CELEX: 51977PC0349
Language: en
Date: 1977-07-20
Title: Proposal for a REGULATION (EEC) OF THE COUNCIL amending Regulation (EEC) No 1900/74 laying down special measures for soya beans (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 349
Vol. 1977/0117
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 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(77)349 final.
                                                      Brussels , 20 July 1977
                             Proposal for a
                     REGULATION (EEC ) OF THE COUNCIL
       amending Regulation (EEC ) No 1900/74 laying down special
                       measures for soya beans
                  ( submitted to the Council "by the Commission)
CCM(77) 349 final
 ---pagebreak--- The development of Scya prediction ir? *: he Com?nun :. ty
   the meeting of 25 / 26 April ' 1977 ., the Council took note of the emission 's
undertaking to examine the develops■?(-■»: of soya prodi: t ion in th-; Con.Ti'jni ty and
whether existing arrangements for trinket organization are sufficient to achieve
the aims referred to in Regulation ( EEC ) No 1900/ 74 and to rep >^t on th<»r-e
topics before 1 July 3977 , and if necessary to make suitable proposals .
This document is the report in question , and also serves as the explanatory
memorandum for a proposal for a Council Regulation amending Regulation ( EEC )
No 1900/ 74 laying down special measures for soya beans *
The Commission believes that the aims of Regulation ( EEC ) No 1900/ 74 ,. particu­
larly the promotion of soya production , have not been fully achieved to. date
mainly on account of factors unconnected with the subsidy s - eme . It would ,,
therefore , be premature to abandon the scheme , but it should be modified to
provide producers with, a better guarantee of income for a limited 'period .
 ---pagebreak--- p epor t fr om the C orcmiss ion t o the Counc il o n the Development of Soya Production
in the Community
Th ? soya1 bean scheme whic ! ? came into effect on 1 November 1974 provides for a
subsidy ( equal to th ? c'iffarence between the guide price and the world market
price ) applied to production as estimated on the basis of a target yield per
hectare .
The following are the figures involved in calculating the subsidy :
               Guide price     . Average market price         Subsidy            Target yield
               u.a. / 100 kg          u.a. / 100 kg         u . a . / 100kg         kg / ha
1974 / 75         23.310                23.398                      0          #   1,900
1975/ 76          26.110                15.189                  10.921             1,950 "
1976/ 77 .        28.500                20.271                    8.229      "     1,950
1977/ 78        . 30.640
Despite the introduction of this scheme , the cultivation of soya beans^n the
Community is encountering serious difficulties in moving beyond the experimental
stage , as the following table shows .
                    . ha                   t                fl yield kg / ha                    *
                                                       for all . ha        for not yet by weather
                                                                               damaged ha
1974                 4,300             5,400            1,256                     1,900
1975                 1,500             3,000            2,000 .                   2,000
3976                 1,600             2,000     •      1,250                     1,900
1977                 1,600 ( est )            ..    ••
The Commission believes that the take-off has been more difficult than expected
due largely to exceptionally unfavourable weather , in particular in 1976 , and as
yet insufficient knowledge of growing methods . These have seriously affected yields
and profitability . It is therefore still too early to conclude that the scheme
has failed to achieve its purpose , and it would be premature to abandon it .
Experience shows that , since cultivation of this crop is still in its infancy , a
greater incentive is needed than for well-established crops if - soya bean production
is to be developed in the Community .
The Commission therefore believes that , if farmers are not to be discouraged by
failures vith soya in the first few years , additional inggntives should be provi-
     for e limited period , but one sufficient to overcome / difficulties inherent
in launching a new crop .                                       i      . '
 ---pagebreak--- Accordingly, it Is, proposed thcY the Council add to Regulation '7EC > N- 1 900. 74
a provision that the target yield shall not be less than 1 900 >gf*.a •
1977/ 78/ 1978/ 79 and 1979/ 80 marketing years .
The Commission considers that if the Council adopts the oropos-e' measure ,
and if the target yield concept is more effectively applied by the Comnnb^n ,
the aims of Regulation ( EEC ) No 1700/ 74 will be arhievH-
 Experience in the transitional three year per iod should mske it possible to deter
 mine whether or not the scheme will lead to the development of soya i.i the
 Community .                                                             ..
 ---pagebreak---                                    Vooosal for a
                 ' SOiïCIL BEGULàTIGH ÇRHî)"ï*                                             j
                    f ...
amending Redulation < EEC)_NoJ 900/ 7^, U^jJcvrji^SEecial.
THE COUNCIL OF . THE EUROPEAN" COMMUNITIES ,
Having regard to the Treaty e^teblishing the European Economic Community, and in
particular Article 43 thereof /,
Having regard - to the proposal from the Commission,
                                                         (1)
Having regard to the Opinion of the European Parliament ,
                                                                    < 2)
Having regard to the Opinion of the Economic and Social Committee ,
Whereas Council Regulation ( EEC ) No 1900/ 74 of 15 July 1974, laying down special
 measures for soya beans ( 3) introduced a system of aid to promote the development
 0 r Soya bean production in the Community; whereas Article 2 ( 2 ) thereof
 provides that a subsidy shall be granted for production obtained by applying a
indicative yield to the areas on which soya has "been sown and harvested;
 Whareas experience has shown that due to difficulties in introducing this crop
 in the Community there are wide fluctuations in yields ; whereas such fluctuations-
 are likely to jeopardize producers' incomes and consequently hinder, the development
 of this crop ;
 Whereas in order to counteract _• these disadvantages the subsidy should he granted for a
 limited period onthejbasis^of a minimum yield, in order to ensure a fair income for pro
  ducers who take up this VW crop ; ihereas an addition should therefore be made to
  Regulation ( EEC ) No 1900/ 74 ,
  HAS ADOPTED - THIS REGULATION :
  ( 1 ) 0J No L
   ( 2 ) 0J No L
   ( 3 ) 0J No L 201 , 23.7.1974 , p. 5
 ---pagebreak--- »
                                     - 2 -
                               Sole Article
The following subparagraph is hereby added to Article 2 (2)_of Regulation (EEC ) If® 1900/74
" For the marketing years 1977/78 , 3.978/79 and 1979/80 the ~ indicative yield shall
 "not be less than 1 900 kilogram B     per hectare ."
                                      »
  This Regulation shall be binding in its entirety and directly applicable in
  all Member States .                                                         *
  Done at                                              For the Council
 ---pagebreak---                                FtESAFtfCIAi-                     STAT ES^E SNST
                                                                                                                  batei    1.7.1977
      le. ï^dcl? uns coii-fcsvia» i                      Line 6341             -      Aids for soya beans
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 I 8 , ACT? OK s
      ?» act?ok s Draft proposal for a Council Regulation amending Regulation ( EEC ) 1900/ 74
      foreseeing special measures for soya beans
      3 . 1 . 'ML BASIS ■                       Article 43 of the Treaty
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      haye a better guarantee of income , for a limited period                                                          ■   *
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     ( 1 ) Given the levfcl of the indicative yield currently in force , namely 1950 kg / ha ,
              this proposal will not give rise to any supplementary expenditure , compared
              to the creidts provided for in the budget and the multi-annual forecasts .
                                   5