Commission Regulation (EC) No 1203/2001 of 19 June 2001 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wines in France
Date: 2001-06-19
Institutions: European Commission
Subjects: France, alcohol, distillation, quantitative restriction, table wine, viticulture

20.6.2001

EN

Official Journal of the European Communities

L 163/11

COMMISSION REGULATION (EC) No 1203/2001

of 19 June 2001

opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999
for table wines in France

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

(6)

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 Regulation (EC) No 2826/2000 (2), and
in particular Articles 30 and 33 thereof,

Whereas:

(1)

(2)

(3)

(4)

(5)

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.

The French Government has requested that crisis distilla-
tion be opened for table wines produced in France.

Production of table wine in France was 22,6 million
hectolitres in 1997 and 21,1 million hectolitres in 1998.
In 1999 the figure was 25,2 million hectolitres and in
2000 it was 23,02 million hectolitres.

Over that same period,
table wine consumption in
France remained relatively stable in the 1996/97 and
1997/98 wine years at around 18,3 million hectolitres,
but fell in 1998/99 to 17,3 million hectolitres, which
also appears to be the level of consumption for 1999/
2000. By contrast, exports rose slightly between 1997
and 1999, but only exports to other Member States.
Provisional figures for 2000 point to a fall in exports.

Stocks of table wine were 12,853 million hectolitres in
1997 and 12,086 million hectolitres in 1998. They fell
to 10,85 million hectolitres in 1999. In 2000, they rose
sharply to 14,07 million hectolitres. The fluctuation in
stocks obviously varies widely from one department to
the next, but it is very pronounced in departments with
a large stock, with increases of between 47 % and 88 %.
The growth in stocks has had a negative impact on
prices, which have fallen by about 10 % to 17 % over
the current wine year compared with the same period in
the previous year.

In view of this situation, crisis distillation was opened
for 800 000 hectolitres of wine by Commission Regula-
tion (EC) No 25/2001 of 5 January 2001 opening crisis
distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 for table wines in France (3). It has
been found that this volume is insufficient to reduce
stocks of table wine to an acceptable level and rectify the
difficult market situation.

(7)

(8)

(9)

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are still satisfied, a further
crisis distillation covering a maximum of 1,5 million
hectolitres of table wine should be opened. The measure
should apply for a limited period with a view to
maximum effectiveness. No ceiling shoud be set on the
individual producers can have distilled
quantity that
because
stocks may vary substantially from one
producer to another and depend more on sales than on
the individual producer's annual output.

The mechanism to be introduced is that provided for by
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 (4), as last amended by Regulation (EC) No 545/
2001 (5). In addition to the Articles of that Regulation
referring to the distillation measures provided for in
Article 30 of Regulation (EC) No 1493/1999, other
provisions of Regulation (EC) No 1623/2000 apply, in
particular those concerning the delivery of alcohol to
intervention agencies and the payment of an advance.

The price to be paid by distillers to producers should be
set at a level that permits the solution of the problems
faced by allowing producers to take advantage of this
measure. That price should not, however, be such that it
the distillation
the application of
adversely affects
measure provided for by Article 29 of Regulation (EC)
No 1493/1999.

(10)

The product of crisis distillation must be raw or neutral
for compulsory delivery to the intervention
alcohol
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 328, 23.12.2000, p. 2.

(3) OJ L 3, 6.1.2001, p. 11.
(4) OJ L 194, 31.7.2000, p. 45.
(5) OJ L 81, 21.3.2001, p. 21.

L 163/12

EN

Official Journal of the European Communities

20.6.2001

(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

the producer may cancel the contract where the quantity to be
distilled is reduced. The Member State shall notify the Commis-
sion before 27 July 2001 of
the quantities of such wine
covered by approved contracts.

The wine shall be delivered to the distilleries by 15
3.
October 2001. The alcohol obtained shall be delivered to the
intervention agency by 31 January 2002.

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is opened for a maximum of 1,5 million
hectolitres of table wine in France.

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

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 provided for in this Regulation:
— Article 62(5) with respect to the payment by the interven-
tion agency of the price referred to in Article 6(2) of this
Regulation,

— Articles 66 and 67 with respect to the advance 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 21 June 2001 to 26
June 2001. Contracts shall be accompanied by proof that a
to EUR 5 per hectolitre has been lodged.
security equal
Contracts may not be transferred.

Article 4

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

The Member State shall adopt the administrative provi-
2.
sions necessary to approve the above contracts by 20 July
2001, shall specify the rate of reduction applied and the
quantity of wine accepted per contract and shall stipulate that

The security shall be forfeit where no delivery is made

5.
within the time limit laid down.

The Member State may limit the number of contracts that
the distillation

6.
individual producers may conclude under
measure.

Article 5

The minimum price paid for wine delivered for distillation
under this Regulation shall be EUR 1,914 per % vol per hecto-
litre.

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 2,2812 per %
vol per hectolitre. The distiller may receive an advance on that
amount of EUR 1,1222 per % vol per hectolitre. The advance
in that case be deducted from the price actually paid.
shall

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 21 June 2001.

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

Done at Brussels, 19 June 2001.

For the Commission

Franz FISCHLER

Member of the Commission