Commission Regulation (EC) No 2728/2000 of 14 December 2000 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 in certain wine-growing regions of Germany
Date: 2000-12-14
Institutions: European Commission
Subjects: Germany, distillation, vinification, viticulture, wine, wine of superior quality

L 316/14

EN

Official Journal of the European Communities

15.12.2000

COMMISSION REGULATION (EC) No 2728/2000

of 14 December 2000

opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 in
certain wine-growing regions of Germany

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

currently at 7,5 million hl, while around 6 million hl
would suffice to ensure regular supplies to the market.

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EC) No 1493/1999 of 17
May 1999 on the common organisation of the market in
wine (1), as amended by Commission Regulation (EC) No 1622/
2000 (2), and in particular Articles 30 and 33 thereof,

Whereas:

(1)

(2)

Article 30 of Regulation (EC) No 1493/1999 provides
for the possibility of opening crisis distillation in the
event of exceptional market disturbance caused by major
surpluses. Such measures may be limited to certain cate-
gories of wine and/or certain areas of production and
may apply to quality wines psr at the request of the
Member State.

By letter of 2 November 2000 the German Government
requested that crisis distillation be triggered for white
wine of all vine varieties grown in the Mittelrhein,
Mosel-Saar-Ruwer, Nahe, Pfalz and Rheinhessen wine-
growing regions. The measure is to apply to white
quality wines psr of all those regions too.

in 1995, 1996 and 1997.

(3) Wine production in those regions was less than 6
million hl per year
It
amounted to 7,07 million hl in 1998 and 8,02 million
hl in 1999. At the same time, white wine's share of total
wine consumed in Germany declined from 54 % in
1995 to 47 % in 1999, while there was an increase in
consumption of red wine, most of which is imported.
White wine exports fell by 13 % between 1993 and
1999.

(4)

Prices for white wines in those regions are considerably
down on 1998. In Rheinhessen, Pfalz and Nahe, prices
for wines of the Müller-Thurgau and Silvaner vine vari-
eties fell from DEM 120-160/hl to around DEM 60/hl
while those for wine of the Riesling vine variety in
Mosel-Saar-Ruwer dropped from DEM 200-230/hl to
DEM 80/hl. Prices for table wine are currently around
DEM 40/hl and those for quality wines range from
to DEM 80/hl depending on the vine
DEM 55/hl
variety and the region.

(6)

(7)

(8)

(9)

The producers concerned have delivered wine for distil-
lation in accordance with Article 29 of Regulation (EC)
No 1493/1999, but those provisions only concern table
wine and the measure accordingly does not fully meet
the needs of these regions. A crisis distillation measure is
therefore required to solve the serious problems of these
wine-growing regions of Germany.

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are satisfied, crisis distillation
covering a maximum of 1 million hl should be triggered
in these German wine-growing regions for a limited
period with a view to maximum effectiveness. No ceiling
should be set on the quantity that individual producers
can have distilled because wine stocks may vary substan-
tially from one producer to another and they depend on
sales to a greater extent than on the individual produ-
cer's annual output.

The mechanism to be introduced is provided for in
Commission Regulation (EC) No 1623/2000 of 25 July
2000 laying down detailed rules for implementing Regu-
lation (EC) No 1493/1999 on the common organisation
of the market in wine with regard to market mecha-
nisms (3), as amended by Regulation (EC) No 2409/
2000 (4). In addition to the articles of that Regulation
referring to the distillation measure provided for in
Article 30 of Regulation (EC) No 1493/1999, other
provisions of Regulation (EC) No 1623/2000 are applic-
able, and in particular those on the delivery of the
alcohol to the intervention agency and on payment of
advances.

The buying-in price to be paid by the distiller to the
producer should provide a solution to the problems
while allowing producers to take advantage of the poss-
ibility afforded by this measure. That price should not,
however, be such that it adversely affects the application
of distillation as provided for in Article 29 of Regulation
(EC) No 1493/1999.

(5)

Despite these low prices, consumption of white wine has
not risen significantly in 2000. Even the low figures
forecast for the 2000 grape harvest have not bumped
prices up. White wines stocks in those regions stand

(10)

The product of crisis distillation must be raw alcohol or
neutral alcohol for compulsory delivery to the interven-
tion agency in order to avoid disturbing the market for
potable alcohol, which is supplied largely by distillation
under Article 29 of Regulation (EC) No 1493/1999.

(1) OJ L 179, 14.7.1999, p. 1.
(2) OJ L 194, 31.7.2000, p. 1.

(3) OJ L 194, 31.7.2000, p. 45.
(4) OJ L 278, 31.10.2000, p. 3.

15.12.2000

EN

Official Journal of the European Communities

L 316/15

(11)

The measures provided for in this Regulation are in
accordance with the opinion of
the Management
Committee for Wine,

HAS ADOPTED THIS REGULATION:

Article 1

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is hereby opened for a maximum of 1
million hl of white table wine and white quality wines psr of all
vine varieties grown in the Mittelrhein, Mosel-Saar-Ruwer,
Nahe, Pfalz
regions of
and Rheinhessen wine-growing
Germany.

Article 2

In addition to the provisions of Regulation (EC) No 1623/2000
referring to Article 30 of Regulation (EC) No 1493/1999, the
following provisions of Regulation (EC) No 1623/2000 shall
also apply to the measure covered by this Regulation:
— Article 62(5) on payment of the price by the intervention
agency as referred to in Article 6(2) of this Regulation,
— Articles 66 and 67 as regards the advance as referred to in

Article 6(2) of this Regulation.

Article 3

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 from 16 December 2000 to
31 January 2001. Such contracts shall entail the lodging of a
security equal to EUR 5 per hl. Such contracts may not be
transferred.

Article 4

1.
The Member State shall determine the rate of reduction to
be applied to the abovementioned contracts where the overall
quantity covered by contracts presented exceeds that laid down
in Article 1.

2.
The Member State shall adopt the administrative provi-
sions needed to approve the abovementioned contracts by 15
February 2001, shall specify the rate of reduction applied and

the quantity of wine accepted per contract and shall stipulate
that the producer can cancel the contract where the quantity to
be distilled is reduced. The Member State shall notify the
Commission before 20 February 2001 of the quantities of such
wine covered by contracts approved.

3.
The wine shall be delivered to the distilleries by 30 June
2001 at the latest. The alcohol obtained may be delivered to
the intervention agency by 30 November 2001 at the latest.

Securities shall be released in proportion to the quantities
4.
delivered where the producer provides proof of delivery to the
distillery.

The security shall be forfeit where no delivery is made

5.
within the time limit laid down.

6.
The Member State may limit the number of contracts that
individual producers can conclude under the distillation opera-
tion in question.

Article 5

The minimum buying-in price for wine delivered for distillation
under this Regulation shall be EUR 2,1054 per % vol per hl.

Article 6

1.
Distillers shall deliver the product obtained from distilla-
tion to the intervention agency. That product shall be of an
alcoholic strength of at least 92 % vol.

2.
The price to be paid to the distiller by the intervention
agency for raw alcohol delivered shall be EUR 2,4726 per %
vol per hl. The distiller may receive an advance on that amount
equal to EUR 1,3136 per % vol per hl. The advance shall in
that case be deducted from the price actually paid.

Article 7

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

It shall apply from 16 December 2000.

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

Done at Brussels, 14 December 2000.

For the Commission

Franz FISCHLER

Member of the Commission