CELEX: 51992PC0143
Language: en
Date: 1992-04-09
Title: Proposal for a COUNCIL REGULATION (EEC) introducing specific measures for the Azores and Madeira concerning certain agricultural products

COMMISSION OF THE EUROPEAN CCBVIMUNITIES
                                          C0M(92) 143 final
                                          Brussels, 9 April 1992
                            Proposal for a
                      COUNCIL REGULATION (EEC)
     Introducing specific Measures for the Azores and Madeira
             concerning certain agricultural products
                    (presented by the Commission)
 ---pagebreak---                                 - 1 -
                            EXPLANATORY MEMORANDUM
On 26 June 1991 the Council adopted a programme of options specific to the
remote and insular nature of Madeira and the Azores (Poseima) (Decision
91/315/EEC).
This proposal constitutes the initial implementation of Poseima and
establishes a framework regulation for agricultural measures financed by
the EAGGF Guarantee Section.
The purpose of Poseima is to reduce the cost of supplies and encourage the
economic and social development of Madeira and the Azores, which have an
exceptional geographic situation and are structurally very backward in
relation to other regions in the Community.
 In view of the specific problems of these islands and the imminent
completion of the internal market, the proposal provides for a series of
mu111 annua I, mult{sectoral measures to facilitate supply and help to
 improve the production and marketing of the agricultural produce of the
regions.
 ---pagebreak---  ---pagebreak---                                    -*\ -6^0 -
                               Proposal for a
                          CTfNCIl REGULATION (EEC)
          introducing specific Measures for the Azores and Madeira
                  concerning certain agricultural products
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and In particular Article 43 thereof,
Having regard to the Treaty of Accession of Spain and Portugal, and in
particular Article 234(3) thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Economic and Social Committee,
Whereas Council Decision 91/315/EEC of 26 June 1991 setting up a programme
of options specific to the remote and insular nature of Madeira and the
Azores (Poseima)1 outlines the options to be implemented to take account
of the specific problems and constraints faced by these very remote
regions;
Whereas the exceptional geographical situation of these regions in relation
to the sources of supply of products used as inputs for the everyday
consumption or manufacture of certain essential foodstuffs in the islands
 imposes costs which constitute a severe handicap to the sectors concerned;
whereas this natural handicap can be remedied by exemption from levies
and/or customs duties on the products in question imported directly from
third countr ies;
 1  OJ No L 171, 29.6.1991, p. 10.
 ---pagebreak---                                     - 2 -
Whereas, to maintain the competitiveness of the above products of Community
origin in the islands, both in order to achieve the Poseima objective of
reducing prices by promoting competition between sources of supply and to
prevent disruption of traditional trade flows, provision should be made for
the supply to these regions of products originating in the rest of the
Community on terms equivalent for the end user to exemption from the levy
and/or customs duties on products originating in third countries, based on
the prices applied to exports to third countries;
Whereas the quantities of products benefiting from the specific supply
arrangements must be determined within the framework of periodic forecast
supply balances, which may be adjusted during the year on the basis of the
essential requirements of the local market and taking account of local
production and traditional trade flows;
Whereas the arrangements in question are intended to reduce production
cost8 and consumer prices; whereas their actual impact should therefore be
monitored;
Whereas, to avoid any deflection of trade, products covered by the specific
supply arrangements may not be redispatched to other parts of the Community
or re-exported to third countries; whereas, however, an exception to this
principle should be made for products traditionally processed in the
 islands and redispatched or re-exported, within the limits of usual trade
 fIows;
Whereas the specific conditions of agriculture in the Azores and Madeira
 require special attention and whereas measures are necessary both for
 stockfarming and animal products and for crop products;
 ---pagebreak---                                     - 3 -
Whereas, to promote the development of traditional stockfarming in the
islands, assistance should be given for genetic improvement through the
purchase of pure-bred breeding animals and supplementary premiums should be
granted for the fattening of adult male bovine animals and for the
maintenance of suckler herds, and the consumption of locally produced fresh
milk products should be promoted; whereas, with regard to the Azores, the
major role played by cattle farming and milk production in the economy of
the islands should be taken into account and the above-mentioned measures
should be supplemented with aid for the maintenance of the dairy herd and
private storage aid for cheeses traditionally manufactured in the region;
Whereas, in the fruit, vegetables, plants and floricultural sector,
measures should be taken to increase production and to improve farm
productivity and product quality; whereas measures should also be taken to
 improve the marketing of tropical products from these regions;
Whereas the creation and promotion of a graphic symbol can also facilitate
 the marketing of specific quality products;
Whereas, in order to help support local production and satisfy consumer
 habits, provision should be made for aid for certain crops and specific
 products;
 Whereas, in the case of Madeira, such measures must, in particular, concern
 the production of potatoes for human consumption and sugar cane and the
 processing of sugar cane into sugar syrup and agricultural rum; whereas
 assistance should also be given to the manufacture of the island's liqueur
 wines using traditional methods by facilitating the purchase of
 concentrated must and vinous alcohol from the rest of the Community and by
 granting aid for the ageing of these wines;
 ---pagebreak---                                     - A -
Whereas, in the case of the Azores, such measures must, in particular, help
to improve the conditions in which sugarbeet is produced and the
competitiveness of local sugar manufacturing, within the limit of
determined quantities; whereas they must also concern specific crops such
as seed potatoes, endives and pineapple;
Whereas, with the same objectives in mind, intervention measures under the
market organization for wine and grubbing premiums should not be applied in
these regions and aid should be granted for vines producing quality wines
psr which meet the requirements laid down in the Community rules;
Whereas the plant health of agricultural crops in these islands is subject
to particular problems associated with the climate and the inadequacy of
 the control measures hitherto applied there; whereas programmes should be
 implemented to combat harmful organisms and the Community's financial
contribution towards such programmes should be specified;
Whereas farms in the Azores and Madeira present major structural weaknesses
 from which specific difficulties derive; whereas a derogation is therefore
necessary from the rules which restrict or prohibit the grant of certain
 forms of structural aid;
Whereas certain structural measures essential for the development of
 agriculture in these regions are financed under Community support
 frameworks to promote the development and structural adjustment of regions
 whose development is lagging behind (Objective 1) pursuant to Articles 130a
 and 130c of the Treaty; whereas the Commission has approved an initiative
 (Regis) to encourage the economic development of the remotest regions,
 providing for the diversification of agricultural production, the upgrading
 of traditional products and measures to reduce the risks associated with
 natural disasters;
 ---pagebreak---                                      - 5 -
Whereas banana cultivation is of fundamental importance to the economy of
Madeira; whereas all the problems relating to banana production are the
subject of a Community study under way and appropriate measures will be
taken on conclusion of the study,
HAS ADOPTED THIS REGULATION:
                                  Article 1
This Regulation lays down specific measures to remedy, in respect of
certain agricultural products, the difficulties caused by the remote and
 insular nature of the Azores and Madeira.
                                    TITLE I
                         SPECIFIC SUPPLY ARRANGEMENTS
                                  Article 2
 For each marketing year, forecast supply balances shall be established for
 the agricultural products necessary for human consumption and processing
 listed in Annex I for the Azores and Annex II for Madeira.  These balances
 may be revised during the year on the basis of trends in the regions'
 requirements.  Separate forecasts may be made to assess the requirements of
 the processing and packaging industries regarding products for the local
 market or traditionally dispatched to the rest of the Community.
                                   Art icle 3
 1. Levies and/or customs duties shall not apply to direct imports into the
    Azores and Madeira from third countries of products covered by the
    specific supply arrangements, within the limit of the quantities
    determined in the supply balances.
 ---pagebreak---                                      - 6 -
2. To ensure coverage of the requirements referred to in Article 2 in terms
   of quantity, price and quality, with a view to ensure that the
   proportion of products supplied by the Community    is preserved, supplies
    to these regions shall also be effected through the mobilization of
    Community products held in intervention storage or available on the
    Community market, on terms equivalent, for the end user, to the
    advantage resulting from exemption from import duties on imports of
    products from third countries.
    The terms of supply shall be fixed with reference to the costs of
    various sources of supply and the prices applied to exports to third
    countries.
3. The arrangements provided for in this Article shall be implemented    in
    such a way as to take account, without prejudice to paragraph 4, in
    particular, of:
    -     the specific requirements of the regions concerned and, in the case
          of products intended for processing, the specific quality
          requirements;
    -     traditional trade flows with the rest of the Community;
 4. In the case of the supply of raw sugar to the Azores, requirements shall
    be assessed taking account of the development of local sugarbeet
    production.    The quantities covered by the supply arrangements shall be
    determined   in such a way that the total annual volume of sugar refined
     in the Azores does not exceed 10 000 tonnes.   Article 9 of Regulation
     (EEC) No 1785/81 shall not apply to the Azores with regard to raw sugar.
                                    Art icle 4
 1. Aid shall be granted for the supply to the Azores and Madeira of the
     following products of Community origin:
     (a)  pure-bred breeding animals of the bovine species falling within CN
          code 0102 10 00,
 ---pagebreak---                                    - 7 -
   (b)  pure-bred breeding swine falling within CN code 0103 10 00,
   (c)  pure-bred breeding sheep and goats falling within CN codes
        0104 10 10 and 0104 20 10,
   (d)  multiplier or breeding chicks falling within CN code ex 0105 11 00,
   (e)  hatching eggs, other, for the production of multiplier or breeding
        chicks falling within CN code ex 0407 00 19.
2. The aid terms shall take account of the requirements of the Azores and
   Madeira with regard to the start-up of production, in particular for the
   breeds most suited to conditions in these regions.
   The aid shall be paid for the delivery of animals and products which
   fulfil the requirements specified in Community rules.
3. The aid shall be determined having regard to the following factors:
   (a)  the conditions of supply to the Azores and Madeira resulting from
        their geographical situation;
   (b)  the price of animals and products on the Community market and on
        the worId market;
   (c)  whether or not customs duties and/or levies are charged on imports
        from third countries;
   (d)  the economic aspect of the aid envisaged.
                                 Art icle 5
1. During the 1992/93 to 1995/96 marketing years for beef and veal:
   a)   the customs duties and/or levies referred to in Article 9 of
        Council Regulation (EEC) No 805/68 of 27 June 1968 on the common
        organization of the market in beef and veal1 shall not be applied
        to direct imports, for fattening purposes, of bovine animals from
        third countries for consumption in Madeira;
1  0J No L 148, 28.6.1968, p.24
 ---pagebreak---                                     - 8 -
   b)    aid shall be granted for the supply to Madeira, on equivalent
         terms, of animals as referred to at 1 originating  in the rest of
         the Community.
2. The number of animals concerned by the measures referred to in this
   Article shall be based on a periodic supply balance and determined
   degressive Iy to take account of the development of local production.
3. Not  later than 6 months before the end of the 1995/96 marketing year,
   the Commission shall submit to the Council an assessment of the measures
   provided for in this Article, together with any appropriate proposals.
                                  Article 6
The accession compensatory amounts referred to in Article 240 of the 1985
Act of Accession shall not apply, in the context of the specific supply
arrangements introduced in this Title, to products from the rest of the
Community and products directly imported from third countries.
                                  Article 7
Application of the supply arrangements provided for in Articles 2 and 3
shall be subject to the advantage derived from exemption from the levy
and/or customs duty or, in the case of supply from the rest of the
Community, from the Community aid being actually passed on to the end user.
                                  Article 8
The products covered by the specific supply arrangements provided for in
this Title may not be re-exported to third countries or redispatched to the
rest of the Community.
Where the products in question are processed   in the Azores and Madeira, the
aforesaid prohibition shall not apply to traditional exports or shipments
to the rest of the Community.
 ---pagebreak---                                     - 9 -
                                  Art icle 9
Products covered by the specific supply arrangements provided for in this
Title and products processed therefrom shall not be eligible for refunds on
exportation from the Azores and Madeira.
                                  Article 10
The Commission shall adopt detailed rules for the application of this Title
in accordance with the procedure laid down in Article 26 of Regulation
(EEC) No 2727/75 of 29 October 1975 on the common organization of the
market in cereals1 or the corresponding Articles of the Regulations on the
common organization of the markets in the sectors concerned.   They shall
cover in particular:
-   the establishment of and, where applicable, amendments to, the periodic
    balances,
-   the amount of aid granted for supply from the rest of the Community,
-   the provisions to ensure, where necessary, that the advantages are
    actually passed on to the end user.
 in the case of products covered by Regulation (EEC) No 827/68 of 28 June
1968 on the common organization of the market in certain products listed in
Annex II to the Treaty2, these measures shall be adopted in accordance
with the procedure laid down in Article 27 of Regulation (EEC) No 805/68.
1   OJ No L 281, 1.11.1975, p. 1.
2   OJ No L 151, 30.6.1968, p.16.
 ---pagebreak---                                     - 10 -
                                   TITLE II
           Measures to support products of the Azores and Madeira
                                  Subtitle I
                       Measures common to both regions
                                  Article 11
1. Aid per hectare shall be granted to producers and producer groups and
   organizations which undertake a programme of initiatives, approved by
   the competent authorities, with a view to the development and
   diversification of production and/or the improvement of the quality of
   the fruit, vegetables, flowers and live plants listed in Chapters 6, 7
   and 8 and the tea in Chapter 9 of the combined nomenclature.     Such
   programmes shall, in particular, concern tropical products.
   The eligible initiatives shall seek in particular to develop production
   and product quality, particularly through varietal conversion and
   cultural  improvements.  These initiatives shall form an integral part of
   programmes conducted over at least three years.
   The aid shall be granted for programmes covering a minimum area of
   0.3 ha.
2. The amount of Community aid shall be at most ECU 500/ha.     This amount
   shall be paid where the Member State provides official financing of at
    least ECU 300/ha and the contribution of the individual producer or
   group amounts to at least ECU 200/ha.     If the contributions of the
   Member State and the producers are less than the amounts specified, the
   Community aid shall be reduced proportionately.
   The aid shall be paid each year of execution of the programme, for a
   period not exceeding three years.
 ---pagebreak---                                       - 11 -
3. The aid shall be increased by ECU 100/ha where the programme of
    initiatives is submitted and carried out by a producer group or
   organization and where, for its implementation, recourse to technical
    assistance is envisaged.    The additional aid shall be granted     in respect
    of programmes   involving a minimum area of 2 ha.
4. This measure shall not apply to the production       in Madeira of potatoes
    for human consumption falling within CN codes 0701 90 51, 0701 90 59 and
    0701 90 90 nor to production in the Azores of seed potatoes falling
    within CN code ex 0701 10 00 or pineapples.       In addition, this measure
    shall not apply to banana production     in Madeira pending the conclusions
    relating to the treatment of all the problems connected with such
    production, in accordance with the objectives stated in point 13 of the
    Decision on Poseima.
5. Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 33 of Council
    Regulation (EEC) n" 1035/72, of 31.5.1972, on the common organization of
     the market  in fruit and vegetables^ 1 ).
                                    Article 12
 1. Community aid shall be granted for the conclusion of annual contracts
     concerning the marketing of tropical products included in the products
     referred to in Article 11      and harvested   in these regions.   This aid
     shall be paid up to a limit of a volume of trade of 3 000 tonnes per
     product per year for each of the two regions.
     The contracts shall be concluded between individual producers or
     producer groups or associations and natural or      legal persons established
      in the rest of the Community.
 2. The amount of. the aid shall be 10% of the value of the production
     marketed, free at destination.
 (1)       0J n* L 118 of 20.5.1972, p. 1
 ---pagebreak---                                        - 12 -
3. The aid shall be granted to purchasers who undertake to market the
    Azores or Madeira products under the contracts referred to in paragraph
    1.
4. Where the measures provided for in paragraph 1 are undertaken by joint
    ventures constituted, with the aim of marketing products harvested in
    the regions concerned, by producers or producer groups or associations
     in these regions and natural or legal persons established    in the rest of
    the Community, and where the partners undertake to pool the knowledge
    and know-how required to achieve the objective of the Joint venture over
    a minimum period of three years, the amount of the aid specified in
    paragraph 2 shall be increased to 13% of the value of the annual
    product ion marketed   Jointly.
5. Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 33 of Council
    Regulation (EEC) n' 1035/72.
                                     Article 13
 1. The Community shall contribute up to a maximum of ECU 100 000 towards
     the financing of an economic analysis and forward study of the fruit and
     vegetable processing   industry  in the two regions, with particular
     reference to tropical products.
     The study shall produce an economic and technical assessment of the
     sector.    It shall pay particular attention to supply data and processing
     costs and examine the conditions and scope for development and sales at
     regional and international    level, having regard to competition on the
     worId market.
 2.Detailed rules for the application of this Article      shall be adopted in
 accordance with the procedure     laid down in Article 22 of Council Regulation
 (EEC) n" 426/86, of 24.2.1986, on the common organization of the market in
 products processed from fruit and vegetables^ 1 ).
 (1)       0J n - L 49 of 27.2.1986, p. 1
 ---pagebreak---                                     - 13 -
                                  Article 14
1. A graphic symbol shall be introduced with a view to ensuring greater
   awareness and consumption of quality processed and unprocessed
   agricultural products specific to the Azores and Madeira as remote
    regions.
2. The graphic symbol shall be chosen on the basis of an invitation to
    tender published by the Commission in the Official Journal of the
    European Communities.
3. The conditions of utilization of the symbol shall be proposed by the
    trade organizations.   The competent authorities shall forward such
    proposals, with their opinion, to the Commission for approval.
    The utilization of the symbol shall be monitored by an official
    authority or a body approved by the competent authorities.
4. The Community shall finance the production of the graphic symbol and its
    promotion.
5. Detailed rules for the application of this Article shall be adopted, as
    necessary, in accordance with the procedure laid down in Article 33 of
    Regulation (EEC) No 1035/72 or the corresponding Articles of other
    Regulations on the common organization of the markets.
                                  Subtitle II
                    Measures to support products of Madeira
                                   Art icle 15
 Aid shall be granted in support of traditional activities connected with
 beef and veal production and measures to improve product quality, within
 the limits of the consumption needs of the island as assessed in the
 context of a periodic supply balance.    This balance shall also take account
 ---pagebreak---                                    - 14 -
of breeding animals supplied pursuant to Article 4 and animals covered by
the supply arrangements referred to in Article 5.
1. Fattening aid for male bovine animals shall represent a supplement of
   ECU 40 per head to the special premium provided for in Article 4a of
   Regulation (EEC) No 805/68.  The supplement may be granted   in respect of
   an animal of a minimum weight to be determined  in accordance with the
   procedure referred to in point 3.
2. A supplement to the premium for maintaining suckler cows provided for in
   Council Regulation (EEC) No 1357/80 1 shall be paid to beef and veal
   producers.  The amount of this supplement shall be ECU 40 per suckler
   cow held by the producer on the day on which the application is
   submitted.
3. Detailed rules for the application of this Article shall be adopted, as
   necessary, in accordance with the procedure laid down in Article 27 of
   Regulation (EEC) No 805/68.
 1 0J No L 140, 5.6.1980, p. 1.
 ---pagebreak---                                     - 15 -
                                 Article 16
1. Aid shall be granted for the human consumption of locally produced fresh
   cows' milk products, within the limits of the consumption needs of the
   island as assessed periodically.
   The aid shall amount to ECU 5 per 100 kg of whole milk.    The amount of
   the aid shall be adjusted in accordance with the procedure laid down in
   paragraph 2 in order to ensure the regular disposal of the
   aforementioned products on the local market.
   The aid shall be paid to the dairies.    Payment shall be subject to the
   benefit therefrom being actually passed on to the consumer.
2. Detailed rules for the application of this Article shall be adopted in
   accordance with the procedure laid down in Article 30 of Council
   Regulation (EEC) No 804/68 of 27 June 1968 on the common organization of
   the market in milk and milk products1.
                                  Article 17
1. Aid per hectare shall be granted annually for the cultivation of
   potatoes for human consumption falling within CN codes 0701 90 51,
   0701 90 59 and 0701 90 90.
   The aid shall be paid in respect of areas cultivated and harvested up to
    a maximum of 2 000 hectares per year.
2. The amount of the annual aid shall be ECU 500/ha.
3. Detailed rules for the application of this Article shall be adopted in
    accordance with the procedure laid down in Article 11 of Council
    Regulation (EEC) No 2358/71 of 26 October 1971 on the common
    organization of the market in seeds 1 .
 1  0J No L 148, 28.6.1968, p. 13.
 1  0J No L 246, 5.11.1971, p. 1.
 ---pagebreak---                                     - 16 -
                                  Article 18
1. Aid at a flat rate per hectare shall be granted for sugar cane
   production within the framework of a restructuring plan submitted by the
   Portuguese authorities for the improvement of plantations.
2. The aid shall be paid to individual planters, planter groups or
   organizations.   From the sixth year of application, the aid shall be
   paid exclusively to producer groups or organizations.
3. The Community shall finance the aid at the rate of 60% of eligible
   expenditure where the official contribution of the Member State is at
    least 15%.  If the latter is less, the Community aid shall be reduced
   accordingly.
                                  Article 19
1. Aid shall be granted for the direct processing of sugar cane into sugar
   syrup ("mel de cana") or agricultural rum as defined  in Article 1(4)(a)
   of Council Regulation (EEC) No 1576/89 of 29 May 1989 laying down
   general rules on the definition, description and presentation of spirit
   dr inks 1 .
   The aid shall be paid as applicable to the sugar syrup manufacturer or
    to the distiller on condition that he has paid to the sugar cane
   producer a minimum price to be determined.
2. The aid shall be granted for the production of a maximum annual quantity
   of 250 tonnes of sugar syrup and 2 500 hectolitres of agricultural  rum
   with a strength of 71".8.
 1  0J No L 160, 12.6.1989, p. 1.
 ---pagebreak---                                     - 17 -
                                 Article 20
The amount of the aid provided for in Articles 18 and 19, the minimum price
to be paid to the producer and detailed rules for the application of the
aforementioned Articles shall be adopted in accordance with the procedure
laid down in Article 41 of Council Regulation (EEC) No 1785/81 on the
common organization of the markets in the sugar sector1.
                                 Article 21
Title III of Council Regulation (EEC) No 822/87 of 16 March 1987 on the
common organization of the market in wine 2 and Council Regulation (EEC) No
1442/88 of 24 May 1988 on the granting, for the 1988/89 to 1995/96 wine
years, of permanent abandonment premiums in respect of winegrowing areas3
shall not apply to Madeira.
                                  Article 22
Aid shall be granted to assist the manufacture of Madeira liqueur wines
within the limits of the requirements corresponding to traditional methods
 in the region.
 1. Aid shall be granted for the purchase in the rest of the Community of
    concentrated rectified must for use in winemaking for the purpose of
    sweetening the liqueur wines in question.
    The aid shall be determined having regard to the following factors:
    (a)  the conditions, in particular the cost, of supply to Madeira
         resulting from its geographical situation;
    (b)  the price of products on the Community market and on the world
         market;
    (c)  the economic aspect of the aid envisaged.
 1  0J No L 177, 1.7.1981, p.4.
 2  0J NO L 84, 27.3.1987, p. 1.
 3  0J No L 132, 28.5.1988, p. 3.
 ---pagebreak---                                     - 18 -
2. Aid shall be granted for the purchase from intervention agencies of
   vinous alcohol obtained by distillation pursuant to Articles 35 et seq.
   of Regulation (EEC) No 822/87.
   The amount of the aid shall be determined by tendering procedure.
   The terms adopted for this specific disposal shall be such that the
   market  in alcohol and spirit drinks in the Community   is not disturbed.
3. Exports from Madeira of must and vinous alcohol shall not be eligible
   for refunds.
4. Aid shall be granted for the ageing of Madeira   liqueur wine up to a
   maximum annual quantity of 20 000 hectolitres.    This aid shall be paid
    in respect of liqueur wines which age for not  less than five years.    It
   shall be paid for each lot for three marketing years.
   The amount of the aid shall be ECU 0.009 per hectolitre per day.
                                  Article 23
1. A flat-rate aid per hectare shall be granted for the continued
   cultivation of vines for the production of quality wines psr     in the
    traditional production zones.
   Aid shall be paid in respect of areas:
    (a)  planted to varieties included in the list of vine varieties
         suitable for the production of each of the quality wines psr
         produced and belonging to the recommended or authorized categories
         referred to in Article 13 of Regulation (EEC) No    822/87;
    (b)  and on which the yield per hectare is below a maximum    limit fixed
         by the Member State, expressed  in quantities of grapes, grape must
         or wine, subject to the conditions of Article 11 of Council
         Regulation (EEC) No 823/87 of 16 March 1987 laying down special
         provisions relating to quality wines produced   in specified
         regions 1 .
 1  0J No L 84, 27.3.1987, p. 59.
 ---pagebreak---                                      - 19 -
2. The aid shall amount to ECU 400 per hectare.    From the beginning of the
    1997/98 marketing year, the aid shall be paid exclusively to producer
    groups or organizations.
                                   Article 24
Detailed rules for the application of Articles 22 and 23 shall be adopted
 in accordance with the procedure laid down in Article 83 of Regulation
(EEC) No 822/87.
                                  Subtitle 111
                  Measures to support products of the Azores
                                   Article 25
Aid shall be granted in support of traditional activities connected with
beef and veal and milk production in the Azores.
 1. A supplement to the special premium provided for in Article 4a of
    Regulation (EEC) No 805/68 shall be granted for the fattening of male
    bovine animals.   The supplement may be granted  in respect of an animal
    of a weight to be determined.
    The supplement shall be ECU 40 per head.
 2. A supplement to the premium for maintaining suckier cows provided for in
     Council Regulation (EEC) No 1357/80 shall be paid to beef and veal
     producers.
     The amount of this supplement shall be ECU 40 per suckier cow held by
     the producer on the day on which the application is submitted.
 3. A specific premium shall be granted for the maintenance of the dairy
     herd, up to a maximum of 78 000 head.
 ---pagebreak---                                     - 20 -
   This premium shall be paid to the producer.     It shall amount to ECU 80
   per cow held by the producer on the day on which the application is
    submitted.
4. Aid shall be granted for the private storage of traditionally
    manufactured cheeses:
    - St Jorge, at least three months old;
    - Ilha, at least 45 days old.
    The amount of the aid shall be fixed   in accordance with the procedure
    referred to in paragraph 5.
5. Detailed rules for the application of this Article shall be adopted, as
    applicable, in accordance with the procedure laid down in Article 27 of
    Regulation (EEC) No 805/68 or that   laid down in Article 30 of Regulation
    (EEC) No 804/68.
                                  Article 26
1. Aid at a flat rate per hectare shall be granted for the development of
    sugarbeet production within the limit of an area corresponding to the
    production of 10 000 tonnes of white sugar per year.    The amount of the
    aid shall be ECU 500 per hectare sown and harvested.
2. Special aid shall be granted for the processing of sugarbeet harvested
     in the Azores into white sugar, within the limit of a total annual
    production of 10 000 tonnes of refined sugar.
    The amount of the aid shall be ECU 10 per 100 kilograms of refined
    sugar.   This amount may be adjusted  in accordance with the procedure
     referred to in paragraph 3.
 3. Detailed rules for the application of this Article shall be adopted in
     accordance with the procedure laid down in Article 41 of Council
     Regulation (EEC) No 1785/81.
 ---pagebreak---                                       - 21 -
                                    Article 27
1. A supplement to the premium provided for in Article 3 of Council
    Regulation (EEC) No 727/70 of 21 April 1970 on the common organization
   of the market   in raw tobacco 1 shall be granted for the collection of
    leaf tobacco of the Bur ley P. variety, up to a maximum of 250 tonnes.
    This premium shall be paid to purchasers as defined in the
    aforementioned provision.
    The amount of the supplement shall be ECU 0.2 per kilogram of leaf
    tobacco.
     In the absence of specific provisions to the contrary, the provisions
    adopted for the application of the premium scheme laid down in
    Regulation (EEC) No 727/70 shall apply to the supplementary    premium.
2. Detailed rules for the application of this Article shall be adopted as
    necessary  in accordance with the procedure   laid down in Article 17 of
    Regulation (EEC) No 727/70.
                                    Article 28
1. Aid shall be granted for the production of seed potatoes falling within
    CN code ex 0701 10 00 up to a maximum area of 200 hectares.
    The amount of the aid shall be ECU 500 per hectare.
2. Aid shall be granted for the production of endives falling within CN
     code 1212 99 10 up to a maximum area of 400 hectares.
    The amount of the aid shall be ECU 500 per hectare.
 3. Aid shall be granted for the conclusion of annual contracts concerning
     the marketing of potatoes as referred to in paragraph 1, in the
     conditions laid down in Article 12.
 1 0J No L 94, 28.4.1970, p. 1.
 ---pagebreak---                                    - 22 -
4. Detailed rules for the application of this Article shall be adopted in
   accordance with the procedure laid down in Article 11 of Regulation
   (EEC) No 2358/71.
                                 Article 29
Title III of Regulation (EEC) No 822/77 and Regulation (EEC) No 1442/88
shall not apply to the Azores.
                                 Article 30
1. A flat-rate aid per hectare shall be granted for the continued
   cultivation of vines for the production of quality wines psr  in the
   traditional production zones.
   Aid shall be paid in respect of areas which meet the conditions laid
   down in Article 23(1).
2. The aid shall amount to ECU 400 per hectare.   From the beginning of the
   1997/98 marketing year, the aid shall be paid exclusively to producer
   groups or organizations.
3. Detailed rules for the application of this Article shall be adopted, as
   necessary, in accordance with the procedure laid down in Article 83 of
   Regulation (EEC) No 822/87.
                                 Article 31
Aid shall be granted for the production of pineapples falling within CN
code 0804 30 00, up to a maximum quantity of 2 000 tonnes per year.
The aid shall amount to ECU 1 per kilogram.
Detailed rules for the application of this Article shall be adopted in
accordance with the procedure  laid down in Article 33 of Regulation  (EEC)
No 1035/72.
 ---pagebreak---                                     - 23 -
                                  TITLE III
                              Specific measures
                                  Subtitle I
                Derogations applicable to structural measures
                                  Article 32
1. Notwithstanding Articles 5, 6, 7 and 12 of Council Regulation (EEC) No
   2328/91 of 15 July 1991 on improving the efficiency of agricultural
   structures1, investment aid for agricultural holdings in the Azores and
   Madeira shall be granted on the following conditions:
   (a)  the authorization concerning the keeping of simplified accounts
        provided for in Article 5(1)(d) shall apply beyond 31 December
        1991;
   (b)  pig production shall not be subject to the conditions, laid down in
        Article 6(4);
   (c)  with regard to eggs and poultry production, the prohibition
        referred to in Article 6(6) shall not apply to family farms in so
        far as their size is in proportion to the need to ensure balanced
        development in these regions;
   (d)  notwithstanding Article 7(1), expenditure relating to initial
        purchases of pigs and poultry may be eligible under the system of
         investment aid referred to in Article 6(1);
   (e)  with regard to property investment, the value of the aid referred
         to in Article 7(2) may apply to other types of investment;
   (f)  notwithstanding the fifth subparagraph of Article 7(2), the maximum
        value of the investment aid shall continue to be increased by 10%
        after 31 December 1991.
1  0J L 218, 6.8.1991, p.1
 ---pagebreak---                                    - 24 -
   Points (b), (c) and (d) of the first subparagraph shall apply only in so
   far as livestock production is undertaken in a manner compatible with
   animal welfare and environmental protection requirements and provided
   that production is for the domestic market of the regions.
2. Notwithstanding Article 17 of Regulation (EEC) No 2328/91, the
   compensatory allowance referred to in Article 19 of that Regulation may
   be granted in the Azores and Madeira for all crops, provided they are
   cultivated in a manner compatible with environmental protection
   requirements and subject to a maximum income per holding to be
   determined.
    In addition, cows whose milk is intended for the domestic market of
   these regions may be taken into consideration for the calculation of the
   compensatory allowance in all areas thereof specified in Article 3(4)
   and (5) of Council Directive 75/268/EEC of 28 April 1975 on mountain and
   hill farming and farming in certain less-favoured areas1, up to a
   maximum of 20 livestock units.
3. Notwithstanding the second subparagraph of Article 18(1) of Regulation
    (EEC) No 2328/91, the compensatory allowance may be granted to farmers
    in these regions with at least half a hectare of utilized agricultural
   area.
4. Notwithstanding Article 37(2) of Regulation (EEC) No 2328/91, the Azores
   and Madeira are hereby authorized not to apply the schemes provided for
    in Article 37(1) beyond 31 December 1994.
5. The Commission, in accordance with the procedure laid down in Article 29
   of Council Regulation (EEC) No 4253/88,
    (a)  shall adopt the conditions for applying this Article;
 1  0J No L 128, 19.5.1975, p. 1.
 ---pagebreak---                                   - 25 -
  (b) may authorize the Republic of Portugal to apply, for the purposes
      of fixing the reference income within the meaning of Article 5(3)
      of Regulation (EEC) No 2328/91, a correction coefficient to the
      gross average wage of non-agricultural workers, which may not,
       however, exceed 1.7;
  (c) may authorize the Republic of Portugal to apply Article 9(1) to (4)
      of Regulation (EEC) No 2328/91 to group-operated holdings of which
      only two thirds of the members meet the condition referred to in
       Article 5(D(a) of that Regulation;
  (d) may decide, on a reasoned request by the Portuguese authorities,
       - to modify the investment ceiling referred to in Article 8 of
         Regulation (EEC) No 2328/91;
       - notwithstanding Article 12(1) and the second indent of Article 13
         of Regulation (EEC) No 866/90 and from the corresponding
         provisions of Council Regulation (EEC) No 867/90 of 29 March 1990
         on improving the processing and marketing conditions for forestry
         products1 to extend the coverage of these measures to essential
          imports from third countries, provided that the products
         processed and/or marketed are intended exclusively for the
         domestic market in the Azores and Madeira;
       - notwithstanding Article 12(2) of Regulation (EEC) No 866/90 to
         extend the coverage of these measures to agricultural rum falling
         within CN code 2208 40 and to liqueurs produced from subtropical
         fruits falling within CN code 2208 90 55 in Madeira and the
         Azores.
1 0J No L 91, 6.4.1990, p.7.
 ---pagebreak---                                     - 26 -
                                 Subtitle II
                    Veterinary and plant health measures
                                  Article 33
The following is added to the end of the last sentence of Article 24(1) of
Council Decision 90/424/EEC of 26 June 1990 on expenditure in the
veterinary field1: "as well as to the Portuguese regions of the Azores and
Madeira".
                                  Article 34
1. The competent authorities shall submit to the Commission programmes for
    the control of organisms harmful to plants or plant products.   The
    programmes shall specify in particular the objectives to be achieved,
    the measures to be carried out, their duration and their cost.   The
    programmes submitted pursuant to this Article shall not concern
    protective measures for bananas.
2. The Community shall contribute to the financing of such programmes on
    the basis of a technical analysis of the regional situation.
3. The financial contribution of the Community and the amount of the aid
    shall be decided in accordance with the procedure laid down in Article
    16a of Directive 77/93/EEC2.   The measures eligible for Community
    financing shall be defined in accordance with the same procedure.
4. Such contribution may cover up to 75% of the eligible expenditure.
    Payment shall be made on the basis of documentation supplied by the
    competent authorities.   If necessary, investigations may be organized by
    the Commission and conducted on its behalf by experts as referred to in
    Article 19a of Directive 77/93/EEC.
 1 0J No L 224, 18.8.1990, p. 19.
 2  0J No L 26, 31.1.1977, p. 20.
 ---pagebreak---                                     - 27 -
                                   TITLE IV
                              GENERAL PROVISIONS
                                  Article 35
The measures provided for in this Regulation, excluding Articles 32 to 34,
shall constitute intervention designed to stabilize the agricultural
markets within the meaning of Article 3(1) of Council Regulation (EEC) No
729/701.
                                  Article 36
1. The Commission shall submit to the Council and to Parliament an annual
    report on the implementation of the measures provided for in this
    Regulation, accompanied where appropriate by proposals concerning any
    adjustment measures which may prove necessary in order to achieve the
    objectives of the programme.
2. At the end of the third year of application of the scheme the Commission
    shall submit to the Council and to Parliament a general report on the
    economic situation of the Azores and Madeira showing the impact of the
    measures taken pursuant to this Regulation.
     In the light of the report's conclusions, the Commission shall submit,
    wherever this proves necessary, appropriate adjustments.
                                   Article 37
 This Regulation shall enter into force on 1 July 1992.
 This Regulation shall be binding in its entirety and directly applicable in
 a I I Member States.
 1   OJ No L 94, 28.4.1970, p. 13
 ---pagebreak---                          ~ 2     Z-
                                                        AZORES
                                  ANNEX I
LIST OF PRODUCTS COVERED BY THE SPECIFIC SUPPLY ARRANGEMENTS PROVIDED FOR
IN ARTICLE 3 FOR THE AZORES REGION
DESCRIPTION OF THE PRODUCTS                  CN CODE
- CEREALS
  .  wheat                                   1001
  .  barley                                  1003
  .  maize                                   1005
  .  malt                                    1107
- RICE                                       1006
- RAH SUGARBEET                              1701 12 10
 ---pagebreak---                       - -2^    ,
                                                     MADEIRA
                                 ANNEX II
LIST OF PRODUCTS COVERED BY THE SPECIFIC SUPPLY ARRANGEMENTS PROVIDED FOR
IN ARTICLE 3 FOR THE MADEIRA REGION
DESCRIPTION OF THE PRODUCTS                  CN CODE
- CEREALS
  .  wheat                                   1001
  .  barley                                  1003
  .  maize                                   1005
  .  malt                                    1107
- HOPS                                       1210
- RICE                                       1006
- VEGETABLE OILS                             ex (1507 to 1516)
- SUGAR                                      1701
                                             1702
- CONCENTRATED FRUIT JUICE                   2007 99
   (raw materials)                           2008
- BEEF/VEAL
   . fresh or chilled                        0201
   . frozen                                  0202
- PIGMEAT                                    0203
- MILK PRODUCTS
   . liquid milk                             0401
   . milk powder                             0402
   . butter                                  0405
   .  cheese                                 0406
FOR THE 1992/93 to 1995/96 MARKETING YEARS
- SEED POTATOES                              0701 10 00
 ---pagebreak---                                                                                    - 30 -
                                                                                                                                     Ul 1 L I IU; PC. IJH.
          Financial Statement                                                                                      Date      : ••HL.OT: 1*9C
1. BUDGET        HEADING          :     183, 2 5 1 , 381                                                         A P P R O P R I A T I O N S : ECU 4 5 . 2 1 , 2 0 m i l l i o n
2 . TITLE :
         C o u n c i l R e g u l a t i o n i n t r o d u c i n g specific m e a s u r e s  in respect of c e r t a i n a g r i c u l t u r a l      products
         for t h e b e n e f i t of the A z o r e s and M a d e i r a
3. LEGAL B A S I S          :     A r t i c l e 4 3 of the Treaty
4. A I M S
          I m p l e m e n t a t i o n in the agricultural             sector of t h e C o u n c i l D e c i s i o n s e t t i n g u p P o s e i m a
 5. FINANCIAL            IMPLICATIONS                           PERIOD OF 12 MONTHS          CURRENT FINANCIAL YEAR                       FOLLOWING FINANCIAL YEAR
                                                                                                      (      1992 )                             (      1993       )
 5.0    EXPENDITURE
          - CHARGED TO THE EC BUDGET
              (INTERVENTIONS)                                                                                   p.m.                            ECU 54.5 mi I I ion
          - NATIONAL             AUTHORITIES
          - OTHER
 5.1    REVENUE
           - OWN RESOURCES OF THE EC
               (LEVIES/CUSTOMS DUTIES)                                                                           p.m.                           - ECU 7.4 million
           • NATIONAL
                                                                       1994.                    1995                           1996.                         1997.
     .0.1 ESTIMATED EXPENDITURE                                ECU 55.1 million         ECU 55.4 million           ECU 53.7 million               ECU 53.0 million
     .1.1 ESTIMATED REVENUE                                     -ECU 7.4 million        -ECU 7.4 million           -ECU 7.4 million               -ECU 7.4 million
      2 METHOD OF CALCULATION
           For detailed calculation for the Azores and Madeira, see Annex.
           The double rate used is 1.145
   6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ?
                                                                                                                                                                     YES/W
   6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ?
                                                                                                                                                                     YES/E&
   6.2   WILL     A SUPPLEMENTARY                BUDGET BE NECESSARY ?
                                                                                                                                                                     -W»/N0
   6.3 WILL        FUTURE BUDGET A P P R O P R I A T I O N S BE NECESSARY ?
                                                                                                                                                                      YESAHUi
    COMMENTS :
 ---pagebreak---                                                    AZORES - AGRICULTURAL SECTION : 0051 Of T>€ PROPOSAL
                                                                                                                      (ECU million (A))
 1 Regulation  1 Product        1 Type      BUDGET    1 1 1993         191)4     1995  I   1996  I   1997 I   1998  I   1999   I tdtAL I
 1 Article                      1 of aid     ITEM     1
                                                      1 1 12.9        12.»     12.9      12.9       12.9  1 12.9    I 12.9      I90.6    I
 1 2 & 3       1 Permanent       per tonne   183
               1 supply
                                 per tonne   183      I 1 2.9          2.!5      2.0       1.4       1.0      0.5       p.m.    110.2    t
 1 3 ft 5      1 Temporary
               1 supply
                                 per head    251      I 1 0.5          0.5       0.5       0.5       0.5      0.5       p.m.    1 2.7    1
 1    4        1 Pure-bred
               1 animals
                                 per ha      183      1 1 0.4          0.5       0.6       0.2       0.1      p.m.     0.0      1 1.8    1
 1   11                                                                                                                1.0      1 4.5    1
 I   12        1 Fruit and       by value    183      I 1 0.1          0.3       0.5       0.7       0.9     1.0
                                 fixed rate  183      1 1 0.1          0.0       0.0       0.0       0.0     0.0       0.0      I 0.1    1
 I   13        1 vegetables
                                 Fixed rate  381      1 I 0.3          0.5       0.5       0.3       p.m.     -         -       1 1.6    I
1    14        1 logo
                                                      1I   1.7         1.7       1.7       1.7       1.7     1.7       1.7      111.8    1
1 25 - 1 ft 2  1 Bovine animals per head     251
I 25 - 3       1 Dairy cows      per head    251      t1   6.2         6.2       6.2       6.2       6.2     6.2       6.2      143.4    1    i
                                per tonne    251      1 1 0.8          0.6       0.8       0.8       0.8     0.8       0.8      1 5.5    1
1 25 - 4       1 Cheese
                                per ha       183      1 1 0.2          0.3       0.4       0.5       0.6     0.7       0.8      1 3.2    1
1 26 - 1       1 Sugar                                                                                                 1.0      1 4.2    1
1 26 - 2                             tonne   183      I 1 0.2          0.3       0.5       0.6       0.7     0.9
                                                                                                                                            I
1    27        1 Tobacco        per tonne    183      1 1 0.1          0.1       0.1       0.1       0.1     0.1       0.1      IO-*     ]
                                per ha       183      1 1 0.1          0.1       0.1       0.1       0.1     0.1       0.1      1 0.6    1
I 28 - 1       1 Seed potatoes                                                                                                  1 0.5    1
I 28 - 3                             ha      183      1 1 0.0          0.1       0.1       0.1       0.1     0.1       0.1
                                per ha       183      I 1 0.1          0.1       0.1       0.2       0.2     0.2       0.2      1 1.1    1
I 28 - 2       1 Endives
                                per ha       183      1 I 0.1          0.1       0.1       0.1       0.1     0.1       0.1      1 0.8     1
I    30        1 Vines
                                                      I 1 2.0          2.0       2.0       2.0       2.0     2.0     1 2.0      114.0    1
I    31        1 Pineopple      per tonne    183
                                                        1 28.6       28.8      28.9      28.2     I 27.8     27.7    1 26.9     1196.8   1
1TOTAL                                                                                                               1 18.3     1 131.9   1
ICrop product si                             183      1 1 19.1         19.2      19.3      18.8   I 18.7   I   18.6
                                             251      I 1 9.1           9.1        9.1       9.1  I 9.1         9.1       8.7   1 63.3    1
lAnimalt                                                                                                                        I    1.6  I
lOther                                       381      1 I 0.3           0.5        0.5      0.3    1 p.m.
                                                        I 12.7        13.4      14.0      13.8    1 13.9   1 14.2    1 14.0     1 96.0    1
1 TOTAL EXCLUDING SUPPLY                                                                                             I     5.3  1 31.1    1
1              crop products                 183      I I 3.3            3.8       4.4       4.4  1 4.8    1 5.1
                                             251      1 I 9.1            9.1       9.1       9.1  1 9.1     I 9.1     I 8.7     1 63.3    1
1              animalt                                                                                                          1 1.6     I
1              other                         381      1 1 0.3            0.5       0.5       0.3   I p.m.
 ---pagebreak---                                        -3*,-
                                         A Z O R E S
                            (Financial statement for Poseima)
I.     Loss of levy
       In principle no levy will be lost because supply will be from the EEC
       only.
II.    Supply aid
       The figures are indicative and based on the quantities currently
       imported from the rest of the Community. They will have to be
       reviewed annually in accordance with Articles 2, 3 and 10.
       The aid is equivalent to the current level of refunds.
Permanent aid
 CEREALS         (Article   2 and Annex I)
                            Quantity     (t)    Aid      (ECU/t)      Cost (ECU m    (A))
  Common wheat                  34.000               106                     3,604
  Feed wheat                    10.000               104                     1,040
   Maize/bar    ley             62.000               105                     6,510
   Durum wheat                    3.000              167                     0,501
   Rice                           4.200              275                     1,155
   Malt                           1 .OOO          104 x 1,33                 0,138
   TOTAL                       114.200                 -                    12,948
Temporary      aid
                 (Article     3(4))
                          •     1993       1994      1995        1996      1997    1998
   Imports      (t)             8.000      6.800     5.400       4.000    2.700    1 .400
   Aid     (refunds)                425       425        425        425      425       425
   Special     aid              -    63    -   63    -     63    -    63  -    63  -    63
   (ODs,      Portugal)
   Total                            362       362        362        362      362       362
   Cost   (ECU m      (A))      2,896      2,462      1 ,955     1 ,448   0,977    0,507
 ---pagebreak---                                                    -33-
      BREEDING ANIMALS                     (Artlcle        4)
                                      Number/year                 Amount                    Cost
                                                                 (ECU/head)              (ECU    (A))
         Bovine     animals                    150                 1.300                   195.000
         Swine     (male)                      100                    410                   41.000
         Swine      (female)                   400                    380                  152.000
         Sheep,     goats                  2.500                      150                  375.000
         Chicks                          550.000                         0,25              137.500
         TOTAL                                                                             900.500
                                                                                                          •
     The EEC bears         50% of     the cost     - ECU 450 000            (A)
     Abolition       (Article      6)                    token     entry     - under   expenditure
                                                                             - under   receipts.
Ill. Product       aids
       FRUIT AND VEGETABLES
     1.     Fresh fruit        and vetetables          (Article         11)
            Programme of Initiatives                (see      Annex)
                                                       1994          1995         1996  1997       1998
          1st    Instalment                 0,4          0,4          0.4
          2nd    Instalment                              0.1           0.1         0.1
          3rd     Instalment                                           0.1         0.1    0.1
          Total       expenditure
          (ECU      million)                0.4          0.5           0.6         0.2    0.1      p.m.
      2.     Fresh fruit       and vetetabless            (Article        12)
             Marketing      - annual contract             (See     Annex)
                                           1993         1994         1995         1996   1997      1998
          Expenditure       (ECU m)         0.1           0.3          0.5         0.7    0.9         1.0
             Processed fruit         and vegetables            (Article       13)
             ECU 100 000 In          1993.
       Graphic       symbol      (Article      14)
                                           1993         1994         1995         1996   1997
          Expenditure        (ECU m)         0.3          0.5          0.5         0.3    p.m.
 ---pagebreak---                                                      -*t-
    MILK PRODUCTS/BEEF & VEAL
    - Male bovine animals (Article 25 (1))
       Supplement to premium
       40 000 head x ECU 40/head = ECU 1.6 million
    - Suckler cows (Article 25(2))
       Supplement to premium
       2 000 head x ECU 40/head = ECU 0.08 million
    - Dairy cows (Article 25(3))
       Dairy cow premium
       78 000 head x ECU 80/head = ECU 6.2 million
     - private storage aid for cheese (Article 25(4))
        S Jorge: 1 500 t x ECU 2.8/t/day x 90 days = ECU 0.38 million
        ILHA    : 1 600 t x ECU 2.8/t/day x 90 days = ECU 0.40 million.
     Aid per hectare        (Article       26(1))
                         1993        1994       1995       1996   1997   1998   1999
Area    (ha)                300         500        700       900  1.100  1 .300  1.500
Aid   (ECU/ha)              500         500        500       500     500    500     500
Cost (ECU m (A))           0,15       0,25        0.35      0.45   0.55   0.65    0.75
      Aid per tonne      (Article        26(2))
                         1993        1994       1995       1996   1997   1998   1999
Quantity     (tonnes)    2.000       3.200      4.600      6.000  7.300  8.600  10.000
Aid          (ECU/t)         100        100         100       100    100    100     100
Cost (ECU m (A))           0.2        0.3         0,5       0,6    0,7    0,9      1.0
       TOBACCO        Aid per tonne (Article           27)
                          1993       1994       1995       1996   1997   1998   1999
Quantity     (tonnes)        250        250         250       250    250    250  250
Aid           (ECU/t)        200        200         200       200    200    200  200
Cost   (ECU m    (A))      0,05        0,05       0,05      0,05    0,05   0,05    0.05
 ---pagebreak---                                                - 35-
      SEED POTATOES
     1.    Ald per hectare                (Article       28(1))
                                        1993       1994     1995       1996      1997      1998   1999
Quantity      (ha)                        100       120       150       180        200      200     200
Ald/ha     (ECU/ha)                       500       500       500       500        500      500     500
Cost (ECU        million (A))          0.05        0.06     0.08       0.09      0.10      0.10   0.10
     2.     Marketing      ald       (Article        28(3))
            Ald per      tonne
                             1993        1994        1995       1996        1997       1998     1999
Quantity       exported         900      1.300       1.650      2.000      2.350       2.700     3.000
Marketed      value
(ECU/t)                         288         288        288         288        288         288     288
Aid - 13% of
marketed       value          0.03         0.05       0.06       0.07        0.09       0.10     0.11
       ENDIVES             (Article       28(2))
     Ald per         hectare
                             1993        1994        1995       1996        1997       1998     1999
Quantity       (ha)             200         230         270        300         330        370        400
Ald/ha                          500         500         500        500         500        500      500
Cost                          0.10         0.12       0,14        0.15       0.17        0.19    0.20
                  (Article       30)
      Ald per        hectare
      200 ha x ECU 400/ha                -    £C(7 0.12 million        (A)
        PI NEAPPLE        (Article      31)
      Ald oer       tonne
      ECU 1.000/t         x    2.000   t     -   ECU 2 million        (A)
 ---pagebreak---                                   AZORES: PLANT PRODUCTS SECTION (FRUIT, VEGETABLES, FLORICULTURE)
 1) PROGRAM* OF INITIATIVES
                            1  CURRENT     | ESTIMATED       I   MAXIMUM       INITIAL .    .ESTIMATED   ,
             PRODUCT       ]    AREA       1     AREA        I    AID           COST          COST *
                            1    ^yyi; (ho) 1         (ho)   1     (ECU/ho)  I (ECU m)     •1 (ECU m)
                            1        0)    1          (2)    1           (3) I     (4)-(3) 1      (5>-(3)l
          AVOCADO          |         4     1        60       1     500           0.002      1    0.030   1
          SUGAR APPLE      |        55     1       100       1     500           0.028      1    0.050   1
          PASSION FRUIT    |
          PASSION FRUIT    1        20     1       120       1     500       I   0.010      1    0.060   1
          MANGO            1         0     1       150       1     500       1    0.000     1    0,075   1
          CITRUS FRUIT     1       260     1       260       i :   500       1   0.130      1    0.130   1
          OTHER FRUIT      1       200     1       300       1     500       1   0.100      1    0.150   1
          VEGETABLES       1       205     1       262       1      500      1   0.103      1    0.131   1
          EXOTIC FLOWERS   :         0     1        11       1     500       I    0.000     1    0.006   1
          ORNAMENTAL PLANTS' •       0     1          9      1     500       I    0.000     1    0.005   1
                 TOTAL     1       744     1      1272       1               1      0.372   1      0.636 1
                                                                                                             I
3) ANNUAL CONTRACTS
                                ACTUAL     ,   ESTIMATED   ,                 I INITIAL      « ESTIMATE* .   I
              PRODUCT      |   QUANTITY    1   QUANTITY      1 SELLING PRICE 1 COST         1 COST " 1
                                (1991) (T) 1        (T)      1     (ECU/T)      (ECU m)   >'(ECUm)       )t
                                     (D    »          (2)    1           (3) 1     (4)-(3) 1      (5)-(3)l
         AVOCADO           I        40     I       700       1      2257     1    0.090     1    1.580   1
         SUGAR APPLE       |       600     I      1500       1     1438          0.863      1    2.157   1
         PASSION FRUIT     |        80     I       500       I     1198          0.096      1    0.599   1
         MANGO             |         0     I       900       1      2257     1    0.000     1    2.031   1
         CITRUS FRUIT      ,                                                     0.000      1    0.000   1
         OTHER FRUIT       ,                                                 1    0.000     1    0.000   1
         VEGETABLES •      |                                                 1    0.000     1    0.000   1
         EXOTIC FLOWERS              0     I        93       1     9314      1    0.000     1    0.866   1
         ORNAMENTAL PLANTS ,         0     I       100       1     1152      1    0.000     1    0.115   1
                 TOTAL     1       720     1      3793       I                     1.05     1     7.35   1
           The EAGGF contribution is 13% of the commercial value.
           Community aid amounts to ECU 0.1 million in the first year and will reach
           ECU 1.0 million in the final year.
 ---pagebreak---                                                            MADEIRA - AGRICULTURAL SECTION: COST OF THE PROPOSAL
                                                                                                                              (ECU million (A))
 I Regulation    I Product        rtypl          1  BUOGET     nTTO         1 1994    I   IMA   I   i*96  I 1997    I 1998    I 1999     I TOTAL .
I    Article     I                I of old       I    ITEM     II           I         I         j                                        I          I
I    2*3         ! Permanent      Iper tonne     I    183      II 6.5       I 6.5    I   6.5    I  6.5    I  6.5    I 6.5     I 6.5      I 45.3     I
I                | 8 U pp|y       i             I    251      II 8.1       I 8.1     I   8.1   I   8.1    I  8.1    I 8.1         8.1       56.9    I
I    3ft 5       ! Temporary      Iper tonne     I    183      II 0.2       I 0.1    I   0.1    I  0.0    I  0.0    I 0.0     I 0.0      I 0.4      I
|                 | .upply         I              I   251      II 0.4        I 0.3    I   0.2   I   0.1    I  0.0       0.0    j CO       j I-1      j
I       4        I Pure-bred      Iper head      I   251       II 0.3       I 0.3     I  0.3    I   0.3   I  0.3    I 0.3     I p.m.     I 1.8      I
I                I animal.        I              I             II           '      I                                                     .          •
!       n         I                Iper ha        !   183      I |"T5         l~ol      I 0.8     I 0.1     I 0.1    I 0.0      I 0.0      I 2.6      I
I      12        I Fruit and      Iby conroercial     183      II  0.1      I  0.4   I   0.7    I   1.0   I 1.3       1.6        1.6         6.7    I
I                I vegetable.     lvalue         I             II           I         I         \      . ! « » ! - »             *A       I A <      I
I      13        I                Iflxed rate I       183      II  0.1      I  0.0    I  0.0    I  0.0    I 0.0     I 0-0        0-°         0' 1    {
I      u         I logo           Iflxed rate I      381       II  0.3      I  0.5    I  0.5    I   0.3   I p.m. I -          I -        j 1 •e      |
I      15        I Bovine animal. Iper head      I   251       II  0.1      I  0.1    I  0-1    »  0-1    } °-1     j 0- 1    } 0t1      } °-8      }
I      16        | Milk           Iper tonne     I   251       II 0.4       I 0.4    I 0.4      I 0.4     I 0.4     I 0.4     I 0.4       1 2.5      |  i
                                                                                                                                 u0          7
I      17        I Potatoes       Iper ha        I    183      II 1.0       I 1.0     I LO      I 1.0     | 1*0     j 1-°      [         |     '°   j
l ~              I Sugar cane     Iper ha        I   183      \\~)          I (1)    I (1)     j 0)       \ 0)      j 0)      j 01       | 0>       |
I 19             I RUT!           Iper hi        I   183       II 0.2       I 0.2     I 0.2     I 0.2     I 0.2       0.2      I 0.2      1 0.2      I
I1TH             [mZ              IpTrThl        !   0)       \\~)          j 0)     j 0)      j 0)       j 0)      JO)       jO)        [ 0.0       I
122-4            I                Iper hi        I   183      II   0.1      I  0.1   I   0.1   I   0.1       0.1      0.1        0.1            0.5
I      23        I                Iper ha        I   183       II 0.5       I 0.5     I 0.5     I 0.5     I 0.5     I 0.5        0.5          3.6    I
ITOTAI          I                 !             J             II 19.0      I 19.3    I 19.5    I 18.7     I 18.5    I 18.8    I 18.5     1131.1     I
. S o p product.!                 I              I   183      II 9.3       I 9.6     I 9.9     I 9.4      j 9.6 I 9.9         I 9.9           66.4
lAnlmol.        I                 I              I   251      II 9.3       I 9,2     I 9.1     I 9.0           8.9       8.9        8.6      63.1
lOther          I                 I              I   381      II 0.3       I 0,5     I 0.5     I 0.3      I p.m. 1         -          -         1.6
I TOTAL EXCLUDING SUPPLY           I              I             11 3.8       I 4.2    I 4.6      I 4.0     I 3.9     I 4.2      I 3.9      I 27.4     I
I               Crop product.     I              I   183       II 2.7       I 3.0    I 3.3           2.9       3.2        3.4        3.4     20.7
I               Animal.           I              I   251       11 0.8       I 0.8    I 0.8           0.8       0.8        0.8        0.5        5.1
I               other             I              I   381       II 0.3       I    0.5 I     0.5  I    0.3   I   p.m. I      -          -         1.6
(1) Data not available
 ---pagebreak---                             - 5S-
                                 M A D E I R A
     Loss of own resources
     The indicative figures in Annex I show that lost levies amount to
     ECU 6.5 million (A) on the basis of the available information. This
     amount will have to be reviewed annually on the basis of the annual
     supply balances and the levels of the levies and customs duties in
      force in accordance with Articles 2, 3 and 10.
II.  Supply aid
     The figures are indicative and based on the quantities currently
      imported from the rest of the Community. They will have to be
      reviewed annually in accordance with Articles 2, 3 and 10.
      The aid is calculated on the current level of refunds.
      Permanent aid
      The figures in Annex I show that supply aid amounts to
      ECU 14.6 million (A).
      Temporary aid
 Seed potatoes    (Article 3 and Annex II)
                         19 9 3     19 9 4     19 9 5    19 9 6
  Quantity    (tonnes)    1.500      1.200        800       400
  Aid          (ECU/t)      100         100       100       100
  Cost (ECU mi II ion)     0.15        0,12      0.08      0.04
 Bovine animals for fattening    (Article 5)
                         19 9 3     19 9 4     19 9 5    19 9 6
  Quantity      (head)    3.000       2.250     1.500       750
  Aid       (ECU/head)      144         144       144        144
  Cost (ECU mill ion)      0.43        0.32      0.22      0,11
 ---pagebreak---                                       -JS-
      Supply of breeding animals       (Article 4)
           Type             Number/year          Amount              Cost
                                               (ECU/head)          (ECU (A))
       Cattle                    200              1.300            260.000
       Ma 1e sw i ne             100                410             41.000
       Female swine              500                380            190.000
       Eggs                 160.000                 0,05             8.000
       Chicks               360.000                 0.25            90.000
       T O T A L                                                   589.000
     The EEC bears 50% of the cost - ECU 295 000 (A)
     Abo Iition    (Article 6)     token entry - under expenditure
                                                  - under receipt.
III. Product aid
     Fruit and vegetables
     1. Programme of Initiatives        (Article 11)    (See Annex)
                                                              ECU mi I I ion (A)
        Expenditure          1993     1994      1995     1996    1997      1998
        1st  instalment    0,74      0.74     0,74
        2nd  Instalment              0.05     0.05      0,05
        3rd  instalment                       0.04      0,04    0,04
        4th  instalment                                 0,04    0,04     0.04
        T O T A L          0.74      0.79     0,83      0.13    0,08     0,04
     2. Market I no -     Annual contract     (Article 12)
         (see Annex)
                                                              ECU mi I I ion (A)
        Expenditure          1993     1994      1995     1996    1997      1998
                             0.1      0.4       0.7      8,0     1.3       1.6
      3. Processed fruit and vegetables        (Article 13)
         ECU 100.000 (A) in 1993 for a study.
 ---pagebreak---                             -Ho-
 Graphic symbol   (Article 14)
                                          ECU mi I I Ion (A)
  Expenditure        1993    1994    1995    1996      1997
                     0.3     0.5     0,5     0,3       p.m.
Beef/veal (Article 15)
     Fattening aid (Article 15(1))
     Supplement
     3 000 head x ECU 40/head = ECU 0.12 million (A)
     Aid for suckler cows (Article 15(2))
     Supplement
      100 head x ECU 40/head - ECU 4 000 (A)
Milk products (Article 16)
Consumption aid: 7 000 t x ECU 50/t = ECU 0.35 million (A)
Potatoes (Article 17)
Aid per hectare: 2 000 ha x ECU 500/ha * ECU 1.0 million (A)
Sugar cane (Article 18)
Aid per hectare: 120 ha x ECU     /ha x 60% - ECU       million (A)
The EEC will reimburse 60% of the expenditure for three years.
Mel de cana and rum (Article 19)
Aid per tonne or per hectolitre
Mel de cana: 250 t x ECU 75/t = ECU 18 750 (A)
Rum: 2 500 hi x ECU 70/hl « ECU 175 000 (A)
Wine (Articles 22 and 23)
      Aid to purchase concentrated must (Article 22(1))
      46 000 hi x ECU (l)/hl = ECU ... million (A)
      Aid to purchase vinous alcohol (Article 22(2))
      token entry
      Aid for ageing of wines (Article 22(3))
      Restricted to three years
      20 000 hi x ECU 0.009/hl/day x 365 days » ECU 65 700 (A)
      Aid per hectare (Article 23)
      1 300 ha x ECU 400/ha = ECU 0.52 million (A)
 ---pagebreak---                                                       -W1 -                                 A N N E X   I
                                           S U P P L Y      TO         M A D E I R A
                                           From EEC                                    From third countri es
    P R O D U C T             Quantity          Aid             Cost            Quantity         Levy         Lost
                                                                                                             levies
                               (tonnes)       (ECU(A)/t)     (ECU m (A))        (tonnes)     (ECU(A)/t)   (ECU m (A))
  Cereals
  Common wheot                   11.000           106            1.17            11.000          145          1.60
   Feed wheot                     4.000           104           0.42              4.000          145          0.58
   Durum wheot                    3.000           167           0.50              3.000          195          0.58
   Maize                          2.000           105           0.21             18.000          130          2.34
   Barley                         3.000           105           0.32              3.000          135          0.41
   Molt                           2.000       104 x 1.33        0.28                          135 x 1.33
   Rice                           3.500           275           0.96                 500         370          0.19
   Sugar                          6.000           425            2.55                  -         425          -
   Hops   (cones)                      10                        0.00                  -                      -
   Milk products
 Skimmed milk powder                 800          800            0.64                  -
   Whole milk powder                 600       1.120             0.67                                         -
   Butter                            500       1.760             0.88
   Cheese                            600       1.110             0.66
   Fresh products                 6.000           160            0.96
   Beef/veal
   Chilled                         1.100       1.800             1.98                100       2.500          0.25
   Frozen                          1.800       1.100             1.98                200       1.800           0.36
   Plgmeat                         1.200          300            0.36                300          650          0.20
   Vegetable olIs                  1.800           33.5          0.06                200           33.5        0.01
                                                   (2)                                             (2)
   Fruit iuice
   Puree CN 20-07-49                                                                 120           (3)          (3)
   Other CN 20-08
    T O T A L               1                                   14.60                                          6.52
( 1 ) Ropeseed     -      $410 /   t  )
                                                   -  ECU 3 3 5 ( A ) / t
      Sunflower    -      $480 /   t ) »445 /   *
( 2 ) Customs d u t i e s   -   10 X
( 3 ) Data not aval l a b i é .
 ---pagebreak---                                      MADEIRA: PLANT PRODUCTS SECTION ( F R U I T & VEGETABLES, F L O R 1 C U L l U N t ;
 1) PROGRAMS OF INITIATIVES
                            ,  CURRENT      , ESTIMATED   ,   MAXIMUM      , INITIAL      , ESTIMATED .,
              PRODUCT       |   AREA;       |   AREA      1     AID        1 COST         1 COST      j
                            I  (1991) (ho) I         (ho) 1     (ECU/ho)   1 (ECUm)       t (ECUm) \i
                            I       (D      I         (2)              (3) 1      (4)-(3) 1    (5)-(3)l
         AVOCADO            |     40        I       70    1      500       1    0.020     1   0.035   1
         SUGAR APPLE        |     60       I      150     1      500       1    0.030     1   0.075   1
         PAPAYA             I      10       I       15    1      500       1    0.005     1   0.008   1
         OTHER TROPICAL     i     12       I        50    1      500       1    0.006     1   0.025   1
         SEED FRUITS     -I      300       I      300     1      500       1    0.150     1   0.150   1
         CITRUS FRUIT       I     75       I        85    1 !    500       1    0.038     1   0.043   1
         VEGETABLES         I    932       I      975     1      500       1    0.466     1   0.488   1
         ORNAMENTAL PLANTS ;l       4      I        10    1      500       1    0.002     1   0.005   1
         EXOTIC FLOWERS     I     52       I        80    1      500       1    0.026     1   0.040   1
                            I              I
                TOTAL           1485              1735    1                1     0.74     1    0.87   1
                                                                                                                         i
2)  ANNUAL CONTRACTS
                              CURRENT     . , ESTIMATED                       INITIAL     , ESTIMATED
              PRODUCT         QUANTITY        QUANTITY      SELLING PRICE        COST     , COST
                              (1991) (T)                                       (ECUm)     • (ECUm) j
                                                                                                                          I
                                                     (T)       (ECU/T)
                                    (D                (2)              (3)        (4)-(3) I    (5)-(3)
          AVOCADO                 62              1000           1925           0.119         1.925
          SUGAR APPLE             50             2000            2166           0.108         4.331
          PAPAYA                    0              200           2166           0.000         0.433
          OTHER TROPICAL .          0              900           1925           0.000         1.732
          SEED FRUITS                                                           0.000         0.000
          CITRUS FRUIT                                                          0.000         0.000
          VEGETABLES                                                            0.000         0.000
          ORNAMENTAL PLANTS       10                50           4331           0.043         0.217
          EXOTIC FLOWERS          10               150           14437          0.144         2.166
          EXOTIC FLOWERS         100               200           7218           0.722         1.444
                TOTAL            232              4500                            1.14    I   12.25
          The EAGGF contribution is 1 3 % of the commercial v a l u e .
          Community aid amounts to ECU 0.1 million in teh first year and will reach
          ECU 1.6 million in t h e final y e a r .
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (92) 143 final
                                                     DOCUMENTS
EN                                                                          03 02
                                Catalogue number: CB-CO-92-159-EN-C
                                                             ISBN 92-77-43020-6
Office for Official Publications of the European Communities
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