CELEX: 51981PC0383
Language: en
Date: 1981-07-09
Title: Proposal for a COUNCIL REGULATION (EEC) laying down the general rules for the system of production aid for dried figs and dried grapes (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 383
Vol. 1981/0118
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                  COM(81)383 final
                                                                  Brussels . 9 July 1981
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                                             Proposal for a
                                        COUNCIL REGULATION ( EEC )
 laying down the general rules for the system of production aid for
                                     dried figs and dried grapes
                      ( submitted to the Council by the Commission )
COM ( 81 ) 383 final
 ---pagebreak---                          EX PLANATORY MEMOftANPUM                           • -   .
 The Act of Accession of Greece to^the Community provides for the inclusion of
dried figs and dried grapes ( i.e. raisins ) among the products covered by the
 common organization of the market in. products processed frorr. fruit and
vegetables ( Regulation EEC No 516 / 77 ).
 It also provides that dried figs and dried grapes may qualify for a production
aid system which may be identical to or different from the system currently
applied to certain products processed from fruit and vegetables .
 In the Regulation set out below , the Commission proposes the general rules
for the aid system to be applied to dried figs and dried grapes .
The proposed system is similar to that which exists for certain other products
in this sector but it has been modified to take account of the arrangements
existing in Greece for the past 50 years and the particular characteristics of
the two products in question .
Greece , which is the only producer Member State; produces about 130.000 T of
raisins per year , of which 70.000 T are sultanas and about 60.000 T currants .
Of these quantities Greece exports 125.000 T , of which 70.000 T ( almost 60% )
to the other Member States .            -
Greece produces 18.000 T of dried figs , of which about 10.000 T are exported ,
3.500 T to the other Member States of the Community .    Dried figs are not produced
anywhere, else in the Community except in small quantities in Italy where there
is no system of market organization .                                           -
The national arrangements for these products in Greece gOaranteed growers'
incomes by the payment of a minimum price ( supplemented by direct aid for figs )
coupled with guaranteed sales through cooperatives which were eligible for State
aid for their storage costs and any loss of income incurred on resale of the
product .
Against this background it is propbsed that growers' incomes should be guaranteed in
   future by ensuring that the price paid by purchasers of the unprocessed fruit
 is not less, than the minimum price and that , provided those purchasers have paid
the price in question , they will be eligible for aid .
This aid will take the form either of production aid for processors or of
 storage aid for approved cooperatives which buy the fruit without processing it .
  Such cooperat ivej must sell the unprocessed fruit to processors at a
  price at least equal to the purchase price *
However , if themarket situation so requires , they could be authorized to sell
the fruit by a tendering procedure subject to certain conditions , in which
case any financial losses would be borne by the Community *
 ---pagebreak---                                                                           2.
To maintam product quality on the market , which was already defined and
controlled under the national arrangements in Greece , the system of production
and storage aid will apply only to unprocessed and processed fruit which compli
with quality standards to be laid down at a later date .
It should be stressed, finally, that the provisions of twe Regulation as regard
calculation of the aid conform to the Counci l.'s decision calling for economies
to be effected in the sector concerned, and providing in particular that the
processing costs to be used for establishing the community cost price shall be
those of the most competitive undertaking .
 ---pagebreak---              PROPOSAL FOR A COUNCIL REGULATION
                               I
 laying down the general rules for the system of production aid for , dried figs
and dried grapds-i
                                     THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                                                                               /
                                     Having regard to the Treaty establishing the
                                     European Economic Community,
                                     Having regard to Council Regulation ( EEC )
                                     No 516 / 77 of 14 March 1977 on the common
                                     organization of the market in products processed
                                                                  1
                    .                from fruit and vegetables , as last amended by
                  1                      .                          2
                                  .  Regulation ( EEC ) No 1118 / 81 , and in particular
                                     the second paragraph of Article 3d ,
          -                          Having regard to the proposal from the Commission
Whereas , following the accession of Greece to the Community, Article 3a ( 1 ) of
Regulation ( EEC ) No 516 / 77 introduced a system of production aid for dried
figs and dried grapes ;
Whereas Article 3d of Regulation ( EEC ) No 516 / 77 provides that the detailed
rules for the production aid arrangements may be identical to or different
from those of the system bf aid applicable to other         processed products ;
                -                                                                ./.
1 OJ L 73, 21.3.1977, p. 1
2 OJ L 118, 30.4.1981 , p. 10
 ---pagebreak---                                                                      2.
Whereas a system of aid similar to that provided for other products should be
adopted for the two products in question ; whereas, however , certai n detai led
rules specific to these two products should be laid down in order to take
account of their particular market situation and of arrangements existing
beforehand in the producer Member States , in particular the system of State-
financed storage which ensured growers guaranteed sales for their produce;
Whereas , in addition to aid for the grower , provision should be made for
storage aid to be granted to approved agencies and compensation for any losses
incurred by such agencies when selling products from storage to processors ;
Whereas provision should be made for Member States to fix selling prices in
order to ensure that sales by the approved agencies proceed without disturbing
the market ;
Whereas, in respect of currants , account should   be taken of the fact that , in
accordance with usual commercial practice , some of the product must be discarded
at the processing stage in order to ensure that the finished product , having
regard to its specific characteristics , is of satisfactory quality ;
 ---pagebreak---                                                                                        3.
                               HAS ADOPTED THIS REGULATION :
    Art icle 1                                                .
                   -'           "                          , ' '
   1.       " The system of production aid for dried figs and dried grapes shall opply
  , from the beginning of the 1981 / 82 marketing year .
    2 .-      The marketing year shall pun f or dried figs from *15 August to .
    14 August and for 'dried gCapes ( currants and sultanas ) from 1 September to
,   31 August .                                                                           _
    Article 2                                                         '
              For direct sales from the grower to the processor , the system of production
    aid referred to in        Art/icle 1 shall be based on contracts binding , within the .
                 -                                                              •
    Community, growers or recognized groups or associations thereof and processors
    or legally constituted groups or associations thereof .        These contracts ,
    concluded for a minimum period to be determined , must specify the quantities of
    fruit to which they relate , the schedule for deliveries to processors and the
    price to be paid to growers according to the quality of the fruit to be
    delivered .       For currants , the contract shall be valid only if it is accompanied by
    a statement by the grower or the recognized group or association to the effect
    that he or it undertakes notto deliver a quantity equal to or exceeding 5% of
    the quantities entered in the contract to any processor or to any agency referred
    to in Article 3 .
                       » •  -                         **
    Article 3                                 '
    1«        The quantities not covered by the contracts provided for in Article 2 may
    be sold by growers to agencies or legal or natural persons approved by the
    Member States concerned , hereinafter referred to as storage agencies .
    2.        Contracts concluded witli storage agencies must specify the quantities
    and qualities' of fruit which they cover and the .              price to be paid to
                                                                      /
    growers according to the quality of the fruit delivered .
    For currants , the contract shall be valid only if it is accompanied by
         .          'a statement by the grower or the recognized group or association to the
    effect that he or it undertakes not - to deliver a quantity equal to or exceeding
    5% of the quantities entered in the contract to any processor or agency.
 ---pagebreak--- Article 4
1.         The contracts referred to in Articles 2 and 3 may relate only to fruit
which complies with the quality standards and is intended for consumption . .
                                                                          «
2.         For fruit delivered under such contracts :
- the processors shall pay to the growers a price not less than the minimum price ;
- the purchasing agencies shall pay to the growers a price equal to the minimum
   price .                     *
           The minimum price shall be fixed for the pilot qualities determined
respectively for dried grapes of the sultana variety and dried figs .-. The minimum
price applicable to the other qualities, including currants, shall be derived
from the minimum price for the pilot quality by the application of coefficients .
3.         The minimum price shall be calculated for the first time on the basis of :
a ) - for dried grapes of the sultana variety the average of the prices paid by
       processors to growers during the preceding three marketing years under
       the national rules for the quality corresponding to that of the pilot product ;
    - for dried figs , the average of the prices paid by processors to growers
       for fruit of a quality "corresponding to that of the pilot product during
       the preceding three marketing years , increased by the average of the aid
       provided for by the national rules during those same three marketing years .
b ) the trend in production costs in the fruit and vegetable sector in 1980 .
However , the above minimum price may not be lower than the prices paid to
growers during the 1980/ 81 marketing year .
It shall be calculated on subsequent occasions having regard to :            -
    a ) the minimum price in force during the preceding marketing year
    b ) the trend in production costs in the fruit and vegetable sector .
 ---pagebreak---    Article 5
               Where the Community production potential for a product referred to
« in Article 1 is likely to cause a major imbalance between
   the quantities produced ^nd the quantities that can be sold, the Counci I ,
   acting by a qualified majc..'it / on a proposal from the Commission , may
   decide to limit the granting of                production aid to a specific quantity .
   This quantity shall be fixed in the vight of average Community production
   in the most recent marketing years for t<Mch reliable data are available .
   The quantity may be adjusted for any changes in the quantities of the product
   that can be sold .                                                      "
   Article 6
    1.         The storage agencies shall sell to processors , at a price which does
           disturb the market and which is not less than the minimum price , the
    quantities purchased pursuant to Article 3 «                               "            -1
    In this connection , the Member States may fix the selling prices to be applied
   by the storage agencies .                                        > '
   They shall notify the Commission as soon as they are fixed .
    2.         Should the market situation so require , it shall be decided in
    accordance with the procedure provided for in Article 20 of Regulation ( EEC ) No 516/ 77
    that the storage agencies may sell products by tender, or at prices fixed in
    a h.   ~~   a k irig account o * + he state of the market *                                -
   3.           Sales contracts as referred to in this Article shall stipulate the
  quantities which they cover , the timetable for deliveries and the price
  quality of the products .
                Disposal of products purchased by the -storage agencies shall take
  place under such conditions as will ensure equality of access to the goods
  and equality of treatment for purchasers .
  Article 7
         -                                                                                        ι
                     "                       •' -    '          .                         '       I
              »s soon « they           concluded, the contracts referred to in Articles          1
  2, 3 and « shall be forwarded to those authorities of the Member state concerned
            are responsible for supervising the performance of the said contracts.
 Article 8                                                    '
 Pr'oductsTo r'M0' BTUCUOn                         $baU ^         "8                  Co-unuy
 P ucts to be sold on the Community market and the export market, having regard
 to the Price of Community products and the price of the products of non-member
 countries .
 ---pagebreak--- 2.        The price of Community products shall be established having regard to :
          a ) the minimum price referred to in Article 3 ;
          b ) the processing costs of the most efficient undertaking , exclusive
              of storage costs .
3.        The prices of products from non-member countries shall be determined
          having regard to :
          a ) the f ree- at - f rontier prices of imports into the Community ,
              adjusted where appropriate on the basis of the price at which the
              Greek product was normally sold on the import markets of Community
              countries before Greece acceded to the Community .
          b)t/he prices obtaining in international trade .
Article 9
1.       Production aid shall be granted to processors who have concluded contracts
in accordance with Articles 2 and 6 and who have not processed grapes into
currants for the market in a quantity corresponding to at least 15% of the
quantities covered by the contract .
2.       Aid shall be paid , on application , to the interested parties as soon as
the body designated by the Member State in which the processing is carried out
has established that :                                x
- the processor has paid the grower or the storage agency a price not less than
   the minimum price for the quantities entered in the contract , and in accordance
   with the qualities effectively delivered , or ihas paid the storage agency the
   price entered in the contract following a sale by tender ;
- the fruit under contract has been processed or , in the case of currants ,
   sold for other purposes in accordance with paragraph 1 ;
~ the products after processing comply with the         quality standards in force .
3.       For currants , the aid shall be paid only in respect of the quantities of
fruit under contract which have been effectively processed into currants
for the market .
 ---pagebreak---   Article 10
  1.   -     ^Storage aid shall be granted to storage agencies in respect of the
                                         ' under th e contracts referred t o in Ar ti rl <» ^
  quantities of fruit of Community origin wht cTTtney nave put chasecf/^nd the
  effective duration of storage of such fruit , which shall not extend beyond
  the end of the marketinig year in which such quantities were purchased .       However ,
  where the market situation so requires , the prolongation of the storage of
  certain quantities into the following marketing year may be authorized in
  accordance with the procedure provided for in Article 20 of Regulation ( EEC )
  No 516 / 77 .
  2.          The amount of aid may ctfver only the technical storage costs and .
  interest costs determined at a standard rate . .
                                                                   a
  3.          Where , pursuant to Article 6(2 ), the storage . agency sells fruit to
  the processor at a price lower than the minimum 'price , adjusted for pilot
• quality, financial compensation shall be granted to the said agency .
  Compensation shall amount to the difference between the purchase and sale           ,
  prices for the quantities in question .      No account shall be taken of any price
  reduction resulting from deterioration in quality occurring during storage .
  Compensation shall further be reduced by any profit resulting from the difference
  between the purchase and sale prices for quantities sold pursuant to Article 6(1 )
  Article 11                    /
              The minimum price and the amount of production aid for dried figs and
   dried grapes and the amount of storage aid       shall be fixed before the beginning
   of each marketing year .                       ' >
  Article 12      ;                  .                                                        4
              Member States shall communicate to the Commission , not later than one
   month after their adoption, "the laws , regulations and administrative provisions
   adopted in implementation of this Regulation .
  Article 13
              Detailed rules for the application of this Regulation shall be adopted i
  accordance with the procedure laid down in Article . 20 of Regulation ( EEC ) No 516/ 77 .
              The same procedure shall be followed for flixing , in respect of each of'
  the products concerned , the following :
  " the minimum price and the amount of production aid
  ~ the storage aid
 " the criteria for tendering .
 ---pagebreak--- Article 14                                                     /
         This Regulation shall enter into force . on              • 1  '
         This Regulation shall be binding in its entirety and directly appl
cable in all Member States .                                     –
Done at Brussels /                                   For the Council .
 ---pagebreak---                    FS8MANCIAL            STATEIVSES^T
                                                                            h~:z
                                                                              Date ! 19 June 1981'
 1 „ BUDGET HEAOING : Item 6822 ( fruit arjd veoetables :                    ^LWfOBiATjopjs î 1981 : 475 . 3mio ECU
                                      processmg alas )                                                            S I )
2. TITLE . Draft Council Regulation setting general rules on production aid for dried
       grapes and dried figs
 J. LEGAL BASIS : Regulation 516 / 77 . Article 3d
 *, AIMS OF PROJECT (                                     ~                           V
    To set . general rules for t,he application of Reg . 51-6 /77 to the aid for processing
    dried figs and grapes , in accordance with the Act of Accession of Greece .
 5 . FINANCIAL IMPLICATIONS                 PERI00 OF 12 H0NTHS CURRENT FINANCIAL YEAR   FOLLOWING FINANCIAL YEAR
 5.0 EXPENDITURE
                                                                –      L_       2     –i     _I        _2
       - CHARGED TO THE EC BUOGET                                 10 mio ECU                21 mio ECU
         (« EFUNDS / LNTE(»VEWN0«S*-
     . - NATIONAt ADHmrSTRKTÏON
         ΟΤΗΪΠΓ
5.1 RECEIPTR ~
       e OWN RESOURCES OF THE EC
         ( LEVIES / CUSTOMS DUTIES )
       - NATIONAL
                                                  1983          1984    '         1985
5.0.1 ESTIMATED EXPENDITURE                 21 . mio ECU      21 mio ECU       21 mio ECU
5.1 . 1-ESTWIMKUNI.
5.2 METHOD OF CALCULATION         ,
                                     See Annex
6.0 CAN THE PROJECT BE FINANCED FROM APPROBiATSONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET 1
                                                                                                             YESWX
wx>caKWMB<»i!«xm«rxKe<XK«;^R>exxtsm$X$«<RWK§e#x<>b'A9:T&R3<#5ttfK§<£&fH! &'$?x$9e£§<rx?<xxxxxxxxxxxxxxxxxxxx
fcxxWx*K8ym<e<iKi*!)»R*8Uft8fcixRe<siÇ<;.iÊSSfi?'»<)?xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
6.3 WILL FUTURE BUDGET APPR08IATIQNS 0E NECESSARY ?
                           -                                                        '                       yes W(2 :
  BSERVATIONS I ( | ) including 10 mio ECU scheduled for the measure in question
                    ( 2 ) 492 mio ECU has been scheduled for 1982 in Art . 151 of the 1982
                          preliminary draft Budget / including 10 mio ECU for* this measure .
 ---pagebreak---                                                            19 June 1981
                                ANNEX :  Method of Calculation
1 . Estimated processing aid ( Art . 9 )
    - Sultanas : DR 1.26 /kg x 70 OOOt                     =  DR   88.2 mio
    - Currants : 95% of above aid
             i . e . . DR 1 . 26 /kg x 0.95 * 65 000       =  DR   77*8 mio
    - Figs :           DR 6.05 /kg x 12 OOOt               »  DR   72.6 mio
                                                              DR 238.6 mio
2 . Storage aid ( Art . 10(l ) and ( 2 ) )
    Assumptions : 10% of production
                        Financial costs :      12% on raw materials
                        Duration :     6 months
                        Technical costs : DR 1.80/kg
    - Sultanas :        DR ( 1.80 + 4 » 15 ) /kg x 49 OOOt       DR 291.4 mio
    - Currants :        DR ( 1.80 + 3 » 94 ) /kg x 45 500t       DR 261.1 mio
    - Figs :            DR ( 1.80 + 2 . 63 ) /kg x 8 400t        DR  37 • 2 mio
                                                                 DR 589«7 mio
    Compensation for storage losses ( Art . 10(3 ))
    - Sultanas :        20 OOOt x DRIO/kg                     = DR 200 mio
    - Currants :        20 OOOt x DRIO/kg                     = DR 200 mio
    - Figs :             5 OOOt x DRIO/kg                     = DR   50 mio
                                                                 DR 450 mio
    Total ( 1 ) + ( 2 ) + ( 3 )                     ■ DR 1 278.3 mio , i.e. 20.80 mio ECU
                                                    of which 10 mio ECU payable in 1981
                                                    and 10.8 mio ECU payable in 1982 .