Commission Regulation (EC) No 1083/2002 of 21 June 2002 amending Regulation (EC) No 347/2002 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wine in France

Commission Regulation (EC) No 1083/2002
of 21 June 2002
amending Regulation (EC) No 347/2002 opening crisis distillation as provided for in Article 30 of Council Regulation (EC) No 1493/1999 for table wine 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 2585/2001(2), and in particular Articles 30 and 33 thereof,
Whereas:
(1) Commission Regulation (EC) No 347/2002(3) opens the crisis distillation provided for in Article 30 of Regulation (EC) No 1493/1999 for a maximum quantity of 4 million hectolitres of table wine in France.
(2) In view of the market situation for table wine in France, that maximum quantity should be adjusted and set at 3,85 million hectolitres.
(3) According to information received from the French authorities, the distillation contracts concluded between producers and distillers from 1 March to 29 March 2002 cover a total volume of 2,349 million hectolitres. France therefore requests the opening of a new period for concluding contracts for a volume of 1,501 million hectolitres to dispose of the surplus stocks which continue to severely depress the market as the next harvest approaches.
(4) The level of crisis distillation contracts concluded in France in March has not produced the full desired results because it was also possible to sell wine to merchants, although in some cases at prices lower than those paid for distillation, but on favourable take-over and payment terms. These terms have led producers facing cash-flow difficulties to conclude sales contracts to the detriment of deliveries of wine for crisis distillation. At present merchants have probably largely covered their requirements for the year and thus no further major selling of wine is likely. Also, the outlook for the next harvest does not suggest that production is likely to fall significantly.
(5) In addition, updated market data confirm the need to withdraw approximately 3,85 million hectolitres in order to reduce stocks of table wine to an acceptable level in anticipation of the next harvest. Wine prices have not increased, except temporarily in March when crisis distillation was opened. Since then they have fallen again. The stocks still held by producers must therefore be disposed of as quickly as possible.
(6) In conclusion, the conditions for selling wine when crisis distillation was opened last March prevented that measure from having its full effect. Producers were able to find buyers for their wine on interesting payment and delivery terms, even at low prices. These effects no longer exist, and the only decisive factor is now quantity. Producers must therefore eliminate their surplus stocks before the next harvest while there are few opportunities for selling them on the market.
(7) It is therefore proposed that the possibility of concluding crisis distillation contracts be reopened for a period of approximately three months. As a result, it is necessary to alter the various dates in the Regulation for the approval of contracts, notification to the Commission of the quantities of wine covered by contracts and delivery of the wine to the distilleries.
(8) The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Wine,