CELEX: 51987PC0466
Language: en
Date: 1987-10-01
Title: Proposal for a COUNCIL REGULATION (EEC) fixing for the 1987/1988 marketing year the representative market price and the threshold price for olive oil and the percentages of the consumption aid to be retained in accordance with Article 11(5) and (6) of Regulation No 136/66/EEC (submitted by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (87) 466
Vol. 1987/0239
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
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der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                    COM ( 87 ) 466 final
                                                     Brussels , 1 October 1987
                                     Proposal for a
                               COUNCIL REGULATION     ( EEC )
  fixing for the 1987/ 1988 marketing year the representative market price
                  and the threshold price for olive oil and the
               percentages of the consumption aid to be retained in
                      accordance with Article 11(5 ) and ( 6 ) of
                                Regulation No 136 / 66 / EEC
                            ( submitted by the Commission)
 COM ( 87 ) 466 final
 ---pagebreak---                                     ' l
                             EXPLANATORY MEMORANDUM
1. The attached Regulation sets the representative market price and the
   threshold price for olive oil for the 1987 /88 marketing year and the
   percentage of the consumption aid to be retained during that marketing
   year in order to finance the running of the recognized trade " organizations
   and certain measures to promote the consumption of olive oil .
2. Article 7 of Council Regulation No 136 / 66 /EEC stipulates that the
   representative market price for olive oil is to be fixed at a level that
   will permit normal marketing of production , account being taken of prices
   for competing products and of the probable trend of such prices during the
   marketing year .
3. There have been no fundamental changes in the world and Community markets
   for oilseeds since prices were set for the 1986 /87 marketing year nor is
   there any expectation of substantial change in 1988 . The Commission
   considers accordingly that the average price of oilseeds ought to be at a
   level equivalent to that set for the 1986 /87 marketing year .
4. For olive oil on the other hand two new specific factors require
   consideration :
   -   the expectation of a very abundant harvest in the Community
      substantially in excess of foreseeable demand ;
   -   the effect on the market of the entry into force of the measures
      decided on by the Council ( restriction of intervention to the last four
      months of the marketing year and withdrawal of the monthly increases ).
   Under the circumstances it is to be expected that the supply price of
   olive oil to the canning industry will be on average 8% lower during
   1987 /88 than it was during 1986 /87 .
5. In response to requests from the European Parliament and from the Court of
   Auditors the Commission had a study carried out in 1987 on the Italian
   olive oil market dealing with the period of application of the consumption
   aid . The results , available to the Commission only since mid-September ,
   afford the conclusion that where variations in the prices of seed oils
   remain within a range of some 20% by far the most important factor
   influencing the consumption of olive oil is its price to the final user .
6. In the present Community olive oil supply position the Commission remains
   of the opinion that it would be more advantageous , particularly on the
   financial plane , to look for fresh outlets within the Community than to
   seek new export outlets .
 ---pagebreak---      It considers it indispensable at least to maintain the present level of
     consumption in the Community and desirable , given the production forecast
     for 1987 / 88 , to raise it slightly . It would be possible to do this by
     reducing the price of olive oil to the consumer .
     However given the present budgetary situation the Commission considers
     that it would be more economic to maximise the impact on internal
     consumption by action to arouse an interest in olive oil among categories
     of consumers who do not presently buy it , through utilization of the
     possibilities opened by Article 11(6 ) of Regulation No 136 / 66 / EEC by
     Article 1(e ) of Regulation ( EEC ) No 1970 / 84 .
     Sales at a reduced price as in other sectors to certain categories of
     consumers would top up consumption at a cost lower than that of a general
     increase in the consumption aid or export subsidy .
7.   These considerations lead the Commission to propose as
     - representative market price : 176.61 ECU/ 100 kg (+ 9.94 ECU/ 100 kg )
     - consumption aid :                  75.00 ECU/ 100 kg (- 9.94 ECU/ 100 kg ).
     Annexed for reference are the factors determining the consumption aid for
     1985 / 86 and for 1986 / 87 and those behind the present proposal . In view of
     the intentions set out at 6 ) above it is proposed to set the deduction
     specified in Article 11(6 ) at 10% in order to have available the necessary
     funds to mount the reduced selling price operation and also to continue
     the campaign to promote consumption .
8.   The proposed drop of 13% in the consumption aid will result in a reduction
     of Community expenditure of some 35 million ECU on the sum anticipated for
     1988 even when the slight increase in consumption being sought is taken
     into account .
9.   The outcome of the proposals taken together is a reduction in the net aid
     from which the consumer benefits , offset however by a drop in supply
     prices , the result being that the retail selling price of olive oil will
     remain unchanged on 1986 / 87 . There should be no downturn in consumption .
     However as in the past the Commission reserves the right to re-examine the
     level of the representative market price and of the consumption aid during
     the marketing year , as provided for in Article 4 of Regulation
     No 136 / 66 / EEC , '                         -
10 . Article 11(3 ) of Regulation No 136 / 66 / EEC allows the Member States to
     associate with themselves in the administration of the consumption aid one
     of the more recognized trade organizations . Further Article 11(5 ) of the
     Regulation states that the Council shall set the percentage of the
     consumption aid that these organizations may retain to finance the work
     that they do .
 ---pagebreak---                                        -4-
     Given the amount at which the present proposal sets the consumption aid a
     percentage of 1.4 would from past experience enable the aggregate
     remuneration of these organizations to be maintained at an adequate level
     to guarantee discharge of the functions assigned them .
11 . Finally the threshold price must be fixed at a level such that the selling
     price of imported oil is lower than the representative price .  Account
     must be taken of the cost of landing and warehousing the imported product
     and of the percentage of the consumption aid to be retained .
     Consideration of these factors gives a price of 180.49 ECU/ 100 kg .
 ---pagebreak---                                       COUNCIL REGULATION (EEC)
                   fixing for the 1987/ 1988 marketing year the representative market price and the
                   threshold price (or olive oil and the percentages of the 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,                          should be used during each olive marketing year firstly
                                                                  for financing the recognized trade organizations referred
 Having regard to the Treaty establishing the European            to in paragraph 3 of the said Article and, secondly, for
 Economic Community,                                              financing measures to promote the consumption of olive
                                                                  oil in the Community ; whereas the said percentage
 Having regard to Council Regulation No 136/66/EEC of             should be fixed for the 1987'198 8 marketing year,
 22 September 1966 on the establishment of a common
organization of the market in oils and fats ('), as last
                                                                  HAS ADOPTED THIS REGULATION :
amended by Regulation (EEC) No 1915/87 (2), and in
 par'icular the second subparagraph of Article 4 (4) and                                    Article 1
 Article 1 1 (6) thereof.
                                                                  For the 1987 / 1988 marketing year, the representative
 Having regard to the proposal from the Commission,               market price and the threshold price for olive oil shall be
                                                                  fixed as follows :
Whereas the representative market price should be fixed
 in accordance with the criteria laid down in Article 7           – representative market price : 176,61 ECU per 100
       of Regulation No 136/66/ EEC ;                                  kilograms,
                                                                  – threshold price : 180,49 ECU per 100 kilograms.
Whereas the threshold price should be fixed in such a
way that the selling price for the imported product at the                                  Article 2
 frontier crossing point fixed pursuant to Article 9 of
 Regulation No 136/66/EEC is the same as the representa¬          1.     For the 1987/ 198 8marketing year, the percentage of
 tive maiket piiee, account being taken of the effect of the      the consumption aid , referred to in Article I 1 ( 5) of Regu ¬
 measures referred to in Article I 1 (6) of the above Regula¬     lation No 136/ 66/ ERC, is hereby fixed at 1,4 .
 tion ;                                                           2. For the 198 7/ 198 8marketing year, the percentage of
                                                                  the consumption aid to be allocated for the campaigns
Whereas it follows from the application of these criteria,        and projects, referred to in Article 11 (6) of Regulation No
that the representative market price and the threshold            136/66/EEC, is hereby fixed at 10.
 price should be fixed at the levels given in Article 1 of
this Regulation ;                                                                           Article 3                          \
Whereas , under Article 1 1 (5) and (6) of Regulation No          This Regulation shall enter into force on 1 November
 136/66/ EEC, a certain percentage of the consumption aid         1 987.
                   This Regulation shall be binding in its entirety and directly applicable in all Member
                   States .
                   Done at
                                                                               For the Council
( ' ) Ol No 172, 10 9 1966, £ 3025/66.
(■) Ol No 1 . 183 3.7.198 7 p. 7
 ---pagebreak---                                                          ANNEX
                                                                                                   1987 / 88
                                    1984 / 85                      1985 / 86             1986 / 87
                            . ll-lff.3 / 16 . 3-31.10      .11 -20.5/21/5 -31 . 10
Production target price     316,23               316,23    322,56                322,56   322,56
    production aid            69,56                69.56    70.95                  70.95   70.95    322,56
                                                                                                     70,95
       Difference                                          251,61     !          251,61
                            246,67               246,67                                   251,61
                                                                                                   251.61
Representative market price  196.87              208.80    198.59                 185.11  166.67
                                                                                                   176.61
       Difference                                                                  66,50
                              49,80               37,87     53,02                          84,94
        ( consumption aid )                                                                          75,00
 ---pagebreak---                                                                                   ( PGRA-2336 )
          FINANCIAL             STATEMENT
                                                              Date : 22 September 1987
1 . Budget heading : B 1203                      Appropriations : 426 million ECU
                        B 1204                             PDB ’88      9 million ECU
2 . Title : Draft Council Regulation setting for the 1987 / 88 marketing year the
     representative market and threshold prices for olive oil and the percentages of
     the consumption aid to be retained
3 . Legal basis : Articles 4 and 11 of Regulation 136 / 66 / EEC
4 . Aims of project : Determination of the following for olive oil for the 1987 / 88
     marketing year : - representative market price
                       - threshold price
                       - percentages of consumption aid to be retained
                                             : period of        current           following
                                             : 12 months     financial year     financial year
5.      Financial implications               :                   ( 1987 )            ( 1988 )
5.0     Expenditure                          :-             –                  –
        - charged to the EC budget           :
                  ( intervention )   1203   358.2m ECU(B )                      358.2 m ECU ( B )
                                     1204    39.8m ECU(B )                       39.8 m ECU ( B )
                                            398.0m ECU(B )                      398.0 m ECU ( B )
5.0.1 Estimated expenditure
5.1.1 Estimated receipts
5.2 Method of calculation : The gross total amount for the consumption aid for 1988
      ( set by this Regulation ) is determined as follows :
      500 000 t x 750 ECU / t : 375 m ECU A x 1.062 ( 1 ) = 398 m ECU B ( 2 )
      Gross amount estimated when 1988 preliminary draft budget was drawn up :
      480 000 t x 849 ECU / t : 407.7 m ECU A x 1.062 ( 1 ) = 433 m ECU B
      Différence : ( 433-398 )m ECU B = - 35 m ECU B
6.0 Can the project be financed from appropriations entered in the relevant chapter
      of the current budget ?                                                         yes
6.3 Will future budget appropriations be necessary ?                                  yes
Observations :
( 1 ) Double rate coefficient
( 2 ) Of this amount it is proposed to retain 10% i.e. 39.8 ra ECU to finance the
      programmes to promote olive oil consumption and 1.4% i.e. 5.6 m ECU , to finance
      the activities of the trade organizations .
 ---pagebreak---                                                                       ANNEXE II
Fiche d' impact de certains actes Législatifs sur les PME et l' emploi
            OBLIGATIONS ADMINISTRATIVES DECOULANT DE L' APPLICATION DE LA
            LEGISLATION POUR LES ENTREPRISES
             Non
            AVANTAGES POUR L' ENTREPRISE
            - §HJÎ /'NON
            - LESQUELLES
            INCONVENIENTS POUR L' ENTREPRISE
            ( coût supplémentaires )        ■      ■
            - BU / NON
            - CONSEGUENCES
     A.     EFFETS SUR L ' EMPLOI
            Non
     3.     Y A- T- IL EU CONCERTATION PREALA8LE AVEC LES PARTENAIRES
            SOCIAUX ?
              IBM/ NON                                                          |
                                                                                i
               AVIS DES PARTENAIRES SOCIAUX                                     j
               A - T - 7! UNE APPROCHE ALTERNATIVE MOINS CONTRAIGNANTE ?