Opinion of the Economic and Social Committee on the "Proposal for a Council Regulation amending Regulation (EEC) No 1696/71 on the common organisation of the market in hops"
Date: 2001-04-25
Institutions: European Economic and Social Committee
Subjects: common organisation of markets, hops

C 193/38

EN

Official Journal of the European Communities

10.7.2001

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation
amending Regulation (EEC) No 1696/71 on the common organisation of the market in hops’

(2001/C 193/09)

On 22 December 2000, the Council decided to consult the Economic and Social Committee, under
Articles 36 and 37 of the Treaty establishing the European 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 30 March 2001. The rapporteur
was Mr Kienle.

At its 381st plenary session on 25 and 26 April 2001 (meeting of 25 April 2001), the Committee
adopted the following opinion by 61 votes to zero with one abstention.

1.

Background

3. Comments

It is said that hops are the soul of beer. Hops (humulus
1.1.
lupulus) are climbing plants; their fruiting structure (hop cone)
contains the bitter substance lupulin which, in addition to
malt, yeast and water, is a key ingredient in the manufacture
of beer. Hops, however, make up only 0,3 % of the production
costs of beer.

1.2.
Hops are grown in eight of the European Union
Member States; traditionally this is a crop which is strongly
geared to exports and the world market. A total of approxi-
mately 22 700 hectares are under hops cultivation, producing
around 35 000 tonnes of hop cones. Of the total world
production of hops — around 94 000 tonnes — the European
Union produces 37 %.

Hops farming requires a considerable investment of

1.3.
time and money.

1.4.
Hops marketing is predominantly based on contracts
of up to five years so as to minimise the considerable market
risks. Producer groups in all the EU producer countries play a
key role in efforts to obtain regular, market-oriented quality
improvements.

1.5.
The trend towards concentration in the brewing indus-
try continues. Worldwide, around 30 breweries and big
brewery companies currently account for two thirds of the
beer produced.

1.6.
The common organisation of the market for hops was
established in 1971. Community budget spending fell from
EUR 13 million in 1997 to EUR 12,4 million in 2000.

3.1.
The Committee agrees with the Commission’s assess-
ment, which is also that of the producer associations in all
hop-growing countries in the EU,
the five-year aid
programme has had a decisive, positive impact on improve-
ments in quality and varietal conversion and thus, as a whole,
on the stabilisation of hops production in the EU.

that

It also appears that the special measures for set-aside
3.2.
and grubbing-up used by four or five countries are in this case
well suited to the organisation of the market.

It can be assumed that the trend towards concentration
3.3.
in the brewing industry and hops trade worldwide will not
stop, but that hops will continue to be produced, despite the
structural changes taking place, by comparatively small units.

3.4.
The Committee assumes that due to the high pro-
duction and market risks associated with further varietal
conversions, long-term contract production, based on advance
contracts usually concluded for five year-periods, will also
continue to be of prime importance.

The Committee recognises that the producer groups
3.5.
assisted by aid over the last five years have had a considerable
impact on improvements in hops production in terms of
quality, plant protection, marketing and logistics, thus giving
a considerable boost to the competitiveness of European hops
production on the world market. These measures should
therefore continue, with a view to achieving sustainable hops
cultivation and long-term contract-based production.

2. Gist of the Commission proposal

2.1.
Under Article 12(5)(a) of Regulation (EEC) No 1696/71
on the common organisation of the market in hops, pro-
duction aid for the 1996 harvest up to and including the 2000
harvest was set at EUR 480/ha. The Commission is now
proposing a two-year extension to these arrangements.

3.6.
Producers and producer groups are facing considerable
concentration in the international brewing industry and also
in the global hops trade. Trade in hops has become concen-
trated in the hands of two major groups over the last four
years, accounting for 40 % and 30 % respectively of the total
trade volume on the world market.

10.7.2001

EN

Official Journal of the European Communities

C 193/39

3.7.
In order to face up to the particular risks and quality
requirements of hops growing and marketing, and to send out
a signal to the worldwide brewing industry that EU hops

production offers long-term supply security, the Committee
deems it appropriate that producer aid be extended for five
years.

Brussels, 25 April 2001.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Proposal for a Council Regulation
amending Regulation (EC) No 1254/1999 on the common organisation of the market in beef and
veal’

(2001/C 193/10)

On 26 February 2001 the Council decided to consult the Economic and Social Committee, under
Article 37 of the Treaty establishing the European Community, on the above-mentioned proposal.

On 27 February 2001 the bureau of the Economic and Social Committee asked the Section for
Agriculture, Rural Development and the Environment to prepare the Committee’s work on the subject.

At its 381st plenary session on 25 and 26 April 2001 (meeting of 25 April) the Economic and Social
Committee, in view of the tight deadline, appointed Mr Kienle as rapporteur-general and adopted the
following opinion by 76 votes to two with seven abstentions.

1.

Background

1.1.
The emergence of new cases of bovine spongiform
encephalopathy (BSE) has plunged consumer confidence in
beef and veal and the whole of the cattle-farming sector into a
crisis which threatens the very existence of this sector.

1.2.
The comprehensive precautionary measures which
have been taken — such as the ban on the use of meat-and-
bone-meals, the introduction of BSE tests and the removal of
material posing a specific risk — are prerequisites for re-
establishing consumer confidence. The European Com-
missioner responsible for public health, Mr Byrne, speaking at
the BSE Hearing organised by the Economic and Social
Committee on 9 March 2001, underlined the fact that in his
view there were no conceivable additional measures which
could provide still more effective protection.

1.4.
In many regions — including, in many cases, upland
areas and other areas suffering from natural disadvantages —
cattle farming is extremely important both economically and
as a determining characteristic of the landscape. There is a
widespread fear of
losing their livelihood and mood of
resignation amongst farmers hit by the crisis facing the beef
and veal market.

2. Gist of the Commission’s proposals

2.1.
The proposals which had been presented for amending
Regulation (EC) No 1254/1999 on the common organisation
of the market in beef and veal are an key part of a ‘seven-
point plan’ put forward by the European Commissioner for
Agriculture, Mr Fischler, on 13 February 2001 with a view to
overcoming the crisis affecting the beef and veal sector.

1.3.
Consumption of beef and veal in many EU Member
States has fallen very sharply and major export markets have
been lost. As a result, producer prices have collapsed. The
outbreak and rampant spread of foot and mouth disease has
been a further heavy blow for both the internal market and
external trade.

2.2.
A separate Committee opinion is being drawn up on
the Proposal for a Council Regulation amending Regulation
(EC) No 1251/1999 under which organic farms are in the
future to be given the possibility to grow particular kinds of
fodder legumes on set-aside ground.