CELEX: 51975PC0065
Language: en
Date: 1975-02-26
Title: Proposal for REGULATION (EEC) OF THE COUNCIL fixing, for the 1975/76 marketing year, the monthly price increases for cereals, wheat and rye flour and wheat groats and meal (submitted to the Council by the Commission)

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DOCUMENTS "COM"
COM (75) 65
Vol. 1975/0024
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                        COM(75)65 final
                                                        Brussels , 26 February 1975
                                  Proposai for
                   REGULATION ( EEC)            OF THE COUNCIL
            fixing, for the 1975/76 marketing year , the monthly
            price increases for cereals , wheat and rye flour and
                            wheat groats and meal
                 ( submitted to the Council "by the Commission)
COMC75) 65 final
 ---pagebreak---                               EXPLANATORY STATEMENT
For 1974/ 75 "the Council , following a proposal by the Commission , adopted a change
in the system of monthly increases following the lines proposed in paragraph 49
of the memorandum on the improvement of the Common Agriculture Polioy . The size
and number of monthly increases were in effect made more uniform . Meanwhile with
the object of easing the barley market , from the start of the marketing year during
the period of putting into progressive order , a staggered marketing year for maize
was set up , namely starting on 1 Ootober and finishing 30 September .
Demand on a Community market , deficit in feed grains , the satisfactory functioning
of the new system of a single intervention price for barley and the alignment of
the maize target price with that for barley such as has been proposed by the
Commission allow a further move towards a better hierarchy for cereals and the
re-establishment of the same marketing year for all cereals .
                                                                             "V
Indeed , a common season for all cereals to more important for the smooth funct' ning
of the market than a broken one which for local reasons of wheather or space apsets
the general organisation and favours a particular cereal in a given circumstance .
It is advisable to recall that cereal harvesting in the Community takes place from
may to October . Barley , for example , is harvested from May to September .
In such circumstances , it seems opportune to put the monthly increases for maize
on the same basis as that for other cereals without any discrimination .
Designed to give sufficient incentive to storage , the monthly increase should not
always cover the costs whioh should normally be recouped from the market . Meanwhile
this development is such that it seems reasonable to increase perceptibly the monthly
increase in comparison with the aotual amount . Indeed the actual amount if it'
presented an increase for barley and maize in 1974/75 over 197 3/7 4 * only required a
slight adjustment for common wheat and durum wheat .
As a result , the level of monthly' increases remained slight compared with the price
increases in March and Ootober , 1974 when interest rates became high and remained so .
The increase in storage costs is perhaps on average about 30
and a readjustment of this size corresponds with the proposals in the draft submitted
by the Commission .
 ---pagebreak---                                    Proposai for
              HEOUUTIM (ESC )                OF TKB COUÎTOÏt
 fixing- for the 1975/76 marketing year the monthly price inoreases for
oereals , wheat and rye flour and wheat groats and meal
                                                          \       1
THE C0U1ICIL OP THE EUROPEAN GCE3SU1JITXES ,
Having regard to the Treaty establishing the European Economio Community;
Having regard to Cojjnoil Regulation No 120/67/SEC ^ of 13 June 1967 on the
common organization of the market in ooroals , as last amended by Regulation
 (EEO ) NO           ( 2), and in partioular Artiole 6 ( 2) thereof J
Having regard to the proposal from the Commission}
Whereas , When the number and amount of the monthly prioo inoreases and the
first month during whioh these are to apply are fixed , acoount should "be
taken of the storage costs and intorest charges for storing oerealo in the
Ooraraunity and of the need to ensure that the disposal of stocks of oereals
oonforms to market requirement sj
Whereas to this end it should "bo laid dovm that the monthly increases for
all the cereals should oommenoe on 1 September; whereas the monthly prioo
increases for all the cereals should be standardised , except those for durum
wheat , for whioh , in view of the higher costs of financing , the monthly in­
creases should be fixed at a level higher than that for the other oereals;
Whereas the monthly increases in the threshold prioes for other feedgrain
should be fixed at the same level and for the same period as those for
barley in order to maintain the ratio established with that cereal for the
whole of the marketing year ;
                                                                      ... /•••
                                                                          /
( 1 ) OJ No   117 , 19.6.1967* p. 2265/671
( 2) OJ No
 ---pagebreak---                                    M» 2 «■
 HA.S ADOPTED THIS EEGUUTION ».
                                 Article 1      •
 For tho 1975/76 marketing year , tho monthly inoreasos to bo applied to tho
 target price , threshold price and intervention prico for the products listed
 in Artiolo 1 (a), (b) and (0 ) of Regulation llo 120/67/SEC shall "be as . set out
 in this Regulation .
                                 Article ?
 The monthly inoreasos to "be applied to tho target price , threshold price ,
 and intervention price for common wheat , durum vihoat , ryo , "barloy and maiso ,
 operative for the first month of the marketing yoar * shall bo aa follows t
                                                        (u.a« /l 000 kgj
                                  Oomnon wheat , ryo          Durum vrheat
                                      and barloy
  Auguot    1975                          >
  Septembor                                  1.40                      1.50    ■   .
  Ootober :                                  2.80                      3.00
  November                                   4.20                      4.50
  Deoombor                                   5.60                      6.00
  January 197°                               7.00                 .    7.50      .
  February                                   8.40                      9.00
  Karoh                                      9.80                 ! 10.50
  April                                     11.20                     12.00
  May                                       12.60                     13.50
  Juna                                    ( 14.00 )                 ( 1:5.00 )
  July                                    ( 14.00 )                 ( 1,5.00 )
The monthly inoroaees in brackets shall not apply to the intervention prico *
        .                        Artiolo Vf
The monthly inoreaeea to bo applied to tho threshold prico for moslin , oa-a ,
buok wheat , millet , oanary seed and sorghum , operative for tho first month
of the marketing year , shall be the name as those applicable to ooroals other
than darura wheat *                           ,
 ---pagebreak---                                 Artiolo 4
The monthly increases to "be applied to tho thra ahold prico for whoat , ooslin
and rye flour and to the threshold price for groats and seal of ooimaon or of
durum wheat operative for tho fir at month of tho marketing year shall "bo
as follows l
                                                           ( u.a. /l 000 kg)
                             Wheat and mo si in flour , Croate; and neal of
                             ooaraon wheat groat a and     duruu wheat
                             meal , ryo flour
 Auguat     1973
  Soptembor                               2.10                     2.30
  Oot ooer                                4.20                     4.60 ' ■
 November                                 6.30                     6.90     '
 Dooeinber                                8.40'                    9.20
 January 197»                           10.50                     11 . 50
 Fôbruary                               12.60                     13.80   i
 Karoh                                  14.70                     16.10
 Ayril                                  16.80                     18.40
 May                                    18.90                     20.70
 June                                   21.00                     23.00
 July                                   21 . 00                  23.00
                               ArtioJ.o 5
This Regulation shall enter into foroo on 1 August 1975 .
Thia Regulation shall be binding in its entirety and direct ly applioable
in all Moiibor States .
Dono at BtuoboIb ,
 ---pagebreak---                                 Financial Implications
The proposed increase in the monthly increments (+ 0,30 u.a./tonne/month) should
only have a slight effeot en the anticipated expenditure under the 1975 budget .
In fact i
     (a) the increments only start from 1 September 1975 and. their effect on the
          level of restitutions and levies should be restricted to only a few
          months of 1975 t
     (b) in the context of financial inplications conneoted with the price proposals
          for 1975/1976 ( COM ( 74) 2001 final ) it has been assumed that generally this
          sector in 1975 » the market situation will not neoessitate the granting of
          export refunds }
     ( c) as regards purchases into intervention , the inoreaments apply at the tine
          of purchase and of sale , for expenditure incurred through storage it oust
          be noted that the amounts proposed have already been retained for the
          lump stuns covering these expenses *
          As a result , the additional expenditure whioh oould result should be slight
          and such that it oould be met from the oredits available for 1975 * taking
          into account the probable economies arising from the situation envisaged
          in the table on page 57 of dooument ( COM ( 74-) 2001 final )*
          It is difficult to estimate precisely the finanoial implications over a
          period of twelve months ; in faot the major faotor will be prioe trends on
          the world market *