CELEX: 51986PC0030(01)
Language: en
Date: 1986-02-11
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 2727/75 ON THE COMMON ORGANIZATION OF THE MARKET IN CEREALS

7.3.86                                   Official Journal of the European Communities                                No C 53/5
                                                                II
                                                        (Preparatory Acts)
                                                  COMMISSION
                 Proposal for a Council Regulation amending Regulation (EEC) No 2727/75 on the common
                                              organization of the market in cereals
                                                        COM(86) 30 final
                               (Submitted by the Commission to the Council on 12 February 1986)
                                                          (86/C 53/06)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            production and the budget costs arising therefrom, and
                                                                    allowing for the Community's imports of grain sub-
                                                                    stitutes; whereas, in the event of a major change in those
Having regard to the Treaty establishing the European
                                                                    factors after the levy has been fixed, the levy should be
Economic Community, and in particular Article 43
                                                                    changed, if need be, during the first weeks of the new
thereof,
                                                                    marketing year;
Having regard to the proposal from the Commission,
                                                                    Whereas determined action aimed at achieving a more
Having regard to the opinion of the European Par-                   satisfactory equilibrium between supply and demand on
                                                                    the market must also entail changes in the price-support
liament,
                                                                    arrangements and adjustment of the intervention
                                                                    machinery: whereas special intervention measures for
Having regard to the opinion of the Economic and                    common wheat of bread-making quality at a higher
Social Committee,                                                   price-support level than the intervention price have,
                                                                    together with bread-making quality requirements which
                                                                    were not sufficiently stringent, boosted the production of
Whereas the Community cereals market is burdened by
                                                                    that particular type of wheat; whereas eliminating the
structural surpluses because of the excess of supply of the
                                                                    reference price and fixing a 'bread-making quality'
products covered by Council Regulation (EEC) No
                                                                    intervention price can help to achieve the objective
2727/75 O , as last amended by Regulation (EEC) No
                                                                    described above;
. . . / . . ; whereas production has outstripped both
consumption in the Community and outlets on world
markets; whereas the resulting costs and market
management problems could, if that trend is not                     Whereas accordingly, the target price for common wheat
checked, jeopardize the future of the common agri-                  should henceforth be derived from the intervention price
cultural policy;                                                    and, to ensure consistency, special premiums should no
                                                                    longer be granted when bread-making rye is bought in;
Whereas, in order to achieve as quickly as possible a
better balance on the market and to control growth,
                                                                    Whereas over the past 10 years the relationship between
producers should be encouraged to allow more fully for
                                                                    the intervention price of durum wheat and that of
market realities and be made to contribute towards the
                                                                    common wheat has boosted the cultivation of durum
budget costs arising from overproduction; whereas this
                                                                    wheat, even in the northern regions of the Community;
can best be achieved via a coresponsibility levy in respect
                                                                    while for industrial uses, common wheat has gradually
of the quantities of cereals which are marketed or sent to
                                                                    replaced durum wheat; whereas, in order to remedy this
intervention by producers; whereas, in the light of the
                                                                    imbalance, which might well become worse over the
social implications such a measure would have, the levy
                                                                    coming years, during which outlets outside the
should not be applied in respect of some of the quantities
                                                                    Community will continue to be very limited, action
concerned, so as to exempt small farmers who market
                                                                    should be taken to establish a more satisfactory price
very little grain;
                                                                    relationship between common and durum wheat;
Whereas the levy must be determined each year in the
light of the various factors used to calculate surplus              Whereas when there is a surplus on the market and
                                                                    market prices are depressed, the fact that cereals can at
                                                                    all times be sent to intervention is very often, even at the
(') OJNo L281, 1. 11. 1975, p. 1.                                   beginning of the marketing year, seen as an outlet in its
 ---pagebreak---  No C 53/6                              Official Journal of the European Communities                                      7.3.86
 own right by many operators, with the result that the             2. Article 3 is replaced by the following:
 latter do not have to seek to market their grain; whereas,
 in order to encourage operators to seek more actively an
                                                                       Article 3
 outlet on the market during the early stages of the
 marketing year, the quantities bought in by intervention
 agencies should be limited to a certain period of the                1.     Before the beginning of the marketing year
 marketing year; whereas, moreover, allowing operators                referred to in Article 2, the following prices shall be
 to offer their grain for intervention without necessarily            fixed for the Community:
being taken over by the intervention agency will allow
them to seek, during a period to be determined, a more                — a common intervention price for common wheat,
 advantageous outlet, and will be in keeping with the                     rye, barley, maize and sorghum,
objective described above while guaranteeing that the
grain can, as a last resort, be bought in if such is the              — an intervention price for durum wheat,
wish of the producer;
                                                                      — a target price for common wheat and durum
Whereas a marketing year beginning on 1 July should                       wheat and a common target price for rye, barley,
allow more fully for the new conditions obtaining in the                  maize and sorghum.
Community following the accession of Spain and
Portugal, where harvests tend to take place early on in               2.    The prices shall be fixed for a standard quality.
the year, and can ease the introduction of the new
intervention arrangements referred to above;
                                                                      3.    The intervention prices shall be fixed for        the
                                                                      Ormes intervention centre, which is the centre for      the
Whereas the threshold price applicable in the case of
                                                                      Community area having the greatest surplus for            all
imports of maize and sorghum during June should be
                                                                      cereals, at the wholesale stage, goods delivered at     the
maintained until 30 September, since those two crops
                                                                      warehouse, before unloading. They shall be valid         for
tend to be harvested fairly late;
                                                                      all Community intervention centres designated            for
                                                                      each cereal.
Whereas, in the context of the market organization
adjusted as described above, a carry over payment can be
regarded simply as a management measure designed to                   4. (a) The target prices shall be fixed for Duisburg,
ease the transition from one marketing year to another;                       which is the centre for the Community area
whereas the decision to grant such a carry-over payment                       having the greatest deficit for all cereals, at the
should accordingly be a Commission responsibility under                       wholesale stage, goods delivered at the
the management committee procedure; whereas carry-                            warehouse, before unloading.
over payments are no longer justified in the case of
maize, in view of the recent provisions introduced in                         They shall be calculated by adding a market
respect of that cereal;                                                       component and a component reflecting the
                                                                              cost of transport between the Ormes area and
Whereas the aim of restoring balance on the market                            the Duisburg area:
should be to encourage the search for and the                                 — to the common intervention price, for
development of new industrial outlets for cereals, in                             common wheat, rye, barley, maize and
particular in the field of energy; whereas provision                              sorghum,
should therefore be made for granting aid for cereals                         — to its intervention price, for durum wheat.
used for such research and development work; whereas
the aid, should, however, be fixed in such a way as to
                                                                         (b) The market component for:
allow sound competition with world market outlets for
those cereals,                                                                — common wheat shall reflect the difference
                                                                                  which should exist between the intervention
                                                                                  price and the market price for high-quality
HAS ADOPTED THIS REGULATION:                                                      European-type common wheat of bread-
                                                                                  making quality to be expected, in a normal
                           Article 1                                              harvest    and    under     natural     pricing
                                                                                  conditions on the Community market, in
Regulation (EEC) No 2727/75 is hereby amended as                                  the area having the greatest surplus,
follows:
                                                                              — rye, barley, maize and sorghum shall reflect
                                                                                  the difference which should exist between
1. Article 2 is replaced by the following:                                        the market price for barley and the
                                                                                  common intervention price, plus the
     'Article 2                                                                   difference in market prices reflecting the
                                                                                  ratio between the relative values of barley
    The marketing year for all the products listed in                             and maize for use in animal feed. The
    Article 1 shall begin on 1 July and end on 30 June of                         market     prices   to    be     taken     into
    the following year.'                                                          consideration are those to be expected in a
 ---pagebreak--- 7.3.86                                   Official Journal of the European Communities                                 No C 53/7
                 normal harvest and under natural pricing               However, in the event of a major change in the
                 conditions on the Community market, in                 factors referred to for the determination of the levy,
                 the production area having the greatest                the Council, acting by a qualified majority on a
                 surplus,                                               proposal from the Commission, may, before 15
            — durum wheat shall reflect the difference                  September, alter the levy with effect from the
                 which should exist between the intervention            beginning of the marketing year in question.
                 price and the market price to be expected,
                 in a normal harvest and under natural                  The amount of the levy referred to in the first
                 pricing conditions on the Community                    paragraph shall be determined in the light of the
                 market, in the area having the greatest                Community's imports of the products listed in Annex
                 surplus.                                               D to this Regulation.
        (c) The component reflecting the cost of transport              3.     The levy referred to in this Article shall be
             shall be determined on the basis of the most               regarded as one of the intervention measures
             favourable means of transport or combination               designed to stabilize agricultural markets in the
             of means of transport and on existing tariffs.             cereals sector.
            When inland waterway or sea-freight rates are
             not based on a tariff, transport costs shall be            4.     The Council, acting by a qualified majority on
             determined by taking the average freight rate              a proposal from the Commission, shall lay down
             over the two months with the lowest average                general rules for the application of this Article.
             rate during the most recent 12-month period
             for which data are available.
                                                                        5.     Detailed rules for the application of this Article
                                                                        shall be adopted in accordance with the procedure
   5.      The prices referred to in paragraph 1 and the                laid down in Article 26.'
   standard qualities referred to in paragraph 2 shall be
   determined in accordance with the procedure laid
   down in Article 43 (2) of the Treaty.                             5. Article 5 is hereby amended as follows:
   6.      The Council, acting by a qualified majority on a             (1) The following        subparagraph      is added    to
   proposal from the Commission, shall lay down rules                        paragraph 1:
   for determining the intervention centres to which the                     'However, the threshold price for maize and
   intervention prices apply.                                                sorghum applicable in June shall remain valid
                                                                             until 30 September.'
   7.      The intervention centres shall be determined,
   after consultation with the Member States concerned,                 (2) The first indent of paragraph 4 shall be replaced
   in accordance with the procedure laid down in Article                     by the following:
   26.'                                                                      '— a component representing the cost of
                                                                                  transport between Rotterdam and Duisburg,
                                                                                   determined in accordance with the criteria
 3. Article 3a is hereby repealed.
                                                                                   laid down in Article 3 (4) (c),'.
 4. Article 4 is replaced by the following:                             (3) Paragraph 6 is replaced by the following:
                                                                             '6.     Threshold prices for products referred to
      'Article 4                                                             in this Article shall be fixed annually, before the
                                                                             beginning of the marketing year, in accordance
     1.     In order to ensure that producers contribute                     with the procedure laid down in Article 26.'
     towards the budget costs arising from intervention
     measures within the meaning of Regulation (EEC)
     No 729/70 in the cereals sector, a coresponsibility             6. Article 6 is replaced by the following:
     levy shall be payable in respect of the cereals
     referred to in Article 1 (a) and (b) harvested in the               'Article 6
     Community and marketed or sold to an intervention
     agency pursuant to Articles 7 and 8.                                1.    The intervention prices, the target prices and
                                                                        the threshold prices shall be the subject of monthly
     However, for each marketing year, producers shall                  increases phased over part or all of the marketing
     be exempt from the levy in respect of the first 25                 year.
     tonnes of cereals.
                                                                        2.     The Council, acting by a qualified majority on
     2.     The levy shall be fixed annually, before the                a proposal from the Commission, shall determine
    beginning of the marketing year, in accordance with                 annually, before the beginning of the marketing
     the procedure laid down in Article 43 (2) of the                   year, the number and amount of the monthly
    Treaty.                                                             increases and in what months they are to apply'.
 ---pagebreak---  No C 53/8                                      Official Journal of the European Communities                                    7.3.86
   7. Article 7 (1) is replaced by the following:                               dure laid down in Article 26. Detailed rules for the
                                                                                application of the Article shall, where appropriate,
      '1.      The intervention agencies designated by the                      be adopted in accordance with the same procedure.'
      Member States shall buy in cereals referred to in
      Article 3 which have been harvested in the
                                                                            10. Article 9 is replaced by the following:
      Community and which are offered to them during
      the period from 1 December to 30 April, provided                           'Article 9
      that the offers comply with conditions, in particular
      in respect of quality and quantity, to be determined                      To the extent required to facilitate the change-over
      in accordance with paragraph 5.                                           from one marketing year to another, the
                                                                                Commission may, in accordance with the procedure
      However, subject to certain conditions and in                             laid down in Article 26, grant a carry-over payment
      respect of certain periods to be determined in                            in respect of stocks of one or more of the following
      accordance with the procedure laid down in Article                        cereals harvested in the Community which remain to
      26, the Commission shall have power to authorize                          the end of the marketing year: common wheat,
      the submission to intervention agencies of others                         durum wheat, rye and barley.'
      including a cancellation clause.'
                                                                            11. The following Article is inserted:
   8. In Article 7 (2):
      (a) 'single intervention           price'  is    replaced   by             'Article 11a
            'intervention price';                                               1.     Aid may be granted for cereals harvested in the
      (b) the third sentence is deleted.                                        Community that are used for research and
                                                                                development work on new industrial uses.
   9. Article 8 is replaced by the following:                                   The amount of the aid shall not exceed that of the
                                                                                export refund for the cereal concerned.
       'Article 8                                                               2.     The Council, acting by a qualified majority on
      1.      Particular intervention measures may be                           a proposal from the Commission, shall adopt rules
      adopted whenever the market situation in certain                          for the application of this Article.'
      regions of the Community so requires.
                                                                                                      Article 2
      2.      The Council, acting by a qualified majority on
      a proposal from the Commission, shall adopt general                  This Regulation shall enter into force on the third day
      rules for the application of this Article.                           following that of its publication in the Official Journal of
                                                                           the European Communities.
      3.      The nature and application of the particular
      intervention measures and the conditions and proc-                   It shall apply from 1 July 1986.
      edures for the sale or for any other means of
      disposal of the products subject to those measures                   This Regulation shall be binding in its entirety and
      shall be determined in accordance with the proce-                    directly applicable in all Member States.
                 Proposal for a Council Regulation amending Regulation (EEC) No 2731/75 fixing standard
                               qualities for common wheat, rye, barley, maize, sorghum and durum wheat
                                                               COM(86) 30 final
                                    (Submitted by the Commission to the Council on 12 February 1986)
                                                                 (86/C 53/07)
THE COUNCIL OF THE EUROPEAN COMMUNITIES;                                   Regulation (EEC) No . . ./. ., and in particular Article 3
                                                                           (5) thereof,
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 43                           Having regard to the proposal from the Commission,
thereof,
                                                                           Having regard to the opinion of the European Par-
Having regard to Council Regulation (EEC) No                               liament,
2727/75 of 29 October 1975 on the common organi-
zation of the market in cereals ('), as last amended by                    Whereas production and consumption trends in the
                                                                           cereals sector call for more stringent intervention
(') O J N o L 2 8 1 , 1. 11. 1975, p. 1.                                   requirements; whereas this may be achieved only by