CELEX: 51987PC0667
Language: en
Date: 1987-12-18
Title: PROPOSAL FOR A COUNCIL DECISION TO ADOPT A FIRST MULTIANNUAL PROGRAMME (1988-1993) FOR BIOTECHNOLOGY-BASED AGRO-INDUSTRIAL RESEARCH AND TECHNOLOGICAL DEVELOPMENT "E C L A I R" (European Collaborative Linkage of Agriculture and Industry through Research)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 667
Vol. 1987/0311
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM ( 87 ) 667 final
                                                 Brussels , 18 december 1987
                   PROPOSAL. FOR A COUNCIL DECISION
       TO ADOPT A FIRST MULTIANNUAL PROGRAMME ( 1988-1993 ) FOR
   BIOTECHNOLOGY-BASED AGRO-INDUSTRIAL RESEARCH AND TECHNOLOGICAL
                              DEVELOPMENT
                    "E C L A I R "
                 ( European Collaborative Linkage of
             Agriculture and Industry through Research )
 ---pagebreak---                                         2
                                  S U M M A R Y
A FIRST MULTI-ANNUAL PRORGRAMME ( 1988-1993 ) FOR BIOTECHNOLOGY-BASED
         AGRO-INDUSTRIAL RESEARCH AND TECHNOLOGICAL DEVELOPMENT
                                 "E C L A I R " :
 European Collaborative Linkage of Agriculture and Industry through
                                     Research
  The Framework Programme for the Community activities in R&D includes
  an Action 4 : " Exploitation and Optimum Use of Biological Resources "
   and , within it , a sub-action 4.2 "Agro-Industrial Technologies ".
  The proposal presented here as " ECLAIR" is part of this sub-action .
   It will be complemented by a second proposal dealing specifically
  with food industry technologies .
   In view of the situation on the agricultural markets , and of the
   demand by the transformation industries and the views expressed by
   interested individuals and trade associations , the following focal
   points have emerged for development projects :
   2.1     Agricultural production for industrial uses
           This sector will concentrate on the improvement of existing
           agricultural products and the development of new alternative
           products ,     responding to industrial needs ,   to make possible
           additional outlets .      As examples , one might cite the further
           adaptation of flax ,       sunflowers or rape towards industrial
           requirements . But one might similarly consider breeding and
           plant cultivation techniques on plants hitherto less familiar
           in Europe ,      such as cuphea or euphorbia , which can provide
           special fatty acids .
   2.2      Industrial aspects
           Similarly ,       in industrial production there are project
           opportunities ,      upstream and downstream of agriculture . As
           examples of projects upstream of agriculture , one might cite
           the development of biodegradable plant protection products
           which do not leave residues , or of methods to make available
           specific fertilisers ,      which can be absorbed by the plant with
            a minimum      of waste .     Amongst the industrial activities
            downstream      of agriculture there are for example new
            fractionation techniques or applications for flax ,         or for
            defined oils or starches ( biologically degradable packaging
            materials ) .
    2.3     Integrated projects
            These projects can include many themes ,            in particular ,
            integrated agro-industrial projects such           as whole crop
            harvesting , and the use of new technologies        adapted to the
            farm . With regard to whole crop harvesting         there could be
 ---pagebreak---                                         3
            projects in which , for example , a new breed or variety of
            plant ,    cultivated and harvested by the          relevant new
            techniques , is then brought in its totality to the industrial
            transformation centre , where each constituent part finds its
            most economic application . The integrated technologies include
            for example the advanced application of computers , automation ,
            the integration of new mechanised processes under computer
            control etc .
3.  The proposed Community programme aims to provide a financial
    stimulus for agro-industrial technologies .       The measures comprise :
    support for individual projects ; training and mobility grants ; and
    the execution of coordination activities .
    It is envisaged that a typical project would comprise a cluster of
    contracts focussing on different aspects of a representative
    problem .     For each project there will be defined objectives ,
    time-scale and multi-annual plan , negotiated by the Commission with
    the selected respondents to the call for proposals . An average or
    typical project might involve some 5 contractors , each spending on
    staff , equipment and consumable supplies a sum of between 0.2 and
    0.5 MECU per year for 4 years . Thus the total project cost would
    typically be in the range of 2 to 8 MECUs , of which the Community
    commitment would not be more than 50% ; on average around 2.5 MECUs .
     In  order   to  ensure   the  necessary  industrial  orientation   of t lie
    programme ,     it is proposed that the university and research
    institutes should normally only participate in a group together with
    one or more industrial organisations and that 50% of the funding
    should come predominantly from the industrial partner .
4.'  For the period 1988-1993 the total costs for the Community budget
    which will be devoted to this first agro-industrial programme will
     not exceed 80 MECUs .     This amount covers the costs for the projects
     themselves ; the costs of training and mobility grants ; coordination
     activities ; and administration , including the staff of 13 persons
     necessary for the effective implementation of these activities .
5.   The presentation of this programme proposal is the result , on the
     one hand ,     of developments on agricultural markets within the
     Community ,    and on the other ,     of the development of industrial
     requirements .     The latter development is more and more in the
     direction of tailor-made raw materials which simplify industrial
     production and reduce production costs ,        and which moreover give
     security of supply ; crude oil currently an important industrial raw
     material , will not last forever . Under these circumstances , it is
     appropriate to give greater attention to renewable resources which
     might be made available by agriculture .     These thoughts are not new .
      In some Member States , similar programmes with regard to energy and
     for industrial uses ,       have been launched . Such developments are
     occuring throughout the whole world . In the US , the Senate has
     passed a bill for a programme of new and alternative products and
      crops . Funding of US$75 million per year over the next 20 years is
      proposed .
 ---pagebreak---                                 4
It is evident that Europe 's answers to the foreseeable challenges in
the agro-industrial field can be provided by a Community approach ,
as has been done ( e.g. by the BRITE programme ) in other sectors . The
ECLAIR programme , designed to promote at the pre-competitive level
new developments based on the life-sciences and biotechnology , will
increase overall efficiency of the agro-industrial system by pooling
skills and facilities in a Community-wide action .      Based on these
elements , it is to be expected that the results of Community joint
efforts will show a quicker economic result in a Community-wide
market ,   and    thereby   substantially   support    the   industrial
competitiveness of the Community .
 ---pagebreak---                                        5
                                CONTENTS
SUMMARY                                                           2
INTRODUCTION                                                      7
PART A  :  BACKGROUND
1.   The Challenge of Biotechnology
       1.1   The Life Sciences and Biotechnology :
             Forces for Change                                    8
       1.2   Implications for Science , Agriculture and Industry  9
       1.3   The Community Strategy for Biotechnology             9
       1.4   Agricultural Policy and Pari iamentary Opinions
             on Biotechnology .                                  11
       1.5   The Responses of the United States and Japan        12
       1.6   Actions in Member States                            13
2.     Consultations with Scientific , Agricultural and
       Industrial Circles
       2.1   Responses to a call for expressions of interest     13
       2.2   Consultations with représentative organisations     14
       2.3   Further Consultations                               16
PART B : THE PROPOSED COMMUNITY PROGRAMME
3.    Programme OverView                                         16
4.    Programme Structure and Content                            17
      4.1    Agricultural production for industrial uses     .   17
      4.2     Industrial aspects                                 18
      4.3     Integrated projects                                18
 ---pagebreak---                                     6
5. Management of the Programme                                 19
   5.1   Préparation , management and évaluation of programmes 19
   5.2   Participants ,   scale of projects                    19
   5.3   Training / Mobility grants                            20
   5.4 . Coordination Activities                               21
   5.5   Access to and exploitation of results ;
         dissémination of information                          21
6. Criteria for Project Sélection and Interactions with
   Other Programmes
   6.1   Criteria to be applied in selecting projects          21
   6.2   Relationship and coopération with other Community
         policies and programmes                               22
   6.3   Coordination with national activities and
         Coopération with EUREKA
         6.3.1 .   Coordination with national activities       23
         6.3.2 .   Coopération with EUREKA                     23
7. Financial aspects
   7.1   Contractual and general aspects                       23
   7.2   Operating costs                                        24
   7.3    Personnel costs                                       24
            PROPOSAL FOR A COUNCIL DECISION
               ANNEX 1 PROGRAMME
                ANNEX II EVALUATION CRITERIA
            FINANCIAL STATEMENT
            COMPETITIVENESS AND EMPLOYMENT IMPACT STATEMENT
 ---pagebreak---                                              7
                                      INTRODUCTION
The objective of the proposed programme is to contribute in the medium
and longer terms to the competitiveness of Europe's agriculture and
industries 1 by improving the links between these two fundamental sectors
of our economy .       The Commission proposes to achieve this objective by
launching this programme of pre-competitive research and technical
development projects .
The     projects will        seek to promote close            collaboration between
agricultural and industrial activities ,                through the research and
technological development based on recent progress in the life sciences
and biotechnology .
This proposal presents the rationale for joint Community action ,                  and
opens a new phase in the continuing development of the Community 's
activities in biotechnology ,          as they have evolved over the past five
years ,     and in particular as defined in the Commission 's 1983 policy
                                2
statements on the subject .
                                                                 3
 In relation to the multiannual Framework Programme                ( 1987-1991 ),  the
spécifie programme proposed falls within the area of activity concerning
the exploitation and optimum use of biological resources .
                                           M
                                       M       *
 P art A describes the general background to the proposai being made : the
 forces for change from scientific developments , the growing technological
 opportunities and challenges which confront industry and agriculture . The
 response to this situation will involve mutual adaptation by European
 agriculture and industry ,            with collaborative . expérimentation and
 development work on a Community scale .                The proposed programme will
 constitute a first phase in a longer-term perspective .
 Part B describes the proposed Community programme to respond to these
 challenges by stimulating research and development activities at the
 interfaces between agriculture and industry . Fuller details are given of
 the specific areas selected , the criteria for choosing projects , the
 relevance and relation to other planned or current Community activities
 and R&D programmes .            These programmes in many cases focus on the
 development of generic " horizontal " technologies ,                such as genetic
 engineering      or    enzymology .     The    present   proposal    concentrates   on
 developing systems . within which the results of specific research and
  technological development will be incorporated , via further R&D , in
 pursuit of the double goal of providing new materials for industry and
 new outlets for agricultural produce .
  1   CF . the general objective of the European Community's activities in
      science , technology and démonstration , as stated in the Single
      European Act , Article 24 , concerning the addition of Title VI ,
      Article 130 F to Part Three of the EEC Treaty .
  2   COM ( 83 ) 328 , " Biotechnology : The Community's Rôle ", 8 June 1983 ,
      and COM ( 83 ) 672 , " Biotechnology in the Community ", 4 October 1983 .
  3   COM ( 87 ) 516 , "Council Decision concerning the Framework Programme for
      the Community activities in the field of research and technological
      development ( 1987 to 1991 )", 28 September 1987 . O.J. L302 , 24.10.1987 .
 ---pagebreak---                                             8
lli*? programme should start in mid-1988 , with a duration of five years
i mid - I98b-rrud - 1993 ) , and a total estimated cost of at least 1^0 MECUs , of
which the amount to be supported by the Community budget would not exceed
80 MECUs , normally 50'J» of any individual project .
The draft Council Decision and Financial Statement are annexed .
PART A    :   BACKGROUND
 I.    The Challenge of Biotechnology
 I.1   The Life Sciences and Biotechnology : Forces for Change
In the last few decades ,           the life sciences have produced a series of
discoveries of fundamental character .            From these basic discoveries ,
applications are being derived , stimulated by competition ; developing
slowly arid gradually in some areas , with unexpected speed in others ,
across all activities which depend upon biological             systems and their
constituent parts and properties . Biotechnology is gradually enlarging
our command of biological systems and the determinants of specific
characteristics ,         thus bringing also the possibility of the more rapid
development and increasingly precise design of organic materials , better
adapted to the needs of the industrial processor ,              the needs of the
consumer , and the development of new market opportunities .
These discoveries at the " design " stage can be complemented by new ,
" bio-rational " approaches : applying new scientific knowledge to the old
problems of combatting pests and disease ,             supplying and controlling
nutrition ,      and optimizing the timing and methods of harvesting and
post-harvest processing .
Ultimately ,       such developments will       lead to major transformations in
agriculture and forestry ,           the food and drink industry ,   parts of the
 chemical industry , in pharmaceuticals and health care , in the recovery
 and recycling of water and waste materials , and in the maintenance and
 enhancement of the environment . They will lead to structural changes in
 many different sectors of the economy . They will also gradually enable
 some sectors of economic activity to switch from non-renewable to
 renewable resources as their raw material .
  In turn .      the timely commercialisation of these developments will
 ultimately influence the relative economic strengths of the companies
 involved , of whole countries , and of regional trading blocs such as the
 F.uropean Community .
 Thus ,     the continuing progress of scientific knowledge ,       in conjunction
 with the increasing availability of the productive capabilities of
 agriculture , is creating an opportunity for new industrial activities .
  Europe , with its first-rate skills in the biological sciences and its
 powerful industries ( food , animal feed , chemical , pharmaceutical , fibre ,
  timber and wood products , ....) can respond to the challenge of making
  best use of this emerging opportunity , by triggering such developments
  through a Community collaborative initiative .
 ---pagebreak---                                              9
1.2     Implications for Science . Agriculture and Industry
The collaboration of science ,           industry and agriculture      is needed   to
explore     and   exploit  the    new biotechnological opportunities ,        and to
respond to the competitive threats ;              through the development of new
materials and products , and by improving quality and reducing the costs
of existing products .            Biological materials         can be much more
sophisticated than mineral raw materials , and they can increasingly be
" custom made ".       Moreover ,     new technologies enlarge the range of
possibilities for substitution and inter-conversion , as best fits local
conditions .
Although scientific discoveries in the life sciences have been remarkably
rapid ,     many constraints will slow their translation into practical
applications , and will slow the resulting changes in trade structures and
patterns . Action by public authorities , in many different policy areas ,
can influence the rate at which the different actors in Europe develop
their response to these challenges and changes .
The industrialist , as a supplier or customer of the agricultural sector ,
is hesitant to invest in areas subject to public policy intervention and
control . National and Community policies may have to be adapted , in order
to allow and encourage the exploitation of the new opportunities ,
particularly relating to the increasing availability of current and
potential agri-based raw materials .
The farmer cannot be expected to carry alone the burdens and risks of
modification , adaptation and the development of alternative enterprises .
He    needs   the  collaboration     of  the   industrialist  to  define  new  market
opportunities and quality requirements . He can then seek to adapt his
production , possibly helped by the organisations which supply him with
his increasingly sophisticated inputs .
The academic scientist , focussing on basic research and training , or on
 pre-competitive generic technologies ,            requires suitable      conditions ,
 incentives and commercial collaborators to facilitate and encourage the
 transfer of his results into applications linking industry and
 agriculture .
 The successes of research in Community and other programmes , and of such
 specialised       technologies      as    genetic    engineering   and    monoclonal
 antibodies , need to be integrated , by further research and development
 work ,    into systems which will lay the foundations for achieving market
 viability .
 The substantial investments which the exploitation of the results
 expected from the proposed programme will generate ,               require a large
 market . Their initiation through collaborative development projects in a
 Community programme will facilitate the achievement of this European
 dimension .
  1.3    The Community Strategy for Biotechnology
 The Community has long recognised the importance of biotechnology ;
 initially in        the proposal        ( 1976 )  for research in biomolecular
 engineering , then in the first FAST programme ( 1978-83 ), and subsequently
 ---pagebreak---                                             10
( 1983 ) in defining thè Community's role in terms of thè following six
priority actions . Significant progress has been made on thè first five
prionties , but none as yet on thè last :
(i)      Research and Training :         The Biomolecular Engineering Programme
         ( BEP ), 1982-86 , focussed specifically on agriculture and food , and
         achieved significant successes , e.g. in plant genetic engineering ,
         animal vaccine development , and enzymology for food production . The
         current Biotechnology Action Programme ( BAP ), 1985-89 , continues and
         expands on this work .
Hi ) Concertation Action : This action provides information and support
         to those responsible for other biotechnology-relevant policy areas .
         The Concertation Unit ( CUBE ) seeks to identify where new initiatives
         are needed ( such as the present proposal );           and works to develop
         these   in collaboration with the relevant services in the Commission
         and in Member State administrations ( the scope of this action
         extending also to regulations ,         patent law ,      public information ,
         cooperation with developing countries , etc .)
 ( iii ) Price régimes for raw materials of agricultural origin : New régimes
                    4              5
          for sugar    and starch      were adopted    in   1986 ,   to encourage  the
         maintenance and supply of raw materials at prices comparable with
          those prevailing outside the Community . These regimes are already
          having and will increasingly have , positive effects on industrial
          investment .
  ( iv ) Regulatory    regimes  ;    harmonized on a Community-wide basis ,        are
          essential to provide a clear and supportive framework for the
          promotion of biotechnology           innovation ,     while     ensuring the
          maintenance of high standards        of safety for man and environment .
          Directives were adopted in December 19866 to encourage a concerted
          approach by Member States      on market release for new pharmaceutical
          and veterinary products and to favour innovation in these sectors .
                                                          7
          The Commission announced in November 1986          its intention to préparé
          proposals     for    the      regulation     of      the     industrial   and
          agricultural / environmental use of organisms . These preparations are
          now in progress .
  4 C0M ( 84 ) 238 , 25 Aprii 1984 , "Report from thè Commission to thè Council
     pursuant to Artide 24(7 ) of Regulation ( EEC ) No . 1785 / 81 on thè common
     organization of thè markets in thè sugar sector".
   5 COM ( 84 ) 620 final , 27 November 1984 , " Proposal for a Council
      Regulation laying down certain detailed rules for applying production
      refunds in the cereals and rice sector in respect of potato starch ".
      ( Council Decision 25.03.86 ; 0J L94.09.04.86 ;
      Régulations 1006 to 1010 / 86 ).
   6 OJ L 15 / 38 , 17.01.87 : Council Directive 87 / 22 / EEC , on the
      approximat ion of national measures relating to the placing on the
      market of high-technology medicinal products , particularly those
      derived from biotechnology .
   7 COM ( 86 ) 573 , "A Community Framework for the Regulation of
        Biotechnology ", 4 November 1986 .
 ---pagebreak--- (IvV ))   Regimes for Intellectual property :                special legal - scient if ic
          problems arise in biotechnology , and conditions in Europe are in
          some     respects    less   favourable   than   those    available      elsewhere .
          Community legislative proposals are in preparation to facilitate
           innovation and to harmonise the protection of intellectual property
           in biotechnology , including agricultural applications .
 ( vi ) Demonstration Projects           :    In its   1984 proposals      for an action
                                                                                    g
           programme      involving   research ,   training    and  concertation .        the
           Commission noted that proposais for démonstration projects " must be
           made at a later stage , once the Community R&D projects are in
           progress and the targets to be set can be better evaluated ".
           The current proposal moves in this direction ,            with an emphasis on
           the development end of the R&D spectrum .
Although , in biotechnology as elsewhere . Community research expenditure
 is a small percentage of total Member State programmes , it can have an
 important effect in enhancing the coherence and effectiveness of these
 efforts .         Community initiatives , as in the present proposal , can address
problems lying outside the scope of purely national programmes . Through
 collaborative projects , the elements for solving a national problem may
 be found in the experience of other Member States . Community programmes
 can also provide the basis for internationally acceptable standards .
  I.4      Agricultural Policy and Pari i amentary Opinions on Biotechnology
 The "great debate " on the challenges facing European agriculture was
           .   . .    . .     _     .    .        ..                         ..9        .
  launched       in July      1985 by   the Commission 's    " Green Paper " ,       and  the
 conclusions were assembled in December that year under the title ,                        "A
  future for Community agriculture " ( COM ( 85 ) 750 , December 1985 ).                  The
 Commission identified the following priorities :
  "-       gradually to reduce production in the sectors * which are in surplus
           and to alleviate the resulting burden on the taxpayer ;
            to increase the diversity and improve the quality of production by
            reference     to the  internal   and external markets     and   the   desires of
            consumers ;
            to deal more effectively and systematically with the income
           problems of small family farms ;
            to support agriculture in areas where it is essential for land use
           planning , maintenance of the social balance and protection of the
            environment and the landscape ;
            to make farmers more aware of environmental issues ;
            to contribute to the development in the Community of industries
           which process agricultural produce , and thus involve agriculture in
            the profound technological changes which are taking place ."
  In the European Parliament ,             two resolutions were adopted in February
   1987 . The first on " Biotechnology in Europe " stressed the need for an
                      . .   10                .                                ..
  integrated policy               The second ,    on " Biotechnology     in    the European
  8     COM ( 84 ) 230 , " Proposal for a Council Decision adopting a multiannual
        research action programme of the EEC in the field of biotechnology
        ( 1985-1989 )", 26 April 1984 . ( Adopted 12.03.1985 )
  9       C0M ( 85 ) 333 , " Perspectives of the CAP" ( Green Paper ), July 1985 .
 ---pagebreak---                                           12
tu mu ng industry" 11 States inter alia that the Parliament :
"I.    Feel that , in the present context , biotechnology must promote an
       agricultural policy geared to quality , with high added value , rather
       than further increasing yields and quantities produced ;
 2.    Believes that the European Community has a duty to support and
       encourage biotechnological research aimed at improving alternative
       forms of production and / or finding new ones ;"
It is clear that these challenges , which the proposed programme seeks to
address , must be seen in a global context .          As the world 's largest food
importer and second largest food exporter , the development of Commission
policies for agriculture and biotechnology has to be closely related to
world trade and developments .         The actions and responses of Europe 's
competitors     have  therefore   to be    considered ,   as   must    those  of the
individual EC Member States .
1.5    The Responses of the United States and Japan
Reports by the U. S.     Congressional Office of Technology Assessment convey
                                                                  12
the message of technology-driven change in agriculture               ,    and the US
                                                                              13
National Research Council's Board on Agriculture has emphasised                  the
essential need to reinforce public support for agricultural biotechnology
in order to be competitive in international markets .
In the USA , following the earlier successes of the USDA Programme of New
and Alternative Products , ( e.g. with the development of kenaf as a fibre
source for paper production ,         or guayule as an indigenous source of
rubber ) a bill ( S. 970 ) has been passed by the Senate " to develop and
produce marketable products other than traditional food and fibre
products ",    with proposed funding of US$ 75 m annually for the next 20
                                                             14
years .       This responds to a Task Force report ,                advocating the
development and commercialization within 25 years of " an array of new
farm and forest products ", and estimated that the attainment of such a
 I0 Report on " Biotechnology in Europe and the need for an integrated
    policy ", Rapporteur Mrs. P. Viehoff , 16 November 1986 , Document
    A 2-134 / 84 .  Resolution : O.J. N° C76 / 25 , 23 March 1987 .
 11 Report on "The effects of the use of biotechnology on the European
     farming industry". Rapporteur Mr . F.W. Graefe Zu Baringdorf ,
     26 November 1986 , Document A2-159 / 86 .
     Resolution : O.J. N° C76 / 22 , 23 March 1987 .
 12 US Congressional Office of Technology Asssessment : "Technology ,
      Public Policy , and the Changing Structure of American Agriculture ",
      March 1986 ; and "A Review of US Competitiveness in Agricultural
      Trade ", Technical Memorandum , October 1986 .
 13     "Agricultural Biotechnology : Strategies for National
        Competitiveness ", National Academy Press , Washington DC , June 1987 .
  14 " New Farm and Forest Products         :  Responses to the Challenges and
     Opportunities Facing American Agriculture ", report in June 1987 by the
     New Farm and Forest Products Task Force .
 ---pagebreak---                                             13
goal would : " generate about 750,000 new jobs ; increase farm income by
about US$ 30 billion per year ;           and annually contribute about US$ 1000
billion in activity to the Nation 's economy ".
While these assessments may be overestimates , there is little doubt about
the trends towards increased support for biotechnology as a basis for
improved competitiveness .
In Japan ,        public expenditure commitments on biotechnology R&D have
apparently been much smaller than those of the U.S. or the EC . However ,
over 50 years ago ,        " It was decided as a matter of fundamental national
policy that plant resources which were derived from solar energy be
converted into basic raw materials for the synthetic chemical industry
                                         15
through      biochemical       means ."       To  this   pre-war   development   of
fermentation capability for the production of bulk chemicals , post-war
developments have added skills in the production of high value
antibiotics and animal feed supplements ( amino acids ).
 I.6   Actions in Member States
Each Member State has over the past few . years committed resources to
reinforcing biotechnology and interdisciplinary research .            International
assessments have to acknowledge the strengths of Europe 's scientific
capabilities ;       the criticisms of weakness focus more on our ability to
translate basic research and technological skills into practical
applications , and to commercialise the results .
Across the Member States of the Community emphasis is placed on the need
for research and development in the field of renewable raw materials , the
need to assess plants for their suitability as industrial crops , and the
need to bring the new tools of biotechnology to bear on these problems .
The current programme addresses the major need for a collaborative
 initiative which is not only inter-disciplinary ,             as in Member State
 biotechnology programmes ,          and international , as in current Community
 research programmes ,           but also inter-sectoral .       It will promote
 collaboration , and hence the movement of ideas and of individuals , across
 the three sectoral boundaries which in all countries exist between basic
 science , industry and agriculture .
 2.     Consultations with Scientific , Agricultural and Industrial Circles
 2. 1   Responses to a call for expressions of interest
 In April 1986 , the Commission outlined ideas for a possible multi-annual
 Community programme of activities for the stimulation of agro-industrial
 development 16 and , a few months later , issued a "call for expressions of
          . 17 ..
 interest      ",
  15 from " Historical Background of Industrial Fermentation in Japan", by
      Kin'ichiro Sakaguchi , Kyoto Fermentation Symposium , 1972 .
  16   COM ( 86 ) 221 , " Biotechnology in the Community :
       Stimulating Agro-Industrial Development ", 15 April 1986 .
  17   Supplément to the Official Journal of the European Communities
       N° S 137 / 29 , 18.07.1986 .
 ---pagebreak---                                              14
          18
A report      on the results of this call has been prepared and circulated ;
the results are summarised below .
Responses were received from 856 companies , institutes and universities ,
from all 12 countries of the European Community .                The total estimated
costs came to 625 Mio ECU . Many responses combine first-class science
with a practical commercial orientation . 266 responses came from industry
and many of these indicated a willingness to co-finance . The total cost
of these projects was 326 Mio ECU . All the respondents emphasised the
need and wish to work within a Community framework .
A classification of the responses into broad subject areas gives the
following picture :
- the provision of animal feedstuffs ( 119 responses )
- " bio-rational " approaches to the metabolism and nutrition of plants and
   animais , and to pest control ( 91 responses ).
- the provision of raw materials for industry and their utilisation and
   transformation ( 70 responses )
- integrated approaches to land use ,              in particular as exemplified by
   whole-crop harvesting and biorefineries . ( 32 responses )
The proposed technical content of the present programme proposal is based
on these suggestions ,         and on the results of the other consultations and
recommendations summarised below .
A fundamental consideration relating to this programme is the protection
of the public and the environment , a topic on which a number of reponses
were received .        This issue     constitutes   part   of  the  " Risk assessment "
sector of the ongoing Biotechnology Action Programme ( BAP )                and will be
 continued and further expanded as a result of that programme 's revision .
 Where appropriate , the findings of the risk assessment research will be
 used in the agro-industrial programme , through joint meetings , advisory
 visits by risk assessment researchers , or otherwise . All contractors in
 the Community 's biotechnology programmes are required to observe all
 national and Community laws relevant to the execution of their projects .
 Broad changes in regional ecology ,          natural systems , and land use arising
 from the development of biotechnology-based agro-industries should be
 evaluated and taken into consideration in selection of priorities for
 R&D .
 2.2 Consultations with Représentative Organisations
 Fifteen     organisations        representative     of   various   agricultural    and
 industrial      interests      were   invited   to    comment  on    the  Commission 's
 discussion paper ;         they are listed in Table 1 .        There have also been
 direct discussions with bodies such as CEFIC ( the European Council of
  18 " Stimulation of activities at the interfaces between agriculture and
      industry". Results of the Call for Expression of Interest , March 1987 ,
     CUBE-XI 1 / 233 / 87 .
 ---pagebreak---                                           15
Chemical       Manufacturera ' Fédérations )  and   COPA-COGECA    ( who  represent
agncultural producers ).         The written responses are reproduced in the
                            19
report already cited .
Table 1 .        ORGANISATIONS WHICH HAVE RESPONDED WITH COMMENTS ON THE
COMMISSION ' S DISCUSSION PAPER ON AGRO - INDUSTRIAL DEVELOPMENT COM ( 86)221
    Association of Microbial Food Enzyme Producers ( AMFEP )
     International      Group of     National   Associations     of    Agrochemical
    Manufacturera ( GIFAP )
     European Association for Animal Production ( EAAP )
    Committee of thè Professional Agricultural Organisations of thè EEC
     and thè General Committee for Agricultural Cooperation of thè EEC
     ( COPA-COGECA )
     Federation of EEC Veterinarians ( FVE )
     Association of Obtainers of Plant Varieties of the CEC ( COMASSO )
     European Confederation of the Pulp ,         Paper and   Cardboard     Industry
     ( CEPAC )
     European Fédération of Pharmaceutical Industries' Associations ( EFPIA )
     European Council of Chemical Manufacturers ' Fédérations ( CEFIC )
     European Fédération of Plant Proteins ( EUVEPRO )
     Confederation of the Food and Drink Industries of the EEC ( CIAA )
The respondents support ,          with varying priorities and emphasis , a
Commission initiative at the agriculture-industry interface along the
 lines suggested by the Commission .
The greatest interest was expressed by COPA-COGECA ,                 and by CEFIC .
 COPA-COGECA considers that the essential priority must be to increase
 added value in agriculture itself ;             any new production must be
 economically acceptable to agriculture .         They consider at the same time
 that the Commission should strengthen basic and applied research in
 biotechnology at the European level . They would welcome new or increased
 outlets of significant scale for agricultural products and are interested
 in the possibilities of import substitution .
 CEFIC supports the Commission 's initiative .         However ,    the Community 's
 chemical industry is interested in purchasing its agricultural feedstocks
 at internationally competitive prices and they say that in the areas of
 cereals , sugar , plant oils and fats there is the potential to produce and
 supply indigenous Community agricultural feedstocks on favourable terms
 for agriculture and for industry . They want the proposed programme to be
 complementary to the BEP and the BAP , and state their belief that " the
 first priority of the programme is to stimulate biotechnology 's
 development on firm and sound scientific and economic grounds ".
 They have identified a number of interesting oil crops which they say
 could , given some R&D input , be brought to viability in Europe as sources
 of fatty acids for the production of existing and new products .                ( The
 CEFIC response was accompanied by detailed annexes on castor , rapeseed
 and mustardseed : candidate industrial crops ).           By deploying the full
 range of new and established technologies they believe that a limited ,
 but high price market for tailor-made plants and crops producing high
 added value could be opened up .
  19 See Footnote     18 .
 ---pagebreak---                                          16
lliey also see considerable opportunity for projects to promote the use of
carbohydrates by the chemical industry .
Finally they        emphasise  the  value   of concertation   and  coordination
between the activities in any new Commission programme                 and   the
considerable efforts already committed by Member States .
CIAA has emphasised also this industry 's interest in biotechnology ,
though their response ( understandably ) warns          against   an  excessive
emphasis on the non-food outlets for agriculture .
EFPlA 's response emphasised that opportunities for the application of
modern biotechnology exist not only in the plant sector of agriculture
but also in relation to the health and productivity of farm animals .
2.3 .   Further Consultations
The " Industrial Research and Development Advisory Committee " ( IRDAC ), the
" Management and Coordination Advisory Committee " ( CGC ) for Biotechnology
and the " Standing Committee on Agricultural Research " ( SCAR ) have been
extensively consulted in the preparation of the proposed programme and
have reacted favourably .
PART B : Tl î E PROPOSED COMMUN ITY PROGRAMME
1.      Programme OverView
In biotechnology , the wide range of specialist skills and capabilities ,
in all the life sciences and related technologies , and the rapid rate of
progress , worldwide , make it impossible for any one Member State to be
up - to - date and internationally competitive in all the relevant areas .
This programme should stimulate the joining together of the different
complementary skills of the Member States .
The stimulation of new agro-industrial development in the Member States ,
through collaborative projects and related activities ( exchange of
experimental       results and training / mobility grants ),       are actions
complementary to national programmes and well-suited to a Community-level
initiative . The proposed programme corresponds closely to the Selection
Criteria defined m Annex III of the Council Decision ( September ,         1987 )
concerning the Framework Programme ( 1987-1991 ).
The programme now proposed will seek ,          through further research and
technological development , to bring towards practical application some of
the existing research results and technological capabilities ; stressing
the analysis of technical feasibility and some consideration of potential
economic viability .       The programme will seek to elucidate essential
factors such as the reproducibility of laboratory results on a larger
scale , under field conditions , and under various regimes of climate ,
soil ,     agricultural practices , post-harvest processing and transformation
and the effect of scale-up on cost .
Where the necessary concentration of resources limits the number of
projects and sites of activity , support via mobility grants will enable
 individuals from other parts of the Community to join the project groups .
Thus the necessary multi-disciplinary groupings of skills can be
 assembled ,     and the results and experience more effectively diffused
 throughout the Community .
 ---pagebreak---                                        17
Field trials and development projects are usually expensive and sometimes
difficult to conduct . To obtain maximum benefit from their efforts , the
results need to be systematically disseminated ;         not only through the
existing channels ,     but beyond these to reach new potential users ,
particularly     industrial .   The   Member     States   will    benefit   from
standardized field trials conducted on a European scale ,               and from
procedures which will be implemented at Community level .            The results
will be circulated across national and sectoral boundaries , subject to
appropriate safeguards for intellectual property ( see section 6.5 ), such
as have been developed in other Community R&D programmes with significant
industrial participation .
It is possible that findings obtained in one country may also be usefully
exploited in agro-industrial conditions existing in another country . The
further development and exploitation of the results may require
additional work and investment ,     but the aim of the proposed Community
programme is that the industrial or other partners co-financing the
projects should themselves be sufficiently encouraged by the results to
                                                                         20
take charge of the additional steps leading to commercialisation .
4.    Programme Structure and Content
The focus of the programme will be directed to examining how a closer
collaboration between agriculture and industry can contribute to
increasing added value in the whole agro-industrial sector .                   In
particular ,    projects will be supported which connect industrial
activities , both upstream and downstream , with agriculture . It is clear
that only those projects which incorporate the latest scientific results
can be taken into account .       Conservation ,    enhancement of nature and
environmental protection issues will be systematically taken into
consideration in the execution of the programme . On the basis of interest
expressed by individuals and trade associations , the following main areas
 for support may be considered .
                                                          *
4. I   Agricultural production for industrial uses
This refers in particular to the further development and new development
 of alternative agricultural products .        In detail ,     it concerns the
 characterisation , selection , use , and propagation of new biotechnology
 methods .   A large part will be taken by agricultural projects which
 correspond to industrial needs ,      and will thereby open supplementary
 outlets . Preference will be given to projects which :
       take account of the needs of industrial transformation ;
       which allow advantages for animal nutrition .
 The corresponding projects will concern trials on various scales ,         under
 the most diverse relevant conditions ,       such as e.g .      climate ,  soil ,
 fertilisers , nutrition , etc.
 This with relation to plants will concern further breeding , e.g. of flax
 with respect to its fibre strength and the yield of seed , of sunflowers
 with respect to high content of oleic acid , of rape with respect to high
 20 The Commission's services in charge of the execution of Activity 8.4
     of the Framework Programme may assist contractors , where necessary ,
     in steps leading to the commercial exploitation of their results .
 ---pagebreak---                                       18
content of erucic acid , of soya with respect to climatic adaptation to
Western European conditions . Regarding nutrition of animals , there could
for example , be significant trials for the development of feedstuffs rich
in beneficial nutrients or with enhanced disgestibilty . Some progress in
this direction has already been obtained , with high lysine barley .
4.2    Industrial aspects
Within the area of industrial production ,    this refers to projects both
upstream and downstream of agriculture . The technological development in
the industrial sector relating to inputs has made major breakthroughs
during recent decades ,     which have contributed ,  apart from breeding
results ,    to increase the yields considerably .     The development of
transformation of agricultural products of Community origin was
developing much more slowly than industry was satisfying its needs , on
the one hand ,     through imports of cheap raw material of agricultural
origin from third countries ,      and on the other hand ,      through the
transformation of crude oil .
In the sector of inputs , it will in particular be important to consider
in future projects which will not focus only on increase of yield , but
which have a positive influence on the environment . In this context , one
can think that through biotechnology ,     progress can be obtained with
respect to biodegradable pesticides , which have very specific spectra of
applications . At the same time , it relates to microbial applications
which will concern plant nutrition , e.g. regarding nitrogen , phosphorus ,
and trace elements in vegetables , cereals , trees or other categories .
Most important for the environment will be projects relating to better
use of fertiliser and thus reducing the losses due to run-off .
 In relation to industrial activities downstream of agriculture , one can
cite new fractionation and preparation processes ,         which will adapt
traditional technologies to modern methods . Similarly there can also be
developed new uses for certain constituents of agricultural products . In
 this context , one might consider flax , rape or starch . There can also be
new uses for erucic acid obtained from rape oil ,          or new packaging
material obtained by the application of high pressure on starch .        The
 broad introduction of such a packaging material , which is biodegradable ,
 could be considered as being a major breakthrough with respect to the
 environment . The list of possible applications is particularly important
 in this sector ,      as starch and sugar being major components of
 agricultural production may be transformed into a large number of
 industrially useable intermediate products .
 4.3    Integrated projects
 These projects concern a range of objectives which relate to integrated
 agro-industrial projects ,    such as whole crop harvesting and to the
 on-farm use of new technologies . Whole crop harvesting intends to use all
 parts of the plants and to avoid ( as done to a certain extent today )
 leaving part of the crop in the field .
 A corresponding plant ,     possibly a new breed or variety ,       will be
 cultivated with the relevant specific techniques ,       and harvested via
  special procedures . The transformation should take place in a central
  refinery , supplied by a certain number of farmers . The plant may be
 broken up in this refinery into its different parts - stem , leaves , seed .
 ---pagebreak---                                        19
and each element converted for a certain purpose . These ideas are not
new ;    indeed whole crop harvesting and preservation are practiced in
making hay and silage .
Another example of such a procedure would be collecting straw in cereal
production and its subsequent use for the production of cellulose .
Regarding integrated technologies ,       this refers to the use of modern
information technology ,      automation and the introduction of fully
automatic mechanised processes .          These     techniques    will   lead to
rationalisation on-farm .
5.    Management of the Programme
Projects will be undertaken in the form of shared cost contract research
and development . The programme will also provide for training / mobility
grants - see section 6.3 , and coordination activities .
5.1   Préparation , management and évaluation of programmes
In its task of defining and preparing the development activities ( within
the outline defined by the Council Decision ) and in the management of the
programme ,     the Commission will be assisted by a Management and
Coordination       Advisory   Committee     ( CGC )    for    Biotechnology-Based
Agro-Industrial Research and Technological Development .             In order to
ensure good coordination with related programmes ,          it is desirable that
this CGC should include representatives from other interested CGCs ,            in
particular the CGC for Biotechnology and the Standing Committee on
Agricultural Research .
 In particular ,    the CGC will assist in the        definition of    priorities
which will be clearly indicated in the call for proposals . It will also
play a key role in ensuring progressive and effective coordination amoung
national activities and the present programme .
The programme will be evaluated in accordance with the "Community plan of
action relating to the evaluation of Community research and development
 activities for the years 1987 to 1991 " ( COM ( 86 ) 660 final ). A sum of
 approximately 150.000 ECUs is foreseen for this purpose .
 5.2  Participants , scale of projects
 Participants in the research projects can be industrial and agricultural
 firms ,    cooperative groupings of such firms ,        research institutes and
 universities established in the Community . Normally , research institutes
 and universities should participate only in a project whose financial
 resources ( other than the Community contribution ) come predominantly from
 industrial or agricultural firms or groupings .
 Special efforts will be undertaken to involve potential applicants in
 particular small and medium-sized enterprises . To this end , existing or
 newly created networks of contact persons will be used ,                in close
 collaboration    with   the CGC .  An   Information-Package      will  be  issued
 containing all the relevant information ,          and advance notice will be
 published in the O.J. to inform and encourage applicants to express their
 interest at an early stage .
 ---pagebreak---                                           20
Proposais must involve participants from more than one Member State .
Projects should be of sufficient size to create significant and crédible
results , and ît is likely that the average scale will exceed those of an
average basic and pure research activity .
It is envisaged that a typical project would comprise a cluster of
contracts focussing on different aspects of a representative problem .
For each project there will be defined objectives , time-scale and plan
negotiated by the Commission with the selected respondents to a call for
proposals .       An average or typical project might involve some 5
contractors , each spending on staff , equipment and consumable supplies a
sum of between 0.2 and 0.5 MECU per year for 4 years . Thus the total
project cost would typically be in the range of 2 to 8 MECUs , of which
the Community commitment would not be more than 50% .
Within each of the three sectors ( see 4.1 , 4.2 , 4.3 ), there might be an
average of 10 such concentrated efforts ,            each receiving on average ,
around 2.4 MECUs from the Community . Thus an indicative breakdown within
the first sector might be to select one or at most two target species
from broad classes , such as : oil-seed crops ;          cereals ;  fibre plants ;
woody species ; and various livestock species .
Similar concentration would be applied in the other sectors .
A project could establish collaboration across sectors - e.g. combining
work on a species , with work on special inputs to its cultivation , and / or
the development of requisite industrial processing technology .
5.3     Train ing / Mobi 1 ity grants
Grants will be included in the programme , to facilitate training and / or
mobility , on terms specifically linked to the programme 's objectives and
the diffusion of results .
Two typical cases would be :
 (i)    a    training      grant   to enable  a   young     researcher   to  move
        t rans-nat ional ly to join a project team ; contributing some skill and
        labour ,       but predominantly to learn and to carry his / her new
        experience back to his / her home country , on the conclusion of the
        project ;
 ( ii ) a mobility grant to provide for the recruitment to a project , or the
        transfer to an appropriate site within the collaboration , of an
        experienced scientist or engineer whose skills are needed at that
        site .
Grants could be for the duration of the project ,         or for shorter periods ,
 depending on the requirements of both the project and the individual
 concerned . Applications will be invited once the programme is under way .
The funding of such grants will be by direct payment to the scientist ,
 and if necessary the payment of a " support fee " to the host organisation ;
 but the activity will be functionally integrated in the projects .
 ---pagebreak---                                             21
5.4 . Coordination Activities
As emphasised in Section 6.3 . 1 ., an important aspect of the programme is
the encouragement of              coordinated activities      for agro-industrial
development in Europe .         This includes the coordination of activities in
the      Member    States   as    well  as   inter-sectoral   coordination .    This
coordination will in part be achieved by the effective implementation of
the propgramme , but also by the assistance and cooperation of the CGC ,
IRDAC , SCAR and all those responsible for national activities .
5.5      Access to and exploitation of results ; dissémination of
         information
The general rules for the utilisation of the results are laid down in the
( forthcoming ) Commission proposal which will be presented to Council as a
follow up to the Single Act Articles 130K and 130L .
These conditions have been prepared for other Community programmes which
have significant industrial involvement , particularly BRITE .
Details on rights of access , licences , and other general information will
be published , as for BRITE , in an " Information Package ", which will be
released during the preparation phase of the projects .
6.       Criteria for project sélection , and interactions with other
         programmes
6! 1     Criteria to be applied in selecting projects
The scope of activities in a development programme of this kind is
potentially wide .         In order to avoid the dispersion of budgetary funds
over a wide range of initiatives unlikely to reach critical size , it is
essential to focus on certain types of activities ,                selected by the
stringent application of appropriate criteria .
The following criteria will be applied :                       *
 (i)     Projects    should    be   primarily   oriented   towards   the   practical
         application through biotechnology of the results of more basic or
         laboratory research , to develop systems based on firm scientific and
         technical grounds .
 ( ii ) In selecting projects , emphasis will be placed on the prospects for
         ultimate economic feasibility of the proposed activity ;          and as a
         strong indication of this , it will be expected that proposals will
         normally include financial commitments predominantly from industrial
         sources ,    amounting to at least 50% of project costs during the
         contract period .
 ( iii ) Pro jects must be likely to contribute to thè economie strength and
         competitiveness of thè           European Community ,      exploiting its
         particular advantages .
  ( iv ) Priority will be given to projects which enable a greater proportion
         of the total value added to be created within the rural         areas where
          the primary agricultural materials are produced ,          and which are
          therefore consistent with rural development .
 ---pagebreak---                                              22
(v)     Projects     should    avoid  undesirable    effects   on   the    environment ;
        spécifie bénéficiai effects would be a factor meriting favourable
        considération .
( vi )   In view of thè relatively high costs of development projeets ,
        proposals should be designed to facilitate ease of assessment and
        international comparability of progress ,            performance and final
        results .
( vii ) Pro jects selected will not        lead to   distortions of     competition in
        Community markets .
6. 2    Relationship      and   Coopération    with  other  Community     Policies    and
        Programme s
The Framework Programme
This proposal for a programme of biotechnology-based agro-industrial
technological development forms part of the Community 's Framework
Programme for research and technological development ( 1987-1991 ), under
the heading " Exploitation and optimum use of biological resources ". It
closely complements and will be coordinated with the other current and
future specific actions under this heading ;                    " Biotechnology " and
" Competitiveness         of    agriculture     and   management     of     agricultural
resources ". The main objective of the present programme proposal is the
development of projects eventually leading to new or improved products ,
processes and services which necessarily require industrial investment .
Also under thè heading " Agro-Industrial Technologies "                      a research
programme on food industry technologies will be proposed ,                   and will be
 complementary to ECLAIR .
 Forestry and Biomass Programmes
 Some 5% of the respondents to the Call for Expressions of Interest
 proposed projects in the area of forestry . Some of these would overlap
 the current research programmes on the production and use of wood as a
 raw material ,        and on biomass for energy ;       and with forestry projects
 within the programme of agricultural research . Specific attention will be
 paid to avoiding overlap with these programmes , and ensuring coherence
 with them . Any forestry or biomass production projects in the currently
 proposed programme should typically be concerned with the development for
 specific industrial purposes of systems incorporating the results of
 research .       The selection criteria would favour projects involving
 scientific        and    industrial    collaboration ,     with    an     emphasis     on
 biotechnology . Subject to these remarks , forestry or biomass production
 projects may be included under any of the headings in Section 4 .
 Competitiveness of Agriculture and Management of Agricultural resources
 The     objectives     of   current   and   future  Community    programmes     for   the
  coordination of agricultural research follow from the imperatives of the
  agricultural policy .        Current programmes and plans include such elements
  as diversification ,        higher quality ,   lower production costs ,      aspects of
  forestry and human resource effectiveness . There are thus several shared
  interest points with ECLAIR . These have been discussed in detail between
 ---pagebreak---                                          23
the Commission services concerned and close coordination will be assured
to exploit the natural complementarity between         the two activities and
avoid any unnecessary duplication .
Environmental aspects
Special attention will be given to the avoidance of possible adverse , and
the encouragement of beneficial , environmental impacts as a result of the
activities proposed . The biotechnologies in general are capable of having
strongly beneficial effects on the environment , through reducing wastes
of both inputs to and outputs from agriculture ,              and through the
introduction of simple , energy-efficient processes . This capacity in no
way conflicts with , indeed it fully complements , the central theme of the
programme ; and as emphasised in the Community 's 4th Action Plan for the
              21
Environment ,       there is a significant economic opportunity in the
development of technologies , products and services for the protection and
enhancement of the environment .
6.3     Coordination with national activities and Coopération with EUREKA
6.3.1 .   Coordination with national activities
 In several Member States ,     public and private initiatives are in progress
or preparation which share some of the objectives and methods envisaged
for the proposed programme .        Participation in a Community context could
offer benefits in terms of :         access to a wider range of knowledge and
techniques , a wider range of partners to co-finance and to share costs
and risks , the critical mass necessary for achieving successful results ;
and easier access to the full Community market for the diffusion of
 results and their eventual commercialisation .
Those responsible for relevant activities in the Member States will be
 invited to contact the Commission in order to coordinate efforts ,
 exchange information , and develop forms of cooperation compatible with
 the objectives and modalities of the respective programmes .
 6.3.2 . Coopération with EUREKA
 The more generic and pre-competitive technological work envisaged in the
 proposed Community programme should create opportunities for EUREKA
 projects with commercial aims .
 7      Financial aspects
 7. I    Contracts and general aspects
 Community finance should normally not exceed 50% of the total cost of a
 project . The remainder should be provided predominantly from industrial
 sources .
 The total funding from the Community budget for contracts , including
 training / mobility grants ,     is estimated at 72 MECUs .      Based on the
 consultations undertaken and expressions of interest received ,            the
 potential ( in terms of demand , and offers of co-finance ) exists for a
 21 COM(86)485 , " EEC Fourth Environmental Action Programme " ( 1987-1992 ),
      9 October , section 2.4 .
 ---pagebreak---                                       24
much larger programme ;   but the proposed figure , effectively concentrated
and managed as indicated above ,   will aim to achieve a limited number of
significant successes within each of the three sectors .
Final decisions will be made by the Commission in consultation with the
CGC ,  based on the responses to the calls for proposals ,       and will be
published .
7.2    Operating costs
Community support amounting to 2,500,000 ECUs is foreseen for various
operating requirements , of which the most important items are :
      meetings and workshops of contractors for communication of results
      between the teams and other interested experts ,    to discuss problems
      and progress ;
      support of coordination activities ( e.g . meetings , experts etc. )
7.3    Personnel costs
Expenditure of 5.6 MECUs for a staff of 13 is considered necessary for
the execution of this new programme :
            7 staff of category A
             1 staff of category B
            5 staff of category C.
The character of the programme demands that staff should develop close
working relationships with the contractors , and should develop a broader
network of contacts with interested industrial groups and organisations .
Staff must also , with the assistance of CGC members , develop a close
awareness of relevant national work ,        in public research stations ,
agricultural institutes and universities , as a basis for the coordination
actions .
 In view of these demands , two scientific staff for each of the three
sectors described in section 4 , with appropriate supporting staff , are
 seen as the minimum requirement .
 ---pagebreak---                                         1
                       PROPOSAL FOR A COUNCIL DECISION
   adopting a first multiannual action programme for biotechnology-based
    agro-industrial research and technological development ( 1988 - 1993 )
                               "E C L A I R "  :
     European Collaborative Linkage of Agriculture and Industry through
                                    Research
THE COUNCIL OF THE EUROPEAN COMMUN ITI ES ,
Having regard to the Treaty setting up the European Economic Community ,
and in particular to Article 130 Q , paragraph 2 ,
Having regard to the proposal from the Commission ^,
                                                2
In coopération with the European Parliament ,
Having regard to the opinion of the Economic and Social Committee ,
Whereas    Article  130  K  of  the   Treaty  stipulates  that  the Framework
Programme    shall  be  implemented   through  specific  programmes deve loped
within each of its activities
 I
 3
                                                                               Z!T
 ---pagebreak--- Whereas by its Decision of 28 September 1987 the Council has adopted a
Framework Programme of Community research , and technological development
_ _     _4
( 1987-1991 ) ,     providing for activities to be implemented to ensure the
exploitation and optimum use of biological resources ;
Whereas     the      specialised     skills      and    capabilities     relevant       to
agro-industrial        development      are     numerous ,      and    Europe 's     most
internationally competitive capabilities are located in diverse Member
States , mutual benefit shall be derived from collaboration in a Community
programme ;
Whereas the European Parliament ,           in its assessment of the potential for
                                                          5
biotechnology in the European farming industry ,               has emphasised that it
must be used to promote an agricultural policy geared to quality ,                   with
high added value ,       and that the Community should support biotechnological
 research   aimed     at   improving   alternative     forms    of  production    and / or
 finding new ones ;
Whereas such       activities would     constitute    a   logical   complement   to   the
Community     research     programmes    in   the  areas    of  biotechnology    and of
 agriculture , promoting the application of their results to the social and
economic objectives of the Community ;
 Whereas development activities at the interfaces between agriculture and
 industry could contribute to the solution of some of the problems which
 agriculture is currently facing within the Community ;
 Whereas it is necessary to involve small - and medium-sized enterprises to
 the maximum extent possible in the biotechnology-based agro-industrial
 technological development programme ;
 Whereas   the     Scientific   and   Technical     Research Committee     ( CREST )   has
 expressed its opinion on the Commission 's proposal ;
 4   OJ L302 , 24 . 10 . 1987
  b   OJ C76 / 22 , 23.03.1987 .
 ---pagebreak---                                        3
HAS DECIDED AS FOLLOWS :
                                  Article 1
A research and development programme of the European Economic Community
in the field of biotechnology-based agro-industrial development is hereby
adopted in the form set out in Annex I for a five-year period starting on
1 July 1988 .
The programme shall consist of work carried out as contract-research and
as coordination actions and by training / mobility grants . Participants may
be   industrial   and  agricultural   enterprises ,   research  institutions ,
universities or combinations of them , established in the Community .
Normally ,   research institutes and universities should participate in a
group together    with one   or  more    industrial organisations .  Research
institutes which are     funded principally or exclusively     by industrial
organisations shall be considered as industrial participants .
Projects must be carried out by participants from more than one Member
State .
As a general rule ,   the Community contribution will ’not exceed 50% ,   the
 remainder to be provided predominently from industrial sources .
                                   Article 2
 The funds necessary for the execution of the programme are estimated at
 80 million ECUs , including expenditure on a staff of 13 .
                                   Article 3
 In the third year of the programme implementation ,     the Commission shall
 undertake a review . An evaluation will be conducted before the end of the
 programme and in the light of the objectives set out in Annex II .
 ---pagebreak---                                          4
                                    Article 4
The Commission shall be responsible for the execution of the programme
and   will   be  assisted    in   its   implémentation    by  a  Management and
Coordination Advisory Committee ( CGC ),        created in accordance with the
      . . _   _        _ _               _       ___   . . .6
Council Decision N° 84 / 338 / Euratom , ECSC , EEC , of 29 June 1984 .
                                     Article 5
This Decision shall apply from 1 July 1988 until 30 June 1993 .
 Done in Brussels ,                              For the Council
                                                 The President
  6   OJ No . L 177 , 04.07.84 , p. 25
 ---pagebreak---                                      ANNEX I
                                    PROGRAMME
     for the first multi-annual action programme for Biotechnology-Based
      Agro-Industrial Research and Technological Development ( 1988-1993 )
A IMS
The objective of the programme here proposed is to promote in Europe
the useful application of recent developments in the life sciences and
biotechnology . This shall be achieved by a programme of pre-competitive
research and technical development projects and coordination activities ,
based      on   close  collaboration   between    agriculture     and   industrial
activities , and supported by training / mobility grants . The programme will
contribute in the medium and longer terms to enhancing Europe 's
competitiveness in the economic activities which will be based on these
developments
Conservation , enhancement of nature and environmental protection issues
will be systematically taken into consideration in the execution of the
programme .
CONTENT
The programme shall consist of the following sectors :
        1 . PRODUCTION AND EVALUATION TRIALS OF CANDIDATE SPECIES
            OR ORGANISMS
        2.  INDUSTRIAL PRODUCTS AND SERVICES
        3.  INTEGRATED APPROACHES
 1 .    PRODUCTION AND   EVALUATION TRIALS   OF CANDIDATE SPECIES OR ORGANISMS
        shall consist of test trials at appropriate scale and under various
        conditions of novel or modified species or organisms ( plants ,
        livestock , other ) in order to test performance ,       pest resistance ,
        input requirements ,     and aspects relevant to suitability for
        industrial processing , animal nutrition and market acceptability of
        the organism , its constituents , and the products derived from them
        with special emphasis on the use of new biotechnological methods in
        the identification ,    characterisation ,   selection ,     modification ,
        propagation ,    cultivation or other aspect of developing and
        appraising the candidate organisms .
                                                                                    n
 ---pagebreak--- L .   INDUSTRIAL PRODUCTS AND SERVICES shall consist of :
      2.1   more precise and effective inputs to agriculture through
            research and development work ,          based on the use of life
            sciences and biotechnology , aiming at the creation of products
            and services for use in agriculture , offering advantages in
            terms of precision ,       cost-effectiveness ,     enhanced plant or
            animal performance ,        suitability for subsequent product
            processing and / or marketing , and avoiding possible undesirable
            side effects : and
      2.2   more précisé and effective extraction , transformation and
            production processes through research and development work on
            methods to increase the use and value of agricultural produce ,
            by extraction , transformation or other processes , in industry
            or elsewhere , which by biotechnological or other means make
            greater or more valuable use of the intrinsic properties of
            these materials .
3.    INTEGRATED APPROACHES shall consist of :
      3.1   whole crop harvesting ,        préservation and séparation Systems
            through trial systems to develop whole plant harvesting and
            its fractionation into constituents appropriate for subsequent
            applications ,       such system(s )  to   be  of   adequate  scale  to
            provide a basis for economic appraisals , and the significant
            participation of industrial           and agricultural       interests .
            Priority to be given to projects using new biotechnology : and
       3.2   studies and development projects for the integrated use of new
             technologies shall focus on the joint exploitation of progress
             in biological knowledge and techniques           in conjunction with
             new - technology - based agricultural    systems .
 IMPLEMENTATION
 Implementation of the projects shall be through cost-shared research and
 development actions and coordination activities . Training / mobility grants
 shall be included to facilitate the assembly of relevant skills at
 appropriate locations for the work of the projects ,               and to promote
 effective diffusion of the knowledge resulting from them . The programme
 shall also include the organisation of meetings , consultation of experts ,
 and diffusion of information on the progress and results of the projects .
 ---pagebreak---                                        ANNEX II
                               EVALUATION CRITERIA
    for the first multi-annual action programme for Biotechnology-Based
     Agro-Industrial Reseach and Technological Development ( 1988-1993 )
The Commission 's Communication to the Council concerning a Community Plan
of Action relating to the evaluation of Community research and
development activities for the years 1987 to 1991 ( COM ( 86 ) 660 final )
states that the objectives and milestones of each research programme have
to be set out in a testable form .         The objectives and milestones of the
above programme are set out below .
1.    The long term objective of this programme is to contribute to the
      competitiveness of Europe 's agriculture and industries by improving
      the links between these two fundamental sectors of our economy .          The
      Commission proposes to achieve this objective by launching this
      programme of pre-competitive development projects . The projects seek
      to promote the close collaboration between agricultural and
       industrial activities , by their participation in the research and
       technological development of         the   recent   progress  in  the   life
       sciences and biotechnology .
2.    The primary short term objective is that the programme should
       succeed in eliciting proposals , with commitments to co-finance from
       industry , for development projects on a scale commensurate with the
       Community resources proposed . This objective shall be testable in
       1991-1992 .
       At this time , the programme should also demonstrate its promotion
       and encouragement of inter-sectoral collaboration , across the Member
       States .
 3.    Particular objectives to be attained within            three  years  of   the
       programme implémentation are as follows :
 3.1   that tests of new or modified species or organisms hâve been
       conducted , and have given grounds to expect that these organisms , or
       the processes used to produce or modify them , represent progress and
       could find applications ;
 3.2   that   tests   hâve   been    conducted   of   new  or  modified   products ,
       techniques or services for use in agriculture ; that advantages in
       terms of precision , effectiveness , or the avoidance of possible
       adverse side-effects hâve been indicated ;         and that as a resuit of
       the  tests   the   products ,     techniques   or services   hâve practical
       applications ;
 ---pagebreak--- 3.3  that tests     have been conducted of more precise and effective
     extraction ,    transformation and production processes ,       applying
     biotechnological and / or other methods to an agricultural output : and
     that as a result of the tests , the processes are useful ;
3.4  that through the programme , arrangements shall be organised between
     farming and industrial / processing interests ,      and facilities or
     equipment created , modified or made available , to test on one or
     more crops the technical feasibility of "whole-crop harvesting ", and
     that corresponding measures of performance have been or are in
     course of being defined ,       to provide a basis for further system
     improvements ,     and a basis for decision on the replication and
     diffusionof similar larger scale activities ; and
3.5  that studies hâve been financed and completed ,         and development
     projects supported ,       involving the use in agriculture of new
     technologies ( e.g.     involving sophisticated detection / measurement /
     recording techniques ,        information processing ,   automation of
     equipment and facilities ), in conjunction with the application of
     biotechnology ; and that as a result of such studies and projects new
     applications have been found .
4.   In addition ,    the programme should ensure that the following general
     criteria are met ;
4.1  that the potential increase in market opportunities , in medium or
      long-term , as a result of the improvements or benefits demonstrated ,
     is of a size to justify the Community expenditures committed ;
4.2  taktng account of the final reports on the Biotechnology Action
     Programme which ends in December 1989 ,         and of the Biomolecular
      Engineering Programme ( 1982-86 ), and of the evaluation report(s ) on
      these programmes ,      consideration should be given whether this
     programme is in fact effectively promoting the transfer towards
      application of the results of the earlier biotechnology ( or
      biomolecular engineering ) reseach programmes ; and
 4.3  that throughout the execution of the programme the projects should
      have taken       adequately into      consideration the conservation ,
      enhancement of nature and environmental issues .
 4.4  taking account of the results of Community ,       national or private
      sector research activities in biotechnology , the evaluation panel
      shall consider whether the ECLAIR programme has contributed t 0 the
      application of the results of the said research activities in
      regions of the Community other than those in which the research was
      conducted ,    and has produced added value attributable to the
      Community character of the programme ( i.e. not readily obtainable
      via Member State actions alone ).
 ---pagebreak---                               FINANCIAL STATEMENT
   Budget Heading :      7354
   ECLAIR ( European Collaborative Linkage of Agriculture and Industry
   through      Research )     the   first   multi-annual    programme   for
   biotechnology-based       agro-industrial   research and technological
   development .
   Legal Base :     Article 130 , Council Decision
3. Description of action and objective :
   The global objective is to promote the exploitation and optimum use
   of Europe 's biological resources ,         through the application in
   industry and agriculture of recent developments in the life sciences
   and biotechnology .
   ECLAIR is an action programme of pre-competitive technical research
   and development projects , to be based on close collaboration between
   industrial and agricultural interests .         Through such research and
   development work , it will contribute in the medium and longer terms
   to enhancing Europe 's competitiveness in the economic activities -
   both industrial and agricultural - based on the life sciences and
   biotechnology .     This first multi-annual programme has 3 sectors .
   Within each sector , grants may be awarded for training and mobility ,
   to facilitate the assembly of relevant skills and the diffusion of
   results .
   Sector 1   :
   Production and évaluation trials of candidate species or organisms
   ( plants , livestock or other )
   by means of
          test trials at appropriate scale , testing performance , and
          aspects relevant to suitability for industrial processing ,
          animal nutrition and market acceptability , and with emphasis
          on the use of new biotechnological methods in the development
          and appraisal of the candidate species or organisms .
                                                                             33
 ---pagebreak---    Sector 2   :
   Industrial products and services
   by means of
          research and development work ,                 based on the use of
          biotechnology , aiming at the creation of products and services
          for use in agriculture , and offering advantages in terms of
          precision ,       cost-effectiveness ,       enhanced performance and
          product suitability ,        and the avoidance of undesirable side
          effects , and development work on methods to increase the use
          and      value     of    agricultural      produce ,      by    extraction ,
          transformation or other processes , in industry or elsewhere .
   Sector 3    :
   Integrated approaches
   by means of
          trial     systems    of whole    crop harvesting ,       preservation    and
           separation     to develop an      integrated activity       involving the
          harvesting of the whole plant ,             and its fractionation into
           constituent elements for various applications , such systems to
          be of      adequate scale      to provide     an initial     basis for    an
           economic appraisal ;        also   studies    and   development   projects
           focussed on the joint exploitation of progress in biological
           knowledge         and      techniques        in      conjunction       with
           new - technology - based agricultural equipment and systems .
4. Justification of the action
   The life sciences and biotechnology have made major advances in
    recent decades ,       and will ultimately have widespread impacts on
    agriculture and in many sectors of industry - particularly ,                   all
    those supplying goods and services to agriculture , processing the
    outputs of agriculture ,          or otherwise using organic materials .
    However ,     the rate of innovation in each sector is inhibited by
    various uncertainties about technical feasibility , by difficulties
    in   organising      the    inter-sectoral     ( industry - agriculture - science )
    collaboration required ,         and by the need to bring together the
    requisite multi-disciplinary skills from the various locations in
    the Community where each skill is best developed ,                   in order to
    achieve maximum progress and effectiveness in the combined
    operations .      Consultations , and a systematic survey through a call
    for expressions of interest , have demonstrated widespread interest
    in a Community-led initiative to overcome these difficulties , and
    thus derive the advantages of a joint Community effort .
    The ECLAIR programme will build upon the advances of biotechnology ,
    and in particular on the research successes of the Community 's own
    biotechnology research programmes ( 1982-86 and current ), as well as
    on research results available from Member State programmes .
 ---pagebreak---     In the medium and long terms ,    it will lead to increased economic
    growth , and to the development of both a wider range of market
    opportunities for European agriculture , and the greater industrial
    competitiveness of the industry sectors based on agriculture .
5.  Financial incidence of action on expenditures 1        ( Million ECUs )
    ( including costs for staff and expenses for
    administrative and technical management )
    5.1    Total cost over the whole of the expected
           duration  :
           From the Budget of the Communities        :             80
           From other sectors at the national level  :             72
                                                     TOTAL        152
   The Council Decision concerning the Framework Programme of Community
   Activities in the field of Research and Technological Development
   ( 1987 - 1991 ) COM ( 86 ) 430 final includes the provisions for this
   action under Action Line 4 .
 ---pagebreak---       5.2  Schedule of Commitment Appropriations and Payments - ECLAIR
Commitment Appropriations      1988   1989    1990   1991    1992       1993      1994    Total
Contracts                       9.9 19.9      10.2    10.0   20.0         1.9             71.9
Operating Costs                 0.3   0.4      0.5     0.5     0.5        0.3               2.5
Personnel costs                 0.4   0.9      1.0     1.0      1 . 1     1.2               5.6
TOTAL                          10.6   21.2    11.7    11.5   21.6         3.4             80.0
Payment Appropriations         1988    1989   1990    1991    1992      1993      1994    Total
Contracts                       1.6   8.2     12.1    11.1    12.5       12.6     13.8    71.9
Operating Costs                 0.3   0.4      0.5     0.5     0.5        0.3               2.5
Personnel Costs                 0.4   0.9      1.0     1.0      1 . 1     1 . 2             5.6
TOTAL                           2.3   9.5     13.6    12.6    14 . 1     14.1     13.8    80.0
      5.3  Method of calculation
           a)    Expenditure by contract
                 This expenditure covers the               Community's financial
                 contribution        to      studies ,         analytical            work ,
                 training / mobility grants ,      and pre-competitive research
                 and development work ; under shared-cost contracts to be
                 concluded with the industries active in biotechnology ,
                  in the supply of materials and services to agriculture ,
                  and in processing the products of agriculture ;                      with
                  service      providers ,         research            establishments ,
                 undertakings ,      including      small      and       medium       sized
                  enterprises    and other bodies established                      in the
                  Community ( average Community financial contribution -
                  about 50% of total costs ).
           b)     Operational expenditure
                  Administrative costs ( management committee and working
                  party meetings , document distribution or dissémination
                  of    techniques ,      use     of     data         processing        and
                  télécommunications        facilities ).            And        supporting
                  coordination activities
 ---pagebreak---           c)     Personnel costs
                 The requirements of this programme hâve been estimated
                 on the basis of a management staff of :
                         7 temporary officiais - category A
                         1 temporary official - category B
                         5 temporary officiais - category C ,
                  together with costs of missions and consultants .
                                                                           2
                  This staff is requested under the Budgets 88 to 93 .
6. Financing of expenditure
   The appropriations required to cover the Community 's contribution to
   this project are to be entered in the Community 's future budgets .
7. Type of Control
           Administrative control by the Director General for Financial
           Control as regards budget implémentation
           Scientific Control    :
                  CGC Committee ;
                  Officials of the Commission
                  Audit by the Court of            Auditors in  accordance   with
                  provisions of the Treaty .
   Staff is       6  A, 1 B,  3 C in 1988
                  6  A, 1 B, 5  C in 1989 - 90 - 91
                  7  A. 1 B , 5 C in 1992-93
   The   cost  of   new  staff  has been   calculated at    50% in  the relevant
   year .
                                                                          w-
 ---pagebreak---                COMPETITIVENESS AND EMPLOYMENT IMPACT STATEMENT
I.   Reason for proposing the programme
     The main reason for the proposed technical development programme is
     to promote industrial competitiveness and economic growth in the
     medium and long terms .        Effective use of the recent advances in the
     life sciences and biotechnology will be essential to the survival
     and cpmpet it iveness of the industries which process agricultural
     outputs ,    and of agriculture itself .            Biotechnology    will both
     transform existing and lead to new sectors .
     The pooling of scarce facilities and skills ,              the difficulty of
     funding development scale projects and facilities , and the need to
     ensure Community-wide diffusion of awareness of the potential of
     biotechnology are reasons for Community action ,           complementing both
     Community and national research programmes .
     In the absence of such a programme , the rate of adoption of the new
     technologies and of exploitation of the new opportunities by
     European industry and agriculture would be significantly and perhaps
     dangerously slower .          Moreover the Community would risk falling
     behind its major competitors ,           e.g.    the United States where a
     significant federally-funded programme is in successful operation ,
     and likely to be substantially expanded .
11 . Features of the businesses involved
     The proposal is intended to stimulate , encourage and assist existing
     businesses , and could similarly aid the creation of new ones .
     The sectors potentially involved in or influenced by biotechnology
     produce 40% of output in a modern economy ( see FAST Occasional Paper
     No . 1 ). Principally involved in the current proposal are :
             agriculture      ( in  the  widest    sense   -  including    forestry ,
             aquaculture etc. ) ( 10.4 m . employed ( 1986 ,      EUR 12 ) on 9.1 m .
             farm holdings ( 1983 , EUR 12 )).
             the suppliers of inputs to agriculture ( plants ,              animals ,
             seeds ,   embryos ,      fertilisers ,    growth stimulants ,     plant
             protection products , weedkillers , veterinary vaccines and
             medicaments , machinery and equipment , advisory services ...)
              the industries extracting ,       processing and transforming the
              outputs of agriculture ( food and drink industry , fermentation
              chemicals and pharmaceuticals , technical oils and fats , for
              lubricants , detergents etc . timber and wood products , paper
              and board , . . . )
 ---pagebreak---                                          2
    Potentially many SMEs jnay be involved . Many of the opportunities in
    biotechnology are " scale neutral "; others depend on concentrated and
    long-term research , requiring large scale .
    The proposal could encourage the creation of innovative R&D based
    enterprises , and aid the international orientation and more rapid
    growth to European scale of such firms .
    The proposal should stimulate in the medium term the competitiveness
    of European industry , both those which participate directly ,         and
    those which are informed of the results ; but the projects themselves
    will be at the pre-competitive development level .
    The effects of the programme are not expected to favour specific
    geographical areas ;        in the preceding call for expressions of
    interest , responses were received from every Member State .
III Obligations which this programme imposes directly on businesses
    The conditions for participation ( i.e. transnational co-operation ,
    50% industrial financing normally expected , at least one industrial
    or agricultural partner per project ) will ensure the business
    orientation of the programme .         There is of course no obligation to
    participate , but particular emphasis will be placed on effective
    advance communication to raise awareness before the programme ( cf .
    the Call for Expressions of Interest already successfully undertaken
    in 1986 ),     and on communication and diffusion activities during and
    after the programme .        ( It is envisaged that this will be the full-
    time responsibility of one of the A-category personnel ).
IV   Indirect obligations which national , régional or local
     authorities might impose on businesses
     By implementing this draft Council Decision no action is required by
     national governments or local authorities .        This proposal does not
     have any disadvantage to firms , except for the costs relating to the
     preparation of unsuccessful proposals .        There is also the positive
     benefit    of   the  " free    consultation " and  authoritative feedback
     provided , even on rejected proposals .
V    Provisions in respect of SMEs
     No formai spécial provisions in respect of SMEs are foreseen in this
     proposai .
 ---pagebreak---                                      3
    The conditions of participation , modelled on those of the BRITE
    programme , offer to SMEs the advantage that all signatories to an
    ECLAIR contract will be treated on an equal basis .
    As indicated above ,   dissemination of information about the research
    results will be given particular priority .   Special emphasis will be
    placed on the availability of this information to SMEs .
VI  Likely effect on :
    a)     the competitiveness of business
           As ECLAIR is aimed at pre-competitive development , there is no
           immédiate , but should be some medium and certainly long term
           effects in enhancing the competitiveness of European industry
           - see point I.
    b)     on employment
           The effects     on employment     are difficult   to ^ estimate ,
           particularly against the background of long-term structural
           change such as characterises agriculture . The effect should
           not be negative in agriculture ; there will be positive effects
           in the local creation of agro-industrial jobs ; and the effect
           will be positive in industry by enhancing technological
           capabilities and hence international market prospects .
VII Consultation of relevant représentative organisations
    The Commission 's " discussion paper" COM ( 86 ) 221 , which initiated
    the present proposal , was sent with a covering letter to fifteen
    representative organisations ,     eleven of whom have replied , and
    amongst those most concerned , with marked enthusiasm .
    The programme has also been presented to the CGC ( Management and
    Advisory Committee ) for the Biotechnology research programme , the
     Standing Committee on Agricultural Research , and the Working Party
     on Biotechnology of the Industrial Research and Development Advisory
     Committee ( IRDAC ).    This comprises members from all sectors of
     industry , industrial research institutes and trade unions .