CELEX: 31986R1579
Language: en
Date: 1986-05-23 00:00:00
Title: Council Regulation (EEC) No 1579/86 of 23 May 1986 amending Regulation (EEC) No 2727/75 on the common organization of the market in cereals

24 . 5 . 86                                      Official Journal of the European Communities                             No L 139 / 29
                                                COUNCIL REGULATION (EEC) No 1579/86
                                                                  of 23 May 1986
                     amending Regulation ( EEC) No 2727/75 on the common organization of the market in
                                                                       cereals
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                                      which will enable a definition to be given of that prod­
                                                                               uction which requires financial support in order to
                                                                               ensure its disposal and allow an assessment to be made
Having regard to the Treaty establishing the European
                                                                               of the resulting charges on the budget, bearing addi­
Economic Community, and in particular Article 43                               tionally in mind imports of cereals substitute products
thereof,                                                                       on the Community market ;
Having        regard         to     the       proposal     from    the        Whereas determined action aimed at achieving a more
Commission ('),                                                               satisfactory balance between supply and demand on
                                                                              the market must also entail changes in the price-sup­
Having regard to the opinion of the                          European          port arrangements and adjustment of the intervention
Parliament ( 2),                                                               machinery ; whereas special intervention measures for
                                                                               common wheat of bread-making quality at a higher
                                                                               price-support level than the intervention price have,
Having regard to the opinion of the Economic and                               together with bread-making quality requirements which
Social Committee (3),                                                          were not sufficiently stringent, boosted the production
                                                                               of that particular type of wheat ; whereas eliminating
Whereas the Community cereals market is character­                             the reference price and fixing a ' bread-making quality 7
                                                                               intervention price can help to achieve the objective
ized by structural surpluses resulting from the imbal­
                                                                               described above ; whereas , however, the production of
ance between the supply of, and demand for, the prod­
                                                                               common wheat of higher bread-making quality should
ucts covered by Regulation ( EEC ) No 2727 / 75 (4), as
last amended by Regulation ( EEC ) No 1006/ 86 ( 5 );                          be supported ; whereas this objective can be attained by
whereas production has outstripped both consumption                            setting a special premium for this particular quality ;
                                                                               whereas in the interests of consistency , provision
in the Community and outlets on world markets ; wher­
                                                                               should also be made for a special premium for rye of
eas the resulting costs and market management prob­
lems could , if that trend is not checked, jeopardize the                      bread-making quality ;
future of the common agricultural policy ;
Whereas , in order to achieve, with the utmost urgency,                         Whereas this new approach means that the target price
                                                                               will be derived , for common wheat , from its interven­
an improved balance in market forces and to control
growth , it is appropriate to develop Community outlets                        tion price and , for feed-grain , from the intervention
on one hand and on the other to give the producers an                          price for barley ;
indication of the market situation ; whereas this objec­
tive can best be attained by means of a co-responsi­
bility levy applied to cereals produced in the Com­
                                                                               Whereas when there is a surplus on the market and
munity and used for certain operations ; whereas, bear­
                                                                               market prices are depressed, the fact that cereals can at
ing in mind the social implications of this measure, it is
                                                                               all times be sent to intervention is very often , even at
appropriate to establish a direct aid system for small
cereals producers, intended to compensate for the                              the beginning of the marketing year, seen as an outlet
                                                                               in its own right by many operators , with the result that
effect of the co-responsibility levy on their revenue ;
whereas an estimate of the overall amount of this aid                          the latter do not have to seek to market their grain ;
may be put at 120 million ECU for the 1986/ 87 market­                         whereas , in order to encourage operators to seek more
ing year ;                                                                     actively an outlet on the market during the early stages
                                                                               of the marketing year, the quantities bought in by inter­
                                                                               vention agencies should be limited to a certain period
Whereas the amount of the levy must be determined                              of the marketing year, bearing in mind the special fea­
annually, taking into account the various elements                             tures of certain Member States ; whereas , moreover,
                                                                               allowing operators to offer their grain for intervention
                                                                               without necessarily being taken over by the interven­
                                                                               tion agency will allow them to seek, during a period to
  ')  OJ   No C 53 , 7 . 3 . 1986, p. 5 .                                      be determined , a more advantageous outlet, and will be
 2)   OJ   No C 120,20 . 5 . 1986 .
 -')  OJ   No C 118 , 20 . 5 . 1986 , p. 9,                                    in keeping with the objective described above while
 4)   OJ   No  L 281 , 1 . 11 . 1975 , p. 1 .                                  guaranteeing that the grain can , as a last resort, be
 s)   OJ   No  L94, 9 . 4. 1986 , p. i .                                       bought in if such is the wish of the producer ;
 ---pagebreak--- No L 139 / 30                          Official Journal of the European Communities                                     24 . 5 . 86
Whereas a marketing year beginning on 1 July should               2.   Article 3 is replaced by the following ;
allow more fully for the new conditions obtaining in
the Community following the accession of Spain and
                                                                       'A rticle 3
Portugal , where harvests tend to take place early on in
the year, and can ease the introduction of the new
intervention arrangements referred to above ;                          1 . Before the beginning of the marketing year
                                                                      referred to in Article 2 , the following prices shall be
Whereas , moreover, in view of the appearance on the                  fixed annually for the Community :
market of the harvests of maize and sorghum , it is
appropriate that the threshold price applicable to them              — an intervention price for common wheat,
on import during the preceding month of March should                        durum wheat, rye , barley, maize and sorghum ,
be retained for the first three months of the marketing
year for these two products ;                                         — a target price for common wheat, a target price
                                                                             for durum wheat and a common target price
                                                                             for rye, barley , maize and sorghum ,
Whereas, in the context of the market organization
adjusted as described above, a carry-over payment can                 — a special premium for common wheat and for
be regarded simply as a management measure designed                          rye showing certain features as to quality .
to ease the transition from one marketing year to
another ; whereas the decision to grant such a carry­                 2 . The prices shall be fixed for a standard quality .
over payment should accordingly be a Commission res­
ponsibility under the management committee proce­                     3.    The intervention prices shall be fixed for the
dure ; whereas the possibility of applying such a mea­                Ormes intervention centre , which is the centre for
sure for maize moreover no longer seems justified, in                 the Community area having the greatest surplus for
view of the recent provisions introduced in respect of                all cereals, at the wholesale stage , goods delivered
that cereal ;
                                                                      at warehouse, before unloading. They shall be
                                                                      valid for all Community intervention centres desig­
Whereas the aim of restoring balance on the market                    nated for each cereal .
should be to encourage the search for, and develop­
ment of, new industrial outlets for cereals, in particular
in the field of energy ; whereas provision should there­              4.     (a ) The target prices for common wheat and
fore be made for granting aid for cereals used for such                           durum wheat and the common target price
research and development work ; whereas the aid ,                                 for rye, barley, maize and sorghum shall be
should , however, be fixed in such a way as to allow                              fixed for Duisburg, which is the centre for
sound competition with world market outlets for those                             the Community area having the greatest
cereals ;                                                                         deficit for all cereals , at the wholesale
                                                                                  stage, goods delivered at the warehouse,
Whereas Articles 15 and 16 introduce arrangements                                 before unloading .
which permit, in cases where there is no carry-over pay­
ment, the import and export of malt manufactured                                  They shall be calculated by adding, to the
from the previous harvest 's crop for the first two                               intervention price for common wheat,
months of the new marketing year ; whereas the change                             durum wheat and barley , a market compo­
in the date of the beginning of the marketing year calls                          nent and a component reflecting the cost
for a one-month extension of the period referred to                               of transport between the Ormes area and
above in order to enable the import and export arrange­                           the Duisburg area .
ments for malt to operate at the beginning of the mar­
keting year,                                                                (b ) The market component for :
                                                                                  —    common wheat shall reflect the differ­
                                                                                       ence which should exist between the
HAS ADOPTED THIS REGULATION :
                                                                                       intervention price and the market price
                                                                                       for very high quality common wheat of
                                                                                       bread-making quality , produced in the
                          Article 1                                                    Community, to be expected , in a nor­
                                                                                       mal harvest and under natural pricing
Regulation ( EEC) No 2727 / 75 is hereby amended as                                    conditions on the Community market,
follows :                                                                              in the area having the greatest surplus ,
                                                                                  — rye, barley , maize and sorghum shall
1.   Article 2 is replaced by the following :                                          reflect the   difference  which   should
                                                                                       exist between the market price for bar­
      A rticle 2                                                                       ley and its common intervention price,
                                                                                       plus the difference in market prices
     The marketing year for all the products listed in                                 reflecting the ratio between the relative
     Article 1 shall begin on 1 July and end on 30 June                                values of barley and maize for use in
     of the following year.'                                                           animal feed . The market prices to be
 ---pagebreak--- 24 . 5 . 86                              Official Journal of the European Communities                           No L 139 / 31
                     taken into consideration are those to              products shown in Annex D shall be taken into
                     be expected in a normal harvest and                consideration .
                     under natural pricing conditions on
                                                                        4 . The levy referred to in this Article shall be
                     the Community market, in the produc­
                     tion area having the greatest surplus ,            regarded as one of the intervention measures
                                                                        designed to stabilize agricultural markets and shall
                 —   durum wheat shall reflect the differ­              be allocated to the financing of costs in the cereals
                     ence which should exist between the                sector .
                     intervention price and the market price
                     to be expected , in a normal harvest               5 . The co-responsibility levy shall be collected on
                     and under natural pricing conditions               cereals that undergo one of the following opera­
                                                                        tions :
                     on the Community market, in the area
                     having the greatest surplus .                      — first processing,
            (c) The component reflecting the cost of trans­             — intervention buying,
                 port shall be determined on the basis of the
                 most favourable means of transport or                  — export in the form of grain .
                 combination of means of transport and on               6.   The levy shall be passed on to the producer.
                 existing tariffs . When inland waterway or
                 sea-freight rates are not based on a tariff,           7 . The detailed rules for the application of this
                 transport costs shall be determined by tak­            Article, and in particular :
                 ing the average freight rate over the two              — the definition of the first processing,
                 months with the lowest average rate during
                 the most recent 12-month period for which              — the procedure for collecting the levy ,
                 data are available .                                   — operations exempted from the co-responsibility
                                                                             levy,
      5 . The prices and the special premiums referred
      to in paragraph 1 and the standard qualities                      shall be adopted in accordance with the procedure
      referred to in paragraph 2 shall be determined in                 laid down in Article 26 .
      accordance with the procedure laid down in Article                The transitional measures necessary for the appli­
      43 ( 2) of the Treaty .                                           cation of this Article shall be adopted in accord­
                                                                        ance with the same procedure .
      6 . The Council , acting by a qualified majority on
      a proposal from the Commission , shall lay down                    8.   The Commission shall ensure that the co-res­
      rules for determining the intervention centres to                  ponsibility levy system does not create any distor­
      which the intervention prices apply .                              tion with competing products .
      7.    The intervention centres shall be determined ,              9.   The Commission will consult with trade inter­
      after consultation with the Member States con­                    ests on the use of the amount produced by the levy .
      cerned , in accordance with the procedure laid
      down in Article 26 .'
                                                                        A rticle 4a
3.    Article 3a is hereby repealed .                                   1.   Direct  aid   shall  be  introduced   for  small
                                                                        producers . For the Community, the overall aid
                                                                        amount shall be fixed each year before the begin­
4.     Article 4 is replaced by the following :                         ning of the marketing year in accordance with the
                                                                        procedure laid down in Article 43 ( 2) of the Treaty .
        A rticle 4
                                                                        This amount may not exceed the total estimated
                                                                        amount produced by the co-responsibility levy on
      1 . A co-responsibility levy shall be payable in res­             producers marketing not more than 25 tonnes .
      pect of the cereals referred to in Article 1 (a) and
      (b) produced in the Community and used for one                    2.   For the 1986 / 87 marketing year the overall aid
                                                                        amount shall be set at 120 million ECU . Should
      of the operations referred to in paragraph 5 hereof.
      This arrangement shall apply for the 1986 / 87 to                 paragraph 4 be applied, this latter amount shall be
      1990/91 marketing year.                                           reduced by the amount that would have been paid
                                                                        to the Member State under the current aid arrange­
      2 . The amount, per unit, of the levy shall be fixed              ment, had the said paragraph 4 not been applied .
      annually before the beginning of the marketing                    3 . The Council , acting by a qualified majority on
      year, in accordance with the procedure laid down                  a proposal from the Commission , shall lay down
      in Article 43 (2 ) of the Treaty .                                general rules for such aid .
      3 . When the amount of the co-responsibility levy                 4. During the 1986 / 87 marketing year only , Mem­
      is determined, imports into the Community of the                  ber States, which experience particular difficulties
 ---pagebreak--- No L 139 / 32                           Official Journal of the European Communities                                         24 . 5 . 86
   of an administrative or technical nature in applying                  cular in respect of quality and quantity, to be deter­
   the rules laid down for small producers under this                     mined in accordance with paragraph 5 . However :
   Article may, subject to conditions to be set in
                                                                         — intervention agencies shall buy in the cereals
   accordance with the procedure laid down in para­
                                                                                offered to them from 1 September on deferred
   graph 5 , grant aid to small producers in the form of
                                                                                payment terms , and , in Portugal , Italy, Greece
   compensation for the levy payable by those small                             and Spain from 1 August, for cereals harvested
   producers .                                                                  in these countries ,
   The overall amount of that compensation for the
                                                                         — during July 1986, the Spanish intervention
    Member State in question may in no event exceed
                                                                                agency shall buy in the cereals harvested in
   the amount that would have been paid to it, had
                                                                                Spain which are offered to them on the pay­
    this paragraph not been applied .                                           ment conditions existing in that country before
    5 . The detailed rules for the application of the                            1 March 1986 .
    aid, and in particular its allocation , shall be
                                                                         Subject to certain conditions and in respect of cer­
    adopted in accordance with the procedure laid                        tain periods to be determined in accordance with
    down in Article 26 on the basis of objective
                                                                         the procedure laid down in Article 26 , the Commis­
    criteria .'
                                                                         sion shall have power to authorize the submission
                                                                         to intervention agencies of offers which include a
5.   Article 5 is hereby amended as follows :                            cancellation clause .'
    ( a) The following subparagraph is added to para­
           graph 1 :                                               8.    In Article 7 ( 2):
                                                                         ( a) ' single intervention price ' is replaced by ' inter­
           ' However, for maize and sorghum , the thres­                        vention price ';
           hold price valid during March shall be appli­                 (b ) the third sentence is deleted .
           cable for July , August and September of the
           following marketing year/
                                                                   9.    In Article 7 ( 5 ) the following indent is inserted
   (b ) The first indent of paragraph 4 is replaced by                   between the second and third indents :
          the following :
                                                                         '— the specific quality criteria which common
           '— a component representing the cost of                              wheat of breadmaking quality and rye of
                transport between Rotterdam and Duis­                           breadmaking quality must meet in order to be
                burg, determined in accordance with the                         eligible for the special premium provided for in
                criteria laid down in Article 3 (4) ( c).'                      Article 3 ( 1 )'.
    (c ) Paragraph 6 is replaced by the following :
           '6 . Threshold prices for products referred to          10 . Article 8 is replaced by the following :
           in this Article shall be fixed annually, before
           the beginning of the marketing year, in accord­                'A rticle 8
           ance with the procedure laid down in
           Article 26 .'                                                 1.     Particular      intervention    measures    may       be
                                                                         adopted whenever the market situation in certain
                                                                         regions of the Community so requires .
6.  Article 6 is replaced by the following :
                                                                         2 . The Council , acting by a qualified majority on
      A rticle 6
                                                                         a proposal from the Commission , shall adopt gen­
                                                                         eral rules for the application of this Article .
     1 . Without prejudice to Article 5 , the intervention               3 . The nature and application of the particular
    prices, the target prices and the threshold prices                   intervention measures and the conditions and pro­
    shall be the subject of monthly increases phased                     cedures for the sale or for any other means of dis­
    over part or all of the marketing year.                              posal of the products subject to those measures
                                                                         shall be determined in accordance with the proce­
    2 . The Council , acting by a qualified majority on                  dure laid down in Article 26 . Detailed rules for the
    a proposal from the Commission , shall determine                     application of this Article shall , where appropriate,
    annually , before the beginning of the marketing                     be adopted in accordance with the same proce­
    year, the number and amount of the monthly                           dure .'
    increases and in what months they are to apply .'
                                                                   1 1 . Article 9 is replaced by the following :
7.  Article 7 ( 1 ) is replaced by the following :
    ' 1 . The intervention agencies designated by the                     'Article 9
    Member States shall buy in , during the period from
     1 October to 30 April , cereals referred to in                      To the extent required to         facilitate the changeover
    Article 3 , which have been harvested in the Com­                    from one marketing year           to another, the Commis­
    munity and which are offered to them , provided                      sion may, in accordance            with the procedure laid
    that the offers comply with conditions , in parti­                   down in Article 26, grant          a carry-over payment in
 ---pagebreak--- 24 . 5 . 86                             Official Journal of the European Communities                            No L 139 / 33
      respect of stocks of one or more of the following            13 . In the second subparagraph of Article 15(3 ), 'the
      cereals harvested in the Community which remain                   first two months of the marketing year' is replaced
      to the end of the marketing year : common wheat,                  by 'the first three months of the marketing year'.
      durum wheat, rye and barley .'
                                                                   14. In the last subparagraph of Article 16(4), ' during
                                                                        the first two months of the marketing year' is
12 . The following Article 1 la is inserted :
                                                                        replaced by ' during the first three months of the
                                                                        marketing year'.
      'Article 11a
      1 . Aid may be granted for cereals harvested in the                                    Article 2
      Community that are put to new industrial uses . The
      amount of the aid may not exceed that of the                 This Regulation shall enter into force on the day of its
      export refund for the cereal concerned .                     publication in the Official Journal of the European
      2 . The Council , acting by a qualified majority on          Communities.
      a proposal from the Commission , shall adopt rules
      for the application of this Article .'                       It shall apply from 1 July 1986 .
                   This Regulation shall be binding in its entirety and directly applicable in all Member
                   States .
                   Done at Brussels, 23 May 1986 .
                                                                               For the Council
                                                                                The President
                                                                                 G. BRAKS