Commission Regulation (EC) No 2859/2000 of 27 December 2000 opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for certain wines in Italy

Commission Regulation (EC) No 2859/2000
of 27 December 2000
opening crisis distillation as provided for in Article 30 of Regulation (EC) No 1493/1999 for certain wines in Italy
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), 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) By letter of 15 November 2000 the Italian Government requested that crisis distillation be triggered for wines produced by the fermentation of products suitable for producing Moscato d'Asti and Asti in Italy.
(3) Around 600000 hectolitres (80 million bottles) of wine produced by the fermentation of products suitable for producing Moscato d'Asti and Asti were produced in 1999, compared with around 700000 hectolitres produced in 1997. Stocks amounted to around 415000 hectolitres at the beginning of the 2000/01 marketing year, against less than 105500 hectolitres in 1995. Sales have fallen from around 650000 hectolitres in the first half of the 1990s to around 580000 hectolitres in the second part of that decade. Between the first quarter of 1999 and the first quarter of 2000, exports fell by 5 million bottles, from 19,2 million to 14,35 million.
(4) In view of the substantial surpluses of unsold must in refrigerated silos, these capacities are not available for the new harvest. There are no outlets for this surplus production.
(5) Regional producers have taken structural measures to redirect production towards high-quality products. These are backed by promotional measures funded by parafiscal charges, a reduction in per-hectare yields and the waiver of new planting rights and replanting rights.
(6) Since the conditions laid down in Article 30(5) of Regulation (EC) No 1493/1999 are satisfied, crisis distillation covering a maximum of 120000 million hectolitres should be triggered in this Italian wine-growing region 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(2), as amended by Regulation (EC) No 2409/2000(3). 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 shall 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,