CELEX: 51981PC0446
Language: en
Date: 1981-09-10
Title: Proposal for a COUNCIL REGULATION on producer groups and associations thereof in the cotton sector (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 446
Vol. 1981/0138
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                               COM(81)446 final
                                               Brussels . 10 September 1981
                               Proposal for a
                            COUNCIL REGULATION
          on producer groups and associations thereof in the
                                cotton sector
                ( submitted to the Council by the Commission )
                                 i" .
 C0MC81 ) 446 final
 ---pagebreak---                              EXPLANATORY MEMORANDUM
INTRODUCTION                                           -
On 28 April 1981 the Commission submitted to the Council , pursuant to
Protocol 4 annexed to the Act of Accession of the HeLlenic Republic to
the European Communities , a proposal for a regulation laying down the
general rules for the system of aid for cotton and the minimum price for
the 1981 / 82 marketing year ( C0M(81 )1 89 ) .
The Commission is, submitting the attached proposal to supplement the
arrangements applicable to cotton under the said Protocol and thus
enable the aims specified in paragraphs 2 and 4 of the Protocol to be
achieved , namely :                                                      ■
- to support the production of cotton in regions of the Community where
   it is important for the agricultural economy;
- to permit the producers concerned to earn a f ai r income ;      »
- to stabilize the market by structural improvements , at the level of        1
   supply and marketing ;          *                .
- to provide incentives for the formation and to facilitate the 'opera­
   tion of producer groups and associations thereof .
The Commission would also point out that , under the terms of the Protocol ,
 this system must apply to the entire territory of the Community' and not ' .
only to Greece ( some cotton , equivalent to about 1% of Community produc­
tion , is also grown in Italy, in particular in Sicily and in the Pouilles )
                     »   • ■
  I.   Recognition of producer groups and associations thereof
      The Commission proposes first of all that the general rules provided
       for in the abovementioned Protocol should comprise a code for the
       recognition of producer groups which will ensure that efficient
      procedures are followed and which will list the precise conditions
       for recognition so that such groups and associations comply with
       the requirements with the Protocol .     These conditions are based on
       those laid down for other sectors in which Community incentives are
      offered for the formation of producer groups , and in particular the
       conditions specified in Regulation No 1360 /78 .      These conditions
       relate to :            '■                              . .
  0J No L 166 , 23.6.1978
 ---pagebreak---                                           - 2 -
                                                  ' V   '         .   '
        - the marketing of , members' entire production through groups and
           associations thereof ;
        - the exercise by the latter of adequate discipline over production
           and marketing ;
 \      - the minimum level of economic activity for such groups and asso-
                                 4
           ciations ;  '
                                   _
                                   -»
        - the rules governing the withdrawal of members .
II .    Aid
   \    The Commission proposes that two different kinds of measure should
        be included in the system of aid for structural improvements at the
        level of supply and marketing by producer groups and associations .
        The first of these measures would be launching aid for the first
        five years following recognition .      This aid would be similar in
        nature to that provided for producer organizations in other sectors
        under the Common Agricultural Policy .       The aid would be granted for
        a period of five years and would be :
        - in the case of producer groups , equal to. 5, 4, 3, 2 and 1% res­
           pectively of the value of the produce marketed , provided this did
           not ekceed the actual expenditure on formation and operation ;
        - in the case of associations , equal to 80 , 80 , 60 , 40 and 20% res­
           pectively of actual expenditure on formation and operation , sub­
            ject to an overall limit of 100 000 ECU per association .      '
        The second measure would be aid covering up to 50% of the cost of
                                                   '       -                 *
        the investments necessary for the implementation of the common
        rules on production and marketing and, in particular, investments
        in harvesting, ginning , storage and packaging equipment .
     , The Commission considers that such aid is needed to facilitate the
        formation of producer groups and associations whose purpose is the
        rationalization of production and marketing .        If these activities
      ' a ;-? 'to ':>* rationsVised, certain investments specific to the' proouc- «
         tion and marketing of cotton and beyond the means of individual
         undertakings ( machinery for harvesting , ginning, storage and pack­
         aging ) should be shared among the members of organizations which
         are sufficiently large to ensure that adequate use is made of the
         equipment in question .
 ---pagebreak---                                          - 3 -
      The Commission takes the view that such -aid is especially necessary
      since :
                                                      ■
      » eeiteff predueflén , etèspitc Iti « peelfìeally * gpicultural natur>e , 11
          not included in Annex II of the Treaty and cannot therefore qualify
          for the investment aid provided for by other structural measures '
          under the common agricultural policy ( such as Directive 159 / 72 / EEC
          on the modernization of farms and Regulation ( EEC ) No 355 / 77 on
          common measures to improve the conditions^ under which agricultural
          products are processed and marketed );
      - the maintenance of cotton production is important not only as a
          source of income and employment in less-favoured regions of the
                       . »
          Community but also as a valid alternative to some forms of agri­
          cultural production which may give rise to problems ( e.g. certain
          fruit and vegetable crops ).        Another specifically agricultural
          feature is that cotton-growing enters into the annual rotation of
          crops .            -     •                                                    *
                                            /    /                                  .
      The Commission considers , however, that investment aid for pooled
  1   equipment should be granted in such a way that rational and consistent
      use is still made of existing investments .         The Commission proposes ,   *
      therefore , that such aid should be granted under programmes which give
      a detailed analysis of the existing situation and the improvements
      planned .    It also proposes that these programmes should be drawn up by
      the Member States, and approved by the Commission , with ,the assistance
      of the Standing Committee on Agricultural Structure , in accordance
      with the Management Committee procedure .
III . Financial and général provisions
      The Protocol stipulates that these measures should be financed by the
      Community .                    " ,  v   '
      1 . The Commission proposes that the Community should refund to the
           Member State 40% of the aid granted pursuant to the Regulation .
           Over a five-year period, 'Communi ty expenditure shouLd amount to 17
           million ECU, which , in view of the particular nature of these             /
            measures , would be financed from the Chapter of the Community
            Budget entitled " Expenditure in the agricultural sector ".
       2 . Lastly, the attached proposal contains:'        /
           - the measures necessary to ensure that the Commission is informed
              concerning the implementation of the system envisaged;
            - measures to ensure compliance with the rules governing competition
              in the sphere in question .
 ---pagebreak---   Proposal for a Council Regulation on producer groups and associations
                        thereof in the cotton sector
THE COMMISSION OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
Having regard to the Act of Accession of Greece to the
European Communities , and in particular paragraph 9 of Protocol 4 ,
Having regard to the proposal from the Commission ,
Whereas the abovementioned Protocol states that , in order to stabilize the
market by structural improvements at the level of supply and marketing, the
system of aid to production should be supplemented by aid for producer
groups and associations thereof :
     which have been formed at the initiative of the producers themselves ;
     which offer sufficient guarantee as to the duration and effectiveness
     of their operations ;
     which are recognized by the Member State concerned;-
Whereas the said Protocol also stipulates that -it is for the Council ,
acting . on a proposal from the Commission, to adopt the general rules
governing the abovementioned system;
 ---pagebreak---                                      - 2 -
Whereas it is essential , in the first instance , to Lay down precise
conditions for recognition so that the groups and associations meet the
requirements of the said Protocol , parti cularly-in respect of the dura­
tion and effectiveness of their operations ; whereas , to this end , these
conditions should include , in particular, centralized handling of all
supplies , the exercise of adequate control over production and market­
ing , and the provisions necessary to ensure that the groups and asso - "*
ciations have a sufficiently stable membership and an adequate level of
                                                  J
economic activity ;
Whereas the nature and the amount of the aid granted to groups and
associations should also be speci fied ; whereas an appropriate incentive
for the establishment of groups and associations meeting the conditions
laid down could take the form of aid granted to cover formation and
operating expenses during the first five years and aid towards the
investments necessary for the performance of their supply and marketing
functions ; whereas , to ensure that the system envisaged is implemented
in all regions of the Community where it proves necessary , the granting
             u
of the abovementi oned forms of aid should be made obligatory ;           T
Whereas the aid granted towards the formation and operating expenses of
associations should be subject to an overall ceiling , to take account of
the fact that each of the groups belonging to such an association has
already qualified or still qualifies for such aid; whereas the level of
aid to be granted to organisations existing prior to the introduction of
this system and the level of aid to be granted in the case of gmalgama-
tions of organisations already meeting the set requirements should also
be fixed in a precise and appropriate manner;
 ---pagebreak---                                                  - 3 -
         Whereas it should be stipulated that investment aid should be granted in
                             •                '■               i
          respect of structures to be used by groups or associations or to b© used
          jointly by their members ; whereas it should also be ensured that such
          aid contributes towards the systematic improvement of existing struc­
          tures ; whereas , therefore , it is appropriate to stipulate that such aid
         should be granted under programmes comprising a thorough analysis of the
         situation in the sector and the improvement envisaged , such programmes
         being drawn vup by the Member States and approved by the Commission under
          a procedure ensuring close cooperation between the Member States and the
          Commission ; whereas the appropriate body for such cooperation is the
          Standing Committee on Agricultural Structure set up by Article 1 of the
          Council Decision of 4 December 1962 on the coordination of policies on
                                           1
          the structure of agriculture ;
         Whereas , in order that Community expenditure entailed by the implemen­
          tation of the system envisaged should be governed by adequate financial
       .  rules and procedures , the provisions of Council Regulation ( EEC ) No 729 / 70
pf 21 Apri I 1970                                                2
3         on the financing of the common agricultural policy , as last amended by
               .  .                      3
          Regulation ( EFC ) No 3509 / 80 , should be made applicable to this specifi­
          cally agricultural sector ;
          Whereas the planned duration and estimated cost of Community aid should
          be specified; whereas aid granted for a period of five years and at an
          estimated cost of 17 million ECU could make an effective contribution
          towards structural improvements in the supply of cotton and towards the .
          adaptation of cotton production to market requirements ;
                                                                      V
                           J
          Whereas the Commission must be able to verify that the measures taken by
          the Member States to implement the pLanned scheme/ witR ¥he conditions " thereof ;
          whereas the Commission must also be able to assess each year the prac­
          tical results achieved by implementation of the said system.
          ^0J No 136 of 17.12.1962, p. 2892/62
          ,0J No L   94 of 28 . 4.1970 , p. 13
           0J No L 367 of 31.12.1980 , p. 87
 ---pagebreak--- HAS ADOPTED THIS REGULATION :
                                          Article 1                           ■
This Regulation shall apply to cotton , not carded or combed, of heading
No 55.01 of the Common Customs Tariff .
TITLE I :        Provisions relating to producer groups and associations thereof .
                                          Article 2
1 . For the purposes of this Regulation, " producer group " shall be taken
     to mean any organization of cotton producers which has been set up at
     the initiative of the producers themselves with the aim of :
     - furthering the centralization of supply;
     - adapting supply to market requirements ;
     - placing at the disposal of member producers adequate technical
          facilities for the production, qualitative improvement and market­
         ing of the products in question ,                           ..
     and which has been recogni zed by the Member State concerned in accord­
     ance with Article 3 .
2 . For the purposes of thi s Regulation , " association shall be taken to
     mean any organization consisting of recognized producer groups which
     pursues the same objectives as the latter and which has been recog­
     nized by the Member State concerned in accordance with Article 3 .
                                          Article 3
1 , The Member States shall recognize producer groups and associations
   . thereof, including those in existence when this Regulation comes into
     force , which apply for recognition and which fulfil the following
     condi tions :                                                          '    .
      ( a ) thei r statutes shall make it obligatory for producers who are
             members of groups and for groups which are members of associa­
              tions :
                 to provide the information requested by the group or asso­
                 ciation concerning harvests and availabilities ;
                 to apply the rules which the group or association has adopted
            /    on production and marketing ;
             -   to market their entire production through the group or asso­
                 ciation .
              However :            ..           not
              -  this latter obligation shall / apply to that part of production
                 in respect of which producers had concluded sales contracts or
                 agreed to options before joining the group , provided that the
                 said group was informed , before the producer concerned became
                 a member , of the extent and duration of the obligations thus
                 contracted ;
              -  the group or association may authorise its' members to market
                 part of their production themselves on a contractual basis , in
                 accordance with rules which they shall lay down and the imple­
                 mentation of which they shall supervise;
 ---pagebreak---                                           - 5 -
    ( b ) they shall give proof of adequate economic activity .       For this pur­
           pose they must :
           - represent at least ;
                   10 producers , in the case of groups ;
                   100 groups , in the case of associations,
           -    control a volume of unginned cotton production amounting to at
                least :
                   175 tonnes in the case of groups ;.
                   17 500 tonnes in the case of associations .
           However, by way of , exception to these 'proyi sions , the associations cons­
           tituted in Italy must represent recognized producer groups . . ■
           existing at the level of each production region .
    ( c ) they ^hall have legal personality or sufficient legal capacity to
           exercise rights and be subject to obligations in accordance with
           national law ;
    ( d ) their statutes shall include provisions to ensure that members of a
        ■ group or of an association who wish to withdraw from membership may
           do so :                                                        -
           –    after they have been members of the group or of the association
                for a minimum of three years following recognition thereof ;
           - and on conditi-on that they inform the group or the association
                in writing of their intention to withdraw not less than twelve
                months before so doing .                               •
            These provisions shall apply without prejudice to national laws or
           provisions designed to protect the group or association or their
            creditors , in specified cases , against any financial consequences
           which might result from the withdrawal of a member or to preclude
            withdrawal of a member in the course of the financial year;             ' -
    ( e ) they shall keep separate accounts for the activities in. respect of
           wh.ich they are recognized . These separate accounts and those rela­
            ting to other activities of the group or association are to be kept
            so that the aid provided for in Article 4 can be calculated and the
            use made of the aid provided for in Articles 4 and 5 can be ascer­
            tained;
    ( f ) they shall not hold a dominant position within the common market ; ■
    ( g> they shall/ n ov&r the whole range of their activities , exercise any dis­
            crimination between producers which runs counter to the operation of
            the common market or the achievement of the general objectives of
            the Treaty and shall not , in particular , exercise any di scrimination connec
          . ted with nationality or place of establishment .
2 , For the purposes of paragraph 1(a ), " marketing " shall cover the follow­
     ing operations - relating to the product referred to in Article 1 :
    - centralization of supply;             -
    - preparation for sale;
    - supply to bulk buyers . .
                                        Article 4
The Member States :                 ••                                       -
-   shall      take a decision on recognition within three months of the date on
    which      recognition is requested;     .
-   shall      make known to the Commission , within two months, any decision
     taken     on the granting , refusal or withdrawal of recognition .
 ---pagebreak---                                            - 6 -
                                          Article 5
                                                                            *         -
1 . The Member States shall grant aid to recognized groups .and associa­
      tions , In respect of the five years    following the date of their recognition ,
      to encourage their formation and       to facilitate their operation . The
      amount of such aid shall be paid       during a period of seven years follow­
      ing the date of recognition . .         -
2 . The amount of aid granted to producer groups in respect of the first , second ,
      third , fourth and fifth years :
     - shall be equal to 5% , 4% , 3% , 2% and 1% respectively of the value
          of the products marketed through these groups ,* and
      - may not exceed the actual formation and operating expenditure as
          defined by Commission Regulation ( EFC ) No 2084 /80 on the definition
          of the actual formation , and operating expenditure of producer
          groups and associations thereof .
3 . The amount of the aid granted to associations :
      Ca ) shall be equal to a maximum of 80%, 80%, 60% , 40% and 20% of the
             actual formation and operating expenditure for the first , second ,
             third , fourth and fifth years respectively;
      ( b ) may not , however , exceed a total of 100 000 ECU .
4 . The value of the products referred to in paragraph 2 shall be calcu­
      lated for each year on the basis of :
      - the annual volume placed on the market in accordance with the third
           indent of Article 3(1 ) ( a );
    ' - the average . producer prices obtained .                                 v  -
5 . The aid provided for in this Article shall be granted :
   , ( a ) to groups and associations formed before the entry into force of
             this Regulation only in proportion to the additional expenditure
             incurred in complying with the requirements of Article 3 ;
       ( b ) to groups and associations formed from1 existing associations
             already complying with the requirements of this Regulation only :
             -   if they are the result of an amalgamation designed to achieve
                 more fully the objectives specified in Article 2 ;
             -   in proportion to the expenditure incurred in their formation
                 ( expenditure on preparation and on    the drawing up of their
                 constitutional instruments and statutes ).
  0J L 203, 5.8.1980 , p. 9
 ---pagebreak---                                        -    -
                                      Article 6
1 . To contribute towards structural improvements at the level of supply
    and marketing and towards the harmonization and improvement of qual­
    ity , the Member States shall grant to recognized producer groups and
    associations thereof aid for investments :               '
    ( a ) necessary for :
          -  the implementation of the common rules referred to in the .
             second indent of Article 3(1)(a );
          -  the marketing referred to in the third , indent of Article
             3(1 ) ( a );
          and in particular investments in harvesting, ginning , storage and
          packaging facilities ;
    ( b ) which are to be used by the group or association , or the use of
          which is to be shared by their members ;
    ( c ) which form part of programmes approved in accordance with Article 9 .
2 . The aid provided for in paragraph 1 shall not exceed 50% of the cost
    of the investment made .
TITLE II :     Development and rationalisation programmes
                                      Article 7
1 . The programmes shall reLate to the development and rationalization of
    cotton production and marketing . They shall be drawn up by the
    Member States and shall cover all or part of their territory .
2 . The programmes shall provide at least the following information :
    ( a ) definition of the geographical area and the activities concerned;
    ( b ) the initial situation and the , tendencies which may be deduced
          therefrom, particularly as regards :
             cotton production ( quantity , area , importance relative to
             total production , structure , existing position with regard to
             mechani zation ) ;
          -  present and prospective outlets ;
          -  the existing position as regards supply , marketing and prepara - ^
             tion for sale , and in particular the capacities of the under­
             takings concerned ( including ginning establishments );
    ( c) the requirements met by the programme and the objectives pursued
          by the latter , including :
             capacities to be achieved overall and per region concerned,
             broken down according to the various types of establishment
             and the various stages in their completion;
          -   the profitability criteria to be applied;
 ---pagebreak---                                              - 8 -
     < d ) the effects of the programme on farm Incomes in the geographical
           area concerned ;                                 '
                                                                               . \
     ( e ) the means employed to achieve the objectives of the programme , in
           particular : the total amount of investment ( including the method
           of calculation ); the distinction between the sums allocated for
           modernization and those for development ; the distinction between
           the sums earmarked for the various types of investment and
           for the various regions concerned;
     ( f ) the rate of aid planned by the Member State for the various types
           of investment ;                                                   *
     ( g ) the estimated time required for the execution of the programme ,
           which should not be more than 5 years . .
                                        Article 8
1 . The programmes and any modifications thereto shall be forwarded to
    the Commission by the Member State or States on the territory of
    which they are to be carried out .                             v      -
2 . At the request of the Commission , the Member State or States involved
    i"n the programme shall submit supplementary background information in
    the context of the details required under Article 7 .
                                        Arti ele 9
                                       ■ ■ii ■ ■ ■ ■   .m »   ■■■■      /
             six     .    . .         .              .
1 . Within       months of the date of receipt of each programme or modifica­
    tions thereto , and on condition that all the details specified in
    Article 7 have been provided , the Commission shall take a decision as
  _ to their approval , in accordance with the procedure laid down in
    Article , 22 of . Council Regulation ( EEC ) No 355 / 77 of 15 February 1977 on
     common measures to improve^ the conditions under which agricultural produc >
    are processed and marketed
2 . When a programme is approved in accordance with paragraph 1 , the
    Commission shall , if necessary , determine by agreement With the
    Member State concerned which aspects of the programme should receive
                   attention in the report referred to in the second indent
    of Article 15 .
TITLE III :      Financial and general provisions
                                      Article 10
The provisions of the regulations on the value of the unit of account
and the exchange rates to be applied for the purposes of the common
agricultural policy, on the one hand, and                            Regulation ( EEC ) No
729 / 70, on the other hand , shall apply for the purposes of this-
Regulation .
  0J No L 51 , 23.2.1977 , p. 1    ;
 ---pagebreak---                                         - 9 -
                                    Article 11
1 . The estimated time for carrying out the measures provided for in this
     Regulation is five years as from the date of its entry into force .
2 . Before the end of the period referred to in paragraph 1 , this Regulation
     shall be re-examined by the Council on the basis of a report from the
     Commission concerning the results of its application .
3 . Community expenditure on the application of this Regulation is estimated
     at 17 mi Hi on ECU .
                                    Article 12
The Community shall refund to the Member States 40% of their expenditure
on the measures provided for in Articles 5 and 6 .
                                    Article 13
1 . Applications for reimbursement shall relate to expenditure incurred
     by the Member States during one calendar year and shall be submitted
     to the Commission before 1 May of the following year .
2 . The decision to grant Community aid shall be taken in accordance with
     Article 7(1 ) of Regulation ( EEC ) No 729 / 70 . <
3 . Payments on account may be granted by the Commission .
4 . The detailed rules for the application of Article 12 and of this
     Article shall be adopted in accordance with the procedure laid down      x
     in Article 13 of Regulation ( EEC ) No 729 / 70 . ,
                                    Article 14
This Regulation shall not exclude         the right of the Member States to
adopt , within the sphere of this Regulation, additional aid measures ,
the conditions or procedures for the granting of which differ from those
laid down in this Regulation or the amounts of which exceed the upper
limits laid down therein , provided that these measures are taken in
accordance with Articles 92 , 93 and 94 of the Treaty .
                                    Article 15
 .'ne Member States concerned shall communicate to the Commission :
     the laws , regulations and administrative provisions implementing " this
     Regulation not later than one month after their adoption ;
     a report on the results of the application of this Regulation each
     year before 31 March , and for the first time before 31 March 198?.
 ---pagebreak---                                   - 10 -
                               Article 16
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .                    *        -
Done at Brussels                                        For the Council
 ---pagebreak---    -?                                                                                                                                                              Ε!
    |                         .' flWAKCJAL 'STATEMENT'                                                                                                                                                                          '\
    j                                                                                                    .                                                         | 9at* : 12.6.1981 -                                           |
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   |l          nTl- : !                            Proposed Council regulation concerning producer grojps a!VJ                                                                                                                    I
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   i                                           - Hellenic Republic to the European Communities .                                                                                                                                  §
   \ 4 . -AJKIS OF PROJECT :                                                      , .•                      ...                                            •                                                                      |
  |                                             . '° encourage the formation of producer groups and associations                                                                                                                  |
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  6         , - CHARGED TO THE EC BUDGET                                                                           •        /                              '                                                                      §
  §                    ( REFUNDS / INTERVENTIONS )                                                                        / ]                                -                                      _                             3
  I             - NATIONAL ADMINISTRATION                                                                       /                                            -                              6.658 MÌO ECU
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       5.1 RECEIPTS                                                                                 /
                - OWN RESOURCES OF THE- EC                                                        /                 "         .                -         '
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                                                                                              1983                          j . 1984                            .I                 1985         !       1986
      5.0.1 ESTIMATED EXPENDITURE Mió ECU                                                   2.663                                       2.970                                    3 171                 X XV\L
 I 5,1.1 ESTIMATED RECEIPTS                                             ,                       _                                       ""_                „        |            J." ' "
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      5.2 METHOD OF CALCULATION                             s ee annex                                                    1
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                                         BUDGETT APPSOBI
                                                     APPROBIATIONS
                                                                 A T IONS 8ESE NECE.SSARY
                                                                                  NECE.SSARY ??
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JOBSERVATIONS :                                                                                                                                                                                             ■ " ■ «3
      OBSERVATIONS :                                                                                                                                                                                                           ■U
 ---pagebreak---                                      ANNEX
A. Producer Groups
     Cotton production in the EEC ( Greece and Italy ) stands at about
    380.000 tonnes per year .
     It is estimated that some 650 producer groups will be formed in the
     first five years , with an average 175 tonnes per group , or about 30 %
    of total production coming from groups .
                                             *
    Hypothesis :                                                       - .
     Formation of 130 producer groups per year who will receive a Member
   "State aid of respectively 5 , 4, 3 , 2 and 1 % of the value of production
    marketed during 5 years .
    The price of cotton is 735 ECU / tonne . ,          ,
   •Value of annual production :
           130 χ 175 χ 735 = 16,721,250 Μίο Εΰυ
                                                                           Mio ECU
    Year   Group          Percentage of Member State aid                   Communi ty' .
                                                                         Reimbursement
                     5 %     ,    4 %    - 3 %   2 %        1 % total        40 %
       1     130   0.835                      -
                                                        . .  -  0.835         -
       2.  , 130   CL . 835      0.668     ■  -              -
                                                                1.503       0.334
       3     130   0.835         0.668    0.501   -          -
                                                                2.004       0.601
       4     130   0.835       * 0,668    0.501 0.334           2.338       0.802
       5     130   0.835         0.668    0.501 0.334     0.167 2.505 .     0.935
    ■  6                         0.668    0.501 0.334     0.167 1 .,670     1.002
       7                                  0.501 0.334     0.167 1.002       0.668
       8                                        0.334     0.167 0.501       0.401
    ; 9          -
                                                          0.167 0.167       0.200
      10                                                          -
                                                                            0.067
          - 650    4.175         3.340    2.505 1.670 - 0.835 12.525        5.010
 ---pagebreak---                                                 - 2 -
       B. Associations of producer groups
            Given that the establishment of an association requires at Least
            100 producer groups one can expect the formation of the first asso­
            ciation in the second year of the implementation of this Regulation at
            the earliest .      '
            Hypothesis : One association is established each year .
            The aid granted per year would be at most 100,000 ECU , of which the
            Community reimburses 40 % , or 40,000 ECU /year
                                                 or 4 associations : total 160,000 ECU .
       C. Harvesting machines
            Calculation hypothesis :                                              *
            One machine per group, or 130 maschines per year .
            Cost of machine : 111.400 ECU
            Average Member State aid : 35 %
            Community reimbursement : 40 %
                     130 x 0.111 x 35 % x 40 % = 2.029 Mió ECU /year
                                                      or 10.145 Mio ECU for 5 years .
       D. Other investments
            The total estimated cost for 5 years for the other investments are
            7.5 Mio ECU, of which 50 % falls to the Member State , or 3.75 Mio ECU .
            The Community reimburses 40 % , or 1.5 Mio ECU, or 0.3 Mio ECU per year .
       SUMMARY
                                                                                                          Mio ECU
                   A                   Β                       C                     D                    Tota I
  Year
          M.S.         ECC    M.S.          ECC        M.S.         EEC      M.S.        ECC         M,S .       ECC
          Costs      Reimb .  Costs        Reimb .     Costs      Reimb .    Costs     Reimb ",      Costs      Reimb .
    1     0.835                                        5.073          –
                                                                             0.75Q        –
                                                                                                     6.658          –
    2     1 . 503    0.334    0.100            -
                                                       5.073      2.029   . 0.750      0.300         7.426      2.663
    3     2.004      0 . 601  0.100        0.040       5.073      2 . 029    0.750     0.300         7.927      2.970
    4     2.338      0.802    0.100        0.040       5.073      2.029      0.750     0.300         8.261      3.171
    5     2 .. 505   0.935    0.100        0.040 .     5.073      2.029      0.750     0.300         8.428      3.304
    6     1 '.670    1 , 002               0.040                  2.029                0.300         1 . 670    3.371
   .7     1 = 002    0.668                                                                           1 o 002    0-668
    8     0,501      0.401                                                                           0.501    ■ 0.401
    9     0.1 07     0.200                                                                           0.167      0 . 200
   10                0.067                                                                                      0 . 067
                                                                                                   -
.
        1 ?.. 525    5.01 G    0 „ 4ÜJ                25.3 6 5   10.145     .3 . Γ50   Λ  - re·. e   -
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