provisions of the Treaties and the common policies, in particular the policy on
agriculture, applied fully and immediately to the autonomous regions of the Azores
and Madeira from the moment of accession, subject to a few specific derogations in
the application of the common policies.

In a joint declaration annexed to the Act of Accession, the Member States asked the
Community institutions to pay special attention to development policies in these
archipelagos.

Council Decision 91/315/EEC of 26 June 19917 set up a programme of options
specific to the remote and insular nature of Madeira and the Azores
in the application of
(POSEIMA). This programme aims to take account,
Community policies, of the special characteristics and handicaps of these two
archipelagos, due to the fact that they are small, very remote islands with difficult
topography and climate, economically dependent on certain products and with
their economic and social
restricted and dispersed local markets,
circumstances.

that affect

As a symbol of the Community's solidarity with its most remote regions and an
indispensable tool for better integration into the internal market, POSEIMA serves as
a reference framework for the application of Community policies in these two
regions. It is based on a twofold principle: the Azores and Madeira are part of the
Community but, owing to their location, they are in a special situation.

To help the Azores and Madeira become genuinely integrated into the Community,
POSEIMA introduced a set of measures for farming and the food industry
designed primarily to facilitate supply to the regions and develop or maintain certain
local production activities. Under this programme, CAP operations can be adapted to
the specific constraints of agricultural production in the Azores and Madeira.

For this purpose, on 15 June 1992 the Council adopted a framework Regulation8
introducing specific measures for the Azores and Madeira with regard to certain
agricultural products; these measures have been implemented by a large number of
Commission implementing regulations.

In view of the economic and social importance of bananas for Madeira, the
Community also paid particular attention to the traditional banana industry by
implementing specific
structural measures until Council Regulation (EEC)
No 404/93 (banana market organisation) and the Commission implementing
regulations were adopted.

The joint declaration concerning the outermost regions of the Community, annexed
to the Treaty on European Union, confirmed the POSEIMA approach.

The Treaty of Amsterdam introduced a new article, Article 299(2), applicable to the

OJ L 171, 29.6.1991, p. 10.
Council Regulation (EEC) No 1600/92, OJ L 173, 27.6.1992, p. 1.

53

outermost
Community to these regions. The Treaty entered into force on 1 May 1999.

regions, establishing the specific framework to be applied by the

In 1994, in accordance with Title VI of POSEIMA and Article 35 of Regulation
the Commission presented the first progress report on
(EEC) No 1600/92,
POSEIMA9 to the Council and the European Parliament.

The Portuguese authorities have sent the Commission reports on the implementation
of the programme as well as some requests for amendments to Council Regulation
(EEC) No 1600/92.

In the context of SEM 2000, the Commission appointed an external consultant to
draw up a report evaluating the agricultural section of POSEIMA.

After eight years of application, it is now appropriate to report, measure by measure,
on the implementation and use made of each of the agricultural provisions. This
takes stock of the experience gained and the impact of the measures
report
implemented.

Some of these measures apply both to the Azores and to Madeira; others are intended
to deal with specific situations in one or other of the regions.

8.

9.

10.

11.

12.

9

COM(94)476 final of 9.12.1994

54

1.

ECONOMIC AND SOCIAL SITUATION

1.1.

Background

The Azores

The archipelago of the Azores is situated in the North Atlantic, over 1 500 km west
of Lisbon, half way between Europe and North America. The archipelago is made up
of nine main islands, scattered over a distance of 560 km. The largest island is São
Miguel (757 km²), then Pico (446 km²) and Terceira (402 km²). The total area of the
archipelago is 2 335 km².

Because of the damp, windy climate, the islands are very green, inhabited and
cultivated only around the coastal strip; from an altitude of 300 to 400 metres, they
are covered with pasture and forest.

The population totals some 245 000. The average population density is high
(105 inhabitants per square kilometre), but varies from one island to another. There
are no large towns in the Azores. There are only two towns with more than 10 000
inhabitants: Ponta Delgada on the island of São Miguel, and Angra do Heroismo on
the island of Terceira. In general, the habitations are scattered.

In 1996, regional per capita GDP (gross domestic product) was half the European
average. Unemployment is 7.2%.

Tourism is still insufficiently developed, although capacity is increasing steadily year
by year. Division of the active population between the sectors and their relative
economic weight is as follows:

Agriculture

Industry

Services

Madeira

Labour force

18%

23%

59%

GDP

8%

14%

78%

The volcanic archipelago of Madeira, with an area of 795 km², is made up of two
inhabited islands, Madeira and Porto Santo, plus some uninhabited islands (the
Desertas and the Selvagens); it is situated in the middle of the Atlantic, at 1 000 km
from Lisbon, and 600 km from the Moroccan coast. The climate is subtropical,
tending towards the Mediterranean, strongly influenced by the Gulf Stream.

98% of the population of 260 000 is concentrated on the island of Madeira; density is
very high, at 324 inhabitants per square kilometre.

The economy is dominated by tourism, which has a long tradition, concentrated in
Funchal, the capital of the archipelago (48 000 inhabitants). Per capita GDP is 54%
of the European average, and unemployment is 5.5%.

Division of the active population between the sectors and their relative economic
weight is as follows:

55

Agriculture

Industry

Services

Labour force

15%

31%

54%

GDP

11%

20%

69%

1.2.

Agriculture

The Azores

Agriculture accounts for a major share of the economy of the Azores. It is hampered
by the survival of a land-ownership structure characterised by small, scattered
holdings, and by the lack of modern equipment. There are some 18 000 agricultural
holdings altogether, accounting for a total area of 136 000 hectares, only 8% of
which is cultivated land at an altitude of less than 300 metres; the land at higher
altitudes consists of permanent pasture and forest. Agricultural holdings are divided
into blocks (from 3.5 on São Miguel to 32 on Corvo), and half of the agricultural
area is farmed by tenants.

The main characteristic of agriculture in the Azores is the production of beef cattle
on extensive pasture, which covers 88% of the UAA (utilised agricultural area).
Animal products account for 82% of the value of final agricultural output, the main
products being cows' milk (60% of final output), beef/veal and live calves for export.

The most important crops are forage crops (especially maize, with 5 500 ha), vines,
potatoes (1 500 ha), sugarbeet and tobacco; pineapples and tea are quite important in
certain areas (São Miguel).

Madeira

Agriculture in Madeira is conditioned by topography, with 88% of the land on a
gradient of more than 16% (and 65% on more than 25%). This mountainous region is
made up of three farming areas, depending on altitude: the sheltered coastal area in
the lowest part is used for growing bananas and other subtropical fruit; the hillsides
above are covered by vineyards and horticulture; the highest land is used for maize
and orchards.

The land is very densely occupied up to the 700-metre crop limit: there are some
17 000 holdings covering about 13 000 ha, including 7 500 ha of utilised agricultural
area.

These holdings are very small (average UAA of 0.43 ha), and on average are divided
into three blocks; this is a considerable constraint, which often makes it impossible to
use a tractor, or even a draft animal. The family farm is the dominant type of
business (94% of farms), and the method is very labour-intensive, with an average
labour input of 2.75 man-years per hectare of UAA.

Most of the farms are geared towards self-sufficiency, with less than 50% of output
being marketed in most cases.

The climate encourages the development of a very wide variety of agricultural
products, despite the three-to-six-month dry season each year. Because of the very

56

low summer rainfall, farmland must be irrigated. With its very dense network of
intensively irrigated in
irrigation canals, Madeira's agricultural land is the most
Portugal (75% of UAA).

Crop production is predominant, accounting for 72% of final agricultural output: the
main crops are vines (2 200 ha), subtropical crops such as bananas (1 600 ha),
pineapples and sugar cane, while potatoes and flowers (30 ha) are the main products
marketed. Livestock production mainly concerns
intensive poultry and pig
production (owing to the lack of forage crops and pasture).

The fact that Madeira is a remote island region generates additional production factor
costs that exacerbate the effects of structural constraints and the atomisation of
supply on this necessarily intensive farming system geared to plant production.

2.

IMPLEMENTATION OF THE POSEIMA AGRICULTURAL FRAMEWORK REGULATION

2.1.

Specific supply arrangements (SSA)

The objective of the specific supply arrangements is to guarantee supply to these
regions and compensate for the additional costs of supplying agricultural products
due to their insularity and remoteness. The scheme was designed to respond to the
population's consumption needs, and as an instrument for the development of
production and processing: by reducing input costs, it is intended to maintain and
develop farming activity and the local processing industry.

Description of the arrangements:

Each marketing year a supply balance is drawn up for the agricultural products
essential for everyday consumption and/or processing in the archipelagos mentioned
in the annexes to the Regulation, the Azores (Annex I) and Madeira (Annex II),
listing the requirements of the local markets, taking account of local production. The
quantities of products covered by the specific supply arrangements are periodically
reviewed in the light of changes in the islands' requirements. Separate forecast
balances may be drawn up for the requirements of the industries processing and
packaging products intended for both the local and traditional export markets.

Since POSEIMA's objective of lowering prices for the end user is to be achieved by
promoting competition between sources of supply, products imported from non-
member countries under the specific supply arrangements are exempt from customs
duties and the same Community products may be supplied on the same terms.

Special attention is paid to the induced economic effects of these arrangements, in
particular as regards actual spinoff downstream.

Products imported under the specific supply arrangements may not be re-exported or
re-dispatched to the rest of the Community. However, where processing takes place
in the archipelagos, the restriction does not apply to traditional consignments or
exports. In this case, no refund is granted.

57

Common rules for implementing the SSA are defined in Commission Regulation
(EEC) No 1696/92 of 30 June 1992.10

It is left up to the Member State to take all appropriate measures to check that the
benefits of the arrangements are actually passed on. It is specified that this may
involve assessing the trading margins of the various traders concerned. To ensure
that the benefit is passed on, security must be lodged; it is released after checks,
which are made at various stages up to that of sale to farmers, or in the industrial
sectors in receipt of aid.

The Portuguese authorities provide the Commission periodically with the
information it needs to monitor and assess whether the balance matches the islands'
requirements.

Comments and analyses:

The arrangements are used differently from one region to another.

In the Azores, the products covered by the SSA (with the exception of rice, intended
for direct consumption) are mainly for processing: raw beet sugar (refining), wheat
(milling), malt (brewing) and barley and maize (animal feed).

For Madeira, the share of direct consumption is greater (rice, vegetable oils, sugar,
pork and beef, milk products).

In addition, the SSA include the supply of breeding animals of Community origin
(Article 4): aid is provided for the supply of breeding chicks, hatching eggs, and
pure-bred breeding bovine animals, swine, sheep and goats. These measures are
designed to help consolidate or launch production activities in order to strengthen
local production, reducing production costs and increasing the low rate of self-
supply.

Regulation (EEC) No 1600/1992 also provides for the temporary supply (1992/93
to 1995/96 marketing years) to Madeira of two types of products under the special
supply arrangements: seed potatoes (CN code 0701 10 00) and bovine animals
intended for fattening and consumption in the archipelago.

When this measure expired in June 1996, local production had still not developed
sufficiently to supply local demand. Pending any conclusions to be drawn from the
assessment and to avoid any sudden interruption in the application of these measures,
the Council temporarily extended them until 30 June 199711.

Certain comments and analyses can be made about the performance of the specific
supply arrangements between 1992/93 and 1997/98. The main statistical data are
given in Annex 1. The rates of utilisation mentioned correspond to the ratio of
licences used to supply the balance.

– The importance of the SSA is reflected in their share of total expenditure
under the programme, which comes to about 70%; however, it varies between
the regions: in Madeira, the SSA account for 94% of expenditure (with 6% for

10

11

OJ L 179, 1.7.1992, p. 6.
Council Regulation (EC) No 2348/96, OJ L 320, 11.12.1996, p. 1.

58

specific production support aid), while in the Azores expenditure is almost
equally divided between the two categories.

– At all events, SSA expenditure has declined, especially since 1995. The cause
of the decline is the reduction in unit amounts of aid paid for Community
products.

Following the changes introduced by the CAP reform and the Community's
undertakings after the latest GATT agreements (Uruguay Round), and in view of the
narrowing gap between world and Community prices, unit aid granted for the supply
of Community products, mainly based on current export prices, has been reduced for
certain products; in 1995/96 there was a very substantial reduction in the aid, to the
point where no aid at all was granted for some cereals, particularly common wheat.
This development gave rise to concern about the objective of offsetting extra cost so
as to cut production costs.

– Within the constraints of the present rules, the Commission has carefully
managed the effects induced by these changes in the international environment.
It has also launched external evaluations under SEM 2000 to assess the real
difficulties of applying the SSA, and to prepare the Commission’s reports to
the Council and to Parliament on the implementation of these arrangements.

– The external assessment report on the agricultural aspects of POSEIMA
concludes that, in view of the new market situation, the resources provided
under Council Regulation (EEC) No 1600/92 are not sufficient to achieve the
principal objective of the SSA, which is to compensate for additional supply
costs in these regions. Objective criteria are not available to quantify the
remoteness and insularity of these regions: the present method of calculating
aid for Community products sometimes overcompensates for the extra supply
cost, and sometimes fails to cover the extra cost.

regular

in Madeira,

financial controls are carried out,

– From the economic point of view, the scheme has helped to reduce prices in
both regions;
in
accordance with public sector auditing standards and the general model
established by the Commission to check on those in receipt of EAGGF
Guarantee Section aid (Council Regulation (EEC) No 4045/89). In the Azores,
systems of contract prices and fixed trading margins are monitored by the
Business Inspectorate. SSA aid is generally taken into account
in price
forming.

Operation of the arrangements raised some problems, particularly a discrepancy
between forecasts and actual requirements for some balances. These discrepancies
arose because of incomplete statistics (which did not
take account of certain
commercial
transactions between Portugal and the autonomous regions), some
administrative teething troubles and quantitative and qualitative changes in consumer
habits. These difficulties have been corrected, but the procedural rules provided
for in Commission Regulation (EC) No 1696/9212 need to be amended.

12

OJ L 179, 1.7.1992, p. 6.

59

2.2.

Aid for agricultural products in the Azores and Madeira

Under POSEIMA, aid is to be granted for the production, processing and marketing
of agricultural products, in order both to maintain and strengthen traditional activities
and to develop diversification. In certain cases, this aid is supplemented by the
impact on inputs and on breeding animals of the aid under the supply arrangements.

The cost of these specific measures in favour of local production, about 30% of total
in
expenditure under the programme,
Madeira, the scheme (which does not cover bananas) mainly helps potatoes for
human consumption (72% of aid). In the Azores, the main recipients are cattle
breeding (74%) and pineapple growing (19%).

is distributed unevenly between sectors:

2.2.1. Measures common to the two regions

In the fruit and vegetables, flowers and live plants sector, for products coming
under Chapters 6, 7 and 8 of the Combined Nomenclature, and for tea (Chapter 9),
aid per hectare is granted to producers who undertake a programme of initiatives to
develop and/or diversify production and/or improve quality (Article 11).

The maximum amount of aid is EUR 500 if public funding from the Member State
amounts to at least EUR 300 and the producers' financing to at least EUR 200.
Moreover, these initiatives should come under programmes designed to run for at
least three years and to cover at least 0.3 hectares.

The aid is not available for the production of bananas and potatoes for human
consumption in Madeira, or for the production of seed potatoes and pineapples in the
Azores.

Implementation procedures are bureaucratic, and the structure and amounts of aid
have not had the hoped-for incentive effect. The measure has not been applied.

In the same sector, to facilitate the marketing of products harvested in the islands, aid
is granted for the conclusion of annual contracts between individual producers or
producer groups and traders established in the rest of the Community (Article 12).
For each of the two regions, this aid involves 3 000 tonnes per product per year. The
aid, granted to the purchaser, amounts to 10% of the value of the produce marketed,
free at destination (13% for joint ventures valid for at least three years between
producers and traders). The implementation of this measure is summarised in Table 1
in Annex 2.

In general, producers have welcomed the measure despite the problems encountered
in drawing up three-year contracts, an option that has not been utilised.

The Community contributes towards the financing of an economic analysis and
forward study of the fruit and vegetable processing industry in the two regions, with
particular reference to tropical products (Article 13). This study, which has not yet
been carried out, should help identify the bottlenecks in the industry and serve as a
basis for its development. It has been suggested that Community financing, which is
at present granted jointly to the two regions, should be separated and allocated to
each region separately for two independent and specific studies. Moreover, the study
could cover fresh fruit and vegetables as well as processed products.

60

2.2.2. Measures to assist agricultural production in Madeira

For livestock farming, particularly the beef and veal sector, the Regulation introduces
aid to help develop Madeira's traditional livestock products, within the limits of the
archipelago's consumption requirements, which are assessed in the context of a
periodic supply balance. In addition to the supply of pure-bred breeding animals and
the temporary supply of bovine animals for on-site fattening under the SSA, a
supplement of EUR 48.3 is granted on top of the basic fattening premium for male
bovine animals and the premium for maintaining suckler cows (Article 14). The
implementation of this measure is summarised in Table 2 in Annex 2.

The aid measure for the fattening of male bovine animals was introduced gradually,
but suckler cow aid has not aroused much interest among farmers. The lack of
interest is essentially due to the structural limits of the sector, which is characterised
by the small number of animals on each farm and largely geared to the production of
milk as a main source of income and for home consumption. This type of traditional
livestock farming is extremely unresponsive to changes
in the economic
environment. Consequently, beef premium supplements have not achieved the aim of
effectively supporting local production, and imports of fresh meat, supported by the
SSA, have partially replaced the local supply of beef to consumers. Table 3 in
Annex 2 summarises the development of the bovine sector in the archipelago.

The application of the measures provided for in Article 14 did not prevent the
volume of beef production from declining by 17% between 1993 and 1998; even
though the decline seems to have stabilised over recent years, the increase in the
consumption of fresh over frozen meat does not work to the advantage of local
production.

Aid for the human consumption of locally-produced fresh cows' milk products is
paid to dairies, within the limits of the consumption needs of the archipelago.
Following agri-monetary changes, the amount of aid now stands at EUR 8.14 per
100 kg (Article 15). Implementation of the measure is summarised in Table 4 in
Annex 2.

Local milk production declined during this period, owing to a reduction in the
number of dairy cows. Consumption is increasingly based on products imported
under the SSA, which increased in volume by 18% from 1993 to 1997. Aid to the
dairy centre was not sufficient to maintain equilibrium between external supply and
local output. Prices to producers were virtually constant, and the impact of the
measure is declining rapidly, since it applies only to a small part of the milk
produced in the region. The sector is affected by structural problems.

Flat-rate aid per hectare is granted for potatoes for human consumption, for a
maximum area cultivated and harvested of 2 000 hectares per year (Article 16).
Annual aid at present amounts to EUR 596 per hectare. Implementation of the
measure is summarised in Table 5 in Annex 2.

The measure has been fully utilised, to the considerable advantage of a large number
of recipients. It has significantly increased the incomes of potato producers, and
improved competitiveness in real terms. There is no possibility of introducing
mechanisation for potato growing, in view of the pattern of land ownership and the
steep gradient; this keeps production costs high, because of the large labour input

61

needed (the regional authorities report that the standard gross margin for potato
growing is 9.3% below the national average).

Sugar cane is grown in Madeira on small plots, where all operations are carried out
manually, for the production of sugar syrup (mel de cana) or agricultural rum.

Flat-rate per hectare aid is granted for sugar-cane production within the framework
of a restructuring plan submitted by the Portuguese authorities for the improvement
of plantations. Aid is paid to individual planters, planter groups or organisations.
From the sixth year of application, aid is paid exclusively to groups or organisations
(Article 17).

The Community finances 60% of eligible expenditure, if the official contribution of
least 15%. Where the percentage is less than 15%,
the Member State is at
Community aid is
the measure is
Implementation of
summarised in Table 6 in Annex 2.

reduced accordingly.

Aid is granted for the direct processing of sugar cane into sugar syrup or agricultural
rum. The aid is paid as applicable to the sugar syrup manufacturer or to the distiller
on condition that he has paid to the sugar cane producer a minimum price determined
annually (Article 18). Aid is granted for the production of a maximum annual
quantity of 250 tonnes of sugar syrup and 2 500 hectolitres of agricultural rum with a
strength of 71.8°. Implementation of the measure is summarised in Table 7 in
Annex 2.

These two measures have had a positive impact on the gross income of planters
leading to improved competitiveness and increased production; this is true despite
the gradual decline in the number of aid cases over the period.

Increased sugar cane output (22% from 1994 to 1997) has led especially to increased
syrup production, which now accounts for processing of over 60% of the sugar cane
produced, while the production of agricultural rum has declined (despite the fact that
the aid per unit of cane processed is much higher).

There are four aid schemes for the wine sector in Madeira:

– three types of aid are granted to support the manufacture of Madeira liqueur
wines, within the limits of the requirements corresponding to traditional
methods in the region (Article 21),

– flat-rate aid per hectare is granted for the continued cultivation of vines for the
production of quality wines psr in the traditional production zones (Article 22).

Aid is granted for the purchase in the rest of the Community of concentrated rectified
must for the purpose of sweetening liqueur wines. The amount of aid is determined
having regard to the conditions, in particular the cost, of supply to Madeira resulting
from its geographical situation, the price of products on the Community market and
on the world market, and the economic aspects of the envisaged aid.

62

Aid is granted for the purchase from intervention agencies of vinous alcohol obtained
by distillation13. The amount of aid is determined by tendering procedure, and the
terms adopted for this specific disposal are such that the market in alcohol and spirit
drinks in the Community is not disturbed.

Exports from Madeira of must and vinous alcohol are not eligible for refunds.

Aid is granted for the ageing of Madeira liqueur wine up to a maximum annual
quantity of 20 000 hectolitres. This aid is paid in respect of liqueur wines which age
for not less than five years. It is paid for each lot for three marketing years. The
amount of aid is EUR 0.020 per hectolitre per day.

The aid measure for the purchase of vinous alcohol has not been applied in Madeira.
Implementation of the other two measures is summarised in Table 8 in Annex 2.

Implementation of flat-rate aid for the continued cultivation of vines for the
production of quality wines psr, at present amounting to EUR 476.76 per hectare
(following agri-monetary adjustment), is summarised in Table 9 of Annex 2.

These measures have had a favourable impact. They have boosted the real gross
income of wine producers, even though the improvement has been less marked than
in Portugal as a whole.

According to the regional authorities, aid for the purchase of concentrated rectified
must covered 6% of the total purchase cost, and aid for the ageing of Madeira liqueur
wines represented about 20% of the cost of ageing over five years. Madeira's quality
varieties (Malvasia, Cândida, Boal da Madeira, Verdelho, Sercial and Terrantez) are
all characterised by low productivity (50% less than the other varieties present in the
region) and high production costs (+60%), owing to the training and pruning system,
and to their extra sensitivity to cryptogamic diseases.

the Commission has provisionally granted
In the absence of producer groups,
authorisation for the aid to be paid to individual producers via the Wine Institute of
Madeira.

2.2.3. Measures to assist agricultural production in the Azores

Aid is granted in support of essential economic activities that are traditional in the
Azores, connected with beef and veal and with milk production (Article 24).

– In the beef and veal sector, the Regulation provides for a supplement of
EUR 48.3 to the special premium for the fattening of male bovine animals and
the premium for maintaining suckler cows. Implementation of the measure is
summarised in Table 10 in Annex 2.

The measures have been very positive: the volume of output of beef and veal in
the Azores increased by almost 20% from 1992 to 1997, with a significant
improvement in both the competitiveness of meat production and the real gross
income of producers. The measures have had a very positive impact.

13

Council Regulation (EEC) No 822/87, OJ L 84, 27.3.1987, p. 1.

63

– In the milk sector, a specific premium is granted for the maintenance of the
dairy herd, up to a maximum of 78 000 head. The premium is paid to the
producer, and amounts to EUR 80 per cow held by the producer on the day on
which the application is submitted.
the measure is
summarised in Table 11 in Annex 2.

Implementation of

The measure has been utilised in full. It accounts for almost 58% of the total
amount of aid to local production in the Azores, and it has had a very positive
impact; the introduction of breeding animals under the SSA has resulted in
genetic improvement. The aid scheme and productivity gains led to a 20%
increase in producers’ real gross income from 1992 to 1997. Milk production
increased by about 30% (the rate for Portugal as a whole over the same period
was only 5%). In the 1999/2000 marketing year, the Azores exceeded their
milk quota for the first time.

– Private storage aid is granted for traditional São Jorge cheese manufactured
at least three months previously, and for Ilha cheese manufactured at least 45
days previously, to support essential traditional milk sector activities in the
Azores14.

To date, only storage contracts for Ilha cheese have been signed. There were no
applications for aid for São Jorge cheese; the conditions of eligibility for
storage contracts (storage period of less than 60 days, starting 90 days after
manufacture of the cheese) and the demand for this type of cheese mean that
aid is not required for the time being. Implementation of the measure is
summarised in Table 12 in Annex 2.

Flat-rate aid per hectare is granted for the development of sugarbeet production
within the limit of an area corresponding to production of 10 000 tonnes of white
sugar per year. The amount of aid is EUR 500 per hectare sown and harvested.

Special aid is also granted for the processing of sugarbeet harvested in the Azores
into white sugar, within the limit of a total annual production of 10 000 tonnes of
refined sugar. The amount of aid, which may be adjusted, is at present EUR 20 per
100 kilograms of refined sugar (Article 25). Implementation of the measure is
summarised in Table 13 in Annex 2.

Per hectare aid had a positive impact from 1992 to 1996. The adverse developments
of subsequent years were probably due to the bad weather. The impact of the
measure on output and gross farm incomes is not in doubt.

Aid granted to the local processing industry is supplemented by the SSA (supplies of
raw sugar for refining locally). These two support measures, and especially the SSA,
have provided an incentive to local industry and kept it going, which is essential for
continued sugarbeet growing in the Azores.

A supplement to the premium provided for under the common organisation of the
market in tobacco is granted for the collection of leaf tobacco of the Burley P.
variety, up to a maximum of 250 tonnes. The supplement, which amounts to

14

Commission Regulation (EEC) No 2174/92, OJ L 217, 31.7.1992, p. 64.

64

EUR 0.2 per kilogram of
Implementation of the measure is summarised in Table 14 in Annex 2.

tobacco,

is paid to purchasers (Article 26).

leaf

The measure has worked well, and the gains in competitiveness resulting from the
combined effects of CAP aid and the POSEIMA supplement have had a substantial
impact on real gross farm incomes and on tobacco production in the Azores, with the
area increasing by 30% and output increasing by 38% between 1992 and 1997.

Two types of aid measure are available for seed potatoes (Article 27):

– aid of EUR 500 per hectare up to a maximum of 200 hectares for production,

– aid on the terms laid down in Article 12 (conclusion of annual contracts
between local producers and natural or legal persons established in the rest of
the Community) for marketing. Implementation of the measure is summarised
in Table 15 in Annex 2.

These measures do not appear to have had the desired impact in the seed potatoes
sector. The area covered by per hectare aid, and the number of recipient farmers,
have declined. Marketing aid was utilised in three marketing years only.

Aid is granted for the production of endives falling within CN code 1212 99 10 up to
a maximum of 400 hectares, at a rate of EUR 500 per hectare (Article 27).
Implementation of the measure is summarised in Table 16 in Annex 2.

Despite good progress from 1992 to 1995, the favourable impact of the aid on the
relative competitiveness of endive production was not sufficient to maintain the level
the area cultivated and the volume of output have both declined
of output;
significantly in recent crop years.

Flat-rate aid per hectare is granted for the continued cultivation of vines for the
production of quality wines psr in the traditional production zones (Article 29). The
aid, to be paid exclusively to producer groups from the 1997/98 wine year onwards,
adjustments15.
amounts
Implementation of the measure is summarised in Table 17 in Annex 2.

to EUR 476.76/ha

agri-monetary

following

the

The measure has proved useful, as evidenced by the increase in the number of hectares
the Commission has
and beneficiaries.
provisionally granted authorisation for the aid to be paid to individual producers via
the Wine-growing Commission of the Azores.

In the absence of producer groups,

Aid of EUR 1 per kilogram is granted for the production of pineapples, up to a
maximum quantity of 2 000 tonnes per year (Article 30). Implementation of the
measure is summarised in Table 18 in Annex 2.

Pineapple production aid accounted for almost 2/3 of total production aid for plant
products in the Azores. The gains achieved in competitiveness had a very positive
impact on the volume of output and on the improvement of producers’ real gross
income.

15

Commission Regulation (EC) No 2537/95, OJ L 260, 31.10.1995, p. 10.

65

2.3.

Other measures

POSEIMA and Council Regulation (EEC) No 1600/92 also provide for some
derogations from the common agricultural policy in order to help maintain local
production.

– In the winegrowing sector, exemption from the distillation obligation and non-

application of voluntary distillation and the grubbing premium.

2.3.1.

The graphic symbol

To stimulate greater awareness and consumption of products specific to the most
remote regions, the “POSEI” programmes provide for the introduction of a graphic
symbol, for which the Commission launched a competition in December 1993. The
logo was chosen in 1994, and its conditions of use are laid down in Commission
Regulation (EC) No 1418/9616.

In 1998 the Commission launched a promotion campaign for this logo, to publicise
its existence and significance, and the advantages of using it.

2.4.

Budget

Specific budget headings have been introduced in the Community budget under the
EAGGF Guarantee Section for financing the agricultural section of POSEIMA. The
corresponding forecasts and implementation are set out in Table 19 in Annex 2.

In addition, the revenue to the Community budget forgone as a result of exemption
from customs duties for products imported from non-member countries under the
specific supply arrangements should be included in EAGGF Guarantee Section
expenditure.

Table 20 in Annex 2 summarises the overall cost of POSEIMA.

The following conclusions can be drawn from this information:

– the specific supply arrangements represent around 70% of the average overall
cost of the programme for the period concerned, and the agricultural measures
around 30%; however, the breakdown is different in the two regions: in the
Azores the two types of measure are equivalent, while in Madeira the SSA
represent 94% of the total,

– owing to the reduction in the amount of aid for Community products, the cost
of the SSA has declined; however, the decline was largely offset by the
increase in revenue forgone as a result of exemption from duties for products
imported from non-member countries,

– the cost of measures to support local production has more or less stabilised in
the Azores at about PTE 2 000 million, or some EUR 10 million; in Madeira,
the measures were introduced more gradually, which seems to highlight
problems of implementation,

16

Commission Regulation (EC) No 1418/96, OJ L 182, 23.7.1996, p. 9.

66

– the total cost of the system set up in 1992 stabilised at about EUR 40 million

on average over the period considered,

– the appropriation in the EAGGF Guarantee Section budget has always
exceeded expenditure. This gap reflected the difficulty of adopting supply
balances that corresponded to real local requirements at a time when the
agricultural production aid measures were being launched and picking up
speed. All measures have now reached cruising speed and stabilised; however,
adjusting some of these measures better to the regional situation would mean
an increase in expenditure.

2.5.

Structural derogations

Article 32 provides for derogations from Council Regulation (EEC) No 2328/91,
(superseded by Regulation (EC) No 950/97) on improving the efficiency of
agricultural structures. (See summary description in Annex 3.) These derogations
were discontinued by the new rural development Regulation (EC) No 1257/1999,
which is very flexible. Only recital 53 of the rural development Regulation refers to
the specific requirements of these regions, but there is no operative part in the text of
the Regulation. The requests for flexibility, adjustments or derogations and the
proposed solutions should be studied at the time of the review provided for in the
programming exercise.

2.6.

Plant health measures

Article 33 of Regulation (EEC) No 1600/92 provides that the competent authorities
submit to the Commission programmes for the control of organisms harmful to
plants or plant products. (See Annex 4 for a summary description of these measures.)

3.

EAGGF GUIDANCE SECTION MEASURES

Guidance Section funding is not included in the scope of this report but is outlined in
Annex 5 to give a comprehensive list of all Community measures in favour of
agriculture in the Azores and Madeira.

4.

CONCLUSIONS

Agricultural measures which are innovative and adapted to the local situation are a
major aspect of the Programmes of specific orientations for remote and insular
regions. Altogether, these measures have helped to offset some of the constraints
affecting production costs. Alongside support from the CAP, they have helped to
improve the quality or increase the volume of local output.

the Portuguese authorities’

The difficulties encountered in implementing some of the measures, and an analysis
to the Commission suggest certain
of
adjustments. Some amendments can be made by the Commission while others will
require the Council to adapt the POSEIMA agricultural framework Regulation. The
Commission intends, following on from this report, to propose a Council Regulation,
with three aims:

requests

67

– to adapt the specific supply arrangements more closely to the aims pursued,
in the light of the changes in

particularly the list of products covered,
requirements noted in the regions and of the present situation,

– to adjust measures which experience has shown to be poorly suited to the real
situation in the region, so as to improve their incentive power and make them
more effective,

– to implement new measures to take account of specific local conditions and

requirements, within the framework of the POSEIMA objectives.

68

ANNEX 1

Specific supply arrangements (SSA)

Utilisation by marketing year of supply balances adopted
(Source: Ministry of Economic Affairs – Directorate-General for International Economic Relations –
Lisbon)

1992/1993 - AZORES

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Female breeding swine

0102 10 00
0103 10 00
0103 10 00 Male breeding swine
Female breeding sheep
0104 10
Male breeding sheep
0104 10
Breeding chicks
0105 11 00
Hatching eggs
0407 00 19
Durum wheat
1001 10 00
Common wheat
1001 90 99
1003 00 80
Barley
1005 90 00 Maize
1006 30
Rice
1107 10 99 Malt
1701 12 10

Raw sugar

Head
Head
Head
Head
Head
Head
Units
kg
kg
kg
kg
kg
kg
kg

150
400
100
2 500
100
550 000
1 120 000
3 000 000
34 000 000
16 000 000
96 000 000
4 200 000
1 000 000
7 000 000

148
366
80
600
33
5 175
39 600
967 080
33 327 630
15 982 820
73 828 849
1 012 451
723 500
6 885 640

148
366
80
600
33
5 175
39 600
967 080
33 327 630
15 982 820
73 771 505
1 012 451
723 500
6 885 640

57 344

1993/1994 - AZORES

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Female breeding swine

0102 10 00
0103 10 00
0103 10 00 Male breeding swine
Female breeding sheep
0104 10
Male breeding sheep
0104 10
Breeding chicks
0105 11 00
Hatching eggs
0407 00 19
Durum wheat
1001 10 00
Common wheat
1001 90 99
1003 00 80
Barley
1005 90 00 Maize
1006 30
Rice
1107 10 99 Malt
1701 12 10

Raw sugar

150
400
100
2 500
100
550 000
1 120 000
3 000 000
34 000 000
46 000 000
66 000 000
4 200 000
1 000 000
7 000 000

149
400
100
1 755
70
10 350
117 000
0
34 566 630
37 375 290
63 438 926
1 274 861
903 000
5 976 710

149
400
100
1 755
70
10 350
117 000
0
34 566 630
37 375 290
63 235 979
1 274 861
903 000
5 976 710

202 947

Head
Head
Head
Head
Head
Head
Units
kg
kg
kg
kg
kg
kg
kg

69

1994/1995 - AZORES

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Female breeding swine

0102 10 00
0103 10 00
0103 10 00 Male breeding swine
Female breeding sheep
0104 10
Male breeding sheep
0104 10
Breeding chicks
0105 11 00
Hatching eggs
0407 00 19
Durum wheat
1001 10 00
Common wheat
1001 90 99
Barley
1003 00 80
1005 90 00 Maize
1006 30
Rice
1107 10 99 Malt
1701 12 10

Raw sugar

Head
Head
Head
Head
Head
Head
Units
kg
kg
kg
kg
kg
kg
kg

1 150
400
100
2 500
100
20 000
100 000
500 000
34 000 000
36 000 000
78 000 000
2 500 000
1 000 000
6 000 000

1 150
400
100
0
0
14 825
45 000
108 000
28 650 642
34 326 935
85 401 415
1 186 285
867 845
5 487 320

1 150
400
100
0
0
14 825
45 000
108 000
28 650 642
34 326 935
85 266 859
1 186 285
867 845
5 487 320

134 556

1995/1996 - AZORES

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Female breeding swine

0102 10 00
0103 10 00
0103 10 00 Male breeding swine
Female breeding sheep
0104 10
Male breeding sheep
0104 10
Breeding chicks
0105 11 00
Hatching eggs
0407 00 19
Durum wheat
1001 10 00
Common wheat
1001 90 99
1003 00 80
Barley
1005 90 00 Maize
Rice
1006 30
1107 10 99 Malt
1701 12 10

Raw sugar

Head
Head
Head
Head
Head
Head
Units
kg
kg
kg
kg
kg
kg
kg

1 150
400
100
2 500
100
20 000
100 000
300 000
34 000 000
14 500 000
100 000 000
2 500 000
1 000 000
5 500 000

1 119
400
20
1 989
84
10 350
46 800
0
11 814 920
8 119 648
93 161 391
1 349 817
716 917
5 487 320

1 119
400
20
1 989
84
10 350
46 800
0
11 814 920
8 119 648
92 821 799
1 349 817
716 917
5 487 320

339 592

70

1996/1997 - AZORES

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Female breeding swine

0102 10 00
0103 10 00
0103 10 00 Male breeding swine
Female breeding sheep
0104 10
Male breeding sheep
0104 10
Breeding chicks
0105 11 00
Hatching eggs
0407 00 19
Durum wheat
1001 10 00
Common wheat
1001 90 99
Barley
1003 00 80
1005 90 00 Maize
1006 30
Rice
1107 10 99 Malt
1701 12 10

Raw sugar

Head
Head
Head
Head
Head
Head
Units
kg
kg
kg
kg
kg
kg
kg

1 150
400
100
2 500
100
20 000
100 000
500 000
34 000 000
41 000 000
73 000 000
5 500 000
1 000 000
5 500 000

1 048
355
51
150
20
10 350
97 200
467 111
30 800 920
13 079 620
87 424 579
1 539 127
777 076
5 477 400

1 048
355
51
150
20
10 350
97 200
467 111
30 800 920
13 079 620
86 964 467
1 539 127
777 076
5 477 400

460 112

1997/1998 - AZORES

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Female breeding swine

0102 10 00
0103 10 00
0103 10 00 Male breeding swine
Female breeding sheep
0104 10
Male breeding sheep
0104 10
Breeding chicks
0105 11 00
Hatching eggs
0407 00 19
Durum wheat
1001 10 00
Common wheat
1001 90 99
1003 00 80
Barley
1005 90 00 Maize
Rice
1006 30
1107 10 99 Malt
1701 12 10

Raw sugar

Head
Head
Head
Head
Head
Head
Units
kg
kg
kg
kg
kg
kg
kg

1 150
400
100
2 500
100
20 000
100 000
500 000
34 000 000
20 500 000
90 000 000
2 500 000
1 000 000
6 500 000

588
394
67
0
0
10 005
78 800
427 668
24 853 520
13 963 580
73 428 227
1 504 069
901 139
6 471 760

588
394
67
0
0
10 005
78 800
427 668
24 853 520
13 963 580
73 198 695
1 504 069
901 139
6 471 760

229 532

71

1992/1993 – MADEIRA

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Bovine animals for fattening
Female breeding swine
Male breeding swine
Female breeding sheep
Male breeding sheep
Female breeding goats
Male breeding goats
Chicks
Fresh beef and veal
Frozen beef and veal
Pigmeat
Milk and cream
Skimmed-milk powder
Whole-milk powder
Butter
Cheese
Hatching eggs
Seed potatoes
Durum wheat
Forage wheat
Common wheat
Barley
Maize
Rice
Malt
Hops
Vegetable oil

0102 10 00
ex 0102 90
0103 10 00
0103 10 00
0104 10
0104 10
0104 20
0104 20
0105 11
0201
0202
0203 ex.
0401
0402 ex.
0402 ex.
0405
0406
0407 00 19
0701 10 00
1001 10
1001 90
1001 90
1003
1005
1006 30
1107 00
1210
1507/16
(exc. 1509/10)
1509 10 90 100 Virgin olive oils*
1509 90 00 100 Riviera olive oils*
1701
2008 20
2008 30
2008 40
2008 60
2008 70
2008 92
2008 99
* from 1 July 1992 to 31 October 1993

Sugar
Pineapples
Citrus fruit
Pears
Cherries
Peaches
Mixed
Other

Head
Head
Head
Head
Head
Head
Head
Head
Head
kg
kg
kg
kg
kg
kg
kg
kg
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

200
3 000
500
100
150
15
50
5
360 000
2 000 000
2 000 000
2 000 000
10 000 000
800 000
700 000
1 200 000
800 000
160 000
1 500 000
6 000 000
2 000 000
22 000 000
4 000 000
28 000 000
5 000 000
2 000 000
10 000
3 000 000

100 000
550 000
10 000 000
300 000
40 000
80 000
60 000
120 000
50 000
30 000

0
1 616
0
0
0
0
0
0
20 765
1 896 873
1 860 131
1 260 288
9 287 007
494 080
408 150
735 546
755 209
0
1 489 000
5 809 540
0
18 889 880
1 631 072
25 732 450
4 469 575
1 958 010
2 499
2 007 125

63 798
247 170
6 929 151
55 885
0
674
188
45 517
0
4 250

1 616

20 765
1 409 267
513 831
1 260 288
9 287 007
192 080
333 150
606 546
755 209

1 489 000
5 809 540

18 889 880
1 631 072
25 732 450
4 448 575
1 958 010
2 499
2 007 125

63 798
247 170
6 929 151
55 885

674
188
45 517

4 250

487 606
1 346 300

302 000
75 000
129 000

21 000

72

1993/1994 - MADEIRA

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

919

18 975
1 908 829
73 947
803 336
10 475 494
248 310
260 650
719 529
850 924

Head
Head
Head
Head
Head
Head
Head
Head
Head
kg
kg
kg
kg
kg
kg
kg
kg
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

0
919
0
0
0
0
0
0
18 975
2 202 553
1 983 912
803 336
10 475 494
415 310
352 650
869 529
850 924
0
1 500 000
3 593 740
0
25 319 840
2 688 320
27 446 030
4 039 255
1 200 356
0
2 462 161

200
2 900
1 600
120
150
15
50
5
360 000
3 000 000
2 000 000
2 000 000
12 000 000
800 000
700 000
1 200 000
900 000
160 000
1 500 000
7 000 000
4 000 000
23 000 000
5 000 000
35 000 000
5 000 000
2 200 000
10 000
3 000 000

Breeding bovine animals
Bovine animals for fattening
Female breeding swine
Male breeding swine
Female breeding sheep
Male breeding sheep
Female breeding goats
Male breeding goats
Chicks
Fresh beef and veal
Frozen beef and veal
Pigmeat
Milk and cream
Skimmed-milk powder
Whole-milk powder
Butter
Cheese
Hatching eggs
Seed potatoes
Durum wheat
Forage wheat
Common wheat***
Barley
Maize
Rice
Malt
Hops
Vegetable oil

0102 10 00
ex 0102 90
0103 10 00
0103 10 00
0104 10
0104 10
0104 20
0104 20
0105 11
0201
0202
0203 ex.
0401
0402 ex.
0402 ex.
0405
0406
0407 00 19
0701 10 00
1001 10
1001 90
1001 90
1003
1005
1006 30
1107 00
1210
1507/16
(exc. 1509/10)
1509 10 90 100 Virgin olive oils*
1509 90 00 100 Riviera olive oils* **
1701
2008 20
2008 30
2008 40
2008 60
2008 70
2008 92
2008 99
* from 1 November 1993 to 31 October 1994
** Without prejudice to revision of the balance in the course of the year, the quantities fixed for each of the products
listed in the annex may be exceeded by up to 20% provided there is no overshooting of the total quantity. This
provision may relate to cereals, olive oil and processed fruit and vegetables.

100 000
550 000
10 000 000
300 000
40 000
80 000
60 000
250 000
50 000
30 000

26 518
550 811
6 121 214
204 152
0
3 715
0
245 631
492
0

Sugar
Pineapples
Citrus fruit
Pears
Cherries
Peaches
Mixed
Other

25 319 840
2 688 320
27 446 030
3 800 005
1 200 356

26 518
550 811
6 121 214
136 458

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

1 500 000
3 593 740

245 631
492

2 462 161

3 715

293 724
1 909 965

167 000
92 000
150 000

239 250

67 694

73

1995/1996 - MADEIRA

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

199
1 332
27
4
49
4

18 975
2 278 695
41 907
801 701
11 102 710
166 052
362 608
673 008
1 075 530

Head
Head
Head
Head
Head
Head
Head
Head
Head
kg
kg
kg
kg
kg
kg
kg
kg
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

199
1 332
27
4
49
4
0
0
18 975
2 689 535
2 233 062
801 701
11 102 710
474 052
458 608
805 208
1 075 530
0
1 291 950
3 950 000
0
16 630 050
1 261 380
28 193 290
3 713 567
1 775 512
0
1 658 909

200
2 000
1 600
120
150
15
50
5
360 000
3 000 000
2 500 000
1 000 000
12 000 000
800 000
700 000
1 200 000
1 200 000
160 000
1 500 000
7 000 000
2 000 000
23 000 000
7 000 000
35 000 000
5 000 000
2 200 000
10 000
3 000 000

Breeding bovine animals
Bovine animals for fattening
Female breeding swine
Male breeding swine
Female breeding sheep
Male breeding sheep
Female breeding goats
Male breeding goats
Chicks
Fresh beef and veal
Frozen beef and veal
Pigmeat
Milk and cream
Skimmed-milk powder
Whole-milk powder
Butter
Cheese
Hatching eggs
Seed potatoes
Durum wheat
Forage wheat
Common wheat
Barley
Maize
Rice**
Malt
Hops
Vegetable oil

0102 10 00
ex 0102 90
0103 10 00
0103 10 00
0104 10
0104 10
0104 20
0104 20
0105 11
0201
0202
0203 ex.
0401
0402 ex.
0402 ex.
0405
0406
0407 00 19
0701 10 00
1001 10
1001 90
1001 90
1003
1005
1006 30
1107 00
1210
1507/16
(exc. 1509/10)
1509 10 90 100 Virgin olive oils*
1509 90 00 100 Riviera olive oils*
1701
2008 20
2008 30
2008 40
2008 60
2008 70
2008 92
2008 99
* from 1 November 1994 to 31 October 1995
* from 1 September 1994 to 31 August 1995
*** Without prejudice to revision of the balance in the course of the year, the quantities fixed for each of the
products listed in the annex may be exceeded by up to 20% provided there is no overshooting of the total quantity.
This provision may relate to cereals, olive oil and processed fruit and vegetables.

100 000
650 000
10 000 000
300 000
40 000
80 000
60 000
300 000
50 000
30 000

36 919
536 127
6 603 880
218 350
0
1 199
0
357 097
2 355
0

Sugar
Pineapples
Citrus fruit
Pears
Cherries
Peaches***
Mixed
Other

16 630 050
1 261 380
28 193 290
3 262 019
1 775 512

36 919
536 127
6 603 880
152 531

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

1 291 950
3 950 000

357 097
2 355

1 658 909

1 199

410 840
2 191 155

308 000
96 000
132 200

451 548

65 819

74

1995/1996 - MADEIRA

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

Breeding bovine animals
Bovine animals for fattening
Female breeding swine
Male breeding swine
Female breeding sheep
Male breeding sheep
Female breeding goats
Male breeding goats
Chicks
Fresh beef and veal
Frozen beef and veal
Pigmeat
Milk and cream
Skimmed-milk powder
Whole-milk powder
Butter
Cheese
Hatching eggs
Seed potatoes
Durum wheat
Forage wheat
Common wheat
Barley
Maize
Rice
Malt
Hops
Vegetable oil

0102 10 00
ex 0102 90
0103 10 00
0103 10 00
0104 10
0104 10
0104 20
0104 20
0105 11
0201
0202
0203 ex.
0401
0402 ex.
0402 ex.
0405
0406
0407 00 19
0701 10 00
1001 10
1001 90
1001 90
1003
1005
1006 30
1107 00
1210
1507/16
(exc. 1509/10)
1509 10 90 100 Virgin olive oils*
1509 90 00 100 Riviera olive oils*
1701
2008 20
2008 30
2008 40
2008 60
2008 70
2008 92
2008 99
* from 1 November 1995 to 31 October 1996

Sugar
Pineapples
Citrus fruit
Pears
Cherries
Peaches
Mixed
Other

Head
Head
Head
Head
Head
Head
Head
Head
Head
kg
kg
kg
kg
kg
kg
kg
kg
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

200
1 600
1 600
120
150
15
50
5
360 000
3 000 000
3 000 000
1 000 000
12 000 000
800 000
700 000
1 200 000
1 200 000
160 000
1 500 000
7 000 000
2 000 000
25 000 000
7 000 000
35 000 000
5 000 000
2 200 000
10 000
3.000.000

100.000
650.000
10.000.000
300.000
40.000
80.000
60.000
400.000
50.000
30.000

197
1 586
0
0
50
4
0
0
5 825
2 909 361
1 380 908
954 508
11 962 166
493 710
463 894
879 812
1 108 323
0
1 500 000
8 760
0
7 586 150
71 980
29 061 864
3 655 388
2 006 918
4 200
1.936.449

53.718
585.742
6.205.362
217.511
0
510
0
318.126
705
0

197
1 586

50
4

5 825
2 634 268
124 324
954 508
11 962 166
84 710
91 894
725 812
1 108 323

1 500 000
8 760

7 586 150
71 980
16 987 974
3 171 550
2 006 918
4 200
1.936.449

53.718
585.742
6.205.362
217.511

510

318.126
705

275 093
1 256 584

409 000
372 000
154 000

12 073 890
483 838

75

1996/1997 - MADEIRA

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

50
4

200
800

3 091 301
72 204
1 400 630
11 940 536
246 995
475 882
961 300
1 134 654

Head
Head
Head
Head
Head
Head
Head
Head
Head
kg
kg
kg
kg
kg
kg
kg
kg
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

200
800
1.600
120
150
15
50
5
360 000
3 500 000
2 500 000
2 000 000
12 000 000
800 000
700 000
1 200 000
1 200 000
160 000
2 000 000
5 000 000

200
800
0
0
50
4
0
0
0
3 448 422
1 528 402
1 400 630
11 940 536
388 995
569 582
961 300
1 134 654
0
1 704 000
4 196 606
0
20 349 088
144 000
31 099 179
3 426 965
1 469 660
0
1 696 294

Breeding bovine animals
Bovine animals for fattening
Female breeding swine
Male breeding swine
Female breeding sheep
Male breeding sheep
Female breeding goats
Male breeding goats
Chicks
Fresh beef and veal
Frozen beef and veal
Pigmeat
Milk and cream
Skimmed-milk powder
Whole-milk powder
Butter
Cheese
Hatching eggs
Seed potatoes
Durum wheat
Forage wheat
Common wheat**
Barley
Maize**
Rice
Malt
Hops
Vegetable oil

0102 10 00
ex 0102 90
0103 10 00
0103 10 00
0104 10
0104 10
0104 20
0104 20
0105 11
0201
0202
0203 ex.
0401
0402 ex.
0402 ex.
0405
0406
0407 00 19
0701 10 00
1001 10
1001 90
1001 90
1003
1005
1006 30
1107 00
1210
1507/16
(exc. 1509/10)
1509 10 90 100 Virgin olive oils*
1509 90 00 100 Riviera olive oils*
1701
2008 20
2008 30
2008 40
2008 60
2008 70
2008 92
2008 99
* from 1 November 1996 to 31 October 1997
** Without prejudice to revision of the balance in the course of the year, the quantities fixed for each of the products
listed in the annex may be exceeded by up to 20% provided there is no overshooting of the total quantity. This
provision may relate to cereals, olive oil and processed fruit and vegetables.

100 000
650 000
10 000 000
300 000
40 000
80 000
60 000
400 000
50 000
30 000

68 801
640 283
6 847 167
211 110
0
504
0
287 153
0
0

Sugar
Pineapples
Citrus fruit
Pears
Cherries
Peaches
Mixed
Other

20 000 000
5 000 000
30 000 000
5 000 000
2 200 000
10 000
3 000 000

20 349 088
144 000
31 099 179
3 190 425
1 469 660

68 801
640 283
6 399 167
157 866

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

1 704 000
4 196 606

1 696 294

287 153

504

357 121
1 456 198

142 000
93 700

236 540

448 000
53 244

76

1997/1998 - MADEIRA

CN code

Product

Units

Balance

Utilisation
Total

Utilisation
EU

Utilisation
Third
countries

200

197

3 347 467
98 401
1 393 517
11 688 756
139 166
160 429
922 593
1 145 239

Head
Head
Head
Head
Head
Head
Head
Head
Head
kg
kg
kg
kg
kg
kg
kg
kg
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

1 600
120
150
15
50
5
360 000
4 000 000
2 000 000
2 000 000
12 000 000
800 000
700 000
1 200 000
1 200 000
160 000

197
0
0
0
0
0
0
0
0
3 836 152
1 348 521
1 393 517
11 688 756
475 166
384 429
922 593
1 145 239
0
0
3 000 000
0
17 423 502
126 000
22 813 472
3 880 814
2 277 884
0
1 947 329

Breeding bovine animals
Bovine animals for fattening
Female breeding swine
Male breeding swine
Female breeding sheep
Male breeding sheep
Female breeding goats
Male breeding goats
Chicks
Fresh beef and veal
Frozen beef and veal
Pigmeat
Milk and cream
Skimmed-milk powder
Whole-milk powder
Butter
Cheese
Hatching eggs
Seed potatoes
Durum wheat
Forage wheat
Common wheat
Barley
Maize
Rice
Malt**
Hops
Vegetable oil

0102 10 00
ex 0102 90
0103 10 00
0103 10 00
0104 10
0104 10
0104 20
0104 20
0105 11
0201
0202
0203 ex.
0401
0402 ex.
0402 ex.
0405
0406
0407 00 19
0701 10 00
1001 10
1001 90
1001 90
1003
1005
1006 30
1107 00
1210
1507/16
(exc. 1509/10)
1509 10 90 100 Virgin olive oils*
1509 90 00 100 Riviera olive oils*
1701
2008 20
2008 30
2008 40
2008 60
2008 70
2008 92
2008 99
* from 1 November 1997 to 31 October 1998
** Without prejudice to revision of the balance in the course of the year, the quantities fixed for each of the products
listed in the annex may be exceeded by up to 20% provided there is no overshooting of the total quantity. This
provision may relate to cereals, olive oil and processed fruit and vegetables.

100 000
650 000
10 000 000
300 000
40 000
80 000
60 000
400 000
50 000
30 000

60 384
515 898
7 056 946
193 965
0
1 992
0
268 004
0
0

Sugar
Pineapples
Citrus fruit
Pears
Cherries
Peaches
Mixed
Other

25 000 000
2 500 000
35 000 000
5 000 000
2 200 000
10 000
3 000 000

17 423 502
126 000
22 813 472
3 580 740
2 277 884

60 384
515 898
4 272 446
163 000

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

5 000 000

3 000 000

1 947 329

268 004

1 992

488 685
1 250 120

336 000
224 000

300 074

2 784 500
30 965

77

ANNEX 2

Specific aid for local agricultural products

Unless otherwise specified, the data in this annex were supplied by the Autonomous Region

of Madeira and the Autonomous Region of the Azores

Table 1

Article 12: aid for the marketing of fruit, vegetables and plants

outside the Azores and Madeira*

Marketing years

Madeira

Number of contracts

Volume of trade (t)

Value (EUR)

Aid (EUR)

Azores

Number of contracts

Volume of trade in:

pineapples and passion fruit (t)

ornamental plants (units)

Value (EUR)

Aid (EUR)

POSEIMA

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

-

-

-

-

46

953

-

3

6

4

6

14,993

33,598

45,795

40,998

6

87,0

183 006

277 350

254 138

308 225

362 832

18 301

27 735

25 414

30 823

36 283

87

64

101

85

51

1 073

1 066

1 181

1 125

874

59 500

323 028

765 735

457 882

646 474

2 462 000

2 469 000

2 635 000

3 167 000

4 926 000

2 683 000

261 274

257 835

276 956

323 704

494 266

268 277

Number of contracts

46

90

70

105

91

57

Value (EUR)

Aid (EUR)

2 462 000

2 652 006

2 912 350

3 421 138

5 234 225

3 045 832

261 274

276 136

304 691

349 118

525 089

304 560

All relevant products grouped together.

78

*
Article 14: supplementary aid for fattening male bovine animals and maintaining

suckler cows (Madeira)

Table 2

Marketing

Suckler cows

Number of

Aid

Male bovine animals

Number of

Aid

year

total / assisted

livestock

(EUR)

total / assisted

livestock

(EUR)

farmers

farmers

1992/93

670

1993/94

470

1994/95

271

1995/96

271

1996/97

280

1997/98

280

23

67

67

55

75

58

3

11

11

10

12

11

1 110

1 691

3 230

1 616

3 230

1 543

2 650

1 412

467

571

780

939

272

336

510

855

22 550

27 570

37 670

45 350

3 620

1 371

1 311

1 059

63 320

2 800

1 468

1 157

79

Table 3

Bovine sector in Madeira

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

4 361

505

3 145

711

--

--

5 295

2 898

2 397

238

2 635

--

9 894

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

--

3 043

2 930

2 609

2 053

2 121

2 121

632

670

508

582

657

657

1 741

1790

1 830

1 200

1 184

1 184

670

470

23

77

67

90

271

67

200

271

55

200

280

75

160

280

58

3 351

2 965

2 579

2 461

2 343

2 343

1 888

1 658

1 429

1 367

1 305

1 305

1 463

1 307

1 150

1 094

1 038

1 038

228

309

393

318

333

430

1 691

1 616

1 543

1 412

1 371

1 468

467

571

780

939

1 311

6 622

6 204

5 581

4 832

4 797

4 894

4 740

5 597

6 787

6 164

5 690

4 579

5 749

6 190

5 947

--

--

--

994

791

1 411

1 122

800

--

8 707

8 019

8 490

8 766

7 828

6 455

5 613

6 109

6 313

6 091

1 905,3

1 744,4

1 915,3

2 002,5

1 716,1

1 530,6

1 362,5

1 442,6

1 467,2

1 428,8

(2 053)

(2 452)

(2 487)

(3 245)

3 581,8

4 368,1

4 680,3

3 765,7

5 078,0

5 184,0

--

--

--

--

--

--

--

--

50%

53%

55%

68%

72%

74%

50%

47%

45%

32%

28%

26%

(3 959)

(4 196)

(4 403)

(5 248)

5 297,9

5 898,7

6 042,8

5 208,3

6 545,2

6 612,8

--

--

--

--

66%

65%

65%

77%

79%

80%

48,1%

41,6%

43,5%

38,2%

32,4%

25,9%

22,5%

27,7%

22,5%

21,6%

--

--

--

--

48,9%

39,8%

34,6%

36,0%

28,6%

27,1%

I. Number of cows

Calves

Dairy cows

Suckler cows

number assisted

- SSA

animals)

(breeding

II. Animals

<

12

months

Heifers

Males

III. Males > 12 months

Number of male bovine

animals

number assisted

Herd total (I+II+III)

IV. Imports of bovine

animals

SSA (fattening)

V. Slaughtered animals

(a) Meat production

(b) SSA meat, of which:

fresh

frozen

(c) Consumption (a+b)

of which: fresh

self-sufficiency

(a)/(c)

of which: fresh meat

80

Article 15: aid for human consumption of milk products - Madeira

Table 4

Marketing year

Quantity of milk (kg)

Number of dairies

Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

671 045

771 882

718 322

495 842

442 076

279 079

1

1

1

1

1

1

46 973

53 398

54 809

41 373

36 887

23 286

Article 16: flat-rate aid per hectare for growing potatoes for human consumption -

Madeira

Table 5

Marketing year

Number of growers

Number of hectares

Aid (EUR)

1993

5 299

1 305

1994

8 742

2 000

1995

11 204

1 979

1996

11 044

1 999

1997

9 446

1 915

1998

9 515

1 776

696 681

1 202 250

1 167 254

1 189 410

1 131 346

1 073 915

81

Article 17: flat-rate aid per hectare for growing sugar cane - Madeira

Table 6

1993/94

1994/95

1995/96

1996/97

1997/98

Marketing year

Number of growers

Number of hectares

13

3,11

11

3,13

6

0,71

Eligible expenditure (EUR)

34 832

23 547

10 195

Community aid (EUR)

15 808

14 840

Public financing (EUR)

3 953

3 737

5 683

1 531

5

0,81

7 182

1 461

864

2

0,30

3 891

1 275

369

Table 7

Article 18: aid for the direct processing of sugar cane into sugar syrup

or agricultural rum – Madeira

Marketing year

Minimum price to producer

(EUR/100kg)

Sugar syrup (tonnes)

Aid (EUR)

Number of firms

Agricultural rum

(hectolitres)

Aid (EUR)

Number of firms

1993

7,98

1994

8,23

1995

8,73

1996

9,48

1997

9,98

1998

10,97

--

--

--

--

--

--

67,62

85,12

89,11

90,05

87,96

5 993,23

7 620,80

7 978,12

5 792,82

8 445,03

2

2

2

2

2

973,0

1 109,0

889,0

831,0

862,0

80 493,54

92 653,79

74 288,16

69 410,53

73 141,25

3

3

3

3

3

82

Article 21: aid to support the manufacture of Madeira liqueur wines

Table 8

Marketing year

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

Rectified concentrated must (hl)

260,6

317,0

369,5

851,2

497,8

336,3

Recipients

Aid (EUR)

1

1

1

1

1

1

2 606

3 170

3 695

8 512

4 978

3 363

Ageing of liqueur wines (hl)

2 473

2 252

1 273

2 851

2 400

3 236

Recipients

Aid (EUR)

3

3

3

3

4

4

90 329

82 250

46 501

104 224

105 623

142 405

Article 22: flat-rate aid per hectare for continued cultivation of vines- Madeira

Table 9

Marketing years

Number of hectares

Number of growers

Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

-

-

-

104,3

118,8

170,0

143,8

142,9

259

295

410

330

299

41 709

46 090

81 055

67 869

68 016

83

Article 24 (beef and veal sector): supplement to the special premium for the fattening of

male bovine animals and the premium for maintaining suckler cows – Azores

Table 10

Marketing
year

Suckler cows

1992/93

1993/94

1994/95

1995/96

1996/97

7 645

6 335

8 472

8 573

9 624

1997/98

10 249

Number of
livestock
farmers
1 175

1 048

1 239

1 218

1 250

1 256

Aid (EUR)

Male bovine
animals

264 920

20 131

305 980

19 165

343 654

25 150

414 076

30 430

464 839

39 966

495 027

32 436

Number of
livestock
farmers
3 373

3 954

4 412

5 583

6 460

5 178

Aid (EUR)

697 594

925 669

1 214 020

1 469 769

1 930 358

1 566 659

Article 24 (milk sector): specific premium for the maintenance of the dairy herd –

Table 11

Azores

Number of cows

Number

of

livestock

farmers

Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

77 987

75 887

77 998

77 982

77 992

77 823

5 347

4 672

4 618

4 654

4 593

4 476

7 770 407

7 330 684

7 534 607

7 533 061

7 534 027

7 517 702

84

Table 12

Article 24: aid for private storage of cheese – Azores

Marketing year

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

Ilha cheese

Quantity (tonnes)

Aid (EUR)

--

--

217,6

271,7

317,0

350,0

460,3

59 135

74 974

95 408

104 377

134 370

Table 13

Article 25: flat-rate aid per hectare (sugarbeet) and special aid for

processing of sugarbeet harvested in the Azores into white sugar

Marketing year

Number of hectares

Number of growers

Aid (EUR)

Refined sugar production
(tonnes)
Number of processing
plants
Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

377

570

605

866

592

727

795

840

423

393

355

278

194 800

336 056

353 448

474 269

252 782

182 236

2 082

3 042

3 964

2 426

1 460

1 242

1

1

1

1

1

1

214 275

357 831

473 267

289 664

174 279

154 171

85

Table 14

Article 26: supplementary premium paid to purchasers for the collection

of leaf tobacco of the Burley P. variety – Azores

Marketing year

Quantity (tonnes)

Number of growers

Number of purchasers

Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

130

184

2

138

177

2

156

175

2

152

194

2

174

196

2

180

182

2

26 331

31 584

36 354

38 086

43 373

45 293

Article 27: aid for production and marketing of seed potatoes – Azores

Table 15

Marketing year

Number of hectares

Number of growers

Aid (EUR)

Number of contracts

Quantity (tonnes)

Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

--

--

--

--

--

--

51,96

55,00

50,90

51,44

32,50

5

9

8

3

4

25 980

27 500

25 450

25 700

16 250

1

240

1

462

9 642

20 411

--

--

--

--

--

--

1

80

3 609

86

Table 16

Article 27: aid for production of endives – Azores

Marketing year

Number of hectares

Number of growers

Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

78,3

220

76,3

193

95,3

205

76,5

164

57,8

141

64,7

147

39 804

41 886

56 213

45 120

34 080

38 138

Table 17

Article 29: flat-rate aid per hectare for continued cultivation of vines

for the production of quality wines psr – Azores

Marketing years

Number of hectares

Number of growers

Aid (EUR)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

-

-

-

-

-

-

94,7

145

121,0

126,0

132,0

195

207

227

44 665

56 886

59 389

62 929

87

Table 18

Article 30: aid for production of pineapples - Azores

Marketing year

Quantity (tonnes)

Number of growers

Aid (EUR million)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

--

--

--

1 812,35

1 887,48

2 000,00

1 903,83

1 941,66

318

332

335

316

316

1.980

2.246

2.388

2.273

2.318

88

Financing of agricultural aspects of POSEIMA: budget forecasts and outturn

Table 19

(EUR million)

Financial year
Marketing year

1992
91/92

1993
92/93

1994
93/94

1995
94/95

1996
95/96

1997
96/97

1998
97/98

1999
98/99

Average
1993-1999

Expenditure, of which:

0,8

36,0

41,7

40,0

43,1

24,2

30,2

40,5

36,5

Heading 1830; plant products

0,8

27,9

26,9

- supply

- other aid

27,3

25,8

0,6

1,1

22,7

18,5

4,2

16,3

10,7

5,6

13,8

10,0

3,8

14,3

8,8

5,5

15,5

11,3

4,2

19,6

16,0

3,6

Heading 2510; animal products

0,0

- supply

- other aid

Supply total

Other aid, total

% SSA / other aid

8,1

6,2

1,9

33,5

2,5

14,8

17,3

26,8

10,4

15,9

25,0

16,9

7,2

7,6

33,0

8,7

7,6

9,7

26,1

13,9

8,7

18,1

19,4

23,7

7,9

2,5

17,9

6,3

6,5

9,4

15,3

14,9

8,3

16,7

19,6

20,9

7,5

9,4

23,5

13,0

93/7

79/21

65/35

45/55

74/26

51/49

48/52

64/36

Initial budget appropriation,

11,5

55,0

55,0

55,0

58,0

46,0

36,0

40,0

49,3

of which

Heading 1830, plant products

Heading 2510, animal products

1,5

10,0

33,0

22,0

34,0

21,0

32,0

23,0

34,0

24,0

25,2

20,8

18,0

18,0

21,0

19,0

28,2

21,1

Source: EAGGF Guarantee Section

89

Table 20

POSEIMA support over seven marketing years

MADEIRA

SSA exemption for non-
member countries and %
of total assistance

SSA aid for Community
products and % of total
assistance

Total SSA aid (non-
member countries + EU)
and % of total assistance

Aid to local production
and % of total assistance

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

522 026 693

15,5

2 822 247 985

84,0

3 344 274 678

339 431 768

9,9

3 016 092 441

87,8

3 355 524 209

665 482 400

656 639 216

19,5

17,7

2 632 555 731

77,0

3 298 038 131

2 765 590 078

74,4

3 422 229 294

378 041 452

10,8

2 826 018 808

80,4

3 204 060 260

635 955 266

897 969 182

21,7

25,1

2 005 978 613

68,4

2 641 933 879

2 438 396 786

68,2

3 336 365 967

99,6

97,7

96,5

92,1

91,1

90,2

93,3

14 310 919

78 903 631

122 351 456

293 292 000

311 683 000

288 825 620

238 740 000

Total in PTE

4 095 545 977

17,1

18 506 880 441

77,3

22 602 426 419

94,4

1 348 106 627

0,4

2,3

3,6

7,9

8,9

9,9

6,7

5,6

Total assistance
SSA (non-
member countries
+ EU) + local
production

3 358 585 598

3 434 427 841

3 420 389 587

3 715 521 294

3 515 743 260

2 930 759 499

3 575 105 967

23 950 533 045

Total in EUR

21 188 966

96 738 528

117 927 494

6 891 905

124 819 400

Annual average
in EUR

3 026 995

13 819 790

16 846 785

984 558

17 831 343

AZORES

SSA exemption for non-
member countries and %
of total assistance

SSA aid for Community
products and % of total
assistance

Total SSA aid (non-
member countries + EU)
and % of total assistance

Aid to local production
and % of total assistance

Total assistance
SSA (non-
member countries
+ EU) + local
production

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

382 924 073

12,0

2 453 483 891

77,1

2 836 407 964

89,1

347 769 054

10,9

3 184 177 018

326 354 681

247 956 332

220 093 224

233 866 484

285 325 609

6,2

4,8

5,8

6,3

7,8

2 731 036 892

51,5

3 057 391 572

57,7

2 243 312 667

42,3

5 300 704 239

2 462 570 533

47,4

2 710 526 866

52,2

2 481 721 937

47,8

5 192 248 803

1 140 352 220

29,9

1 360 445 443

35,7

2 451 033 000

64,3

3 811 478 443

972 610 367

923 918 990

26,1

25,3

1 206 476 850

32,4

2 514 319 000

67,6

3 720 795 850

1 209 244 600

33,1

2 449 129 590

66,9

3 658 374 190

403 095 833

10,0

1 633 647 593

40,5

2 036 743 427

50,5

1 995 150 000

49,5

4 031 893 427

Total in PTE

2 099 616 236

7,3

12 317 620 486

42,6

14 417 236 722

49,9

14 482 435 248

50,1

28 899 671 970

Total in EUR

10 977 602

64 815 640

75 793 243

74 479 490

150 272 733

Annual average
in EUR

1 568 229

9 259 377

10 827 606

10 639 927

21 467 533

Source: IDOM-AGRO.GES, based on data supplied by the Portuguese authorities

90

ANNEX 3

Derogations applicable to structural measures

Article 32 provides for derogations from Council Regulation (EEC) No 2328/91 (superseded
by Regulation (EC) No 950/97) on improving the efficiency of agricultural structures17. These
derogations were discontinued by the new rural development Regulation (EC) No 1257/1999.

–

–

The conditions for granting investment aid for agricultural holdings and production
incentives for swine, eggs and poultry have been relaxed, provided that
the
requirements of animal welfare and environmental protection are complied with and
that production is for the internal market of the regions.

Up to 20 cows whose milk is intended for the local market may be included for the
purpose of calculating the compensatory allowance, which may be granted to
farmers with at least half a hectare of utilised agricultural area, for all crops.

Article 32 also provides for the possibility of requesting derogations from both Regulation
(EC) No 951/97 (formerly (EEC) No 866/9018) on improving the processing and marketing
conditions for agricultural and forestry products and from the selection criteria for
investments in this field laid down by Commission Decision 94/173/EC.

Derogations were approved by Commission Decision C(1998) 967 of 20 April 1998.

For EAGGF Guidance Section assistance, the programme provides a sum of EUR 22 million
for this joint measure, which corresponds to a total eligible investment cost of EUR
56 million.

Article 27, which concerns the structural derogations under the agricultural section of
POSEIMA, was deleted with the reform of the Structural Funds because of the flexibility of
the new Regulation (EC) No 1257/1999. Only recital 53 of the rural development Regulation
refers to the specific requirements of these regions, but there is no operative part in the text of
the Regulation. The requests for flexibility, adjustments or derogations and the proposed
solutions should be studied at the time of the review provided for in the programming
exercise.

17

18

Council Regulation (EEC) No 2328/91, OJ L 218, 6.8.1991, p. 1, as replaced by Council Regulation
(EC) No 950/97, OJ L 142, 2.6.1997, p. 1.
Council Regulation (EEC) No 866/90 of 29 March 1990, as replaced by Council Regulation (EC)
No 951/97, OJ L 142, 2.6.1997, p. 22.

91

ANNEX 4

Plant health measures

MADEIRA

–

–

–

–

–

1993:
Total: 2 000 000, comprising 1 500 000 EC and 500 000 Madeira (in ecus; ECU 1 =
PTE 198.230 on 1.8.1993)

1995:
Total: 1 200 000, comprising 900 000 EC and 300 000 Madeira (in ecus; ECU 1 =
PTE 196.159 on 1.6.1995)

1996:
Total: 800 000, comprising 600 000 EC and 200 000 Madeira (in ecus; ECU 1 =
PTE 196.329 on 1.3.1996)

1997:
Total: 1 066 666, comprising 650 000 EC and 416 666 Madeira (in ecus; ECU 1 =
PTE 195.106 on 1.2.1997)

1998:
Total: 666 667, comprising 500 000 EC and 166 667 Madeira (in ecus; ECU 1 = PTE
203.243 on 1.4.1998)

Measures:

autocidal control of fruitfly (Ceratitis capitata)
control of woolly whitefly (Aleurothixus floccosus)
control of greenhouse whitefly (Trialeurodes vaporariorum) (until 1997)

AZORES

–

–

–

1994:
Total: 666 666, comprising 500 000 EC and 166 666 Azores (in ecus; ECU 1 =
PTE 197.279 on 1.3.1994)

1995:
Total: 866 667, comprising 650 000 EC and 216 667 Azores (in ecus; ECU 1 = PTE
196.159 on 1.6.1995)

1996:
Total: 667 246, comprising 500 000 EC and 167 246 Azores (in ecus; ECU 1 =
PTE 196.329 on 1.3.1996)

Measure:

control of Japanese beetle (Popillia japonica)

92

ANNEX 5

EAGGF Guidance Section measures

Guidance Section funding is not included in the scope of this report but is outlined here so as
to provide a comprehensive view of all Community measures in favour of agriculture in the
Azores and Madeira.

Period 1989-1993

The autonomous regions of the Azores and Madeira received assistance from various
Community financing instruments in the course of the period.

The specific programmes approved in the framework of the 1985-95 PEDAP (specific
development programme for Portuguese agriculture) were essentially concerned with
infrastructure improvement (rural roads, electrification,
the improvement of
pastureland in the Azores and the conversion and restructuring of banana-growing in Madeira.

irrigation),

Under the structural measures in the POSEIMA decision of 26 June 1991: for 1992 and 1993,
the programmes approved for Madeira and the Azores involved, for Madeira, improvement
and modernisation of banana marketing structures (EUR 11 000 000); for the Azores, support
for structural assistance to investment in modernisation, in particular Pico cheese, and support
for mechanisation (EUR 5 000 000).

The Community support framework for 1989-93 provided these regions with assistance under
the Operational Programme for the restructuring of vineyards in the Azores and Madeira, with
the EAGGF Guidance Section contributing EUR 2 708 000.

Period 1994-1999

Structural Fund assistance (Community support framework 1994-1999) for these regions
comprised:

–

–

the multi-fund Objective 1 Operational Programme for Madeira,
involving a
contribution from the EAGGF Guidance Section of EUR 59 723 000. The type of
measure financed relates in particular to irrigation, rural roads, electrification,
support for investment in agricultural holdings, conversion and diversification of
production,
training, research and demonstration, processing and marketing of
agricultural products, improvement of forests,

the multi-fund Objective 1 Operational Programme for the Azores, involving a
contribution from the EAGGF Guidance Section of EUR 147 967 000. The type of
measure financed relates in particular to improvement of farm infrastructure, rural
roads, water supply, electrification, support for investment in agricultural holdings,
training, processing and marketing of agricultural products, improvement of forests
and recovery of derelict woodland.

93

Period 2000-2006

In this period, in the framework of the Structural Funds, each of the regions is again covered
by a multi-fund Objective 1 Operational Programme, with identical measures. EAGGF
Guidance Sector financing totals EUR 79 853 000 for Madeira, and EUR 133 554 000 for the
Azores.

94

REPORT FROM THE COMMISSION TO THE COUNCIL AND
THE EUROPEAN PARLIAMENT IN ACCORDANCE WITH ARTICLE 30
OF REGULATION (EEC) No 1601/92

Report on the progress made in the implementation of POSEICAN from 1992 to 1998

INTRODUCTION ............................................................................................................... 96

1.

1.1.

1.2.

2.

2.1.

2.2.

The social and economic situation in the Canary Islands......................................... 98

Background ............................................................................................................ 98

Agriculture ............................................................................................................. 99

Implementation of the POSEICAN agricultural framework regulation.................. 100

Specific supply arrangements (SSA)..................................................................... 100

Aid for agricultural products in the Canary Islands ............................................... 103

2.2.1.

Livestock production ............................................................................................ 104

2.2.2. Crop production.................................................................................................... 105

2.3.

2.4.

2.5.

2.6.

2.7.

3.

4.

Other measures..................................................................................................... 108

Budget.................................................................................................................. 109

Structural derogations........................................................................................... 109

Veterinary measures ............................................................................................. 110

National measures authorised by the Council........................................................ 110

EAGGF Guidance Section measures..................................................................... 110

Conclusions.......................................................................................................... 110

ANNEX 1 Specific Supply Arrangement (SSA)................................................................. 112

ANNEX 2 Specific aid for local agricultural products ........................................................ 124

ANNEX 3 Structural derogations ....................................................................................... 131

ANNEX 4 EAGGF Guidance Section measures................................................................. 133

95

1.

2.

3.

4.

5.

6.

7.

19

20

21

INTRODUCTION

Under Article 25 of the Act of Accession of Spain to the European Communities, the
Treaties apply to the Canary Islands, except for the provisions regarding the customs
territory, taxation, the common commercial policy, the common agricultural policy
and the common fisheries policy.

To ensure the economic and social development of the Canary Islands, Council
Regulation (EEC) No 1911/91 of 26 June 199119 ruled that the Treaties and all
Community law should apply to them without prejudice to any special measures
adopted to take account of their specific constraints and traditional economic and
taxation system.

In response to the Canary Islands' accession to the Community, Council Decision
91/314/EEC of 26 June 199120 set up a programme of options specific to the
remote and insular nature of the Canary Islands (POSEICAN). This programme
aims to take account, in the application of Community policies, of the Canary
Islands' special characteristics and handicaps associated with their
insularity,
remoteness, small size, difficult topography and climate, economic dependence on
certain products and restricted and dispersed local markets that affect the region's
economic and social circumstances.

For this purpose, on 15 June 1992 the Council adopted a framework regulation
introducing specific measures for the Canary Islands with regard to certain
agricultural products21; these measures have been implemented by a large number
of Commission implementing regulations.

The common declaration concerning the most remote regions of the Community,
annexed to the Treaty on European Union, confirmed the POSEICAN approach.

The Treaty of Amsterdam introduced a new article, Article 299(2), applicable to the
most remote regions, establishing the specific framework to be applied by the
Community to these regions. The Treaty entered into force on 1 May 1999.

The Community has also paid particular attention to the traditional banana industry
by implementing specific structural measures until Council Regulation (EEC)
No 404/93 (banana market organisation) and the Commission implementing
regulations were adopted.

Under Article 30(1) of the framework Regulation for agriculture, the Commission
must submit an annual report on the progress made in implementing the agricultural
section of POSEICAN accompanied, where appropriate, by proposals for any
adjustments needed to achieve the programme's objectives.

Under Article 30(2) of that Regulation, at the end of the third year of application of
the programme the Commission must submit to Parliament and the Council a general

OJ L 191, 29.6.1991, p. 1.
OJ L 171, 29.6.1991, p. 5.
Council Regulation (EEC) No 1601/92, OJ L 173, 27.6.1992, p. 13.

96

report on the economic situation of the Canary Islands showing the impact of the
measures taken under the Regulation.

8.

9.

It was impossible to present those reports, and so the present report fulfils the
requirement for the period from 1992 to 1998, during which time the main specific
measures were implemented under POSEICAN.

After eight years of application, it is now appropriate to report, measure by measure,
on the implementation and use made of each of the provisions.

The Spanish authorities have sent the Commission reports on the implementation of
the programme as well as some requests for amendments of the Council Regulation.

In the context of SEM 2000, the Commission appointed an external consultant to
draw up a report evaluating the agricultural section of the POSEICAN programme.
The consultant examined the achievement of the programme's objectives and
proposed some possible improvements.

The present document therefore reports on the implementation of the measures
provided for in Regulation (EEC) No 1601/92 taking account of the experience
gained and the impact of the measures implemented.

97

1.

1.1.

THE SOCIAL AND ECONOMIC SITUATION IN THE CANARY ISLANDS

Background

The archipelago of the Canary Islands is situated in the Atlantic Ocean, between 27
and 29°N, 115 km from the African coast and more than 1 000 km from mainland
Europe. This volcanic archipelago covers an area of 7 500 km² and is made up of
eight inhabited islands (the largest, Tenerife, is 2 036 km²) and several islets. The
distance between the most remote islands is around 500 km.

Besides its remoteness from mainland Europe and the small size and fragmentation
of its territory, the following features can be noted:

– very uneven terrain (the Teide volcano, which at 3 717 metres is the highest

summit in Spain, is found on Tenerife),

– high population density – 215 inhabitants per km², on average - with

population growth greater than the Spanish average,

– a lack of natural resources, with total dependence on the outside for energy,

– a shortage of water resources, with less than 180 m³ of fresh water/head/year,
making desalination of seawater necessary to satisfy demand. The cost of water
in the Canaries is double the average for the rest of Spain,

– a per capita GDP (gross domestic product) less than 75% of the average

Community GDP,

– a high rate of unemployment at around 22%.

The archipelago's economy is very dependent on the outside world and largely
specialises in the service sector, notably tourism (11 million tourists in 1998).

Division of the active population between the sectors and their relative economic
weight is as follows:

Agriculture

Industry

Services

Population (1996)

% GDP (1997)

8%

19%

73%

3.7%

19.5%

76.8%

Tourism has become the mainstay of the economy - a role played by farming until
the 1960's. The chief activities in the secondary sector are construction and
infrastructure work, both closely connected to tourism; the industrial fabric is mainly
made up of small and medium-sized enterprises catering for the local market. The
most developed industry is agri-foodstuffs.

The region has a marked balance of trade deficit: exports (mainly bananas, tomatoes,
fishery products and tobacco) are equivalent to only 23.7% of imports. Trade flows

98

are mainly within the EU: 82.3% of exports and 78.8% of imports have the European
Community as the point of destination or origin.

1.2.

Agriculture

Farming involves only 8% of the active population and 7% of businesses in the
Canary Islands. However, it plays an important role in the economy of some of the
islands and in the conservation of the countryside and the rural fabric. Only 6.5% of
the territory is cultivated. While there is a shortage of useful agricultural land
because of the difficult terrain and urban development, there is also an important
network of protected natural areas, covering 42% of the territory.

Livestock farming makes up around 20% of the final agricultural output (FAO).
Farming in the Canary Islands consists mainly of crop cultivation (= 80% FAO).
Forestry is insignificant in economic terms. The following table sets out the main
products in decreasing order of their contribution to the islands' final agricultural
output:

PRODUCT
Bananas *
Tomatoes *
Other vegetables
Ornamental plants
Laying poultry farming
Potatoes
Flowers
Vines
Goats' milk
Pigmeat
Rabbit meat
Citrus and other fruits
Cows' milk
Poultrymeat
Tropical fruit
Manure
Beef and veal
Other livestock products
Goatmeat
Extensive crops and fodder *
Sheep (milk + meat)

% of FAO
27.78
22.92
7.39
5.48
5.40
4.71
3.73
3.30
3.28
2.73
2.01
2.00
1.51
1.50
1.33
1.33
1.11
1.04
0.62
0.58
0.48

AREA
9 000 h.
4 800 h.
4 200 h.
200 h.

6 500 h.
300 h.
11 900 h.

3 000 h.

1 100 h.

6 000 h.

* Products not covered by POSEICAN.

Source: Government of the Canary Islands; Department of Agriculture, Fisheries and Food.

The sector's main features are:

– the marked contrast between farming for export, accounting for 75% of FAO,
which uses the best technology, water resources and microclimate (irrigated
land on the coastal plains), and farming for the supply of local markets, which
is less innovative and occupies the more difficult areas to cultivate (the "mid-
altitude zone" from 300 to 900 m in altitude),

99

– the lack of diversification: two "export" products - tomatoes and bananas -
account for 50% of the total production value of the archipelago. These two
crops are not covered by POSEICAN.
Two of the crops found in the "mid-altitude zone" - vines and potatoes -
occupy 40% of the archipelago's total cultivated area.
These four crops make up 70% of the total cultivated area and their
environmental and social impact is extremely important,

– the fierce competition with tourism (the archipelago's main economic activity)
over land (and water) use and the urbanisation of rural areas, prompted by
population growth greater than the European average in a necessarily limited
area,

– the small size of holdings and the resulting intensive farming: 92% of holdings
are less than 5 hectares. Furthermore, because of the difficult terrain, terrace
cultivation is practised, entailing transport and mechanisation problems,

– the supply of goods is fragmented and poorly coordinated,

– dependence on the outside world, for both the supply of inputs (fertiliser,
seeds, packaging, etc.) and the distribution of products, in a geographical
situation very remote from sources of supply and markets,

– the local market is small and fragmented (two million consumers, including
tourists)22; the countries of the regional market (Morocco, Mauritania, Senegal)
are competitors rather than trading partners,

– the lack of competitiveness of most products due to remoteness and difficult

production conditions,

– the Canary Islands have an open economy: imports are extremely important for
local consumption and the food industry, which uses mostly imported raw
materials and has few links with local producers.

2.

IMPLEMENTATION OF THE POSEICAN AGRICULTURAL FRAMEWORK REGULATION

2.1.

Specific supply arrangements (SSA)

Full application of the common agricultural policy is subject to the entry into force
of specific supply arrangements (Title I of Regulation (EEC) No 1601/92). The
objective of the specific supply arrangements is to guarantee supply to this region
and compensate for the additional costs of supplying agricultural products due to its
insularity and remoteness.

Description of the arrangements:

Each marketing year a supply balance is drawn up for the agricultural products
essential for everyday consumption and/or processing in the archipelago, listing the

22

1.62 million inhabitants, plus 10 million tourists/year. The number of tourists is recorded as a
person/year equivalent, multiplying the number by the average number of days stayed (ITER 96)
divided by 365 days. This calculation explains the figure of 2 million local consumers.

100

requirements of the Canary Islands market, taking account of local production. The
quantities of products covered by the specific supply arrangements are periodically
reviewed in the light of changes in the islands' requirements. Separate forecast
balances may be drawn up for the requirements of the industries processing and
packaging products intended for both the local and traditional export markets.

Since POSEICAN's objective of lowering prices for the end user is to be achieved by
promoting competition between sources of supply, products imported from non-
member countries under the specific supply arrangements are exempt from customs
duties and the same Community products may be supplied on the same terms.

Special attention is paid to the economic effects of these arrangements, in particular
as regards spinoff through to the end-user.

Products imported under the specific supply arrangements may not be re-exported or
re-dispatched to the rest of the Community. However, where processing takes place
in the archipelago, the restriction does not apply to traditional consignments or
exports within the limits defined. In this case, no refund is granted.

Comments and analyses:

Certain comments and analyses can be made about the performance of the specific
supply arrangements between 1992/93 and 1997/98. The main statistics on
implementation of the supply balances can be found in Annex 1.

The importance of the specific supply arrangements can be seen from their share of
expenditure, which has remained above 85% of total budget implementation on the
agricultural section of POSEICAN.

The specific supply arrangements were first conceived as a response to the
consumption requirements of the Canary Islands' population, to supply finished
agricultural products for direct consumption and to help develop production and
processing activities in the local farming and food industry. By reducing the cost of
inputs and raw materials, the arrangements seek to maintain and develop farming and
the local processing industry.

The specific supply arrangements therefore include the supply of breeding animals
and other agricultural inputs. Aid for the supply of potato seeds, multiplier chicks,
hatching eggs, pure-bred breeding animals, namely rabbits, cattle and swine is
provided for. These measures are designed to help consolidate or launch production
activities in order to strengthen local production, reducing production costs and
increasing the low rate of self-supply.

Take-up of these measures has varied.

It has been particularly high for rabbits, swine and potato seeds.

However, little use has been made of breeding chicks and hatching eggs. The fact
that there is no tradition of poultry production and breeding in the Canary Islands
could explain why the amounts allocated for these aids have not been sufficient
incentive until now.

101

In the case of breeding cattle, uptake was initially good but has declined with every
year, suggesting that there are certain obstacles to the development of the bovine
sector. However, increased uptake since 1995 hints at a revival.

To aid local production of tobacco products, since very little raw tobacco is
produced locally, imports into the Canary Islands of raw tobacco (CN code 2401)
and semi-manufactured tobacco (CN codes 2402 and 2403) are exempt from customs
duties within a quota of 20 000 tonnes of stripped raw tobacco equivalent.

three years of application of

Some difficulties arose during the first
the
arrangements, particularly a discrepancy between forecasts and actual requirements
for some balances. These discrepancies arose because of incomplete statistics (which
did not take account of certain commercial transactions between Spain and the
Canary Islands), some administrative teething troubles and quantitative and
qualitative changes in consumer habits. These difficulties were corrected in 1994
when the procedural rules were amended by Commission Regulation (EC)
No 2790/9423.

Special rules were introduced for the issue of import licences, exemption certificates
and aid certificates with a view to facilitating and accelerating the procedure. In
particular, the general requirement to lodge a security beforehand was abolished and
the period of validity of certificates was restricted to the period needed for transport;
the issue of licences and certificates was made subject to presentation of the purchase
invoice and bill of lading; a requirement to prove that the supply operation covered
by the licence or certificate has been carried out in a short time-span was introduced,
and the transfer of the rights and obligations conferred on the holder of the document
in question prohibited. Furthermore, a register of traders was created, entitling
registered traders to the benefits of the arrangements provided they comply with the
obligations set out
in the Community, national and regional rules (particularly
transmission of benefits to the end-user). Penalties were laid down for cases where
traders fail to fulfil the undertakings they enter into when they register (without
prejudice to penalties applicable under national and regional
legislation). The
Regulation also sets out the quantities of processed products that may be the subject
of traditional exports or consignments from the Canary Islands.

The competent Spanish authorities have adopted implementing laws and set up a
monitoring committee responsible for the proper management of the arrangements
relevant
and a computer system linking the customs services and the other
departments, to allow real-time monitoring of the supply balances. The Spanish
authorities provide the Commission each month with the information it needs to
monitor and assess whether the balance matches the islands' requirements.

The results of these measures and the experience gained show that there has been a
marked improvement in how the arrangements are managed and that the balances
have stabilised somewhat.

Regulation (EEC) No 1601/92 also provides for the temporary supply of three types
fresh or chilled pigmeat
of products under the special supply arrangements:

23

Commission Regulation (EC) No 2790/94 (OJ L 296, 17.11.1994, p. 23) amending Regulation (EEC)
No 1695/92 (OJ L 179, 1.7.1992, p. 1) (as amended by Regulation (EEC) No 2596/93, OJ L 238,
23.9.1993, p. 24).

102

(CN code 0203), processed meat products (CN codes 1601 and 1602) and bovines
intended for fattening and consumption in the archipelago. An assessment report,
accompanied if need be by appropriate proposals, was required after the first four
years of application of the arrangements.

After the first marketing year, the Spanish authorities no longer used the special
supply arrangements for fresh or chilled pigmeat since local production satisfied
domestic demand by that time.

However, for the rest of the products in question (bovine animals for fattening and
meat preserves), the measure expired in June 1996 before local production had
developed sufficiently to meet local needs. Pending any conclusions to be drawn
from the assessment and to avoid any sudden interruption in the application of these
measures, the Council temporarily extended them until 30 June 199724.

Following the changes introduced by the CAP reform and the Community's
undertakings after the latest GATT agreements (Uruguay Round), and in view of the
narrowing gap between world and Community prices, unit aid granted for the supply
of Community products, mainly based on current export prices, has been reduced for
certain products. In 1995/96 there was a very substantial reduction in the aid, to the
point where no aid at all was granted for some cereals, particularly common wheat.
This development gave rise to concern about the objective of offsetting extra cost so
as to cut production costs.

Within the constraints of the present rules, the Commission has carefully managed
the effects induced by these changes in the international environment. It has also
launched external evaluations under SEM 2000 to assess the real difficulties of
applying the SSA, and to prepare the Commission’s reports to the Council and to
Parliament on the implementation of these arrangements.

The external assessment report mentioned earlier revealed that the method currently
used, which must also meet the goal of promoting competition between the different
sources of supply (non-member countries/EC), overcompensated the additional costs
arising from the islands' remoteness and insularity in some cases, while failing to
fully compensate those additional costs in others.

As far as the impact of the arrangements is concerned, studies on the retail price
trends from the period before their entry into force until 1997 show that they have
kept fluctuations in the Islands at levels comparable to the rest of Spain (even smaller
for certain products). The retail price index (RPI) has increased less in the Canary
Islands than in Spain as a whole, both for the general RPI and the index relating to
food products. Most of the products that have undergone the highest price rises are
precisely those not included in the special supply arrangements. The full integration
of the Canary Islands into the Community has had no inflationary effect. This shows
the positive impact of passing on the benefits to the end user.

2.2.

Aid for agricultural products in the Canary Islands

the POSEICAN programme, aid is to be granted for

Under
the production,
processing and marketing of agricultural products, in order both to maintain and

24

Council Regulation (EC) No 2348/96, OJ L 320, 11.12.1996, p. 1.

103

strengthen traditional activities and to develop diversification. In certain cases, this
the supply
aid is supplemented by the impact on inputs of
arrangements.

the aid under

2.2.1.

Livestock production

livestock farming, particularly the beef and veal sector,

For
the Regulation
introduces aid to help develop traditional Canary Islands livestock products, within
the limits of the archipelago's consumption requirements (which are assessed in the
context of a periodic supply balance). In addition to the supply of pure-bred breeding
animals and bovines for on-site fattening, as already mentioned, a supplement of
EUR 48.3 is granted on top of the fattening aid for male bovines and the premium
for maintaining suckler cows (Article 10). These support measures have had a
relative impact. Implementation of these measures is summarised in Table 1 in
Annex 2.

A reasonable explanation of this could be that cattle farming in the archipelago is
mainly carried out on mixed holdings specialising in dairy production (with meat
production as a sideline) on small surface area. The usable agricultural area in the
islands is only 25% of the total area, and the proportion used for grazing is very
small; most farms do not have enough fodder, and this restrains the development of
the suckler herd.

Premiums for bovine animals are granted subject to a stocking density of 2 LU/ha.
Applying this stocking density to the Canary Islands considerably reduces the
number of animals eligible for the basic aid, and thus also for the supplement
provided for under POSEICAN. This restricts the number of livestock farmers
entitled to aid under POSEICAN to assist the development of specialised beef and
veal production.

in the case of suckler cows, problems have arisen because the
Furthermore,
archipelago has lost individual production quotas to the national reserve and because
dairy breeds are not eligible for the premium.

Table 2 in Annex 2 summarises the development of the bovine sector in the
archipelago.

This initial review shows that:

– the total number of bovine animals has been in decline since 1989, even
considering the herd revival from 1995 when the 1991/92 level was achieved,

– the total number of cows is falling due to the sharp decline in the dairy herd.
The dairy herd has been restructured. The use of pure-bred breeding animals
has helped to improve the dairy industry and increase yields,
thereby
maintaining milk production (see the next point, Article 11),

– the number of suckler cows, currently 1/5 of all cows, doubled during the
period under review, although this has not made up for the reduction in the
total number of dairy cows;

– the total number of male bovines has fallen since 1989, particularly those aged
more than 12 months; however, there has been an improvement since 1995.

104

The percentage of male bovines receiving a premium increased from 16% in
1993 to an average of 34% in 1996 and 1997;

– the number of slaughtered animals, both those produced locally and those
imported for fattening, has declined sharply, as has the activity of local
slaughterhouses. In this connection, it is worth noting that the supply balances
for male animals intended for fattening have not been greatly used;

– consumer trends now favour fresh meat; however, this change in preferences
has not boosted local production, the market share of which has been halved,

– meat production by local farms has stabilised during the last five years to
around 2 700 tonnes after having fallen sharply: due to the reduction in the
dairy herd, on which meat production is based, the low uptake of the supply
balance for male animals for fattening and the relative effect of the support
measures provided for in Article 10,

Aid for the human consumption of locally-produced fresh cows' milk products is
paid to dairies. After the agri-monetary amendments, the aid currently amounts to
EUR 8.34/100 kg, and may be adjusted by the Commission to ensure that these
products are disposed of normally on the local market (Article 11).

The development of the measure is summarised in Table 3 in Annex 2.

Despite being initially restricted to certain products such as raw milk, whole milk,
pasteurised milk, cream, whole-milk yoghurt and fresh cheese (Annex I
to
Regulation (EEC) No 2235/9225), the measure has had a positive effect. Given the
change in consumer habits (particularly towards skimmed products and UHT milk),
the Spanish authorities have asked for the measure to be extended to all local cows'
milk delivered to the dairies, irrespective of the product manufactured. Commission
Regulation (EC) No 1400/98 of 30 June 199826 amended the Annex to Regulation
(EEC) No 2235/92 to that effect.

In the sheepmeat and goatmeat sector (Article 13), premiums are granted in
addition to those payable under Article 5 of Council Regulation (EEC) No 3013/8927.
The premium supplement is adjusted for every marketing year (in 1998 it amounted
to 5.163 EUR/head).

This measure is very important because it makes sense to develop an activity which
is so well suited to the particular agricultural and climatic conditions of the islands,
particularly goat farming. Implementation of the measure is summarised in Table 4
in Annex 2.

2.2.2. Crop production

In the fruit and vegetables, flowers and live plants sector (except bananas,
tomatoes and potatoes for human consumption), aid per hectare is granted to
producers who undertake a programme of initiatives to develop and/or diversify

25

26

27

OJ L 218, 1.8.1992, p. 105.
OJ L 187, 1.7.1998, p. 54.
OJ L 289, 7.10.1989, p. 1.

105

production and/or improve quality. The maximum amount of aid is EUR 500 if
least EUR 300 and the
public funding from the Member State amounts to at
producers' financing to at
least EUR 200. Moreover, these initiatives should be
covered by programmes designed to run for at least three years (Article 15).

The application procedures are administratively complicated and the structure and
amount of aid have not provided sufficient incentive: in 1993 only nine applications
were received, involving a total area of 8.08 ha. No further applications have been
received since then.

To facilitate the marketing of tropical products included in the products referred to
above and harvested in the Canary Islands, aid is granted for the conclusion of annual
contracts between individual producers or producer groups and traders established in
the rest of the Community (Article 16). The volume concerned is 10 000 t per
product per year; the aid amounts to 10% of the value of the produce marketed, free
at destination (13% for joint ventures between producers and traders).

The implementation of this measure is summarised in Table 5 in Annex 2.

The measure has been favourably received by producers.

The Community contributes towards the financing of an economic analysis and
forward study of the fruit and vegetable processing industry in the Canary Islands,
with particular reference to tropical products (Article 17). This study should help
identify the bottlenecks in the industry and serve as a basis for its development. The
study, which has not yet been carried out, may be extended to include fresh fruit and
vegetables.

In the winegrowing sector, a flat-rate aid per hectare (Article 19) is granted for the
continued cultivation of vines for the production of quality wines psr.

It is economically and environmentally imperative that vineyards, which cover 10%
of the agricultural area in use (the most widespread crop in the archipelago), continue
to be cultivated, because winegrowing is practised in dry areas and on land that is
particularly vulnerable to erosion. The development of the measure is summarised in
Table 6 in Annex 2.

The measure has proved attractive to growers, as evidenced by the increase in the
number of hectares and beneficiaries. Moreover, the number of designations of origin
has increased from one to nine during the review period.

The aid, to be paid exclusively to producer groups from the 1997/98 wine year
onwards, amounts to EUR 476.76/ha following the agri-monetary adjustments28.

In the absence of producer groups,
the Commission has provisionally granted
authorisation for the aid to be paid to individual producers via the regulatory boards
for the designations of origin ("Consejos reguladores").

Potato cultivation is also a key traditional agricultural activity in the Canary Islands,
for both economic and social reasons: around 10 000 growers cultivate an average of

28

Regulation (EC) No 2537/95, OJ L 260, 31.10.1995, p. 10.

106

0.7 hectares. Cultivation takes place in areas of average altitude in the islands;
production costs are extremely high because of the difficult terrain and small size of
holdings (terrace cultivation), as well as the high prices of inputs and water
irrigation.

POSEICAN's strategy for continuing this activity comprises three types of measures:

– aid per hectare amounting to EUR 596/ha, paid up to a maximum of 12 000 ha

per year (Article 20),

– the supply of seed potatoes under the special supply arrangements in order to

bring down production costs (Annex to Article 3),

– the restriction on deliveries of potatoes for human consumption during

sensitive periods for the marketing of local production (Article 21).

Regulation (EEC) No 1601/92 provides for this restriction to be gradually phased out
over a period of ten marketing years, i.e. by the end of 2001. Under the latest GATT
agreements (Uruguay Round),
the measure could not be continued beyond
31 December 199829, and so the application period has been shortened by three
marketing years.

The development of aid per hectare can be broken down as shown in Table 7 in
Annex 2.

The measure appears to have been attractive to growers, although the subsidised area
was smaller than both the cultivated area (around 7 000 ha) and the maximum
eligible area.

is not sufficient

This measure, as well as aid for the supply of seeds under the special supply
arrangements,
the lack of competitiveness of local
production. Local production, which has become very vulnerable now that it is no
longer protected by Article 21, is not competitive but is vitally important from an
economic, social and environmental point of view.

to offset

In 1999, the first year in which Article 21 was not applicable, the serious difficulties
in the local situation prompted the Spanish authorities to ask the Commission to
apply a safeguard clause.

Like the restriction in force up until the previous year, this request sought to restrict
deliveries of potatoes for human consumption to the Canary Islands during August,
September and October 1999, relying on the safeguard clause provided for in
Article 379 of the Act of Accession, applicable to the Canary Islands under
Article 11 of Regulation (EEC) No 1911/91 until 31 December 1999.

This type of measure, limited to intra-Community trade, might have caused provoked
deflections in trade and, in the light of information now available, would have been
disproportionate.

29

Commission Regulation (EC) No 984/96, OJ L 131, 1.6.1996, p. 51.

107

In the end, a Regulation was adopted introducing safeguard measures permitting the
market situation for potatoes for human consumption in the Canary Islands to be
closely monitored, so that more restrictive measures could be introduced if
difficulties persist and significant quantities of potatoes for human consumption are
delivered to the archipelago. The procedure for issuing licences for the delivery of
potatoes, similar to the one in force until the previous year, has been maintained, as
has the requirement that the Spanish authorities' send information to the Commission
on a weekly basis.

The Regulation was adopted by the Commission on 27 August 1999.

Aid is granted for the production of quality honey specific to the Canary Islands,
produced by the local breed of 'black bees'. The aid is fixed at EUR 20 per hive in
production and per marketing year, and is paid to associations of beekeepers, up to a
maximum number of 5 000 hives (Article 24).

The measure was fully utilised and helped maintain the population of black bees
which had, before the entry into force of POSEICAN, been in danger of being
supplanted by imported breeds which were more productive but more susceptible to
disease. Implementation of this measure is summarised in Table 8 in Annex 2.

2.3.

Other measures

POSEICAN and Council Regulation (EEC) No 1601/92 also provide for some
derogations from the common agricultural policy in order to help maintain local
production. These include:

– adjusting the dairy quota to a level that will allow reasonable development of

local production,

– in the winegrowing sector, exemption from the distillation obligation and non-
application of voluntary distillation and the grubbing premium (Article 18),

– in the cereals sector, the co-responsibility levy is not applicable (Article 25)

(NB: this levy is now no longer applicable in the Community).

Furthermore, the consumption aid for olive oil provided for in Council Regulation
No 136/66/EEC is paid to undertakings in the Canary Islands packaging olive oil
produced in the rest of the Community (Article 22). This aid was abolished under the
reform of the olive oil market organisation30 and should therefore be deleted in this
Regulation.

To ensure greater awareness and consumption of products specific to the most
remote regions, the POSEI programmes provide for the introduction of a graphic
symbol (Article 26),
for which the Commission launched a competition in
December 1993.

After the logo was chosen in 1994, the Commission financed the organisation of a
promotion campaign for this logo to publicise its existence, significance and the
advantages of its use.

30

Council Regulation (EC) No 1638/98, OJ L 210, 28.7.1998, p. 32.

108

Conditions of use for the logo are laid down in Commission Regulation (EC)
No 1418/9631.

The first Canary Islands products authorised to bear this logo have now been
recognised by the competent Canary Islands authorities. They are bananas, tomatoes,
French beans, cucumbers, wine and rum. The competent authorities are currently
considering other products (honey, cheese, 'gofio', figs, jam and almonds).

2.4.

Budget

Specific budget headings have been introduced in the Community budget under the
EAGGF Guarantee Section for financing the agricultural section of POSEICAN. The
corresponding forecasts and implementation are set out in Table 9 in Annex 2.

In addition, the revenue to the Community budget foregone as a result of exemption
from customs duties for products imported from non-member countries under the
specific supply arrangements should be included in EAGGF Guarantee Section
expenditure.

Table 10 in Annex 2 summarises the overall cost of POSEICAN.

The following conclusions can be drawn from this information:

– the specific supply arrangements represent around 87% of the average overall
cost of the programme for the period concerned, and the agricultural measures
around 13%,

– the arrangements introduced in 1992 have now stabilised. Their overall cost
stands at around ESP 30 000 million, i.e. an average of EUR 183 million for
the period concerned,

– the appropriation in the EAGGF Guarantee Section budget has always
exceeded expenditure. This gap reflected the difficulty of adopting supply
balances that corresponded to real local requirements at a time when the
agricultural production aid measures were being launched and picking up
speed. All measures have now reached cruising speed and stabilised,

– there has been a constant drop in EAGGF Guarantee Section expenditure,
mainly due to the fall in expenditure on the supply arrangements, particularly
for crop products
specific supply
arrangements),

(see point 2.1 above: analysis of

– there has been a commensurate increase in exemption from customs duties,

which represents revenue forgone for the Community budget.

2.5.

Structural derogations

Article 27 provides for derogations to Council Regulation (EEC) No 2328/91,
(superseded by Regulation (EC) No 950/97) on improving the efficiency of
agricultural structures.

31

OJ L 182, 23.7.1996, p. 9.

109

Article 27, which concerns the structural derogations under the agricultural section of
POSEICAN, was deleted with the reform of the Structural Funds because of the
flexibility of the new Regulation (EC) No 1257/1999. Only Recital (53) of the 'Rural
development' Regulation refers to the specific requirements of these regions, but
there is no operative part in the text of the Regulation. The requests for flexibility,
adjustments or derogations and the proposed solutions should be studied at the time
of the review provided for in the programming exercise.

2.6.

Veterinary measures

Article 28 of Regulation (EEC) No 1601/92 provided for amendments to Directives
72/462/EEC and 90/675/EEC so as to allow the Commission to derogate from the
health and hygiene rules for meat imports until 31 December 1994. At the request of
the Spanish authorities, the Commission adopted Decision 93/78/EEC to permit
importation under derogation from a slaughterhouse in Paraguay; the decision was
repealed on 14 April 1993 by Decision 93/249/EEC.

These derogations are no longer relevant and should be deleted.

2.7.

National measures authorised by the Council

Spain has been authorised to grant regional aid for the production of raw tobacco in
the Canary Islands. The maximum amount of the regional aid is equal to the
difference between the aid previously paid in the Canaries and the Community
premium introduced by Regulation (EEC) No 727/70 (superseded by Council
Regulation No 2075/92), within the limit of the quantity traditionally produced in the
islands (Article 23).

The development of the measure is summarised in Table 11 in Annex 2.

Production, which only involves a small number of local growers on the island of
Las Palmas (the only production area), has fallen somewhat and the detailed rules for
implementing the arrangements for individual quotas for growers have caused
problems. Payment of aid for the year is based on the average quantity sold to the
industry in the three years previous to the last harvest32.

3.

EAGGF GUIDANCE SECTION MEASURES

Guidance Section funding is not included in the scope of this report but is outlined in
the Annex to give a comprehensive list of all Community measures in favour of
agriculture in the Canary Islands.

4.

CONCLUSIONS

Agricultural measures which are innovative and adapted to the local situation are a
major aspect of the Programmes of specific orientations for remote and insular
regions. Altogether, these measures have helped to offset some of the constraints

32

Regulation (EEC) No 2075/92, OJ L 215, 30.7.92, p. 70.

110

affecting production costs. Alongside support from the CAP, they have helped to
improve the quality or increase the volume of local output.

The difficulties encountered in implementing some of the measures, an analysis of
the Spanish authorities' requests to the Commission by the and the conclusions of the
external assessment report on the agricultural section of POSEICAN suggest certain
adjustments. Some amendments can be made by the Commission while others will
require the Council to adapt the POSEICAN agricultural framework Regulation.

The Commission therefore intends, in the context of this report, to propose a Council
Regulation, with three aims:

– to adapt the specific supply arrangements, particularly the list of products
covered, in the light of the changes in requirements noted and taking greater
account of the additional costs of supplying the region,

– to adjust measures which experience has shown to be poorly suited to the real
situation in the region, so as to improve their incentive power and make them
more effective,

– to implement new measures to take account of specific local conditions and

requirements, within the framework of the POSEICAN objectives.

111

ANNEX 1

Specific Supply Arrangement (SSA)

Utilisation by marketing year of supply balances adopted
(Source: Ministerio de Economía y Hacienda – Subdirección General de Comercio Exterior
de Productos Agroalimentarios – Madrid)

1992/1993

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

0102 10 00
ex 0102 90
0103 10 00 100
0103 10 00 200
0105 11 00
ex 0106 0010 100 Rabbits for breeding;

Pure-bred bovines for breeding
Bovines for fattening
Pure-bred boars for breeding
Pure-bred sows for breeding
Chicks for breeding

grandparents

Fresh beef and veal
Frozen beef and veal
Fresh pigmeat
Frozen pigmeat
Frozen pigmeat DC
Frozen pigmeat IC
Frozen poultrymeat
Frozen poultrymeat DC
Frozen poultrymeat IC
Liquid milk
Liquid milk DC
Liquid milk IC
Condensed milk
Condensed milk DC
Condensed milk IC
Butter
Butter DC
Butter IC

ex 0106 0010 200 Rabbits for breeding; parents
0201
0202
ex 0203
ex 0203
ex 0203
ex 0203
ex 0207
ex 0207
ex 0207
0401
0401
0401
0402
0402
0402
0405
0405
0405
0406 30 / 0406 90 Cheese
0406 90 86,7,8
ex 0407 00 19
ex 0408
0701 10 00
1001
1003
1004
1005
1006 30
1006 40
1103 11 50
1103 13
1107
1210

Other cheese
Hatching eggs
Dried egg
Potatoes (seed)
Wheat
Barley
Oats
Maize
Rice
Rice (broken)
Wheat meal
Maize meal
Malt
Hops

head
head
head
head
Units
Units

Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
Units
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

112

4.300
14.200
160
2.200
525.000

3.612
5.050
59
981
95.000

3.612
1.120
59
981
95.000

0
3.930
0
0
0
0

10.200.000
27.000.000
1.860.000
19.000.000

10.308.672
26.849.112
2.301.293
12.566.871

37.000.000

36.874.088

80.000.000

80.168.240

21.000.000

20.751.430

4.500.000

2.810.559

13.000.000

12.729.070

19.000.000
1.000.000

525.000
400.000
12.000.000

97.200
97.200
28.800
28.800
10.168.727
10.200.727
124.000.000 124.472.004 107.979.500
13.643.515
18.879.213
482.840
482.840
180.000.000 160.130.309
12.247.174
1.794.150
3.260.400
8.803.532
9.770.700
51.510

12.000.000
2.000.000
4.300.000
30.000.000
16.500.000
500.000

2.152.898

3.073.986

11.595.054

80.124.085

9.659.256
12.028.154
1.964.152
5.225.554

0
649.416
14.820.958
337.141
7.056.624
0
0
33.800.102
0
0
44.155
0
0
9.156.376
0
0
657.661
0
0
330.272
0
0
0
32.000
16.492.504
5.235.698
0
27.880.240 132.250.069
1.950.395
10.296.779
975.150
819.000
0
3.260.400
0
8.803.532
4.100.000
5.670.700
0
51.510

12.398.798

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

Olive oil
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil

1509 10 90 100
1509 10 90 900
1509 90 00 100
1509 90 00 900
1510 00 90 100
1510 00 90 900
1507/16 (ex09/10) Vegetable oil
1507/16 (ex09/10) Vegetable oil DC
1507/16 (ex09/10) Vegetable oil IC
1601 00
1602 20 90
1602 31
1602 41 10
1602 42 10
1602 49
1602 50
1701 99 10
ex 1702
1901 90 90
1901 90 99
2007 99
2007 99
2007 99
2008 20
2008 30
2008 40
2008 40
2008 40
2008 50
2008 70
2008 80
2008 80
2008 80
2008 92
2008 92
2008 92
2008 99
2106 90 92
2204 21
2204 29

Prepared meat products
Liver preserves
Turkey preparations
Hams and cuts
Shoulders and cuts
Other pigmeat preserves
Other meat preserves
Sugar
Glucose
Skimmed-milk preparations
Skimmed-milk preparations IC
Unhomog. fruit preparations
Unhomog. fruit preparations DC
Unhomog. fruit preparations IC
Fruit preserves (pineapple)
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
Other fruit preserves
Baby foods
Wine (bottled)
Wine (in bulk)

(citrus)
(pears)
(pears) DC
(pears) IC
(apricots)
(peaches)
(strawberries)
(strawberries)DC
(strawberries)IC
(mixtures)
(mixtures) DC
(mixtures) IC

DC = direct consumption
IC = industrial consumption

1.000.000
600.000
10.800.000
1.500.000
350.000
150.000
35.000.000

12.000.000
1.900.000
600.000
4.000.000
2.600.000
3.450.000
2.500.000
60.000.000
3.000.000
12.000.000

239.763

239.763

8.174.601
304.549
18.351

8.174.601
304.549
18.351

31.740.616

20.524.933

8.512.252
429.004
49.064
3.893.732
2.608.663
3.498.045
1.719.801
57.060.332
451.980
4.536.736

8.356.186
425.619
49.064
3.887.999
2.594.783
3.466.949
982.514
5.771.487
433.980
4.536.736

1.750.000

1.826.527

1.671.271

2.400.000
500.000
1.600.000

2.309.227
279.341
995.153

20.262
279.341
33.254

220.000
7.600.000
100.000

198.362
5.078.343
96.142

180.105
3.822.171
96.142

1.650.000

1.579.430

677.113

650.000
800.000
11.700.000
11.700.000

169.814
125.285
12.413.900
9.057.700

89.289
125.285
12.405.000
9.057.700

0
0
0
0
0
0
11.215.683
0
0
156.066
3.385
0
5.733
13.880
31.096
737.287
51.288.845
18.000
0
0
155.256
0
0
2.288.965
0
961.899
0
0
18.257
1.256.172
0
0
0
902.317
0
0
80.525
0
8.900
0

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
l
l

113

1993/1994

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

breeding;

for

0102 10 00
ex 0102 90
0103 10 00 100
0103 10 00 200
0105 11 00
ex 0106 00 10 100

Pure-bred bovines for breeding
Bovines for fattening
Pure-bred boars for breeding
Pure-bred sows for breeding
Chicks for breeding
Rabbits
grandparents
Rabbits for breeding; parents
Fresh beef and veal
Frozen beef and veal
Fresh pigmeat
Frozen pigmeat
Frozen pigmeat DC
Frozen pigmeat IC
Frozen poultrymeat
Frozen poultrymeat DC
Frozen poultrymeat IC
Liquid milk
Liquid milk DC
Liquid milk IC
Condensed milk
Condensed milk DC
Condensed milk IC
Butter
Butter DC
Butter IC
Cheese
Other cheese
Hatching eggs
Dried egg
Potatoes (seed)
Wheat
Barley
Oats
Maize
Rice
Rice (broken)
Wheat meal
Maize meal
Malt
Hops
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil

ex 0106 00 10 200
0201
0202
ex 0203
ex 0203
ex 0203
ex 0203
ex 0207
ex 0207
ex 0207
0401
0401
0401
0402
0402
0402
0405
0405
0405
0406 30 / 0406 90
0406 90 86,7,8
ex 0407 00 19
ex 0408
0701 10 00
1001
1003
1004
1005
1006 30
1006 40
1103 11 50
1103 13
1107
1210
1509 10 90 100
1509 10 90 900
1509 90 00 100
1509 90 00 900
1510 00 90 100
1510 00 90 900
1507/16 (exc. 09/10) Vegetable oil
1507/16 (exc. 09/10) Vegetable oil DC
1507/16 (exc. 09/10) Vegetable oil IC

head
head
head
head
Units
Units

Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
Units
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

114

4.300
12.000
160
2.200
525.000
600

3.273
2.675
158
2.200

282

3.087
1.687
158
2.200

282

186
988
0
0
0
0

5.000
11.000.000
28.000.000

157
11.235.798
28.979.992

157
10.943.614
18.846.890

0
292.184
10.133.102

19.000.000

16.105.043

10.369.508

37.000.000

35.917.763

11.811.360

85.000.000

90.543.771

90.416.008

22.000.000

24.719.343

15.523.053

3.500.000

3.530.107

2.469.735

13.000.000

13.229.966

12.953.112

500.000
400.000
12.000.000

19.000.000
1.000.000

48.008
48.008
9.769.950
9.769.950
124.000.000 157.076.302 139.426.934
18.538.800
18.538.800
1.195.980
1.195.980
83.519.360
180.000.000 166.537.139
5.644.732
10.112.103
840.536
1.781.877
2.740.000
2.740.000
2.940.000
2.940.000
12.845.020
12.845.020
25.835
45.835
148.486
148.486

12.000.000
2.000.000
4.300.000
20.000.000
16.500.000
500.000
1.000.000
600.000
10.000.000
1.500.000
350.000
150.000
35.000.000

9.548.477
15.000
12.723

6.324.577
15.000
12.723

32.021.557

26.005.720

5.735.535
0
0
24.106.403
0
0
127.763
0
0
9.196.290
0
0
1.060.372
0
0
276.854

0
0
0
17.649.368
0
0
83.017.779
4.467.371
941.341
0
0
0
20.000
0
0
3.223.900
0
0
0
6.015.837
0
0

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

1601 00
1602 20 90
1602 41 10
1602 42 10
1602 49
1602 50
1701 99 10
ex 1702
1901 90 90
1901 90 99
2007 99
2007 99
2007 99
2008 20
2008 30
2008 40
2008 40
2008 40
2008 50
2008 70
2008 80
2008 80
2008 80
2008 92
2008 92
2008 92
2008 99
2106 90 92
2204 21
2204 29

Prepared meat products
Liver preserves
Hams and cuts
Shoulders and cuts
Other pigmeat preserves
Other meat preserves
Sugar
Glucose
Skimmed-milk preparations
Skimmed-milk preparations IC
Unhomog. fruit preparations
Unhomog. fruit preparations DC
Unhomog. fruit preparations IC
Fruit preserves (pineapple)
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
Other fruit preserves
Baby foods
Wine (bottled)
Wine (in bulk)

(citrus)
(pears)
(pears) DC
(pears) IC
(apricots)
(peaches)
(strawberries)
(strawberries)DC
(strawberries)IC
(mixtures)
(mixtures) DC
(mixtures) IC

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
l
l

12.000.000
600.000
4.000.000
2.600.000
3.500.000
2.500.000
60.000.000
1.500.000
7.000.000

10.771.455
606.939
4.082.854
2.758.514
3.597.198
2.445.165
54.363.077
1.719.102
7.038.174

10.551.037
604.728
4.080.110
2.758.514
3.592.595
1.508.540
501.077
1.699.302
7.038.174

1.750.000

3.024.625

2.899.969

2.400.000
500.000
1.600.000

2.338.299
144.949
133.398

617.271
144.949
0

220.000
7.600.000
100.000

102.602
5.258.703
119.998

84.055
4.092.785
119.998

1.650.000

1.771.318

1.200.663

650.000
800.000
12.500.000
14.000.000

238.339
121.900
11.012.100
13.113.300

232.914
121.900
11.012.100
13.113.300

220.418
2.211
2.744
0
4.603
936.625
53.862.000
19.800
0
0
124.656
0
0
1.721.028
0
133.398
0
0
18.547
1.165.918
0
0
0
570.655
0
0
5.425
0
0
0

DC = direct consumption
IC = industrial consumption

115

1994/1995

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

0102 10 00
ex 0102 90
0103 10 00 100
0103 10 00 200
0105 11 00
ex 0106 00 10 100

Pure-bred bovines for breeding
Bovines for fattening
Pure-bred boars for breeding
Pure-bred sows for breeding
Chicks for breeding
Rabbits for breeding;
grandparents
Rabbits for breeding; parents
Fresh beef and veal
Frozen beef and veal
Fresh pigmeat
Frozen pigmeat
Frozen pigmeat DC
Frozen pigmeat IC
Frozen poultrymeat
Frozen poultrymeat DC
Frozen poultrymeat IC
Liquid milk
Liquid milk DC
Liquid milk IC
Condensed milk
Condensed milk DC
Condensed milk IC
Butter
Butter DC
Butter IC
Cheese
Other cheese
Hatching eggs
Dried egg
Potatoes (seed)
Wheat
Barley
Oats
Maize
Rice
Rice (broken)
Wheat meal
Maize meal
Malt
Hops
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil

ex 0106 00 10 200
0201
0202
ex 0203
ex 0203
ex 0203
ex 0203
ex 0207
ex 0207
ex 0207
0401
0401
0401
0402
0402
0402
0405
0405
0405
0406 30 / 0406 90
0406 90 86,7,8
ex 0407 00 19
ex 0408
0701 10 00
1001
1003
1004
1005
1006 30
1006 40
1103 11 50
1103 13
1107
1210
1509 10 90 100
1509 10 90 900
1509 90 00 100
1509 90 00 900
1510 00 90 100
1510 00 90 900
1507/16 (exc. 09/10) Vegetable oil
1507/16 (exc. 09/10) Vegetable oil DC
1507/16 (exc. 09/10) Vegetable oil IC

head
head
head
head
Units
Units

Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
Units
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

116

4.300
8.000
160
3.000
525.000
600

2.147
2.195
118
2.799
14.000
335

2.396
1.964
128
2.981
14.000
360

1.000
11.500.000
29.000.000

1.000
11.500.000
21.688.705

1.006
11.474.538
10.494.913

19.000.000
14.000.000
5.000.000
37.000.000

14.178.668
11.484.863
2.693.805
30.616.399

11.962.490
9.376.199
2.586.291
12.510.746

90.000.000
88.000.000
2.000.000
25.000.000
11.500.000
13.500.000
3.500.000

89.076.777
916.375

8.251.243
11.031.779
3.141.540

91.833.920
91.303.108
530.812
12.859.440
8.339.598
4.519.842
2.402.989

20.000.000
1.440.000

13.500.000
1.500.000
500.000
400.000
12.000.000

12.568.131
12.725.453
1.488.667
1.436.090
0
0
76.990
74.290
10.830.750
9.737.399
155.000.000 155.417.468 129.802.056
13.880.920
18.648.496
1.471.634
1.438.301
73.350.150
179.760.000 172.137.963
2.789.883
8.997.784
891.880
1.915.748
1.179.000
1.159.360
2.898.000
2.894.120
15.297.060
15.169.372
29.000
29.000
96.827
111211
0
0
2.243.687
6.818.094
102.120
102.120
7.990
5.065
0
0
22.384.420
24.834.089
5.296.472
5.205.167
17.087.948
19.628.922

12.000.000
2.000.000
4.300.000
5.000.000
16.500.000
500.000
400.000
400.000
7.467.000
1.000.000
233.000
100.000
35.000.000
10.500.000
24.500.000

0
410
0
0
0
0

0
162.271
11.718.012
0
2.880.457
2.659.717
220.740
18.964.696
0
0
410.030
24.466
385.564
8.235.190
885.692
7.349.498
1.037.434
0
0
157.322
-52.577
0
-2.700
-1.093.351
25.615.412
4.767.576
-33.333
98.787.813
6.207.901
1.023.868
-19.640
-3.880
-127.688
0
5.108.340
0
4.574.407
0
-2.925
0
2.449.669
-91.305
2.540.974

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

1601 00
1602 20 90
1602 41 10
1602 42 10
1602 49
1602 50
1701 99 10
ex 1702
1901 90 90
1901 90 99
2007 99
2007 99
2007 99
2008 20
2008 30
2008 40
2008 40
2008 40
2008 50
2008 70
2008 80
2008 80
2008 80
2008 92
2008 92
2008 92
2008 99
2106 90 92
2204 21
2204 29

Prepared meat products
Liver preserves
Hams and cuts
Shoulders and cuts
Other pigmeat preserves
Other meat preserves
Sugar
Glucose
Skimmed-milk preparations
Skimmed-milk preparations IC
Unhomog. fruit preparations
Unhomog. fruit preparations DC
Unhomog. fruit preparations IC
Fruit preserves (pineapple)
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
Other fruit preserves
Baby foods
Wine (bottled)
Wine (in bulk)

(citrus)
(pears)
(pears) DC
(pears) IC
(apricots)
(peaches)
(strawberries)
(strawberries)DC
(strawberries)IC
(mixtures)
(mixtures) DC
(mixtures) IC

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
l
l

12.000.000
600.000
4.000.000
3.000.000
4.000.000
2.500.000
60.000.000
1.800.000

8.259.585
491.644
3.672.564
2.610.884
3.998.311
1.987.882
59.132.400
1.526.829

8.699.315
558.047
3.899.008
2.704.748
4.142.887
1.223.173
208.950
1.570.229

7.000.000
3.000.000
2.475.426
524.574
2.880.000
500.000
1.600.000

6.999.571

4.065.836

2.466.680
524.460
2.879.990
265.410
106.271

2.544.031
481.760
1.596.081
246.934

220.000
7.096.000
144.000

122.517
6.459.607
143.772

123.619
5.770.566
147.726

1.650.000

1.701.631

1.280.095

650.000

383.237

328.475

-439.730
-66.403
-226.444
-93.864
-144.576
764.709
58.923.450
-43.400
0
2.933.735
-34.651
-77.351
42.700
1.283.909
18.476
106.271
0
0
-1.102
689.041
-3.954
0
0
421.536
0
0
54.762
0
0
0

DC = direct consumption
IC = industrial consumption

117

1995/1996

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

0102 10 00
ex 0102 90
0103 10 00 100
0103 10 00 200
0105 11 00
ex 0106 00 10 100

Pure-bred bovines for breeding
Bovines for fattening
Pure-bred boars for breeding
Pure-bred sows for breeding
Chicks for breeding
Rabbits for breeding;
grandparents
Rabbits for breeding; parents
Fresh beef and veal
Frozen beef and veal
Fresh pigmeat
Frozen pigmeat
Frozen pigmeat DC
Frozen pigmeat IC
Frozen poultrymeat
Frozen poultrymeat DC
Frozen poultrymeat IC
Liquid milk
Liquid milk DC
Liquid milk IC
Condensed milk
Condensed milk DC
Condensed milk IC
Butter
Butter DC
Butter IC
Cheese
Other cheese
Hatching eggs
Dried egg
Potatoes (seed)
Wheat
Barley
Oats
Maize
Rice
Rice (broken)
Wheat meal
Maize meal
Malt
Hops
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil

ex 0106 00 10 200
0201
0202
ex 0203
ex 0203
ex 0203
ex 0203
ex 0207
ex 0207
ex 0207
0401
0401
0401
0402
0402
0402
0405
0405
0405
0406 30 / 0406 90
0406 90 86,7,8
ex 0407 00 19
ex 0408
0701 10 00
1001
1003
1004
1005
1006 30
1006 40
1103 11 50
1103 13
1107
1210
1509 10 90 100
1509 10 90 900
1509 90 00 100
1509 90 00 900
1510 00 90 100
1510 00 90 900
1507/16 (exc. 09/10) Vegetable oil
1507/16 (exc. 09/10) Vegetable oil DC
1507/16 (exc. 09/10) Vegetable oil IC

head
head
head
head
Units
Units

Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
Units
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

118

4.300
8.000
160
4.000
525.000
600

1.868
2.508
152
3.479
0
600

1.868
2.508
152
3.479
0
600

0
0
0
0
0
0

1.000
15.500.000
24.500.000

1.000
15.489.921
19.307.860

1.000
14.901.355
2.611.829

0
588.566
16.696.031

19.000.000
14.000.000
5.000.000
37.000.000

15.921.391
13.182.756
2.738.635
32.753.692

2.000.000

110.000.000 104.317.447 104.317.447
108.000.000 103.549.600 103.549.600
767.847
11.061.473
7.774.257
3.287.216
2.882.439

767.847
15.914.665
9.239.284
6.675.381
3.459.864

11.500.000
13.500.000
3.500.000

12.676.234
10.036.054
2.640.180
10.547.448

12.100.661
1.503.577
0
32.376
11.541.350
57.604.574
523.422
1.415.460

3.245.157
3.146.702
98.455
22.206.244
0
0
0
0
0
4.853.192
1.465.027
3.388.165
577.425
0
0
296.160
246
0
0
0
21.941.744
20.976.578
0
42.845.522 137.154.478
7.640.172
1.357.058
0
0
0
10.080
0
0
579.001
0
0
0
9.233.790
332.666
8.901.124

4.238.344
642.942
0
3.386.015
14.020.471
25.070
247.715
0
7.435.893
5.496
108.423
1.445
22.919.346
7.320.470
15.598.876

13.500.000
1.500.000
500.000
400.000
12.000.000
155.000.000
30.000.000
1.600.000

12.396.821
1.500.000
0
32.376
11.541.350
79.546.318
21.500.000
1.415.460
180.000.000 180.000.000
11.878.516
2.000.000
0
3.386.015
14.020.471
35.150
247.715
0
8.014.894
5.496
108.423
1.445
32.153.136
7.653.136
24.500.000

12.000.000
2.000.000
4.300.000
5.000.000
16.500.000
500.000
600.000
600.000
11.200.000
1.500.000
350.000
150.000
35.000.000
10.500.000
24.500.000

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

1601 00
1602 20 90
1602 41 10
1602 42 10
1602 49
1602 50
1701 99 10
ex 1702
1901 90 90
1901 90 99
2007 99
2007 99
2007 99
2008 20
2008 30
2008 40
2008 40
2008 40
2008 50
2008 70
2008 80
2008 80
2008 80
2008 92
2008 92
2008 92
2008 99
2106 90 92
2204 21
2204 29

Prepared meat products
Liver preserves
Hams and cuts
Shoulders and cuts
Other pigmeat preserves
Other meat preserves
Sugar
Glucose
Skimmed-milk preparations
Skimmed-milk preparations IC
Unhomog. fruit preparations
Unhomog. fruit preparations DC
Unhomog. fruit preparations IC
Fruit preserves (pineapple)
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
Other fruit preserves
Baby foods
Wine (bottled)
Wine (in bulk)

(citrus)
(pears)
(pears) DC
(pears) IC
(apricots)
(peaches)
(strawberries)
(strawberries)DC
(strawberries) IC
(mixtures)
(mixtures) DC
(mixtures) IC

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
l
l

12.000.000
600.000
4.000.000
3.000.000
4.000.000
2.500.000
60.000.000
1.800.000

10.211.846
591.789
3.999.907
1.893.814
3.384.302
2.125.714
59.636.396
1.073.624

10.205.221
584.580
3.999.907
1.893.814
3.384.302
1.266.705
2.411.125
1.073.624

6.625
7.209
0
0
0
859.009
57.225.271
0

7.000.000
3.750.000
2.917.000
833.000
3.200.000
500.000
1.600.000

6.796.857
3.749.746
2.916.746
833.000
3.200.000
243.991
332.838

4.571.857
3.631.878
2.801.308
830.570
2.478.954
243.991
0

220.000
7.600.000
360.000

210.062
6.181.067
317.032

210.062
5.144.010
317.032

1.850.000

1.850.000

1.407.364

650.000
200.000
9.625.000
10.791.700

289.499
141.428
9.625.000
10.791.700

239.397
141.428
9.625.000
10.791.700

2.225.000
117.868
115.438
2.430
721.046
0
332.838
0
0
0
1.037.057
0
0
0
442.636
0
0
50.102
0
0
0

DC = direct consumption
IC = industrial consumption

119

1996/1997

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

0102 10 00
ex 0102 90
0103 10 00 100
0103 10 00 200
0105 11 00
ex 0106 00 10 100 Rabbits for breeding;

Pure-bred bovines for breeding
Bovines for fattening
Pure-bred boars for breeding
Pure-bred sows for breeding
Chicks for breeding

grandparents

Fresh beef and veal
Frozen beef and veal
Fresh pigmeat
Frozen pigmeat
Frozen pigmeat DC
Frozen pigmeat IC
Frozen poultrymeat
Frozen poultrymeat DC
Frozen poultrymeat IC
Liquid milk
Liquid milk DC
Liquid milk IC
Condensed milk
Condensed milk DC
Condensed milk IC
Butter
Butter DC
Butter IC

ex 0106 00 10 200 Rabbits for breeding; parents
0201
0202
ex 0203
ex 0203
ex 0203
ex 0203
ex 0207
ex 0207
ex 0207
0401
0401
0401
0402
0402
0402
0405
0405
0405
0406 30 / 0406 90 Cheese
0406 90 86,7,8
ex 0407 00 19
ex 0408
0701 10 00
1001
1003
1004
1005
1006 30
1006 40
1103 11 50
1103 13
1107
1210
1509 10 90 100
1509 10 90 900
1509 90 00 100
1509 90 00 900
1510 00 90 100
1510 00 90 900
1507/16 (exc.09/10) Vegetable oil
1507/16 (exc.09/10) Vegetable oil DC
1507/16 (exc.09/10) Vegetable oil IC

Other cheese
Hatching eggs
Dried egg
Potatoes (seed)
Wheat
Barley
Oats
Maize
Rice
Rice (broken)
Wheat meal
Maize meal
Malt
Hops
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil

head
head
head
head
Units
Units

Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
Units
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

120

4.300
3.003
275
5.500
525.000
900

3.578
1.384
270
4.806
0
900

3.578
1.384
270
4.806
0
900

0
0
0
0
0
0

3.000

2.509
17.500.000 17.499.360
22.500.000 16.700.905

2.509
16.548.518
4.391.558

0
950.842
12.309.347

19.000.000 18.406.549
14.000.000 13.999.999
4.406.550
37.000.000 34.527.991

5.000.000

12.384.530
10.099.114
2.285.416
9.761.428

2.000.000

110.000.000 100.571.508 100.549.456
99.825.536
108.000.000 99.847.588
723.920
723.920
13.841.776
25.000.000 23.184.630
7.872.259
11.500.000 10.026.923
5.969.517
13.500.000 13.157.707
2.768.526
3.075.526

3.500.000

2.000.000

2.000.000
500.000
200.000

2.600.000
3.800.000
3.000.000

13.000.000 12.999.249
1.821.540
0
42.405
12.000.000 10.892.649

12.720.414
1.764.506
0
32.105
10.892.649
155.000.000 150.614.355 134.683.140
23.825.630
30.000.000 23.825.630
2.000.000
2.000.000
180.000.000 171.916.423 102.405.722
6.143.839
682.414
3.563.200
2.829.640
15.494.042
19.000
505.671
523.456
8.158.750
1.289.844
176.330
0
29.681.708
10.176.278
19.505.430

12.500.000 11.999.795
2.042.225
3.563.200
2.829.640
16.000.000 15.494.042
27.673
599.983
599.029
11.200.000 11.200.000
1.499.214
176.330
0
37.300.000 31.459.270
12.800.000 10.685.269
24.500.000 20.774.001

1.500.000
350.000
150.000

300.000
600.000
600.000

6.022.019
3.900.885
2.121.134
24.766.563
0
0
22.052
22.052
0
9.342.854
2.154.664
7.188.190
307.000
0
0
278.835
57.034
0
10.300
0
15.931.215
0
0
69.510.701
5.855.956
1.359.811
0
0
0
8.673
94.312
75.573
3.041.250
209.370
0
0
1.777.562
508.991
1.268.571

Implemen-
tation:
3rd
countries

0
225
0
0
0
617.196
57.219.299
0

0
408.796
177.756
231.040
585.542
0
137.512
0
0
0
1.073.498
0
0
0
491.502
0
0
68.470
0
675
0

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

562.000
4.241.000
2.279.000
3.675.000
2.026.000

11.315.000 10.128.608
524.994
3.977.423
1.400.981
3.429.330
1.889.779
60.000.000 57.279.134
1.667.801

1.800.000

7.000.000
5.550.000
4.417.000
1.133.000
3.200.000
500.000
2.300.000

4.707.625
5.127.678
4.124.064
1.003.614
2.771.203
268.790
1.978.277

10.128.608
524.769
3.977.423
1.400.981
3.429.330
1.272.583
59.835
1.667.801

4.707.625
4.718.882
3.946.308
772.574
2.185.661
268.790
1.840.765

370.000
7.600.000
510.000

137.426
6.749.296
402.570

137.426
5.675.798
402.570

1.850.000

1.850.000

1.358.498

650.000
200.000

487.431
162.000
11.550.000 11.550.000
12.950.000 12.551.343

418.961
162.000
11.549.325
12.551.343

1601 00
1602 20 90
1602 41 10
1602 42 10
1602 49
1602 50
1701 99 10
ex 1702
1901 90 90
1901 90 99
2007 99
2007 99
2007 99
2008 20
2008 30
2008 40
2008 40
2008 40
2008 50
2008 70
2008 80
2008 80
2008 80
2008 92
2008 92
2008 92
2008 99
2106 90 92
2204 21
2204 29

Prepared meat products
Liver preserves
Hams and cuts
Shoulders and cuts
Other pigmeat preserves
Other meat preserves
Sugar
Glucose
Skimmed-milk preparations IC
Skimmed-milk preparations IC
Unhomog. fruit preparations
Unhomog. fruit preparations DC
Unhomog. fruit preparations IC
Fruit preserves (pineapple)
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
Other fruit preserves
Baby foods
Wine (bottled)
Wine (in bulk)

(citrus)
(pears)
(pears) DC
(pears) IC
(apricots)
(peaches)
(strawberries)
(strawberries)DC
(strawberries)IC
(mixtures)
(mixtures) DC
(mixtures) IC

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
l
l

DC = direct consumption
IC = industrial consumption

121

1997/1998

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

0102 10 00
ex 0102 90
0103 10 00 100
0103 10 00 200
0105 11 00
ex 0106 00 10 100

ex 0106 00 10 200
0201
0202
ex 0203
ex 0203
ex 0203
ex 0203
ex 0207
ex 0207
ex 0207
0401
0401
0401
0402
0402
0402
0405
0405
0405
0406 30 / 0406 90
0406 90 86,7,8
ex 0407 00 19
ex 0408
0701 10 00
1001
1003
1004
1005
1006 30
1006 40
1103 11 50
1103 13
1107
1210
1509 10 90 100
1509 10 90 900
1509 90 00 100
1509 90 00 900
1510 00 90 100
1510 00 90 900
1507/16 (ex09/10)
1507/16 (ex09/10)
1507/16 (ex09/10)

Pure-bred bovines for breeding
Bovines for fattening*
Pure-bred boars for breeding
Pure-bred sows for breeding
Chicks for breeding
Rabbits for breeding;
grandparents
Rabbits for breeding; parents
Fresh beef and veal
Frozen beef and veal
Fresh pigmeat
Frozen pigmeat
Frozen pigmeat DC
Frozen pigmeat IC
Frozen poultrymeat
Frozen poultrymeat DC
Frozen poultrymeat IC
Liquid milk
Liquid milk DC
Liquid milk IC
Condensed milk
Condensed milk DC
Condensed milk IC
Butter
Butter DC
Butter IC
Cheese
Other cheese
Hatching eggs
Dried egg
Potatoes (seed)*
Wheat
Barley
Oats
Maize
Rice
Rice (broken)
Wheat meal
Maize meal
Malt
Hops
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil
Olive oil
Vegetable oil
Vegetable oil DC
Vegetable oil IC

head
head
head
head
Units
Units

Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
Units
Units
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg

122

4.300

2.633

275
5.500
100.000
1.500

152
3.167

1.500

2.633

152
3.167

1.500

0

0
0

0

3.000
19.000.000
21.000.000

2.999
17.633.121
18.030.349

2.999
16.618.802
7.596.598

0
1.014.319
10.433.751

20.300.000
15.500.000
4.800.000
38.000.000
36.000.000
2.000.000
109.250.000
108.000.000
1.250.000
27.000.000
10.350.000
16.650.000
3.565.000
2.748.000
817.000
13.000.000
1.850.000
100.000
200.000
12.000.000

13.074.521
16.243.744
11.572.289
13.637.510
1.502.232
2.606.234
10.878.626
35.477.058
10.878.626
35.379.043
0
98.015
98.546.225
98.546.225
97.714.305
97.714.305
831.920
831.920
17.748.311
24.962.315
7.589.235
9.065.413
10.159.076
15.896.902
3.082.328
3.440.028
2.729.472
2.747.997
352.856
692.031
12.732.301
12.999.994
1.761.501
1.761.823
0
0
39.551
39.551
8.712.410
8.712.410
93.271.949
153.200.000 139.267.746
22.538.870
22.538.870
2.736.962
2.736.962
181.800.000 180.649.136 141.139.020
9.140.726
11.949.772
1.546.904
2.305.001
4.484.880
4.484.880
2.806.970
2.806.970
12.558.900
12.558.900
36.000
46.186
547.598
553.155
0
0
10.322.443
13.422.097
81.603
104.686
90.894
90.894
0
0
26.640.264
27.251.497
6.087.441
6.409.267
20.552.823
20.842.230

12.600.000
2.600.000
4.900.000
3.000.000
15.000.000
50.000
600.000
600.000
11.200.000
1.500.000
350.000
150.000
37.300.000
12.800.000
24.500.000

30.000.000
3.000.000

3.169.223
2.065.221
1.104.002
24.598.432
24.500.417
98.015
0
0
0
7.214.004
1.476.178
5.737.826
357.700
18.525
339.175
267.693
322
0
0
0
45.995.797
0
0
39.510.116
2.809.046
758.097
0
0
0
10.186
5.557
0
3.099.654
23.083
0
0
611.233
321.826
289.407

CN code

Product

Units

Balance

Implemen-
tation:
Total

Implemen-
tation:
EU

Implemen-
tation:
3rd
countries

57.959.901
1.357.620

60.000.000
1.800.000

1601 00
1602 20 90
1602 41 10
1602 42 10
1602 49
1602 50
1701 99 10
ex 1702
1901 90 90
1901 90 99
2007 99
2007 99
2007 99
2008 20
2008 30
2008 40
2008 40
2008 40
2008 50
2008 70
2008 80
2008 80
2008 80
2008 92
2008 92
2008 92
2008 99
2106 90 92
2204 21
2204 29
* Temporary arrangement, ended at the end of June 1997 (Council Regulation (EC) No 2348/96)

Prepared meat products*
Liver preserves*
Hams and cuts*
Shoulders and cuts*
Other pigmeat preserves*
Other meat preserves*
Sugar
Glucose
Skimmed-milk preparations
Skimmed-milk preparations IC
Unhomog. fruit preparations
Unhomog. fruit preparations DC
Unhomog. fruit preparations IC
Fruit preserves (pineapple)
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
«««
Other fruit preserves
Baby foods
Wine (bottled)
Wine (in bulk)

2.744.075
5.611.996
4.916.014
695.982
2.255.851
403.374
3.004.029
947.145
2.056.884
121.798
6.713.395
371.900
18.738
353.162
2.184.732
1.764.272
420.460
583.776
126.000
13.859.973
10.473.100

5.000.000
6.050.000
4.917.000
1.133.000
2.651.000
500.000
3.215.000
1.035.837
2.179.163
370.000
7.600.000
1.000.000
210.000
790.000
2.684.000
2.140.000
544.000
650.000
200.000
13.860.000
10.640.000

(citrus)
(pears)
(pears) DC
(pears) IC
(apricots)
(peaches)
(strawberries)
(strawberries)DC
(strawberries)IC
(mixtures)
(mixtures) DC
(mixtures) IC

kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
l
l

66.051
1.357.620

2.744.075
5.343.898
4.737.076
606.822
1.428.774
403.374
2.910.288
853.404
2.056.884
121.798
5.844.561
371.900
18.738
353.162
1.809.879
1.389.419
420.460
572.189
126.000
13.859.973
10.473.100

57.893.850
0

0
268.098
178.938
89.160
827.077
0
93.741
93.741
0
0
868.834
0
0
0
374.853
374.853
0
11.587
0
0
0

DC = direct consumption
IC = industrial consumption

123

ANNEX 2

Specific aid for local agricultural products

Unless otherwise specified, the data in this annex were supplied by the Government of the

Canary Islands; Department of Agriculture, Fisheries and Food

Table 1

Article 10: supplementary aid for fattening male bovine animals
and maintaining suckler cows

Year

Suckler cows
registered/subsidised

Number of
livestock
farmers

Aid (ESP
million)

Number of male
bovines
registered/subsidised

Number of
livestock
farmers

Aid (ESP
million)

1992

1993

1994

1995

1996

1997

1998

1 376

1 437

2 544

2 176

3 262

3 387

4 207*

2 465*

2 544

2 176

2 296

2 261

2 037

1 009

15.18

5 977

0

705

663

514

586

559

497

16.37

5 270

840

19.22

16.81

18.25

28.99

18.10

5 332

1 492

4 551

2 027

6 619

1 911

4 125

2 429

4 733

1 977

0

292

512

588

623

976

657

0

5.58

11.31

15.77

15.24

19.38

16.55

*

(for the first two marketing years dairy cows served or inseminated by beef bulls were counted as
suckler cows).

124

Table 2

Development of the bovine sector in the Canary Islands

Period

1989

1990

1991

1992

1993

1994

1995

1996

1997

I. Number of cows

19 381

18 714

15 640

16 477

16 393

14 593

15 601

15 265

15 591

-SSA (breeding animals)

-----

Dairy cows

Suckler cows

Subsidised suckler
cows

II. Animals < 12 months

Heifers

Males

III. Males > 12 months

Number of male
bovines

Subsidised male
bovines

17 619

17 044

14 178

15 101

14 956

12 049

13 425

12 003

12 204

1 762

1 670

1 462

1 376

1 437

2 544

-----

-----

-----

*4 207

*2 465

2 544

-----

8 244

4 122

4 122

2 816

6 938

-----

7 910

3 955

3 955

3 319

7 274

3 612

6 986

3 493

3 493

2 484

5 977

3 273

7 019

3 510

3 509

1 760

5 269

2 396

8 801

4 401

4 400

931

5 331

8 528

4 264

4 264

3 061

7 325

2 176

2 176

1 868

6 621

3 311

3 310

1 241

4 551

3 262

2 296

3 578

9 565

4 783

4 782

1 837

6 619

3 387

2 261

2 880

8 720

4 360

4 360

1 771

6 131

-----

-----

-----

0

840

1 492

2 027

1 911

2 429

Herd total (I+II+III)

30 970

29 774

26 869

25 947

25 172

24 325

23 463

26 667

26 082

IV-special supply
arrangements (fattening)

<> (

12 000

)

5 050

2 675

2 374

2 508

1 416

-----

V. Slaughtered animals

25 453

23 171

22 185

21 335

15 491

12 490

11 190

10 367

10 286

local animals
slaughtered (V-VI)

% of herd

VI. Meat production
(T)

Weight at slaughter (kg)

Supply under SSA (T)
- fresh
- frozen

Consumption
- fresh

Self-sufficiency
in fresh meat
*

<>

<>

12 000

16 285

12 816

10 116

8 682

8 951

10 286

41%

62%

51%

42%

37%

34%

39%

4 642

4 314

4 318

4 149

3 071

2 568

2 690

2 678

2 630

182

---

---

---

186

---

---

---

195

---

---

---

194

198

206

240

258

256

37 157
10 308
26 849

41 306
14 457

10.0%
28.7%

40 216
11 236
28 980

43 287
14 307

7.1%
21.5%

33 850
11 637
22 213

36 418
14 205

7.1%
18.1%

34 798
15 490
19 308

37 488
18 180

7.2%
14.8%

34 201
17 500
16 701

36 879
20 178

7.3%
13.3%

33 565
17 518
16 047

36 195
20 148

7.3%
13.1%

(for the first two marketing years dairy cows served or inseminated by beef bulls were counted as
suckler cows).

125

Table 3

Article 11: aid for human consumption of milk products

Marketing
year

Quantity of
milk (tonnes)

Number of
dairies

Aid (ESP
million)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

32 172.33

37 463.02

34 079.96

36 073.21

36 286.80

36 873.18

38 560.02

9

9

10

11

11

12

13

371.51

493.39

464.04

498.58

501.04

514.77

540.64

Table 4

Article 13: sheepmeat and goatmeat sector – additional premiums

Marketing
year

Number of
animals

Number of
livestock
farmers

Amount of aid
(ESP million)

1992*

1993

1994

1995

1996

1997

1998

149 390

160 559

154 816

159 967

162 673

174 053

170 468

1 999

2 350

2 299

2 271

2 210

2 266

2 046

66.02

240.04

138.62

160.13

127.47

279.03

190.93

* July - December

126

Implementation of Article 16: aid to facilitate the marketing of tropical products

Table 5

Period

Number of
contracts

Marketed production*

Amount of aid
(ESP million)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

183

182

236

228

228

249

?

Volume

30 795 t

36 328 t

32 747 t

28 829 t

34 025 t

28 351 t

?

Value (ESP
million)

5 642

6 547

6 965

8 575

10 133

10 121

?

459

584

847

855

1 022

1 046

?

All relevant products grouped together.

Table 6

Development of Article 19: flat-rate aid per hectare granted for
the continued cultivation of vines for the production of quality wines psr

Marketing
year

Number of
hectares

Number of
growers

Amount of aid
(ESP million)

1992/93

1993/94

1994/95

1995/96

1996/97

1997/98

1998/99

528

559

3 228

4 054

4 881

5 083

5 404

370

424

2 023

3 263

4 077

4 270

4 688

31.60

42.03

245.74

319.28

384.43

405.04

433.73

127

*
Table 7

Implementation of Article 20: aid per hectare – potatoes

Marketing
year

Number of
hectares

Number of
growers

Amount of aid
(ESP million)

1993

1994

1995

1996

1997

1998

4 205

3 196

5 398

4 604

4 782

4 561

4 372

3 911

5 660

6 275

6 970

7 349

Table 8

349.20

303.63

527.93

453.73

471.25

454.74

Implementation of Article 24: aid for the production of
quality honey specific to the Canary Islands

1993

1994

1995

1996

1997

1998

Number of hives
- black bee hives

15 577
6 759

16 346
8 310

17 561
8 213

19 257
10 097

20 029
10 829

18 214
10 687

Number of associations

Number of beekeepers

8

409

10

431

10

435

10

485

10

521

10

566

Amount of aid
(ESP million)

15.09

19.23

20.55

19.95

19.91

20.33

128

Financing of agricultural aspects of POSEICAN: budget forecasts and outturn

Table 9

1994
93/94

140.1
43.8
38.5
5.3
96.3
92.2
4.1

130.7
9.4
93/7

217.0
89.0
128.0

1995
94/95

137.9
44.2
32.7
11.5
93.7
89.2
4.5

121.9
16.0
88/12

215.0
95.0
120.0

1996
95/96

115.8
30.9
19.8
11.1
84.9
80.5
4.4

100.3
15.5
87/13

147.0
52.0
95.0

1997
96/97

104.3
34.8
23.6
11.2
69.5
65.3
4.2

88.9
15.4
85/15

116.6
40.8
75.8

(EUR million)

1998
97/98

92.6
25.8
20.6
5.2
66.8
62.6
4.2

83.2
9.4
90/10

104.0
37.0
67.0

1999
98/99

114.5
36.0
24.4
11.6
78.5
74.1
4.4

98.5
16.0
86/14

106
38.0
68

Average
93/99

116.5
35.1
27.1
8.0
81.4
77.2
4.2

104.3
12.2
90/10

160.0
63.0
97.0

Financial year
Marketing year

1992
91/92

1993
92/93

0

Expenditure, comprising:
LB 1832; crop products
- supply
- other aid
LB 2512; livestock products
- supply
- other aid

Supply total
Other aid, total
% specific supply
arrangements/other aid

Initial budget appropriation,
comprising:
LB 1832, crop products.
LB 2512, livestock products

9.5
1.5
8.0

Source:
EAGGF Guarantee Section

110.1
30.1
29.9
0.2
80.0
76.8
3.2

106.7
3.4
97/3

216.0
91.0
125.0

Amount of POSEICAN assistance over five marketing years (in ESP)

Table 10

Marketing years

SSA exemption for non-
member countries and %
of total assistance

SSA aid for Community
products and % of total
assistance

Total SSA aid (non-
member countries + EU)
and % of total assistance

Aid to local production
in the Canary Islands and
% of total assistance

Total assistance
SSA (non-
member countries
+ EU) + local
production

92/93

93/94

94/95

95/96

96/97

64 903 837

2 555 857 735

0.4

9.9

15 591 866 190

87.6

15 656 770 027

88 0

2 140 000 624

12.0

17 796 770 651

20 360 037 046

78.8

22 915 894 781

88.7

2 914 577 732

11.3

25 830 472 513

3 526 501 170

13.9

18 386 278 899

72.7

21 912 780 069

86.6

3 393 691 689

13.4

25 306 471 758

10 163 732 624

34.7

15 374 478 140

52.5

25 538 210 764

87.3

3 719 611 603

12.7

29 257 822 367

11 332 544 715

37.3

15 110 747 157

49.8

26 443 291 872

87.1

3 919 170 170

12.9

30 362 462 042

Total in ESP

27 643 540 081

21.5

84 823 407 432

66.0

112 466 947 513

87.5

16 087 051 818

12.5

128 553 999 331

Total in EUR

161 075 160

21.5

474 303 310

66.0

635 378 470

87.5

90 919 268

12.5

726 297 738

Average in EUR

32 215 032

94 860 662

127 075 694

18 183 854

145 259 548

Source: IDOM-UPM based on information provided by the Ministry for Agriculture, the Government of the

Canary Islands.

129

Table 11

Implementation of Article 23: regional aid for
the production of raw tobacco in the Canary Islands

Year

1993

1994

1995

1996

1997

1998

Total
production

Subsidised
production

Community aid

Regional aid

Number of
growers

4 272 kg

4 272 kg

ESP 1 368 269

ESP 768 105

12

2 356 kg

2 356 kg

ESP 810 898

ESP 586 408

3 366 kg

3 366 kg

ESP 1 193 189

ESP 819 957

4 415 kg

3 596 kg

ESP 1 274 720

ESP 638 649

6 858 kg

1 705 kg

ESP 611 392

ESP 1 482 253

6 000 kg

1 489 kg

information not
available

information not
available

9

8

8

7

5

130

ANNEX 3

Structural derogations

Article 27 provides for derogations to Council Regulation (EEC) No 2328/91, (superseded
by Regulation (EC) No 950/97) on improving the efficiency of agricultural structures33.
These include:

–

–

the requirements for granting investment aid for agricultural holdings and
production incentives for swine, bovine and poultry have been relaxed, on condition
that the requirements of animal welfare and environmental protection are complied
with and that production is for the internal market of the archipelago,

cows whose milk is intended for the local market may be included for the purpose of
calculating the compensatory allowance, which has been extended to cover all
crops in the region and may be granted to farmers with less than one hectare of
usable agricultural area.

Following the STAR Committee recommendations of 17 December 1992 and 25 February
1998 and the favourable Commission decisions, the derogations introduced by Article 27(1)
to (5) of Regulation (EEC) No 1601/92 have been transposed into law in the autonomous
community of the Canary Islands.

Article 27 also provides for the possibility of requesting derogations from both Regulation
(EC) No 951/97 (formerly (EEC) No 866/90)34 on improving the processing and marketing
conditions for agricultural and forestry products and from the selection criteria for
investments in this field laid down by Commission Decision 94/173/EC.

On this basis the Spanish authorities have introduced some reasoned requests for derogation
for essential products in the categories of 'meat' (bovines for fattening, beef and veal and
pigmeat), 'poultry', 'milk and milk products' and 'processed fruits and vegetables':

–

–

from Article 13, to extend eligibility for the common measure under Regulation (EC)
No 951/97 to investors who market or process agricultural products from non-
member countries, and

from Article 12 of that Regulation, which lays down conditions for the payment of
aid, to ensure an adequate and lasting share in the resulting economic benefits for
producers of the basic products.

In the majority of cases, the existence of such processing facilities will enable outlets to be
found for local agricultural produce and production to be developed, whereas there would be
no guarantee of a return on such facilities solely on the basis of the local produce available at
present. In addition, the competent authorities undertake to ensure that investments receiving
aid do not have any negative effects on measures to develop local production.

33

34

Council Regulation (EEC) No 2328/91, OJ L 218, 6.8.1991, p. 1, as replaced by Council Regulation
(EC) No 950/97, OJ L 142, 2.6.1997, p. 1.
Council Regulation (EEC) No 866/90, of 29.3.1990, as replaced by Council Regulation (EC)
No 951/97, OJ L 142, 2.6.1997, p. 22.

131

The derogations from the selection criteria (Decision 94/173/EC) concern milk and milk
products, poultry and wine, as well as cold stores for frozen or deep-frozen produce in the
outerlying islands of the archipelago.

All these derogations are consistent with the other measures to develop agriculture in the
Canary Islands and with the market supply measures implemented under POSEICAN. They
also take account of local consumption requirements under the supply arrangements, without
being detrimental to the development of local production.

Article 27, which concerns the structural derogations under the agricultural section of
POSEICAN, was deleted with the reform of the Structural Funds because of the flexibility of
the new Regulation (EC) No 1257/99. Only Recital (53) of the 'Rural development'
Regulation refers to the specific requirements of these regions, but there is no operative part
in the text of the Regulation. The requests for flexibility, adjustments or derogations and the
proposed solutions should be studied at
the time of the review provided for in the
programming exercise.

132

ANNEX 4

EAGGF Guidance Section measures

Guidance Section funding is not included in the scope of this report but is outlined here to
give a comprehensive list of all Community measures in favour of agriculture in the Canary
Islands.

1989-1993

Given the economic and social importance of the banana industry in the Canary Islands,
where it represents 25% of final agricultural output, and with a view to improving production
and marketing conditions, structural assistance to the sector was introduced under point 9 of
Title IV of POSEICAN before the banana market organisation was established.

This Community assistance was granted in addition to Structural Fund assistance during
1989-1993, and is supplementary to Community and national market measures. Assistance
amounted to EUR 9 million in 1992 and EUR 12 million in 1993.

The following measures were implemented:

–

–

–

–

–

improving irrigation systems over 2 421 ha,

connecting infrastructures (16.5 km) between parcels and warehouses,

switching to different varieties of banana (559 ha),

improving production structures (498 holdings),

commercial improvement and technical assistance (EUR 3.5 million).

1994-1999

After the banana market organisation was adopted35, the structural measures for bananas were
included in the 1994-99 Community Support Framework (CSF). EAGGF Guidance Section
assistance for the CSF under Council Regulation (EEC) No 2081/9336, is implemented under
the following forms of assistance (in EUR million):

–

–

–

–

35

36

Priority 2, Development of the economic infrastructure: 38.6,

Priority 4, Agriculture and rural development: 92.73,

REGIS II Community initiative: 12.0,

Leader II global grant: 5.5.

Regulation (EEC) No 404/93, OJ L 47, 25.2.1993, p. 1.
OJ L 193, 31.7.1993, p. 5.

133

2000-2006

The rural development measures for 2000-06 will be covered by the new rules governing the
Structural Funds, and the EAGGF Guidance Section contribution by Council Regulation (EC)
No 1257/1999. The Canaries come under Objective 1 and will be included in the regional
programming in accordance with Council Regulation (EC) No 1260/199937 laying down
general provisions on the Structural Funds.

37

OJ L 161, 26.6.1999, p. 1.

134