CELEX: 51990PC0345
Language: en
Date: 1990-07-20
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) CONCERNING MEASURES TO DEVELOP THE CONSUMPTION OF TABLE OLIVES

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           C0MC90) 345 final
                                           Brussels, 20 July 1990
         REPORT BY THE COMMISSION TO THE COUNCIL
                on the table olives sector
                       Proposal for a
                  COUNCIL REGULATION (EEC)
            concerning measures to develop the
                consumption of table olives
 ---pagebreak---                                              - 2-
                       REPORT BY THE COMMISSION TO THE COUNCIL ON
                                 THE TABLE OLIVES SECTOR
      INTRODUCTION
      In the course of the debate on agricultural prices for the 1990/91
     marketing year, the Commission undertook to send the council a report
     on the market situation for table olives by 1 July 1990.
     The report looks In turn at:
          the present situation on the market for table olives ans Its
           I Ike I y development;
          the organization of the market In this sector and applicable
          structural measures;
          the measures proposed.
 II. THE SITUATION ON THE COMMUNITY MARKET
     1. Agricultural production
          The community of Twelve has some 400 000 ha devoted to the
          growing of olives Intended for use as table olives. Of this
          total 178 000 ha are In Spain, 110000ha in Italy, 98 000 ha in
          Greece, 15 000 ha in France and 9 000 ha In Portugal.
          These estimates are not, however, very precise, because of the
          existence of both "specific" varieties and "mixed" varieties,
          which can be used either as table olives or for the extraction of
          o l l ( 1 ) . If the quality or size of the olives Is inadequate or
          demand for table olives Is weak, a certain percentage of the
          mixed varieties Is used for the production of olive oil.
          Following the accession of Greece, Spain and Portugal, Community
          production of table olives reached an average of 375 000 tonnes,
          45% of world production and a level of self-supply of 130%. The
          main producer country Is Spain with an average annual production
          of about 200 000 tonnes, followed by Greece with 80 000 tonnes,
          Italy with about 70 000 tonnes, Portugal with 20 000 tonnes and
          France with about 1 500 tonnes (see Annex I). This production is
          cyclical In nature because              In alternate years is the rule.
(1)  The proportion of production which can be unequivocally ascribed to
     "mixed" varieties Is 30-35% In Spain, 60-70% In Italy, 10% in Greece
     and about 90% in France and Portugal.
 ---pagebreak---                                    - 3 -
        Production In the Community of Twelve has, however grown
        considerably since the beginning of the seventies, partly as a
        result of new plantations and partly as a result of higher
        productivity. Average production In Spain has increased from
         104 000 tonnes In 1970-74 to about 200 000 tonnes In the last
         four marketing years while the comparable figures for Greece show
        an Increase from an average of 52 000 tonnes to an average of
        80 000 tonnes* 1 ).
         It should be noted that, as a result of new plantations carried
        out during the seventies and early e i g h t l e s ( 2 ) , Greece has had
        surpluses of 20-25 000 tonnes In each of the last few years.
        This rising trend in production Is expected to continue In the
        years to come, both as a result of new plantations In Greece and
        because of restructuring and Improved methods of cultivation in
        Spain, Portugal and France.
        Conditions of production In the Community
         (a) Very little of the area under cultivation is irrigated: less
             than 10% In Italy and Portugal, 10% In France, 12.5% In Spain
             and 20 to 25% in Greece. Since olive trees require very
             little water to grow and produce, farmers tend to use this
             scarce resource for crops which need It more. However, It
             should be noted that specialists agree that even sporadic
             irrigation can result In a very considerable Increase in the
             production of olives.
        (b) Olives are normally picket by hand sine most varieties are
             Insufficiently resistant to the blow they receive on falling.
             Accordingly, picking accounts for between 40% and 60% of
             total growing costs.
        (c) Table olives do not constitute a single uniform group since
             there are some hundreds of varieties of olives. From the
             point of view of volume of production, the most important
             varlet ies are:
             -  Manzanilla in Spain, which accounts for almost half of
                production in that country. This is technically a "mixed"
                variety which is highly regarded as a table oil because of
                 Its productivity and quality;
             -  Hojiblanca In Spain (70 000 tonnes), a mixed variety;
(1) Production has Increased very little in Italy since the sector is
    very poorly organized and no measures have yet been taken to
    rationalize the production of table olives.
(2) The total number of olive trees in Greece increased from 104 million
    In 1973 to 123 million in 1986.
 ---pagebreak---                                    - 4-
             -   Gordal In Spain (30 000 tonnes), exclusively table olives;
             -   Conservolle In Greece, a specific variety of table olive
                 which accounts for more than 60% of production In Greece.
     3.  Processing of olIves
         (a) Processing
             Spain has a very well organized processing sector with a
              large number of cooperatives, modern plant and an efficient
             export organization. The many cooperatives, grouped In
             unions at the provincial, regional and national levels,
             undertake Initial processing and fermentation but are not
             usually Involved in the packing or marketing of the finished
             product.
              In 1988 there were 428 registered processing firms In Spain,
             mainly small family firms which were very profitable because
             of their low production costs. They accounted for 50-60% of
             the total number of firms but only 5-8% of production. For
             export purposes, most Spanish firms are grouped In
             organizations, the largest of which Is ACEMESA, with 162
             f irms.
             There are 78 processing firms In Greece, Including 28
             cooperatives; their processing capacity is roughly twice what
             they actually handle. Many growers still process their own
             product Ion.
             In Italy and Portugal most processing is carried out by small
             craft firms, with only a limited number of Industrial
             plants* 1 ). On-farm use In Italy Is very high, accounting
             for about 20% of production.
         (b) Preparation and presentation of table olives
             The main types of preparation are:
             -   green olives in brine (Sevlllian method);
             -   natural black olives, prepared in brine or salted;
             -   black olives using the oxidation process.
             In Spain about two  thirds of the olives processed are green,
             prepared according  to the Sevlllian method while In Greece
             about 75% of table  olives are black olives allowed to ripen
             on the tree (Greek  style).
(1) Agricultural production In Italy Is marked by a large number of
    varieties whose quantity and quality are Inadequate to meet the
    requirements fo the major processors who purchase from abroad, often
    at more competitive prices. This means that a large proportion of
    Italian olives are consumed on local markets.
 ---pagebreak---                                     - 5 -
             Black olives are usually presented for sale whole, sometimes
             stoned. Green olives are put up in a variety of ways, whole
             and stoned, stuffed, in rings, cut Into two or more pieces,
             etc.
             The Mediterranean markets also offer a very wide choice of
              local specialist preparations virtually unknown elsewhere.
         (c) Packaalnq
             Table olives are sold In four different ways:
             -    loose,
             -    In glass Jars of various sizes,
             -    In tins of various sizes,
                 in plast ic bags.
             Apart from certain Spanish exports, olives are normally
             exported In bulk.
         (d) Marketing
             A number of studies of the Community market have revealed
             certain shortcomings as regards marketing. Outside the
             regions of production, the various sectors of distribution
             (importers, wholesalers, supermarkets and small retailers)
             pay little attention to olives, which are classified as part
             of the large seasonings group. Furthermore, the lack of
             standardization of table olives creates a certain amount of
             confusion on the market between the various varieties,
             qualities and preparations and prevents them product from
             being better exploited. Accordingly, suppliers are in
             general disinclined to promote the sale of table olives,
             which are often regarded as a "marginal" product, of limited
             value as seasonings, it must also be observed that he image
             of table olives could be improved by better packaging and
             labelling and by a clearer distinction between the various
             products offered to consumers, who are unaware of the wide
             range of possibilities which olives offer as regards
             varieties and preparations.
    4.  Consumption
        (a) The Community accounts for about 34% of total world
             consumption. The main consumers are the producer countries,
             Italy (about 110 000 tonnes per year), followed by Spain
             (80 000 tonnes and Greece (35 000 tonnes)* 1 ).
(1) Greece has the highest per capita consumption (an average of 3 kg per
    year), followed by Spain, Italy and Portugal (1.8 kg per year),
    consumption Is considerably lower in France (0.5 kg per year) and in
    the non-producing countries (0.1 kg per year).
 ---pagebreak---                                    - 6 -
             The gap between the producing countries and the non-producing
             countries Is striking, with the latter group consuming an
             average of no more than 15-20 000 tonnes (see Annex II). It
             should be noted that olives are generally used in cooking In
              those countries which have the highest consumption while
             elsewhere they are normally served as an accompaniment to
             drinks.
             While consumption In certain countries Increased to a greater
             or lesser extent In the seventies, over the community It now
             appears to have stabilized. In this connection It is
              Interesting to note that variations In price have little
             effect on the level of consumption in the Community; the main
             obstacle to an Increase Is the ignorance of consumers who,
             outside the regions of production, are almost totally
              ignorant about the qualities, origin, types and preparation
             of table olives. Olives are sometimes accused of being too
             salty, which not only affects the taste but also raises fears
             on health grounds.
    5.   Trade
        The Community is the largest exporter of table olives, exporting
         about 35% of Its production. In recent years, it has exported an
         average of about 127 000 tonnes per year while imports have
         averaged 27 000 tonnes per year.    Spain is the main exporter,
         followed by Greece; these two countries together account for
        virtually all exports from the Community*1'' (see Annex III).
        The biggest market for these exports is the United States, which
         is the largest importer in the world (about 75 000 tonnes per
        year, or 50% of consumption) and takes more than 90% of its
         imports from the Community.
        The main non-Community exporter is Morocco, averaging 35-40 000
         tonnes per year, most of which (more than 80%) goes to France
        while the remainder Is bought by Italy and the United States.
        Worldwide trade In olives amounts to over 250 000 tonnes (see
        Annex IV). Within the Community, Italy imports about 40 000
         tonnes per year from Greece (over 50%) and Spain, with the bulk
        of its other imports coming from Morocco (see Annex V ) .
(1) Spain is by far the largest exporter taking exports inside and
    outside the Community together, of table olives (55% of production
    and 50% of world exports). Greece exports about 50 000 tonnes per
    year (60% of production) to the other Member States and outside the
    Commun Ity.
 ---pagebreak---                                     - 7 -
III. WORLD MARKET
      (a) production
          World production of table olives has averages about 830 000
          tonnes per year In recent times (see Annex VI). The EEC accounts
          for about 45% of this figure, the other major producers being
          Turkey (100 000 tonnes), the United States (80 000 tonnes) and
          Morocco and Syria (about 70 000 tonnes each). Production of
          table olives has grown by 60% over the last 20 years (it was only
          500 000 tonnes at the end of the sixties) and this growth may
          reasonably be expected to continue as a result of the new
          plantations already completed or planned. Production could
           Increase spectacularly thanks to the restructuring of plantations
          and irrigation.
      (b) consumption
          The main producer countries are also the main consumers; the EEC
           is the largest consumer at about 290 000 tonnes, or more than one
          third of world consumption (see Annex VII).
          The United States comes next at about 160 000 tonnes per year
          (25% of world consumption), followed by Turkey (100 000 tonnes),
          Syria (about 60 000 tonnes) and Morocco (about 25 000 tonnes).
           In the past consumption has followed the rhythm of production
          although the trend has been more regular with annual differences
           Ironed out by carryover stocks. In view of the close correlation
          which appears to exist between the two market figures, the upward
          trend in consumption should continue. In any case, the low
          consumption of non-producer countries which have recently
          discovered olives offers very considerable potential for growth.
 V.  MARKET ORGANIZATION
     1.   Community
     A.   Customs dut les
          At Community level table olives are covered by regulation No
          136/66/EEC; however, apart from the safeguard clause, the only
          measure provides for the levying of customs duties on Imports
          Into the Community.
          This duty is, however virtually never applied since the main
          suppliers enjoy either a zero rate or a reduced rate (see Annex
          vi i n s
     B.   Structural measures
          Table olives are among the products for which aid may be granted
          under the Community's structural policies but finance has so far
          been IImited.
 ---pagebreak---                              _8_
   (a) Application of Regulation (EEC) No 355/77
       Between 1985 and 1989, 28 projects concerning table olives,
       five In Greece, five In Italy, ten In Spain and eight in
       Portugal, were financed at a total cost to the EAGGF of
       ECU 12.3 million. Five projects In Spain and three In Greece
       have been submitted to the Commission for 1990.
   (b) integrated Mediterranean Programmes (IMPs
       Certain IMPs Include a number of measures In the table olives
       sector and certain IMPs In Italy and Greece contain measures
       for the conversion of olive plantations to other crops.
       The IMP for Apull Includes a programme for the conversion of
       olive plantations for the production of table olives rather
       than olive oil (115 ha, with a Community contribution of
       ECU 1.2 million towards the total Investment of ECU 3
       million). Some IMPs In France, Greece and Italy contain
        irrigation projects which Include the conversion of
       plantations producing olives for oil to other crops,
        Including table olives. These measures principally concern
       Greece, where the area devoted to table olives will increase
       by 945 ha.
   (c) Application of Regulations (EEC! Nos 1360/78 and 797/85
       The aid schemes available under these regulations have not
       been applied In the table olives sector.
   (d) Development of agriculture In Portugal (Regulation No
       3828/85)
       Over the first three years of Implementation of the special
       programme for the development of agriculture In Portugal
       (PEDAP), the EAGGF has part-financed the conversion of
       plantations producing olives for oil to the production of
       table olives (1 403 ha) and the establishment of experimental
       and research centres and demonstration fields at a total cost
       of ECU 10 mi I I Ion.
   (e) Reform of the structural funds (Regulation No 2052/88)
       The Member States are currently submitting operational
       programmes to the Commission. Those submitted so far do not
       appear to contain a significant number of projects concerning
       table olIves.
2. National schemes
   Ho Member ^iate currently applies measures to support either the
   production or the consumption of table olives. However, it
   should be noted for the record that Article 70 of the Act of
   Accession and subsequent Council decisions in 1985 and 1988
   authorized Greece to retain certain national aid measures which
   existed before accession, Including guaranteed minimum prices for
   producers, export subsidies and aid for cooperatives, depending
   on the quantities sold.
 ---pagebreak---                              - 9 -
GENERAL GUIDELINES
The strength of the market for table olives and, In particular, the
high level of growth in both production and consumption over the last
two decades cannot conceal certain problems which have arisen
recently In the sector and which threaten market balance. The main
problem Is that stocks In Greece at the end of recent marketing years
have exceeded the normal carryover level, which Indicates some
difficulty In developing outlets to absorb the constant increase in
production.
More generally, It appears that the situation as regards the
marketing of table olives Is stagnant since, outside the regions of
production, neither dealers nor consumers show much interest in the
product, which Is often presented In an uninspiring fashion and
without reference to its origin, varieties, preparations or methods
of appreciating its quality.
The Commission believes that an Initial approach to remedying these
shortcomings and helping restore market balance would be through
greater use of the resources provided by the structural policies.
These should:
    offset the lack of organization among producers In certain
    regions and encourage rationalization of production with selected
    varlet les, etc.,
    encourage modernization of processing plants and so improve
    product qua Iity.
The Commission also considers that new measures should be taken to
improve product quality and presentation and promote consumption. In
addition to the Introduction of quality standards the trade bodies
concerned should be encouraged to draw up plans and develop the
marketing of their products through promotion and Information
campaigns.
MEASURES PRQPQSEP
1.  Qua!Itv standards
    The key factors In increasing consumption appear to be better
    quality and a greater standardization of the product offered.
    This would also permit greater value to be added to the product.
    The Commission therefore Intends to Introduce common quality
    standards under Article 35a of Regulation No 136/66/EEC.
    These common standards will be largely based on those adopted by
    che International Olive O N Council.
 ---pagebreak---                                    -16-
     2. Promotion
          In order to make existing users aware of the full potential of
         table olives and to promote marketing which meets the needs of
         consumers, the commission intends to enable the Guarantee Section
         of the EAGGF to contribute about 60% of the cost of measures to
         promote consumption and Improve the quality of table olives taken
         by bodies comprising representatives of all the trade categories
         concerned. The promotion measures may Include:
              improvement of product quality, principally through research
              Into the production of olives with a low salt content;
              development of new methods of packaging;
              publicity and public relations, Including the organization of
              and participation In fairs and other commercial events;
              distribution of advice on marketing to the various economic
              operators in the sector;
              market studies.
         These measures should not be based on commercial brands and
         should not refer to a particular Member State. However, they may
         refer to olive oil, In view of the close links between the two
         products.
VII. FINANCE
     Community finance of promotion measures should result in expenditure
     of ECU 27 million over the first five years.
     However, it should be noted that the real cost will be less than this
     or even zero since, if measures to Increase consumption are not
     taken, various quantities of olives of "mixed" varieties will be sold
     by growers to produce oil so as to receive Community production aid.
     A better balance on the market for table olives, the promotional
     measures planned will avoid extra expenditure In the olive oil
     sector.
 ---pagebreak---                                                                        A N N E X     I
                                                        PRODUCTION   OF TABLE    OLIVES   IN THE EEC
                                                                                                                                ('000 tonnes)
                    1978/79    1979/80    1980/81 1981/82     1982/83     1983/84     1984/85   1985/86 1986/87 1987/88 1988/89   1989/90
                                                                                                                                  (prov.)
 Germany
 Denmark
 France                 2,4        2.4        2.0     1.8         2.1         1,6         1.5       1.4     1.4     1.8     1.5       2.1
 Ireland
 Italy                 78.6       61.8       81,4    61,3        62.0        77.7        49.4      60,0    64.5    75.0    70.0      90.0
 Netherlands
 United Kingdom
 Be 1 g i urn/
        Luxembourg
 TOTAL EEC (9)         81.0       64.2       83,4    63,1        64.1        79.3        50.9      61.4    65.9    76.8    71.5      92.1
 Greece                69.7       47,0       88,3    76,0        97.0        70.0        80.0      90.0    80.0    60,0    85,0        80
 TOTAL EEC (10)                             171.7   139.1       161,1       149,3       130.9     151,4   145.9   136.8   156.5     172.1
 Spain                175.0      174,0      155,0   160.0       180.0       165.0       205.0     160,0   224.4   231.7   180.0     210.0
 Portugal              20.3       20.0       20,5    20.2        20.5        18.6        19.5      20.9    21.1    20.0    15.0      20.0
 TOTAL EEC (12)         346      305.2  !   347.2   319.3       361,6       332.9       355,4     332,3   391.4   388.5   351.5     402.1
Source : International Olive Oil Councl
 ---pagebreak---                                                                     A N N E X    II
                                                        CONSUMPTION OF TABLE OLIVES IN THE EEC
                                                                                                                            ('000 tonnes)
                     1978/79   1979/80  1980/81 1981/82    1982/83     1983/84    1984/85   1985/86 1986/87 1987/88 1988/89     1989/90
                                                                                                                                (prov.)
 Germany                 7.7       8,6      9.4     8.8        9.6         8.8        9.0       9.0    10.1     9.3    10.0        10,0
 Denmark                 0.2       0,2      0.3     0.3        0.4         0.4        0.4       0.4     0.6     0,6     0.5         0,5
 France                 26.8      26,1     27.1    25,2       27.5        26,8       25.9      26.5    28,0    28,1    29.6        29,9
 Ireland                 0.0       0.0      0.1     0.1        0.1         0,2        0.1       0,1     0.1     0.1     0,0         0.1
 Italy                  96,0      94.8     91.2    95.0       90,0        93.0       99.0     105.0   108,0   116.2   127.5       129.5
 Netherlands             0.1       0.1      0.1     0.3        0.2         0.2        0.3       0.3     1.7     1.8     2.9          2.3
 United Kingdom          2.1       2.1      2,1     1.9        1.9         2,4        1,9       2.4     2.4     1.7     2.2          2.2
 Be 1 g I urn/           0.1       0,3      0.1     0.1        0.0         0.1        0,1       0.1     2.0     2.2     2.2          2.2
          Luxembourg
 TOTAL EEC (9)         133,0     132.2    130.4   131.7      129.7       131.9      136.7     143,8   152.9   160.0   174.3       176,7
                                                                                                                                          l
 Greece                 20.0      18.0     25.0    21.0       28.0        26.0       30.0      40,0    35,0    30.0    35.0        35,0
 TOTAL EEC (10)                           155.4   152,7      157.7       157.9      166,7     183.8   187,9   190.0   209.3       211,7
 Spain                  81.0      79.0     73.2    69.0       71.0        70.0       70.0      65.0    82,0    84.0    80.0        82.0
 Portugal               17,6      17.7     17.7    17.7       17.7        17.2       17,3      17.5    17,6    18.0    15,0         17,0
 TOTAL EEC (12)                                                                               266.3   287.5   292.0   304.3       310,7
Source : International Olive Oil Counci
 ---pagebreak---                                                                   ANNEX         III
                                            COMMUNITY TRADE IN TABLE OLIVES WITH THE REST OF THE WORLD
                                                                    ('000 tonnes)
                                 1985/86                      1986/87                       1987/88            1988/89 (prov.)
                         Imports        Exports       Imports        Exports        Imports        Exports Imports       Exports
   Germany                   1.8            0.0           2.9             0.0           2.5            0.1     3.0           0.0
   Denmark                   0,0            0.0           0.1             0.0           0.1            0.0     0.0           0.0
   France                   21.0            0.8          23.0             0.6          20.0            0.8    20.0           1.0
   Ireland                   0.0            0.0           0.0             0.0           0.0            0.0     0.0           0.0
   Italy                     3,4            0.7           2.8             0.3           2.1            0.5     2.0           0.5
   Netherlands               0.2            0.0           0.5             0.0           0.4            0.0     0.5           0.0
   United Kingdom            0.4            0.0           0.3             0.1           0,2            0.1     0.5           0.0
   Belgium/Lux.              0.0            0.0           1.2             0.0           1.2            0.0     1.2           0.0
   Total (9)                26,8            1.5          30.8             1.0          26.5            1.5    27,2           1.5
   Greece                    0.0           30.5           0.0            24.0           0.0           23.0     0.0          20.0
   Totol (10)               26.8           32.0          30.8            25.0          26.5           24.5    27.2          21.5 I
   Spain                     0.0           86.2           0.1            99.8           0.0          112.0     0.0          95.0
   Portugal                  0.0            2,6           0.0             2.5           0.0            2.5     0.0           2.5
   Tctal (12)               26.8          120,8          30.9           127.3          26.5          139,0    27.2         119.0
i
   Difference
   (Imports-Exports)      (94.0)                       (96.4)                       (112,5)                 (91.8)
  Source : International Olive Oil Council
 ---pagebreak---                                                        ANNEX        IV
                                              WORLD TRADE IN TABLE OLIVES    0)
                                                        ('000 tonnes)
                         1970/71       1975/76        1980/81       1985/86     1986/87 1987/88 1988/89
  WORLD TOTAL              153.2          172.5         193.5          240,7      268.2   254.3   252.1
   of which :
  EEC 12 (2)                49,8           53.9          67,6           84,5      101,1    82.8    86.6
  United nates              48.2           42.0          39.4           65.0       80.0    88.0    80.0
 Source : International Olive Oil Council
                                                                                                         i
                                                                                                         ^
(1) Based on net weight of imports of olives without packaging or brine.                                i
(2) Including Intro-Community trade.
 ---pagebreak---                                                                      A N N E X    V
                                                         INTRA-COMMUNITY TRADE IN TABLE OLIVES
                                                                      ('000 tonnes)
                         1985/86         1986/87            1987/88              1988/89
                         Imports Exports Imports Exports    Imports   Exports    Imports Exports
  Germany                 7.4      0.2    7.3      0.1       7.0        0.1       7.0      0.0
  Denmark                 0.4      0.0    0,5      0,0       0.5        0.0       0.5      0.0
  Fronce                  6,5      1.6    7,8      1.6       7,3        1.7       6.8      1.5
  Ireland                 0.1      0,0    0.1      0.0       0.1        0.0       0.0      0.0
  Italy                  40.7      0.8   49.8      0.6      36.9        0.7      44.4      0.6
  Netherlands             0.4      0.3    1.3      0.1       1.6        0.2       2.0      0.2
  United Kingdom          2.1      0.1    2.2      0,0       1.7        0.1       1.9      0.0
  Be I g Iurn/Luxembourg  0.1      0.0    1.2      0.4       1.2        0.2       1.1      0.2
  Total (9)              57,7      3.0   70,2      2.8      56.3        3.0      63.7      2.5
  Greece                  0.0     24.5    0,0     28.0       0.0       22.0       0.0     30.0
  Total (10)             67.7     27.5   70.2     30.8      56.3       25.0      63.7     32.5
                                                                                                 l
  Spain                   0.0     20.3    0.0     35,0       0.0       33.0       0.0     35.0
  Portugal                0.0      0.8    0.0      1,0       0.0        1.0       0.0      1.0
  Totai (12)             57.7     48.6   70.2     66.8      56.3       59.0      63.7     68,5
Source : International Olive Oil Council
 ---pagebreak---                                                       A N N E X   VI
                                         TREND OF WORLD PRODUCTION OF TABLE OLIVES
                                                       ('000 tonnes)
                        1970/71       1975/76        1980/81       1985/86       1986/87 1987/88 1988/89
 WORLD TOTAL              490,4          660.2         782,2         780,0         907.9   800,5   834.0
  of which :
 EEC 12                   195.9          324,6         347.2         332,3         391.4   388.5   362.0
 United States             47.9           50.2          69.7          82.8          96.0    60.0    79.0
 Morocco                   59.8           32.4          43.3          60.0          70.0    70.0    70,0
 Syria                     23.4           23.7          35.0          49.2          81.0    50.0    72,0
 Turkey                    81,0          118.0         150.0         120,0         115.0    95.0   110,0
 Egypt                     12,0            8.0           7.0          10.0          21,0    15.0    18.0
                                                                                                         I
Source • International Olive Oil Council
 ---pagebreak---                                                       A N N E X   VII
                                        TREND OF WORLD CONSUMPTION OF TABLE OLIVES
                                           «
                                                       ('000 tonnes)
                        1970/71       1975/76        1980/81       1985/86       1986/87 1987/88 1988/89
 WORLD TOTAL              485,4          648.7         713.7          789.2        867,6   839.5   872.5
  of which :
 EEC 12                   140,2          222,6         234,2          254.0        287,5   292.0   304.0
 United States             95.0           93.4         108,9          150.0        170,0   164.0   159,0
 Morocco                    7.8           11,5           14.5          16.0         19.5    20.0    29,0
 Syria                     21.7           25.0          35.0           49.2         64.0    67.0    60,0
 Turkey                    78.0          121.2         117.8          100.0        108.5    95.0   110.0  I
 Egypt                     12.4            8.5           10.0          16.0         20.0    16.5    20.0 -si
Source : International Olive Oil Council
 ---pagebreak---                                                              A N N E X    VIII
                                                               TABLE OLIVES
                                              Customs duties and preferential arrangements
   CN Code             Description                                 Duties                    Preferential arrangements
                                                      Autonomous           Conventional
                                                                                                           X
07099031   Table olives, fresh or chilled                                                  Turkey
07108010   Table olives, not cooked or cooked
           in water or steam, frozen                     19                     19         Turkey                 0
           Table olives provisionally                     8                                Turkey                 0
07112010   preserved but unsuitable In that                                                Algeria               3,2
           state for immediate consumption                                                 Tunisia               3,2
                                                                                                                       oo
           Table olives prepared or preserved            20                                Turkey                 0
20057000   otherwise than by acetic acid or                                                Lomé A - B             0     i
           vinegar, not frozen                                                             Overseas countries
                                                                                           and territories        0
                                                                                           Maghreb                0
 ---pagebreak---  ---pagebreak---                                       -19 -
                                 Proposal for a
                               COUNCIL REGULATION
                       concerning measures to develop the
                           consumption of table olives
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 43 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Whereas the consumption of table olives in the Community has reached a more
or   less   stable  level while   production  is continuing  to  rise  so that
surpluses have arisen in recent years;
Whereas there are prospects of increasing consumption, particularly through
better    information  to existing or potential   users and a more stringent
adjustment of production to meet the requirements of consumers;
Whereas the various trade groups in the sector should play a special role
 in implementing means of developing consumption;
Whereas provision should be made for specific measures        to  increase the
consumption    of  table olives   to be encouraged   by means of   a financial
contribution by the Community to the measures taken;
 ---pagebreak---                                        -20 -
Whereas such measures are intended to achieve the objectives of Article 39
of the Treaty; whereas there should be provision for the Community to make
a financial   contribution to the     implementation of these measures        through
the Guarantee Section of the Eurpean Agricultural Guidance and Guarantee
Fund (EAGGF),
HAS ADOPTED THIS REGULATION:
                                     Article 1
1.    The Community shall contribute up to 60% of the cost of measures to
      develop the consumption of table olives in the Community, put forward
      and   implemented   by  representative    associations    bringing     together
      various types of activity      in the sector.     The representative nature
      of the associations shall be assessed       in the light of the objective
      to be achieved.
2.    The measures referred to in paragraph 1 shall be intended to:
          promote the quality of the product, mainly through market studies
          and   research   into  the   production  of    olives  with   a   low  salt
          content,
          develop new forms of packaging,
          distribute advice on marketing to the various economic operators
          in the sector,
          encourage     publicity    and   public   relations,      including     the
          organization    of  and   participation    In   trade   fairs   and   other
          commercial events.
                                    Article 2
Measures under this Regulation may not refer to commercial          brands or to a
Member State.
 ---pagebreak---                                        - 21 -
                                    Article 3
The part-financing of measures under this Regulation shall be regarded as
intervention   intended  to stabilize the agricultural       markets pursuant   to
Article 3(1) of Council Regulation (EEC) No 729/70 of 21 April 1970 on the
financing of the common agricultural policy^). It shall be financed from
the Guarantee Section of the European Agricultural Guidance and Guarantee
Fund (EAGGF).
                                    Article 4
Measures   under  this  Regulation   shall   be  defined   and   the  implementing
provisions of    this Regulation   shall   be adopted    in accordance with    the
procedure   laid  down  in Article   38 of    Regulation   No  136/66/EEC of   the
Council of 22 September 1966 on the establishment of a common organization
of the market in oils and fats^ 2 ).
                                    Article 5
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities.
This Regulation shall be binding In Its entirety and directly applicable in
a 11 Member States.
Done at Brussels,                                           For the Council
(1) OJ No L 94, 28.4.1970, p. 13.
(2) OJ No 172, 30.9.1966, p. 3025/66
 ---pagebreak---                                                       - 22-
     FINANCIAL                      STATEMENT
                                                                      DATE: 13 June 1990
1. BUDGET HEADING: 189 other (1991 PDB)                               APPROPRIATIONS: ECU mi 11 ion p.m.
2. TITLE:
   Oounci I Regulation on measures to improve and develop the consumption of table ol ives
3. LEGAL BASIS: Article 43 of the Treaty
4. AIMS OF PROJECT:
   To provide that specific measures to increase and improve the consumption of table ol ives may be
   encouraged by a financial contribution from the Oormunity.
                                   Period of 12 months   Current Financial Year    Following Financial Year
5. FINANCIAL IMPLICATIONS                                         1990                        1991
5.0 EXPENDITURE
    - CHARGED TO THE EC BUDGET
    - (REFUNDS/INTERVENT ION)                                      Nil                 p.m.
    - NATIONAL ADMINISTRATION
    - OTHER
5.1 REVENUE
    - OWN RESOURCES OF THE EC
      (LEVIES/CUSTOMS DUTIES)
    - NATIONAL
                                         1992                1993                1994                 1995
5.0.1 ESTIMATED EXPENDITURE
5.1.1 ESTIMATED REVENUE             + ECU 2 ml 11 Ion   + ECU 2 mi 11 ion    + ECU 2 mi 11 Ion   + ECU 2 mi 11 ion
5.2 METHOD OF CALCULATION:
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                         YES/NO
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
                                                                                                         YES/NO
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY?
                                                                                                         YES/NO
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
                                                                                                         YES
OBSERVATIONS:
 ---pagebreak---                                        - 23 -
                .COMPETITIVENESS AND EMPLOYMENT IMPACT STATEMENT
   I.   What is the main reason for introducing the measure ?
          Td improve and develop the consumption of table olives.
   II.  Features of th« businesses in question. In particular :
        («> Are there mary      SMEs ?   "  YES
       -•(b) Are they  COHLI.-MI r.iicJ in reyion". which are
             i.  eligible 'or regional aid in the Member States ?           YES
             ii. eligible under the ERDF ?         y^S
  III.   What direct obligations does this measure impose on businesses ?
  IV.    What indirect obligations are locel authorities likely to impose
         on businesses ?
 v      Ar
   «       « there any special measures       in respect of SMEs ?    Please specify
 VI.    What is the likely effect on :
        C»> the competitiveness of businesses ?           NO IMPLICATION
        Cb) employment    ?     NO IMPLICATION
VII.   Have both sides cf industry been consulted ?             YES
       Please indicate t^eir opinions.           POSITIVE
 ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                                 ISSN 0254-1475
                                                                COM(90) 345 final
                                                      DOCUMENTS
EN                                                                                       03 15
                                   Catalogue number : CB-CO-90-385-EN-C
                                                               ISBN 92-77-62921-5
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