CELEX: 51978PC0259
Language: en
Date: 1978-06-09
Title: Proposal for a COUNCIL REGULATION (EEC) on the system of aid for dried fodder (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (78) 259
Vol. 1978/0096
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM(78)259 final.
                                                    Brussels , 9 June 1978
                               Proposal for a
                          COUNCIL REGULATION (ESC )
                   on "the system of aid for dried fodder
              ( submitted to the Council "by the Commission)
 COM(78 ) 259 final .
 ---pagebreak---                         EXPLANATORY MEMORAMjuM
In its Regulation (EEC ) No . .../78 the Council adopted a new common
organization of the market for dried fodder.
It was specified in the Regulation that the Council would adopt general
rules , concerning particularly the determination of the world market
price , the aid system and the control measures .
The purpose of this Regulation is to adopt these provisions .
 ---pagebreak---                               Proposal for a
                        COUNCIL REGULATION (EEC )
                  on the system of aid for dried fodder
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Community ,
Having regard to Council Regulation (EEC ) No 1117/78 of 22 Ma^y 1978 on the
common organization of the market in dried fodder^ , and in particular Article
6(2 ) thereof,
Having regard to the proposal from the Commission ,
Whereas Article 6(2 ) of Regulation (EEC ) No 1117/78 provides for criteria
for determining the average world market price for dried fodder to he laid
down;
Whereas this price should "be determined on the basis of the most favourable
purchasing possibilities on the world market ;
Whereas to this end the Commission should take into consideration all offers
made on the world market which are known to it and all prices quoted on those
exchanges which are important for international trade ; whereas , however , it
should disregard certain offers if it considers they are not representative
of the true market trend ; whereas long-dated offers and quotations should also
be disregarded since they do not relate to products for immediate delivery ;
Whereas , in the absence of offers or quotations which can be used as a basis
for determining the world market price , this price should be determined on the
basis in particular of the last average world market price determined ;
Whereas provision should be made for adjustments to the offers and quotations
used in order to offset in particular any deviation from the presentation and
quality determined for the purpose of fixing the guide price ;
Whereas criteria relative to the minimum quality of dried fodder entitled to
aid , based essentially on commercial usage , should be laid down ;
Whereas processing plants should fulfil the necessazy conditions to obtain entitle­
ment to aid ; whereas such plants shall therefore be required to keep stock-accounts ,
including the details necessary for verification of entitlement to aid , and to
furnish any other necessary proof ;
 OJ No L 142 , 30.5.1978 , p. 1 .
 ---pagebreak--- Whereas , where there is no contract "between the producers and the processing
plant , the latter should be required to furnish other information for the
purpose of verification of entitlement to aid ;
Whereas contracts should , on the one hand , promote regular supplies for the
processing plants and , on the other , permit the producers to "benefit from
the aid ; whereas , to this end , it should be laid down that the contracts
include certain information and in particular the price ;
Whereas , in the case of fodder which is processed on "behalf of the producer,
provisions should "be made to ensure that the aid is passed "back to the
latter;
Whereas , in the interests of stability in commercial transactions , provision
should be made to enable those concerned to have the amount of the supple­
mentary aid fixed in advance ; whereas , in the interests of sound administration ,
provision should be made for the introduction of advance fixing certificates ,
and for the lodging of a security in respect of these certificates calculated
to ensure that the dried fodder will leave the plant during the period of
validity of the certificate ;
Whereas provision should be made to enable advice fixing to be suspended
where this is necessary to rectify an abnormal si+uation on the Community
dried fodder market ; whereas it should_ accordingly be provided that advance
fixing be permitted only after the expiry of a short period following the
lodging of the application , during which period the state of the market , can
be assessed ;
Whereas the efficient management of the aid system requires the introduction of
control arrangements designed to ensure that the aid is granted only for those
products entitled thereto .
HAS ADOPTED THIS REGULATION !
 ---pagebreak---                         TITLE 1    : WORLD PRICE
                                Article 1
1.  The Commission shall once per month determine the average world market
    price for the products set out in the first indent of Article 1 ("b ) of
    Regulation (EEC ) No 1117/78.
2.  The Commission shall in determining the average world market price take
    account of all world market offers and of (Quotations on exchanges which
    are important for international trade .
3.  The Commission shall determine this price on the basis of the most
    favourable actual purchasing possibilities , . disregarding offers and
    quotations which cannot be considered representative of the true market
    trend .
                                Article 2
Where there is no available offer or quotation for determining the average
world market price of the products referred to in Article 1 , the Commission
shall determine such price from world market offers for the products set out
in the second indent of Article 1(b ) of Regulation (EEC ) No ..../78 and from
quotations for these products on exchanges which, are important for intern-
national trade .                       .                    •
                                Article 3
Where there is no available offer or quotation for determining the average world
market price of the products referred to in the preceding Articles , the
                                4'
Commission shall determine such price from the last average world market price
determined , adjusted in accordance with the trend of prices of such products
produced in the Community and of world market prices for competing products .
                                Article 4
The Commission shall determine the average world market price for a pelleted
product of the standard quality for which the guide price has been fixed ,
delivered in bulk at Rotterdam.
The Commission shall make the necessary adjustments for offers and quotations
differing from the above specification.
 ---pagebreak---                             TITLE II   s AID SYSTEM
                                    Article 5
 The aids specified in Articles 3 and 5 of Regulation (EEC ) No 1 1 17/ 78 shall
"be granted , on request "by the party concerned , for dried fodder from diying
plants that meet       the following requirements :
 (a) maximum moisture content of "between 11 and 14       variable according to
       the form of presentation of the product :
 (b ) minimum crude protein content in dry matter :
       – not less than 8 % (products set out in Article 1 (a) of Regulation (EEC )
                              Ko 1117/78);
       – not less than 14 /& (products set out in Article 1(b ) of Regulation (EEC )
                               No 1117/78);
       – not less than 45 7° (products set out in Article 1(c ) of Regulation (EEC )
                               No 1117/78).
However , additional conditions , in particular as regards crude fibre and
carotene content , may be adopted in accordance with the procedure provided for
in Article 12 of Regulation (EEC ) No 1117/78.
                                    Article 6
The aids specified in Articles 3 and 5 of Regulation (EEC ) No 1 1 17/78 shall be
granted only to those diying plants which :
(a) keep stock accounts which include at least details :
       – of the quantities of green or sun-dried fodder processed ,
       - of the quantities of dried fodder produced and the quantity and quality
          of the dried fodder leaving the plant ;
(b ) supply , where necessary , other supporting documents necessary for checking
       their entitlement to aid .
                                    Article 7
1 . Where the contracts referred to in the third indent of Article 6(1 ) of
     Regulation (EEC ) No 1 1 17/78 are for the purchase of green or sun-dried
     fodder by processing plants they shall state at least :
     ( a) the price to be paid for the fodder;
     (b ) the crop area to be delivered to the drying plant ;
     ( c ) the conditions of delivery and payment .
 ---pagebreak---                                     - 5 -
2 . Where the contracts referred to in the third indent of Article 6(1 ) of
    Regulation (EEC ) No 1117/78 are for the drying or processing on a
    farmer 's account of fodder supplied "by him , they shall include a provi­
    sion obliging the drying plant to pay the farmer the amount of the aid as
    specified in Articles 3 and 5 of Regulation (EEC ) No 1 1 1 7/78 received "by it
    in respect of the quantities dried under the contract .
                                   Article 6
Drying plants processing their own production or that of their members shall
submit each year , to the agenoy designated by the Member State , by a date to
be determined , a declaration of the fodder crop areas to be dried .     However ,
this shall not apply to the products set out in Article 1 (a) of Regulation
(EEC ) No 1117/78* For those products the drying plant shall , before the
beginning of each month , notify the agency designated by the Member State
of the quantities of potatoes which it plans to dry during that month .
                                   Article 9
Supplementary aid shall be granted at the rate applying in the month when the
fodder left the drying plant .
However , on request by the party concerned , the rate of aid applying on the day
when the application for the certificate referred to in Article 10 was lodged ,
adjusted where appropriate in accordance with Article 11 , shall be used in
respect of those quantities of dried fodder specified in the certificate which
leaves the drying plant during ther period of validity of such certificate .
                                   Article 10
1 . There is hereby introduced a supplementary aid certificate , to be used for
    certifying the advance fixing of the rate of the supplementary aid .
    Certificates shall be issued on request by the Member States to drying plants
    located on their territory .
2 . The supplementary aid certificate shall be valid throughout the Community.
    However , pending the establishment of a Community form , and at latest until
    31 December 1978 , the supplementary aid certificate shall be valid only on
    the territory of the Member State in which is was issued .
    Issue of the Certificate shall be subject to the provision of security
    calculated to ensure that the dried fodder will leava the drying plant during
    the period of validity of the certificate .
    Such security shall be wholly or partly forfeit if all or any of the fodder
    fails to leave the plant within this period .
    The period of validity of supplementary aid certificates may not exceed twelve
    months .
 ---pagebreak---  The period of validity of the supplementary aid certificate and the other
detailed rules for the application of this Article t which may in particular
 specify a time limit for the issue of certificates , shall "be adopted in
accordance with the procedure provided for in Article 12 of Regulation (EEC )
No ..../JQ,
                                 Article 11
If in cases of advance fixing forward prices differ from the price applying
in the month when the application for the certificate is lodged , the rate of
the additional aid shall "be adjusted "by means of a corrective amount calcu­
lated from the trend of forward prices .
                                 Article 12
1 . If the situation on the Community dried fodder market is abnormal , and in
    particular if the volume of applications for advance fixing of the aid is
    unrelated to the normal sale pattern for dried fodder in the Community , it
    may "be decided , in respect of certificates not already issued , to suspend
    advance fixing for the period necessary to restore market stability .
2 . Suspension of advance fixing shall he decided on in accordance with the
    procedure provided for in Article 12 of Regulation (EEC ) No 1117/78*
    However , in an emergency such decision may he taken "by the Commission ; in
    this case the period of suspension may not exceed seven days .
                          TITLE III : CONTROL
                                 Article 13
1 . The Member States shall introduce control arrangements whereby it may be
    verified in respect of each drying plant whether :
    – the conditions set out in the foregoing Articles are being complied with
    – the quantity of dried fodder in respect of which aid is applied for
      corresponds to that meeting the minimum quality requirement and leaving
      the plant .
2 . The dired fodder shall be weighed and samples examined when it leaves the
    plant .
3 . Each Member State shall notify to the Commission , before their entiy into
    force , the provisions to be adopted by it for purposes of the control'
    arrangements referred to in paragraph 1 .
                                 Article 14
Member States shall assist each other in applying this Regulation.
 ---pagebreak---                                    - 7 -
                                  Article 15
                              Α
Regulation (EEC ) Bo 1192/74 is hereby repealed .
                                  Article 16
This Regulation shall enter into force on the day following its publication
in the Official Journal of the European Coajurunities .
It shall apply with effect from 1 July 1978 » with the exception of Articles
1 to 4 . which shall apply with effect from 1 April 1978 .
       This Regulation shall be binding in its entirety and directly
       applicable in all Member States .
Done at                                      For the Council
1 0J No L 131 , 14.5.1974, P. 1 .