Commission Regulation (EC) No 25/2001 of 5 January 2001 opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for table wines in France

Commission Regulation (EC) No 25/2001
of 5 January 2001
opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for table wines in France
THE COMMISSION OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EC) No 1493/1999 of 17 May 1999 on the common organisation of the market in wine(1), as last amended by Regulation (EC) No 2826/2000(2), and in particular Articles 30 and 33 thereof,
Whereas:
(1) Article 30 of Regulation (EC) No 1493/1999 provides for the possibility of opening crisis distillation in the event of exceptional market disturbance caused by major surpluses. Such measures may be limited to certain categories of wine and/or certain areas of production and may apply to quality wines psr at the request of the Member State.
(2) The French Government has requested that crisis distillation be triggered for table wines produced in France.
(3) Production of table wine in France was 22,6 million hl in 1997 and 21,1 million hl in 1998. In 1999 the figure was 25,2 million hl and in 2000 it was 23,02 million hl.
(4) Over that period, table wine consumption in France remained relatively stable in the 1996/97 and 1997/98 wine years at around 18,3 million hl, but fell in 1998/99 to 17,3 million hl, which also appears to be the level of consumption for 1999/2000. By contrast, exports rose slightly between 1997 and 1999, but only exports to other Member States. Provisional figures for 2000 point to a fall in exports.
(5) Stocks of table wine were 12,853 million hl in 1997 and 12,086 million hl in 1998. They fell to 10,85 million hl in 1999. In 2000, they have risen sharply to 14,07 million hl. The fluctuation in stocks obviously varies widely from one department to the next, but it is very pronounced in departments with a large stock, with increases of between 47 and 88 %. The growth in stocks has had a negative impact on prices, which have fallen by about 10 to 17 % over the current wine year compared with the same period in the previous year.
(6) Since the conditions laid down in Article 30(5) of Regulation (EC) No 1493/1999 are satisfied, crisis distillation covering a maximum of 800000 hl of table wine should be triggered. That volume should make it possible to reduce stocks of table wine to an acceptable level. The measure applies for a limited period with a view to maximum effectiveness. No ceiling should be set on the quantity that individual producers can have distilled because stocks may vary substantially from one producer to another and depend on sales to a greater extent than on the individual producer's annual output.
(7) The mechanism to be introduced is provided for in Commission Regulation (EC) No 1623/2000 of 25 July 2000 laying down detailed rules for implementing Regulation (EC) No 1493/1999 on the common organisation of the market in wine with regard to market mechanisms(3), as amended by Regulation (EC) No 2786/2000(4). As well as the Articles of this Regulation which refer to the distillation measures provided for in Article 30 of Regulation (EC) No 1493/1999, other provisions of Regulation (EC) No 1623/2000 apply, in particular those concerning the delivery of alcohol to intervention agencies and the payment of an advance.
(8) The buying-in price to be paid by the distiller to the producer should provide a solution to the problems while allowing producers to take advantage of the possibility afforded by this measure. That price should not, however, be such that it adversely affects the application of distillation as provided for in Article 29 of Regulation (EC) No 1493/1999.
(9) The product of crisis distillation must be raw alcohol or neutral alcohol for compulsory delivery to the intervention agency in order to avoid disturbing the market for potable alcohol, which is supplied largely by distillation under Article 29 of Regulation (EC) No 1493/1999.
(10) The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Wine,