Commission Regulation (EC) No 347/2002 of 25 February 2002 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wine in France
Date: 2002-02-25
Institutions: European Commission
Subjects: France, distillation, table wine, vinification

L 55/14

EN

Official Journal of the European Communities

26.2.2002

COMMISSION REGULATION (EC) No 347/2002

of 25 February 2002

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

to 15,5 million hl, according to the latest (provisional)
figures for 2000/01.

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 last amended by Regulation (EC) No 2585/2001 (2),
and in particular Articles 30 and 33 thereof,

Whereas:

Article 30 of Regulation (EC) No 1493/1999 provides
for the possibility of opening crisis distillation in the
event of exceptional market disturbance due to 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 18 December 2001, the French Government
requested that crisis distillation be opened for table wine
produced in France. Further information was forwarded
on 18 and 29 January 2002.

Production of table wine in France amounted to 21,1
million hl
It
in 1998 and 25,2 million hl
stood at 23,4 million hl in 2000 and the latest estimates
for the current wine year put table wine production at
22 million hl.

in 1999.

Although the figures for production have declined since
the bumper harvest of 1999/2000, stocks at the start of
the wine year show a steep rise. Table wine stocks stood
at 12,853 million hl in 1997 and 12,086 million hl in
1998. They amounted to 10,8 million hl at the start of
the 1999/2000 wine year, 15,5 million hl at the start of
2000/01 and 17,7 million hl at the start of the current
wine year. There has been very great variation in stocks,
particularly in certain wine-growing areas, with table
wine stocks rising by over 200 % since the beginning of
1999/2000.

(1)

(2)

(3)

(4)

(5)

(6)

This rise in stocks has had a negative impact on prices,
especially those for red wine, which have fallen by
around 24 % since the start of 1999/2000, a wine year
which saw no major intervention measures.

(11)

Over
the period 1996/97 to 1998/99 table wine
consumption in France declined slightly from around
18,3 million hl to 17,9 million hl. From 1998/99 it fell
first to 17,3 million hl and then dropped very sharply

(7)

(8)

(9)

(10)

The crisis distillation measures decided during the 2000/
01 wine year have definitely had a positive effect in
terms of stabilising prices for a period, but they have
proved insufficient when set against the large increase in
stocks, which are depressing the market and preventing
a return to balance.

In order to reverse this negative trend in prices and sales,
stocks of table wine should be reduced to a level that
can be regarded as normal in terms of covering market
requirements, and so deal with the difficult situation on
the market. Stocks that have built up over the last two
years must be reduced to a reasonable level, reflecting
more normal consumption requirements.

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are still satisfied, a crisis
distillation measure should be opened for a maximum of
4 million hl of table wine in order to reduce stocks to
an acceptable level. The measure should apply 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 stocks may vary
substantially from one producer to another and they
depend more on sales than on the individual producer's
annual output.

The mechanism to be introduced is that 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 last amended by Regulation (EC) No 2464/
2001 (4). In addition to the Articles of that Regulation
that refer to the distillation measure 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 advances.

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

(1) OJ L 179, 14.7.1999, p. 1.
(2) OJ L 345, 29.12.2001, p. 10.

(3) OJ L 194, 31.7.2000, p. 45.
(4) OJ L 331, 15.12.2001, p. 25.

26.2.2002

EN

Official Journal of the European Communities

L 55/15

(12)

The product of crisis distillation must be raw or neutral
alcohol only, for compulsory delivery to the intervention
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.

(13)

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 4
million hectolitres of table wine in France.

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
apply to the measure provided for herein:
— Article 62(5) as regards payment by the intervention agency
of the price as referred to in Article 6(2) of this Regulation,
— Articles 66 and 67 as regards advances as provided for 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 1 to 29 March 2002.
Contracts shall be accompanied by proof that a security equal
to EUR 5 per hectolitre has been lodged. Contracts may not be
transferred.

The Member State shall

take the administrative steps
2.
necessary to approve the above contracts by 6 May 2002 at the
latest, shall specify the rate of reduction applied and the
quantity of wine accepted per contract and shall stipulate that
the producer may cancel the contract where the quantity to be
distilled is reduced. The Member State shall notify the Commis-
sion before 20 May 2002 of
the quantities of such wine
covered by approved contracts.

3.
The wine must be delivered to the distilleries by 31 July
2002 at the latest. The alcohol obtained must be delivered to
the intervention agency by 31 December 2002 at the latest.

4.
Securities shall be released in proportion to the quantities
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.

The Member State may limit the number of contracts that
this 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 % vol/hl.

Article 6

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

2.
The price the intervention agency must pay distillers for
raw alcohol delivered shall be EUR 2,2812 % vol/hl. Distillers
may receive an advance of EUR 1,1222 % vol/hl. on that
amount. The advance shall in that case be deducted from the
price actually paid.

Article 4

Article 7

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

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 1 March 2002.

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

Done at Brussels, 25 February 2002.

For the Commission

Franz FISCHLER

Member of the Commission