Commission Regulation (EC) No 1367/2002 of 26 July 2002 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 in Portugal
Date: 2002-07-26
Institutions: European Commission
Subjects: Portugal, alcohol, common organisation of markets, distillation, intervention agency, table wine, wine

L 198/30

EN

Official Journal of the European Communities

27.7.2002

COMMISSION REGULATION (EC) No 1367/2002

of 26 July 2002

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

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

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:

(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 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 7 June 2002, the Portuguese Government
requested that crisis distillation be opened in Portugal for
250 000 hl of wine, mainly quality wine psr, produced
on its territory (Vinho Verde produced in the Minho
region) and for some of the table wine which was not
accepted for distillation under Article 29 of Regulation
(EC) No 1493/1999.

(3) Wine production in Portugal was 3,7 million hectolitres
in 1998/99 and 7,8 million hectolitres in 1999/2000. It
stood at 6,6 million hectolitres in 2000/01 and the latest
estimates for the current wine year put
table wine
production at 7,6 million hl.

(4)

(5)

Stocks of wine in Portugal amounted to 7,3 million
hectolitres in 1999/2000 and 9,1 million hectolitres in
2000/01, showing a substantial increase (25 %) over the
previous wine year. According to Portuguese forecasts
for the current wine year, stocks are set to reach 10,2
million hl, representing a further increase of 12 % over
2000/01.

Portugal thus has around 2,1 million hectolitres more in
store now than it did in the 2000/01 wine year. Neither
the quantities accepted for voluntary distillation in 2001/
02 (695 224 hl), nor the other intervention measures
such as private storage for wine (486 000 hl) have had a
sufficient impact on the market in wine in Portugal to
reduce the stock surplus. According to the Portuguese
this substantial wine surplus has pushed
authorities,

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

(6)

(7)

(8)

(9)

down prices, in particular for Vinho Verde, which has
fallen by around 40 %. Production estimates for the next
harvest suggest the same high level as for the current
wine year.

Despite a significant increase in intervention during this
and despite
wine
crisis distillation of
year,
450 000 hl
launched during the previous year, under
which 580 000 hl were actually distilled, stocks were
11 % higher than for the previous wine year and more
than 15 % higher than in 1999/2000.

the

Production, particularly of Vinho Verde in the Minho
region,
is substantially higher than in previous wine
years, while consumption is falling. According to the
figures provided by the Portuguese authorities, stocks
increased by 25 % during the last wine year. The specific
characteristics of this wine entail a rather short storage
period and a low alcoholic strength.

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 and quality wine psr should be
in
reduced to a level that can be regarded as normal
terms of covering market requirements, and so deal with
the difficult situation on the market. Stocks that have
built up over the last three years must be reduced to a
reasonable level reflecting more normal consumption
requirements.

(10)

Since the conditions laid down in Article 30(5) of Regu-
lation (EC) No 1493/1999 are still satisfied, a crisis distil-
lation measure should be opened for a maximum of
250 000 hl of quality wine psr and 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 depend more on sales than on the indivi-
dual producer’s annual output.

27.7.2002

EN

Official Journal of the European Communities

L 198/31

(11)

(12)

The mechanism to be introduced is the one provided for
in Commission Regulation (EC) No 1623/2000 of 25
July 2000 laying down detailed rules for implementing
Regulation (EC) No 1493/1999 on the common organi-
sation of the market in wine with regard to market
mechanisms (1), as last amended by Regulation (EC) No
1315/2002 (2). In addition to the Articles of that Regula-
tion 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 to be paid by distillers to producers should be
set at a level that permits the problems faced to be
solved by allowing producers to take advantage of this
measure. In order to recognise the greater quality effort
required of producers of quality wine psr, a slightly
higher price should be set for this product. However,
that might
that price should not be set at a level
adversely affect
the application of distillation under
Article 29 of Regulation (EC) No 1493/1999.

(13)

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.

Article 4

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

The Member State shall

2.
take the administrative steps
necessary to approve the above contracts by 15 September
2002, at the latest, shall specify the rate of reduction applied
and the quantity of wine accepted per contract and shall stipu-
late that the producer may cancel the contract where the quan-
tity to be distilled is reduced. The Member State shall notify the
Commission before 30 September 2002, of the quantities of
such wine covered by approved contracts.

3.
The wine must be delivered to the distilleries by 30
November 2002, at the latest. The alcohol obtained must be
delivered to the intervention agency by 31 January 2003, 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.

(14)

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

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

6.
individual producers may conclude under
measure.

HAS ADOPTED THIS REGULATION:

Article 5

Article 1

Crisis distillation as provided for in Article 30 of Regulation
(EC) No 1493/1999 is hereby opened for a maximum of
250 000 hl of quality wine psr and table wine in Portugal, of
which no more than 200 000 hl may be quality wine psr,
mainly Vinho Verde produced in the Minho region.

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 in this Regulation:

— 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.

The minimum price paid for wine delivered for distillation
under this Regulation shall be:

— EUR 1,914 per % vol. per hectolitre for table wine, and

— EUR 2,300 per % vol. per hectolitre for quality wine psr.

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.

The price the intervention agency must pay to distillers

2.
for raw alcohol delivered shall be:

— EUR 2,2812 per % vol. per hectolitre for alcohol distilled

from table wine, and

— EUR 2,667 per % vol. per hectolitre for alcohol distilled

from quality wine psr.

Article 3

Distillers may receive an advance on that amount of:

Producers may conclude contracts as provided for in Article 65
of Regulation (EC) No 1623/2000 from 29 July to 14 August
2002. Contracts shall be accompanied by proof that a security
equal to EUR 5 per hectolitre has been lodged. Contracts may
not be transferred.

— EUR 1,1222 per % vol. per hectolitre for distillation of

table wine and

— EUR 1,508 per % vol. per hectolitre for distillation of

quality wine psr.

(1) OJ L 194, 31.7.2000, p. 45.
(2) OJ L 192, 20.7.2002, p. 24.

The advance shall in that case be deducted from the price actu-
ally paid.

L 198/32

EN

Official Journal of the European Communities

27.7.2002

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

It shall apply from 29 July 2002.

Article 7

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

Done at Brussels, 26 July 2002.

For the Commission

Franz FISCHLER

Member of the Commission