Opinion of the Economic and Social Committee on the "Proposal for a Council Regulation extending for a period of up to one year the financing of certain quality and marketing improvement plans approved under Title IIa of Regulation (EEC) No 1035/72"
Date: 2000-11-29
Institutions: European Economic and Social Committee
Subjects: aid system, farmers' income, market support, nut, producer organisation

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Official Journal of the European Communities

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3.3.
The slaughter of animals which do not comply with
the requirements must be carried out in accordance with the
conditions laid down in the Amsterdam Treaty protocol
governing animal protection.

3.5.
The Commission should submit a report in five years’
time on the implementation of the rules, accompanied by any
proposals they may have for amendments.

The ESC also feels that it is necessary to reduce the
3.4.
problem of cruelty to animals in the commercial importation
of exotic species to the EU.

Subject to the above comments, the ESC supports the

4.1.
Commission’s proposal.

4. Conclusion

Brussels, 29 November 2000.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation
extending for a period of up to one year the financing of certain quality and marketing
improvement plans approved under Title IIa of Regulation (EEC) No 1035/72’

(2001/C 116/13)

On 20 October 2000 the Council decided to consult the Economic and Social Committee, under Article
37 of the Treaty establishing the European Economic Community, on the above-mentioned proposal.

The Section for Agriculture, Rural Development and the Environment, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 15 November 2000. The
rapporteur was Mr de las Heras Caban˜ as.

At its 377th plenary session (meeting of 29 November 2000) the Economic and Social Committee
adopted the following opinion by 107 votes to one with two abstentions.

1.

Introduction

1.1.
The proposed regulation follows on from the first part
of the agreement reached by the Council of Ministers meeting
in Brussels on 17 July 2000 whereby it invited the Commission
to propose that the payments to nut (almonds, hazelnuts,
walnuts and pistachios) and locust bean growers, which expire
in 2000, be continued for one year within the budget for
2001. In addition, it instructed the Commission to carry out a
specific study of the nut and locust bean sector in the context
of the report which it has to present before the end of 2000
on the fruit and vegetables regime.

substantial impact in some Member States on the organisation
of production, the concentration of supply and the improve-
ment of production and marketing structures. These plans
have helped to maintain producers’ incomes and slow down
the abandonment of nut and locust bean growing in the
producer regions of the EU.

2.

Background

2.1.
The 10-year improvement plans launched in 1989
under Title IIa of Regulation (EEC) No 1035/72 have had a

However, the special problems of nuts and locust beans
2.2.
were not taken into account by Regulation (EC) No 2200/96 on
the reform of the common organisation of the market in
the fruit and vegetables sector, which revoked the existing
measures. The measures laid down in this regulation have not
proved adequate because they are not geared to the specific
features of these crops.

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for

hazelnuts

2.3.
On account of the particularly unfavourable situation
affecting the hazelnut sector, Article 55 of Regulation (EC)
No 2200/96 established a flat-rate aid for producer organis-
ations
1997/1998,
harvested
1998/1999 and 1999/2000 marketing years. This aid has had
a decisive effect on the growth of producer organisations in
Italy and has helped to offset the competitive disadvantage
suffered by Community hazelnut producers due to the continu-
ing adverse market situation.

the

in

3. General comments

3.1.
Nuts and locust beans are grown extensively in disad-
vantaged Mediterranean regions of the EU (900 000 hectares).
The survival of this sector is vitally important for the EU’s
producer regions as it benefits employment, the environment,
the countryside and cultural heritage, allowing farms to
diversify and keep going, forming a barrier against encroaching
desertification. Alternatives to these crops are very limited or
non-existent and the constraints of the CAP do not allow them
to be replaced by others.

3.2.
The production of nuts and locust beans is the basis of
a substantial processing industry which generates employment
and economic activity in disadvantaged rural areas. Both the
primary and secondary processing industries involve a large
number of firms of all sizes and types, from peelers and
breakers to roasters, the chocolate industry, ice-cream industry,
traditional sweets, and small-scale and industrial confectionery.

3.3.
The consumption of nuts in the EU and the rest of the
world is steadily growing because advances in agri-food
technology have enabled them to be incorporated in a
multitude of food products, because consumers like to include
them in their diet on account of their high nutritional value,
fibre, protein, mineral and vitamin content, and because of
their health benefits, in particular their high levels of mono
and polyunsaturated fatty acids which help to prevent cardio-
vascular illnesses.

supplying these products to the EU, it would be advisable to
maintain present EU production levels so as not to become
over-dependent, with the risk that this entails for prices and
hence consumers.

3.5.
There is little protection for these products at the EU’s
borders because of its low level of self-sufficiency, with very
low tariffs exacerbated by concessions granted to the main
supplying countries in trade agreements. Almond and walnut
production in the USA is highly intensive, comprising a
production system radically different from that of the Mediter-
ranean countries, with high yields and low production costs
making for prices lower than those achievable by Community
producers. Turkey is highly competitive mainly because of low
labour costs and higher rainfall
in its production zone.
Furthermore,
the current regulations do not ensure that
imported products respect the same labour, plant health and
environmental standards as EU products.

3.6.
The Committee would highlight the small financial
impact of the measures in the nuts and locust beans sector
compared with their impact on the concentration of supply,
improving the quality and marketing of the products and their
social and environmental benefits. The support measures for
the sector account for a tiny proportion of EAGGF spending,
representing 0,2 % of the Community budget. The Committee
would point out that its opinion (1) of 19 October 2000 on
the fruit and vegetables regime called for adequate financing
commensurate with its needs and importance (see points 2.8.2,
2.8.3, 2.8.4, 2.8.5 and 4.1.2).

4.

Specific comments

4.1. Regarding the proposal

The Committee would have liked the Council and
4.1.1.
Commission to present a final proposal for the future of the
nuts and locust beans sector, but nevertheless welcomes this
proposal as a transitional solution to deal with the critical
situation of the producer organisations whose plans expire in
2000.

3.4.
The EU has a marked deficit in these products which
has to be covered by imports from third countries, in particular
almonds and walnuts from the US and hazelnuts from Turkey.
Bearing in mind that these are virtually the only countries

(1) OJ C 14, 16.1.2001, p. 157.

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4.1.2.
The Committee considers that the Commission’s
proposal does not accord precisely with the spirit and letter of
the conclusions of the Council of Agriculture Ministers meeting
of 17 July 2000, since it does not envisage co-financing all the
actions carried out under producer organisations’ improve-
ment plans expiring in 2000, accepting only applications for
aid for work carried out up to 15 June 2001. This date should
therefore be extended to 31 December 2001.

The Committee considers that

4.1.3.
the unfavourable
market conditions which necessitated the introduction of the
specific measure for the hazelnuts sector have not changed
greatly. Bearing in mind its small financial impact and the
extension of the other measures applicable to nuts and locust
beans, it would be logical to extend the flat-rate aid under
Article 55 of Regulation (EC) No 2200/96 for the 2000/2001
marketing year.

4.1.4.
The Committee has misgivings about the third clause
of the preamble to the proposal as there is a danger that
the principle of degressive aid and a progressive shift of
responsibility to the producers could serve as pointer to a
long-term solution to the problems of nuts and locust beans.

4.2. Regarding the future of the nuts and locust beans sector

The Committee considers that a long-term solution
4.2.1.
is needed for the nuts and locust beans sector. It urges the
Commission to present, before the end of 2000 and in tandem
with the specific study on the nuts and locust beans sector to
form part of the report on the fruits and vegetables regime, a
proposal with new support measures for nuts and locust

Brussels, 29 November 2000.

beans. These measures should be incorporated in Regulation
No 2200/96 and comprise:

— the introduction of a flat-rate aid per unit of land through
the producer organisations. This aid should be subject to
precise arrangements;

— an extension of the flat-rate aid for hazelnuts after the

2000/2001 marketing year.

4.2.2.
In view of the poor market situation for chestnuts,
their inclusion in the measures applicable to nuts and locust
beans should be studied.

4.2.3.
The Committee would point to the need to establish
a Community register of the land used for growing nuts and
locust beans and to reinforce the checks on marketing
standards and plant health for imported products. The sensi-
tivity of these products should be borne in mind when
contemplating any new concessions in this sector in trade
agreements with third countries.

5. Conclusion

5.1.
In view of the versatility of nut and locust bean
production and the persistence of the adverse market situation
which necessitated the introduction of support measures for
this sector, the Committee considers that the measures which
expire in 2000 should be extended in an appropriate manner
on a transitional basis. At the same time new support measures
should be proposed as a definitive solution to the problems of
these products with the aim of ensuring an adequate income
for Community producers, a balance between regions, and of
giving consumers access to a varied supply of these products
at reasonable prices throughout the Community.

The President

of the Economic and Social Committee

Göke FRERICHS