CELEX: 51991PC0366
Language: en
Date: 1991-10-07
Title: Proposal for a COUNCIL REGULATION ( EEC ) fixing for the 1991/92 marketing year, the representative market price and the threshold price for olive oil, the levels of consumption aid in Spain and Portugal and the percentages of consumption aid to be retained in accordance with Article 11 ( 5 ) and ( 6 ) of Regulation No 136/66/EEC

COMMISSION OF THE EUROPEAN COMMUNITIES
                                            C0M(91) 366 final
                                            Brussels, 7 October 1991
                            Proposal for a
                       COUNCIL RFfllH ATIQN (EEC)
     fixing for the 1991/92 marketing year, the representative
      market price and the threshold price for olive oil, the
      levels of consumption aid in Spain and Portugal and the
    percentages of consumption aid to be retained in accordance
       with Article 11(5) and (6) of Regulation No 136/66/EEC
                    (presented by the Commission)
 ---pagebreak---  ---pagebreak---                                     - A-
                              EXPLANATORY MEMORANDUM
      This proposal for a Regulation concerns the fixing, for the 1991/92
marketing year, of the representative market price and the threshold price
•«"or olive oil, tha level of consumption aid in Spain and Portugal and the
percentage of consumption aid to be retained with a view to financing, on the
one hand, the recognized trade organizations and, on the other hand, measures
to promote olive oil consumption.
2. Article 7 of Council Regulation No 136/66/EEC lays down    that "the
representative market price shall be fixed at a level which   will permit
normal marketing of olive oi! produced, account being taken   of prices for
competing products, and in particular of the probable trend   of such prices
during the marketing year".
3. The situation in the seed oil sector has changed relatively slightly
compared with the situation on the world and Community markets when the aid
was fixed for the 1990/91 marketing year: prices are presently around 13%
higher than during the period September-October 1990 and prospects for 1991
are for a certain stability with the price of colza drifting down and the
prices of soya and sunflower recovering. The Commission therefore estimates
that the average price for seed oils should be the same as or slightly higher
than during the 1990/91 marketing year.
4.    In the olive oil sector the following should be noted:
        the present marketing year has been marked by low production and which
        should, according to latest estimates, be less than 1 200 000 tonnes,
        and by very high prices for edible oils in Greece and Italy-,
        during the 1990/91 marketing year, Community production was disposed of
        without difficulty, despite high prices in the two countries referred
        to above;
 ---pagebreak---                                      - 2 -
      as regards Spain and Portugal, liberalization of the oilseed and oil
      markets following the end of the "standstill" period has not affected
      olive oil consumption in those two countries. Although demand was
      influenced by events in the Gulf at the beginning of this year, the
       introduction of consumption aid has permitted the consumption of olive
      oil in Spain and Portugal to recover.
      forecasts of a satisfactory 1991/92 harvest should result in Community
      production significantly higher than this year's and consequently lower
      supply prices to the packaging industry in the Community of Ten.
5. The above shows that, for the Community of Ten, the present level of
consumption aid is no longer correctly adjusted to the market situation, that
is to say, a market where the increase in the prices of higher quality oils
(around two-thirds of production in the Community of Ten) does not affect,
within certain limits, the level of consumption. This is because, as a
result, in particular, of efforts to improve quality and inform the consumer,
the situation has changed over recent years and the market for those oils is
tending to become a separate market less closely linked to that for other
vegetable oils.
Therefore, and in view, in particular, of the experience of the 1990/91
marketing year, the Commission considers that good management of the aid
scheme calls for a suitable adjustment to the level of aid avoiding any
negative effects on consumption.
In this connection, the increase in prices felt by the consumer in 1991/92
will be practically cancelled out by the fall in the market price which
should result from the large harvest expected this marketing year.
6. As regards Spain, as a result of the reduction in aid for the Community
of Ten, aid will Increase by a smaller amount in accordance with the rules on
alignment laid down in Article 2 of Regulation (EEC) No 3416/90. In the
light of experience gained during this year, the Commission considers that
this level of aid will enable any difficulties in disposing of Spanish
production of olive oil to be overcome.
 ---pagebreak---                                      - 3 -
tilth regard to Portugal, slight changes should be made to the present level
of aid to consolidate consumption levels in the country.
 In addition, the recent launch of the fifth campaign to promote olive oil
consumption, with a considerably increased budget in Spain and Portugal,
should help to maintain and consolidate consumption in those two countries.
7. As a consequence of developments on the olive oil market during recent
years and particularly the market for better quality oils, the fixing of
consumption aid after production aid has been fixed appears less Justified
than in the past.
The simultaneous fixing of the two aids should therefore be considered as
part of the price package.
This would not only permit the Council to fix at the same time, as it does
for the other sectors, all the essential components of the organization of
the olive oil market, but would also have the advantage of allowing a
decision to be made on rebalancing the two aids.
The Commission will present Its final thoughts on the simultaneous fixing of
the two aids and their rebalancing as part of the 1992/93 price package.
However the producers' total income is to be kept unchanged.
8. Article 11(3) of Regulation No 136/66/EEC lays down that Member States
may involve one or more recognized trade organizations in the management of
the consumption aid arrangements. In addition, Article 11(6) of the
abovementioned Regulation lays down that the Council is to fix the percentage
of the consumption aid that the recognized trade organizations can retain to
finance their work and the percentage of aid to be allocated for measures to
promote consumption.
 ---pagebreak---                                      _ 4 -
Taking into account the amount of aid resulting from this proposal as well as
the amounts retained during previous marketing years and still available, a
figure of 1% for the next marketing year will enable promotional measures to
be continued and even intensified.
In view of the amount of aid resulting from this proposal as well as past
experience, a figure of 1.4% should maintain the overall remuneration of
those organizations at a sufficient level for them to carry out the tasks
with which they have been entrusted and to improve the transmission of data
to the agencies.
9. In the light of these considerations, the Commission puts forward the
fo11ow i ng proposa I s :
       representative market price: ECU 197.28/100 kg (+ ECU 7/100 k g ) ,
      consumption aid In the Community of Ten: ECU 53.90/100 kg
       (- ECU 7/100 k g ) ,
      consumption aid in Spain: ECU 45.67/100 kg,
      consumption aid in Portugal: ECU 49.42/100 kg
      retained for promotional measures: 1%,
       retained for trade organizations: 1.4%.
For reference, the figures on which the calculation of consumption aid for
1988/89, 1989/90 and 1990/91 as well as those in this proposal was based are
given in the Annex.
10. Finally, the threshold price must be fixed so that the selling price of
the imported product corresponds to the representative price. It is
therefore necessary to take Into consideration landing and warehousing
charges and the percentage of consumption aid to be retained.
In view of the above, the threshold price is fixed at ECU 194.20/100 kg.
 ---pagebreak---                                      - 5 -
                                    ANNEX
                             1987/88    1988/89 1989/90 1990/91 1991/92
Producer target price        322.56     322.56  322.56  322.01  322.01
Production aid                70.95      70.95,  70.95   70.83   70.83
Difference                   251.61     251.61  251.61  251.18  251.18
Representative market price  174.61     190.61  190.61  190.28  197.28
Difference (consumption aid)  77.00      61.00   61.00   60.90   53.90
 ---pagebreak---                            m Q  m
                        COUNCIL REGULATION (EEC) No
                                     Of
         fixing for the 1991/92 marketing year, the representative
          market price and the threshold price for olive oil, the
          levels of consumption aid in Spain and Portugal and the
        percentages of consumption aid to be retained in accordance
           with Article 11(5) and (6) of Regulation No 136/66/EEC
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to the Act of Accession of Spain and Portugal, and in
particular Articles 89(1) and 234(2) thereof,
Having regard to Council Regulation 136/66/EEC of 22 September 1966 on the
establishment of a common organization of the market in oils and fats1, as
last amended by Regulation (EEC) No 1720/912, and in particular the second
subparagraph of Article 4(4) and Article 11(6) thereof,
Having regard to the proposal from the Commission,
Whereas the representative market price must be fixed according to the
criteria laid down in Article 7 of Regulation No 136/66/EEC;
Whereas the threshold price must be fixed in such a way that the selling
price for the imported product at the frontier crossing point determined in
accordance with Article 9 of Regulation No 136/66/EEC is the same as the
representative market price, account being taken of the effect of the
measures referred to In Article 11(6) of the said Regulation;
1  0J No L 172, 30.9.1966, p. 3025/66.
2  0J No L 162, 26.6.1991, p. 27.
 ---pagebreak---                                -}
Whereas Article 2 of Council Regulation (EEC) No 3416/90 of
27 November 1990 on the introduction of Community aid  for the consumption
                                    3
of olive oil in Spain and Portugal , lays down criteria for adjusting this
aid to the Community level;   whereas the application of those criteria
results In consumption aid in Spain and Portugal during the 1991/92
marketing year being fixed at the levels given below;
Whereas, pursuant to Article 11(5) and (6) of Regulation No 136/66/EEC, a
certain percentage of the consumption aid during each olive oil marketing
year is to be used, on the one hand, to finance the recognized trade
organizations referred to in paragraph 3 of the abovementioned Article and,
on the other hand, to finance measures to promote olive oil consumption in
the Community;   whereas the said percentages for the 1991/92 marketing year
should be f ixed,
HAS ADOPTED THIS REGULATION:
                                  Article 1
For the 1991/92 marketing year the representative market price and the
threshold price for olive oil shall be as follows:
-  representative market price:   ECU 197.28 per 100 kilograms,
-  threshold price:   ECU 194.20 per 100 kilograms.
                                  Art icle 2
For the 1991/92 marketing year consumption aid for olive oil in Spain and
Portugal shall be as follows:
-  for Spain:   ECU 45.67 per 100 kilograms,
-  for Portugal:   ECU 49.42 per 100 kilograms.
3  OJ L No 330, 29.11.1990, p. 6
 ---pagebreak---                                -3
                                  Article 3
1.   For the 1991/92 marketing year the percentage of consumption aid
referred to in Article 11(5) of Regulation No 136/66/EEC shall be 1.4%.
2.   For the 1991/92 marketing year the percentage of consumption aid to be
allocated to the measures referred to in Article 11(6) of
Regulation No 136/66/EEC shall be 1%.
                                  Article 4
This Regulation shall enter into force on 1 November 1991.
This Regulation shall be binding in its entirety and directly applicable in
a 11 Member States.
Done at Brussels,                         For the Council
 ---pagebreak---                                                                  &    -
         IHANCï AL S TATEMENT
                                                                         DATE:
       mT HiADING: B 1220 Consumption aid                                APPROPRIATIONS: (1992 DB) ECU 743 ml 11 ion
                     B 1221 Schemes related to consumption                                           ECU 30 ml I lion
J. T'T-E:
L: if Council Regulation fixing, for the 1991/92 marketing year, the representative market price and the
thre•"'•old price for olive oil and the percentages of consumption aid to be retained
    LEGAL BASIS: Articles 4 and 11 of Regulation No 136/66/EEC
4. AIMS OF PROJECT: To fix:
                      - the representative market price
                      - the threshold price
                      - the percentages of the oonswption aid to be retained
                      for the 1991/92 marketing year for ol ive oi I.
                                     Period of 12 months    Current Financial Year     Following Financial Year
5. FINANCIAL IMPLICATIONS                                           1991                       1992
5.0 EXPENDITURE
     CHARGED TO THE EC BUDGET 1220 ECU 713 mi 11 ion (B)                               ECU 535 mi 11 ion (B)
     (REFUNDS/ INTERVENTION) 1221 ECU 7 mi 11 ion (B)                   nil            ECU 5 mi 11 ion (B)
     NATIONAL ADMINISTRATION
     OTHER                            ECU 720 mi 11 ion (B)                            ECU 540 mi 11 ion (B)
5.1 REVENUE
     - OWN RESOURCES OF THE EC
        (LEVIES/CUSTOMS DUTIES)
     - NATIONAL
                                          1993                  1994               1995                  1996
5.0.1 ESTIMATED EXPENDITURE           ECU 180 mi 11 ion
5.1.1 ESTIMATED REVENUE
5.2 METHOD OF CALCULATION:
The consumption aid for 1992 under this measure is as fol lows:
EUR-10: 775 000 t X ECU (539-5,39) /t x 1,135 (1) x 0,75 - ECU 352 mi 11 ion (B)
Spain:      415 000 t x ECU (456,7-4,57) /t x 1,180 (1) X 0,75 - ECU 166 mi 11 ion (B)
Portugal: 40 000 t x ECU (494.2-4,94) /t x 1,155 (1) x 0,75 - ECU 17 million (B)
TOTAL EUR-12                                                       ECU 535 mi 11 ion (B)
For the record,the appropriations in the 1992 DB for the 1991/92 marketing year amount to ECU 570 mi 11 ion,
 i.e. the impact of the measure on 1992 is savings of ECU 35 mi 11 ion.
6.0 CAN THE PROJECT BE FINANCED FRCM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                                             YESxxx
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?                          xxxxxx
6.2 IS A SUPrLBJENTARY BUDGET NECESSARY?
                                                                                                              xxxxxx
6.3 WILL FUTURE BJ&GE7 APPROPRIATIONS BE NECESSARY?
                                                                                                             YESxxx
OBSERVATIONS:
 It is proposed to retain "fôï, i.e. ECU 7 million, in 1991/92 to finance programnes to promote
olive oil consurption and 1,4%, i.e. ECU 10 million, to finance the activities of the professional bodies.
 (V Couole rate coefficient.
 ---pagebreak---                                           ^°   "                      ISSNQ254-1475
                                                               C0M(91) 366 final
                                                      DOCUMENTS
EN                                                                              03
                                 Catalogue number : CB-CO-91-415-EN-C
                                                             ISBN 92-77-75933-X
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