G/SCM/N/3/EEC
Page 30
In addition, a supplementary extensification premium of ECU 30 per eligible head may be
granted when the stocking density is lower than 1.4 LSU/ha.
(i) Special premium for young male bovine animals
The special premium for young male bovine animals applicable to each of the age groups 10 months and
over and 22 months and over, is set at:
ECU 60 for 1993
ECU 75 for 1994
ECU 90 for 1995
In a country where the percentage of male bovine animals slaughtered during the "off grass" period (IX-XI)
exceeds 40 per cent of the total number slaughtered during the year, an additional
deseasonalization premium of ECU 60 per head may be granted for bovine male animals
slaughtered between 1 January and 30 April of the following year.
(ii)Premium for maintenance of suckler cow herds
The suckler cow premium is granted to breeders who do not deliver milk or dairy products or
whose milk production is lower than a reference quantity of 120,000 kg.
The premium is set at:
ECU 70 for 1993
ECU 95 for 1994
ECU 120 for 1995
An additional premium of ECU 25 per cow may be granted at national level (of which ECU 20 are
supplied by the EAGGF) in regions where development in the sector is lagging (Greece, Ireland
and Northern Ireland, Portugal and certain regions of Southern Italy, Spain and France).
4. Other provisions
For the new German Bundesländer which are still restructuring their livestock sectors, the number
of animals eligible for premium is set as follows:
-660,323 young bovine males for the special premium;
-180,000 eligible suckling cows;
-1,000,000 eligible ewes.
"PIGMEAT" SECTOR
1. Each year a basic price is fixed for meat of domestic swine, presented in carcasses or half-carcasses
of a standard quality. The basic prices for recent years have been as follows:G/SCM/N/3/EEC
Page 31
As from 1 July 1991 189.70 ECU/100 kg.
As from 1 July 1992 189.70 ECU/100 kg.
As from 1 July 1993 187.20 ECU/100 kg.
2. Intervention measures may be taken when, on the representative markets of the Community, the
average price for pig carcasses is less than 103 per cent of the basic price.
Where intervention measures are to be taken, the products for which private storage aid is to be
granted and, where appropriate, the products of a defined quality which are to be bought-in are
determined, and likewise the prices at which the intervention agencies are to buy-in products and the
amount of private storage aid are fixed.
The buying-in prices for pig carcasses of standard quality may not be more than 92 per cent nor
less than 78 per cent of the basic price.
For products other than pig carcasses of standard quality, the buying-in prices are derived taking
into account differences in product value.
3. Because of cyclical and seasonal variations in pigmeat prices, as well as veterinary restrictions on
trade, and to private storage granted in respect of several products in the sector, as indicated in the
following summary:
Year Period Number
of weeksContracts concluded for
frozen meats
(tons)Region of
application
1991 07.01-22.02.91 7 75,000 EC
1992 26.10-13.11.92 3 5,000 Netherlands
1993 22.03-14.06.93 12 83,000 EC
As a market support measure, during the period of classic swine fever in Belgium, 73,288 tonnes
of adult carcasses and 4,835 tonnes of piglets were destroyed.
"SHEEPMEAT" SECTOR
1. Since 20 October 1980, the Community has implemented basic regulations on the common
organization of the market in sheepmeat and goatmeat.
This system is based on a common basic price for regional reference prices (gradually
harmonized over a four-year period) and covers the following:
-The granting of premiums to breeders for each ewe covering the difference between the common basic
price and the market price in each region;
-the application of support measures linked to the situation of market prices in comparison with basic
prices either in the form of variable slaughter premiums or market intervention (aid to
private storage and, where appropriate, official buying-in).G/SCM/N/3/EEC
Page 32
2. The basic price has not changed since the 1986 marketing year and remains at
432.32 ECU/100 kg. carcass weight.
No intervention buying-in measure has been taken.
Action on private storage was decided upon for 1,200 tonnes in 1989 and 2,000 tonnes in 1990.
Because of the special situation of the respective markets, during the 1980/81 and 1981/82
marketing years, producer premiums were only paid in Ireland and the United Kingdom; the latter
member State was the only one to benefit from variable slaughter premiums until the end of 1991 and
only for Great Britain (excluding Northern Ireland). In subsequent marketing years, producer premiums
were also paid in the other member States.
In addition, since the 1986 marketing year, producer premiums for ewes have been extended to
goat producers in mountain areas falling within the terms of Article 3, paragraph 3, of
Directive (EEC) 268/75. Furthermore, the whole of Greece and Portugal, southern Italy, Corsica and
Spain (with the exception of certain northern areas) also benefit from this goat premium.
Since 23 May 1988, the Community has established a stabilizer system in the sheepmeat and
goatmeat sector. For this purpose, a guaranteed maximum number of 63,400,000 ewes has been fixed as
follows:
18,100,000 ewes for Great Britain;
45,300,000 ewes for the other regions.
For each marketing year, if the number of ewes remaining at the end of the marketing year
exceeds the guaranteed maximum quantity, the ewe premium (as well as the basic price) is reduced by a
coefficient corresponding to a 1 per cent decrease in the basic price for every 1 per cent over the
guaranteed maximum quantity.
If the United Kingdom applies the variable slaughter premium system in Great Britain, the
provision mentioned above applies separately to that region on the one hand and to the rest of the
Community on the other.
The guide level (used to calculate the variable premium) and the intervention price are decreased
by the same amount affecting the basic price.
For the 1988 marketing year, as a stabilizer, the Community already reduced the guide level
(Great Britain) by 3 per cent and the intervention price by 2 per cent. The definitive stabilizer for this
marketing year for the ewe premium (and the goat premium) was fixed at 4 per cent for both
Great Britain and the rest of the Community.
For the 1989 marketing year, the (provisional) stabilizer at the beginning of the marketing year was
fixed at 7 per cent for Great Britain and affected the guide level and at 3 per cent for the rest of the
Community affecting the intervention price. The definitive stabilizer was 5 per cent for both Great Britain
and the rest of the Community.
For 1990, the stabilizer was 7 per cent for the Community as a whole.G/SCM/N/3/EEC
Page 33
3. Reform of the Common Organization of the Market (COM)
On 25 September 1989, the Council formally decided to reform the COM (following an
agreement in principle in July 1989). The reform includes the following modifications (internal policy):
(a)Unification of the system of premiums
The system has been unified in the Community as a whole, at the latest for the 1993 marketing
year, under the following conditions:
In all member States there is a Community quotation for standard quality. Standard quality is defined as
the most widespread production, on average in the Community, for flocks specializing in the
production of sheepmeat and producing heavy lamb.
For this purpose, a mechanism will be established to differentiate between producers of heavy lamb and
producers of light lamb. A producer of light lamb is deemed to be any sheep producer
marketing ewe's milk or dairy products based on ewe's milk. Any other sheep producer is
deemed to be a producer of heavy lamb.
A single loss of income is calculated. It is defined as the difference between the basic price and the
Community average of market prices for the Community standard quality, weighted by the total
production of the quotation areas.
The ewe premium for producers of heavy lamb is calculated on the basis of the single loss of income using
a technical coefficient corresponding to average lamb production per ewe. The ewe premium for
producers of light lamb will be fixed at 70 per cent of the level of the premium for producers of
heavy lamb.
(b) Transitional provisions
The special transitional provisions applied until the last marketing year for Italy and Greece on the
one hand and Spain and Portugal on the other remain in effect until the end of the 1990 marketing year.
However, at the request of the member States concerned, the provisions may apply until the end
of the 1992 marketing year.
The Community quotation for standard quality has been established in all member States since
the beginning of the 1991 marketing year.
The variable premium will be progressively abolished. For this purpose, the method of
calculating the variable premium will be maintained but the amount actually paid will gradually be reduced.
(c) Common provisions
The ewe premium is payable at the full rate for up to 500 ewes per farm in the plain and
1,000 ewes for farms in less-favoured and mountain areas.
Thereafter, the premium payable per ewe is limited to 50 per cent of the full rate.
Intervention is abolished as from 1 January 1990.
In order to provide better support for market prices in the Community, the system of private
storage of sheepmeat will be adjusted as follows:G/SCM/N/3/EEC
Page 34
-The Commission may decide upon private storage if the Community market price and the market price
of a region are less than 90 per cent of the seasonally adjusted basic price.
-The Commission may decide upon private storage by a tendering procedure if market prices are
lower than 85 per cent of the seasonally adjusted basic price.
-The Commission must decide upon private storage by a tendering procedure in region(s) where
the market price is lower than 70 per cent of the seasonally adjusted basic price.
Before the end of each half year, member States are authorized to pay producers a half-yearly
payment on account, out of Community financing equal to 35 per cent of the compensatory premium for
sheep.
"FRUIT AND VEGETABLES" SECTOR
(a) Measures to promote the formation of producers' organizations
In order to encourage the formation of producers' organizations and facilitate their operation, aid
can be granted to such organizations established, on the initiative of producers, in order to promote the
concentration of supply and the regularization of prices at the producer stage and to make suitable
technical means available for presenting and marketing products.
The following may be granted:
-Initial aid during the five years following the date of recognition of the organization. The amount of this
aid for the first, second, third, fourth and fifth years is, respectively, 5, 5, 4, 3 and 2 per
cent of the value of production marketed, provided that the resulting amounts do not
exceed the actual costs of establishing and administering the organization;
-aid in the form of loans on special terms to cover part of the foreseeable cost of withdrawal measures,
such aid being granted only during the five years following the date of establishment of the
organization.
(b) Intervention measures
For certain fruit and vegetables5, two measures are provided in order to avert a price slump in the
Community market, i.e.:
-Withdrawal by producers' organizations6;
-buying-in by bodies or natural or legal persons appointed by the member States for this purpose.
5Cauliflowers, tomatoes, sweet oranges, mandarins, lemons, table grapes, apples (other than cider apples), pears
(other than perry pears), peaches, aubergines, apricots, nectarines, clementines and satsumas.
6For a number of fruits and vegetables, the Community has introduced a threshold for intervention. If the
threshold is exceeded, the withdrawal price for the next marketing year is reduced accordingly.
The system is in force for tomatoes, mandarins and clementines, peaches, oranges, lemons, nectarines and
satsumas.G/SCM/N/3/EEC
Page 35
Producers' organizations taking withdrawal measures in accordance with the provisions of the
regulations, in particular as regards the level of withdrawal prices and the compensation of associated
producers and likewise as regards the utilization of products withdrawn, obtain financial compensation
equivalent to the compensation paid by them to associated producers, after deduction of the net receipts
derived from the products withdrawn from the market.
Buying-in by bodies or natural or legal persons appointed by the member States for this purpose
takes place only where a serious crisis is found to exist for the product concerned or where the rules
regarding withdrawal applied by a representative producers' organization in an economic district are
extended to producers in the district who are not members of the organization.
(c)Special measures for citrus fruit
(i) Measures for the marketing of fresh citrus fruit
In order to promote and ensure availabilities of Community-produced oranges and mandarins on
Community import markets, financial compensation can be granted to sellers of
producing member States who have established a reconversion plan. The grant of this
compensation is limited in time, however, up to marketing year 1992/93, its amount
being progressively reduced as from marketing year 1990/91.
The Community participates in promotion drives organized in collaboration with various economic
operators in this sector.
(ii)Measures to encourage recourse to processing
In order to encourage recourse to processing, there is a system of processing aid consisting of
financial compensation for the raw material for the benefit of citrus fruit processors who
have concluded contracts with producers undertaking to purchase the products at the
minimum price fixed by the Community.
(d) Special measures for nuts
In order to encourage the nuts sector (almonds, hazelnuts, walnuts, pistachios and carobs) to
modernize existing production and marketing conditions, provision has been made for the following for
the benefit of organizations of nut producers:
-Special aid for their establishment;
-aid for the establishment of a working capital fund to allow storage and improve marketing;
-aid to improve varieties and cultivation and modernize marketing under a plan to be presented by
producers' organizations;
-participation in promotion drives organized in collaboration with the various economic operators
in this sector.
This aid is granted to the producers' organizations only to the extent that they furnish a substantial
proportion of the funds used to promote these activities.
(e) Special measures for table apples
The Community participates in promotion drives:G/SCM/N/3/EEC
Page 36
-To encourage consumption of fresh apples, including research for variety diversification;
-to encourage consumption of products processed from apples harvested in the Community.
"PROCESSED FRUIT AND VEGETABLES" SECTOR
Production aid
(a)A system of production aid, in the form of direct aid to processors, has been established for pineapple
preserves, Community production of which is located in the French overseas departments.
The system is designed to compensate the difference between the Community price and prices prevailing
in third countries.
The grant of this aid is conditional on payment of a minimum price to pineapple producers.
(b)Since marketing year 1978/79, a Community system of production aid has been in effect for prunes
prepared from dried Ente plums, processed tomato products and peaches in syrup.
This system was extended to William pears in syrup with effect from marketing year 1979/80.
Lastly, Community aid in respect of dried grapes and dried figs was granted for the first time for marketing
year 1981/82.
Grant of this aid is conditional on payment of a minimum price to agricultural producers.
The amount of the aid is set so as to compensate the difference between the price level of Community
products resulting from the minimum producer price and that of third-country products.
(c) In 1982 the Commission introduced a guarantee threshold for industrial tomatoes.
As from 1985, the threshold system was supplemented by a system of production quotas. This dual
system was applied until marketing year 1991/92.
For the 1992/93 marketing year the threshold system was again in force. The Council decided on 17
March 1993 to reintroduce, as from the 1993/94 marketing year, the quota system as operated
during marketing years 1990/91 and 1991/92. The system provides for a total quota of
6,596,787 tonnes.
This amount is distributed as follows:
-4,317,339 tonnes for tomato concentrate;
-1,543,228 tonnes for whole peeled tomatoes;
- 736,220 tonnes for other tomato-based products.
The guarantee threshold for dried grapes is fixed at a quantity of processed dried grapes corresponding
respectively to a volume of non-processed dried grapes of:
- 68,000 tonnes of currants;G/SCM/N/3/EEC
Page 37
- 93,000 tonnes of sultanas;
- 3,500 tonnes of muscatel raisins.
As from marketing year 1990/91, progressive aid per hectare of specialized area has been introduced. It
will be progressive over the next four marketing years in parallel with a progressive reduction of
the nominal producer price which would affect the level of aid to be paid to processors.
(d)As from marketing year 1990/91, aid for peaches in syrup is also granted with a threshold limit of
582,000 tonnes in terms of net weight, for the Community.
(e)As from marketing year 1989/90, production aid has been extended to other tomato products, peaches
and pears preserved in natural fruit juice and Rocha pears. This extension has been made
without any increase in the existing guarantee threshold and/or quota.
(f)The production quota for aid in respect of William pears in syrup has been converted into a guarantee
threshold for aid in respect of William and Rocha pears in syrup and/or natural fruit juice. The
guarantee threshold is fixed at 102,805 tonnes.G/SCM/N/3/EEC
Page 38
AMOUNT OF AID
ProductECU/100 kg. net
1991/92 1992/93 1993/94
EEC-10 Spain Portugal EEC-12 EEC-12
Tomato concentrate 30,980 27,501 27,910 29,289
S. Marzano whole peeled
tomatoes
- preserved
- frozen11,139 9,671 - 10,531
Roma whole peeled tomatoes
- preserved
- frozen7,856 7,037 6,804 7,427
Non-whole tomatoes
peeled and frozen5,499 4,926 4,763 5,199
Tomato juice (7-8%)
(Heading 20.02 90) (8-10%)
CN (10-12%)8,012
9,614
11,7517,112
8,535
10,4317,218
8,662
10,5877,574
9,089
11,110
Tomato juice
(Heading 20.0950) (4.5-5%)
CN (5-7%)5,074
6,4104,505
5,6904,571
5,7744,797
6,060
Tomato flakes 103,089 91,512 92,873 97,462
Peaches in syrup/juice 11,543 10,894 11,543 8,428 6,794
Prunes 66,357 61,340 - 66,570 64,751
William pears in syrup/juice 19,423 17,174 17,069 18,639
Sultanas 45,737145,737 45,737 30,1341
Dried figs - C quality 29,890 29,890 29,890 30,386
Pineapple 112,615 - - 104,726 111,090
1As from marketing year 1990/91 aid has been introduced at the rate of:
1991/92: 1.023 ECU/ha.
1992/93: 1.534 ECU/ha.
1993/94:G/SCM/N/3/EEC
Page 39
"WINE" SECTOR
1. Each year, before 1 August, a guide price is fixed for each type of table wine representative of
Community production. A threshold price activating an intervention mechanism, termed the "activating
price" is applicable during each wine year for each type of wine for which a guide price is fixed. This price
is applicable at the same stage as the guide price and corresponds to 92 per cent of the latter.
Guide prices for wine year 1993/94 have been set as follows:
Type of wine
RI (ECU/% vol./hl.) 3.17
RII (ECU/% vol./hl.) 3.17
RIII (ECU/hl.) 51.47
AI (ECU/% vol./hl.) 3.17
AII (ECU/hl.) 68.58
AIII (ECU/hl.) 73.32
As announced when prices were fixed for the preceding wine year, prices of table wines AI, RI
and RII have been fixed at the same level as in 1990/91. Spanish prices have been fixed so as to take
account of the alignment of prices for red and white wines and the approximation of prices to the EC-Ten
level as provided for in the treaty of accession.
2. Aid for private storage of table wines
Provision is made for the possibility of concluding long-term contracts in respect of defined table
wines when the forward estimates for a wine year show that the quantity of table wine available at the
beginning of the wine year exceeds normal requirements for that year by more than four months'
consumption. These contracts are concluded between 16 December and 15 February for a nine-month
period.
3.Aid for private storage of grape must, concentrated grape must and rectified concentrated grape must
Provision may be made for the possibility of concluding long-term contracts for grape must,
concentrated grape must and rectified concentrated grape must when it has been decided to provide for
the possibility of concluding private long-term storage contracts for table wines. Contracts concluded
between 16 December and 15 February expire on 15 September.
4. Re-storage aid
In cases where the foreseeable level of end-of-season stocks held by producers and prospects for
the next harvest indicate a risk of storage difficulties for that harvest, a decision may be taken to grant
restorage aid in respect of table wines covered by long-term storage contracts. This measure has not been
applied in recent wine years.G/SCM/N/3/EEC
Page 40
5.Aid to concentrated grape must and rectified concentrated grape must used in wine-making
Aid is granted in respect of concentrated grape must and rectified concentrated grape must used
to increase the alcoholic strength of wines. The amount of the aid is fixed in the light of the difference
between the cost of enrichment by means of grape must and sucrose, respectively.
For wine year 1991/92, the aid is fixed, per degree of potential alcoholic strength by volume per
hectolitre of concentrated grape must and rectified concentrated grape must used, as follows:
-ECU 1.52 in the EC of Ten and ECU 1.32 in Spain for concentrated grape must prepared from
grapes originating in the wine-growing zones C III(a) and C III(b);
-ECU 1.32 in the EC of Ten and ECU 1.12 in Spain for concentrated grape must other than that
referred to in the first indent;
-ECU 1.98 in the EC of Ten and ECU 1.78 in Spain for rectified concentrated grape must
prepared from grapes originating in the wine-growing zones C III(a) and C III(b) or
produced outside the said zones in facilities which began production prior to
30 June 1982, and prior to 1 January 1986 in Spain, regardless of the origin of the
grapes;
-ECU 1.78 in the EC of Ten and ECU 1.58 in Spain for rectified concentrated grape must other
than that referred to in the third indent.
6.Aid to grapes, grape must and concentrated grape must used for purposes other than wine-making
In order to encourage the use of vine products of Community origin for purposes other than
wine-making, a system of aid has been established.
(a)For grapes, grape must and concentrated grape must intended for the preparation of grape juice, the
amount of the aid for wine year 1991/92 has been fixed for the entire Community at:
- ECU 6.39 per quintal of grapes;
- ECU 7.99 per hectolitre of grape must;
- ECU 27.95 per hectolitre of concentrated grape must.
virtually corresponding to the level for the preceding wine year. Only 65 per cent of the
aid is paid to the processor, the remainder being withheld to finance campaigns to
promote grape juice consumption.
(b)For concentrated grape must intended for traditional preparation in the United Kingdom and Ireland of
certain products falling within CN Heading 22.06.00 ("British and Irish wines"), the amount of the
aid for wine year 1991/92 has been fixed at the same level as in the previous wine year, i.e. 0.20
ECU/kg. The product must be obtained entirely from grapes produced in wine-growing zones C
III(a) and C III(b) of the Community.
(c)For concentrated grape must used as the principal element in a group of products marketed in the
United Kingdom and in Ireland with visible instructions for preparing a beverage imitating wine
("home-made wine"), the amount of aid has been set at the same level as in preceding wine years,
i.e. ECU 0.26/kg. of concentrated grape must used (Spain: ECU 0.20/kg.).G/SCM/N/3/EEC
Page 41
(d)For wine year 1991/92, aid for the use in animal feed of concentrated grape must up to a limit of
100,000 hl. has no longer been granted. The amount has been set at ECU 1.59/per cent vol./hl.
for the Community of Ten and 1.33 in Spain.
7. Distillation
(a)Preventive distillation
Where necessary, taking into account harvest forecasts or in order to improve the quality of wines
marketed, the Commission may open the possibility, in each wine year, of preventive distillation
of table wines at 65 per cent of the guide price from 1 September until a date to be determined.
The quantity of table wines delivered for preventive distillation by each producer is taken into
account for discharge of obligations deriving from any compulsory distillation subsequently
decided on. For wine year 1991/92, the eligible quantities are limited to 15 hl. per hectare with a
ceiling of 18 per cent of their production for producers in Spanish zone C.
(b)Compulsory distillation
The Commission orders compulsory distillation:
- When stocks exceed four months' normal requirements;
-or when market prices remain below 82 per cent of the guide price during a representative
period;
-or when production exceeds normal requirements by more than 9 per cent.
The Commission determines for each region the quantities to be delivered for compulsory distillation in
order to eliminate surpluses and restore a normal market situation. This volume is allocated:
-As between the regions of the Community, grouped by member States, pro rata to the
production volumes in excess of a specific level for each of them, equal to a uniform
percentage of their average harvest calculated on the basis of the 1981/82, 1982/83, and
1983/84 wine years;
-in each region, among producers according to a progressive scale based on yield per hectare
which may vary with the region and taking account of past yields.
For wine year 1991/92, the buying-in-price for wine paid for compulsory distillation is set at 29.30 per cent
of the guide price and results, as provided for in the regulations, from the weighted average
between 50 per cent of the guide price for a volume corresponding to 10 per cent of normal
requirements and 7.5 per cent for the volume exceeding that ceiling.
(c)Distillation at guaranteed minimum price, termed support distillation
Whenever compulsory distillation is decided on, the Commission at the same time makes provision for
distillation at a price equivalent to 82 per cent of the guide price for each type of table wine.
Even in the course of wine years during which no compulsory distillation is decided on, the Commission
may, if the market situation for table wine so requires, make provision for distillation at the
buying-in price of 82 per cent. Distillation measures may be limited to certain table wines
determined having regard to the type concerned, or to one or more wine-producing zones. The
quantity of table wine covered by distillation measures decided on by the Commission at theG/SCM/N/3/EEC
Page 42
buying-in price equivalent to 82 per cent of the guide price may not exceed 6.2 million hectolitres
in any given wine year. In 1991/92, 6.0 million hectolitres will be distilled on this basis. If the
market situation so requires, however, the Council may decide to increase the quantity of table
wine eligible for such distillation.
(d)Performance guarantee distillation
Where the other market support measures are inadequate and where the representative price of a type of
table wine remains lower than the activating price for three consecutive weeks, additional
measures applicable to holders of long-term storage contracts for the type of table wine in
question are taken, to maintain prices at a level higher than the activating price.
These additional measures can consist in particular of:
-Storing the wine concerned for a specified period in the conditions prescribed for long-term
storage;
- distillation of these wines or of a corresponding quality.
In the event of distillation, the quantity of table wine covered by a storage contract and which may be
distilled may not exceed 18 per cent of the total quantity of table wine produced by the long-term
storage contract holder concerned for the marketing year in which the long-term contract was
concluded. For wine produced during wine year 1989/90 this percentage is set at 3 per cent.
For buying-in, the price of wine to be distilled in this way is equal to the following percentage of
the guide prices in effect when the long-term storage contracts were concluded:
-90 per cent for all white table wines;
- 91.5 per cent for all red table wines.
The Commission has, on several occasions, indicated its intention not to make use of this measure which
has not been extended for the current wine year.
(e)Compulsory distillation under system of wine deliveries
The aim is to avoid overpressing of grapes and to ensure that wine-making by-products are not reused for
the manufacture of poor quality wines.
The buying-in price for the products concerned has been set, for wine year 1991/92, at 26 per cent of the
guide price set for AI table wine for that wine year.
(f)Compulsory distillation of wines made from grapes normally intended for uses other than in table wine
This measure, already established since 1976 for wines made from table grapes, has been extended to all
other cases of production surpluses likely to overburden the market for table wines (case of
Charentes products in France, of grapes intended for drying in Greece). The buying-in price of
the wines concerned for wine year 1991/92 is equivalent to 35 per cent of the lowest guide price
for wine year 1988/89 (AI white wine).
(g)Access to intervention measures
Access to price-support intervention measures is reserved for producers who have fulfilled their obligations
regarding compulsory distillation and the measures referred to under (e) and, where relevant, (f)G/SCM/N/3/EEC
Page 43
above. They must show proof of having fulfilled those compulsory distillation obligations in the
most recent wine year in which such distillation was decided.
8. Other support measures
(a)To the extent necessary to support the market for table wines, intervention measures may be taken in
respect of products covered by the wine regulations other than table wine. This measure has
practically never been applied.
(b)If it is found that prices have increased in the wine market of the Community so as to be substantially
above the guide price fixed for a particular type of wine, that the situation is likely to continue and
that as a result the market is being disrupted, the necessary measures may be taken.
(c)The Council may adopt derogation measures that may be necessary to remedy any exceptional situation
resulting from natural disasters.
"TOBACCO" SECTOR
The situation described corresponds to the system in effect up to the 1992 harvest. The target
price, intervention price and premiums for leaf tobacco, as well as the derived intervention price for
packaged tobacco shown on page ... all correspond to the 1992 harvest.
The new basic Regulation (EEC) No. 2075/92 of the Council has replaced the former Regulation
No. 727/70.
The organization applies to all Community tobacco. The many varieties of raw tobacco are of
the following types:
-Flue cured (i.e. Virginia);
-Light air cured (i.e. Paraguay);
-Dark air cured (i.e. Paraguay);
-Fire cured (i.e. Kentucky);
-Sun cured (i.e. Erzegovina);
-Basmas
-Katerini;
-Kaba Koulak classical.
Spending on tobacco accounted for 3.4 per cent of the total EAGGF, "guarantee" section, in 1993.
There is no marketing year for raw tobacco. The harvest from one year is sometimes marketed
several years later. This explains the reference to the organization of harvests.
1. Economic overview
In 1992, the Community tobacco harvest amounted to 408,800 tonnes, a drop of 5 per cent in
comparison with 1991 (429,700 tonnes). The area under tobacco was 205,300 hectares in 1992. For the
1993 harvest, the area under contract was 167,200 hectares and the harvest was lower (364,000 tonnes)
than the guarantee threshold of 370,000 tonnes.
In recent years, tobacco consumption, which is highly dependent on cigarette consumption, has
increased slightly in the Community of Twelve.
The level of self-sufficiency in the Community of Twelve is around 50 per cent.G/SCM/N/3/EEC
Page 44
As regards trade, in 1992 exports amounted to 200,400 tonnes compared with 210,600 tonnes in
1991. Around 46 per cent of imports are Virginia flue cured. Total imports in 1992 were around
527,000 tonnes in 1991).
2. Functioning of the market
2.1 Price system
The Council has not fixed any institutional price since 1993. It has however fixed eight levels of
premiums corresponding to the eight types of tobacco varieties mentioned above.
2.2 Market instruments
2.2.1 Border regime
The common customs tariff only gives limited protection at the border for imports of raw
tobacco. The premium system helps to compensate for the difference between the buying-in price of
Community tobacco and the cost price of imported tobacco.
In the area of exports, the new regime does not provide for any export refunds. For former
harvests, however, refunds were in effect up until December 1994 and were granted to cover the difference
between global market prices and Community prices.
2.2.2 Public storage
The new basic Regulation does not provide for any public storage.
2.2.3 Premiums
Premiums are paid to tobacco producers through the first processors or, from the 1995 harvest, as
decided directly by the member State. In order to be eligible for the premium, producers and groups of
producers must have concluded a European crop contract.
The purpose of the premiums is to guarantee producers a certain level of income. However,
under the new "tobacco" regime, tobacco producers will have to take greater account of market demand
than in the past.
An amount additional to the premium has temporarily been fixed for flue cured, light cured and
dark-air cured varieties grown in Belgium, France and Germany.
In order to adjust supply better to the qualitative demand on the market, the basic Regulation
provides for special aid amounting to 10 per cent of the premium when crop contracts have been
concluded between producers' groups and processors provided that the contract covers all the production
of the producers belonging to the group.
2.4 Guarantee thresholds
In 1992, within the framework of agricultural stabilizers, the Council decided to replace the global
guaranteed maximum quantity for the 1992 harvest amounting to 390,000 tonnes (leaf tobacco) by a
guarantee threshold fixed at 370,000 tonnes for the 1993 harvest and 350,000 tonnes as from the 1994
harvest. This guarantee threshold is divided by variety and by member State.G/SCM/N/3/EEC
Page 45
Exceeding the guarantee threshold will mean non-eligibility for the premium for the quantities
produced in excess of the threshold, unlike the guaranteed maximum quantity regime which resulted in a
proportional reduction of the premium for the variety concerned.
The premiums for the 1994 harvest are shown below.G/SCM/N/3/EEC
Page 46
ANNEX
PREMIUMS FOR LEAF TOBACCO FROM THE 1994 HARVEST
I
Flue
curedII
Light air
curedIII
Dark air
curedIV
Fire curedV
Sun
curedVI
BasmasVII
KateriniVIII
Kaba
Koulak
ECU/kg. 2.244 1.795 1.795 1.974 1.795 3.109 2.638 1.885
ADDITIONAL AMOUNTS
Varieties ECU/kg.
Badischer Geudertheimer, Pereg, Korso 0.351
Badischer Burley E and its hybrids 0.562
Virgin D and its hybrids, Virginia and its hybrids 0.321
Paraguay and its hybrids, Dragon vert and its hybrids,
Philippin, Petit Grammont (Flobecq), Semois, Appelterre
0.262
Nijkerk 0.153
Misionero and its hybrids, Rio Grande and its hybrids 0.167
"FISHERIES PRODUCTS" SECTOR
1. Fisheries compensation to producers' organizations
In order to stabilize prices, producers' organizations can apply a withdrawal price below which they
do not sell the products brought in by their members. These prices are fixed at Community level for
herring, sardines, dogfish, ting, redfish, cod, saithe, haddock, whiting, mackerel, anchovies, plaice, hake,
megrim, Ray's bream, monkfish and brown shrimps. In such cases, the producers' organizations grant an
indemnity to associated producers in respect of the quantities withdrawn from the market.
For the financing of these withdrawal measures, the producers' organizations establish intervention
funds made up of contributions based on the quantities offered for sale, or use an equalization system.G/SCM/N/3/EEC
Page 47
To support the action by producers' organizations, financial compensation is granted to them
provided that the producers' organizations observe the Community withdrawal price and that the products
withdrawn from the market are used for purposes other than human consumption or in such conditions
that they do not hinder normal disposal of the products concerned. This financial compensation is
calculated on the basis of the quantities withdrawn from the market in relation to the annual quantities of
the product concerned offered for sale, and can very between 85 per cent and 40 per cent of the
withdrawal price according to the quantities withdrawn. The amount of the financial compensation is
reduced by the value, fixed on a flat-rate basis, of the product intended for uses other than human
consumption or by the net earnings resulting from disposal of the products in the conditions described
above. No compensation is granted, however, in respect of quantities exceeding 20 per cent of the annual
quantities offered for sale.
2. Carry-over premiums
For some products withdrawn from the market at the Community withdrawal price, producers'
organizations can choose between financial compensation and the carry-over premium system.
Carry-over premiums are granted to producers' organizations if they process, in specified conditions,
products withdrawn from the market with a view to their being offered for sale (at a later stage). This
premium is granted only in respect of quantities not exceeding 15 per cent of the annual quantities of the
product concerned offered for sale. The premium may not exceed the amount of the actual costs of
processing and of storage for a limited period nor 50 per cent of the Community withdrawal price for the
fresh product.
3. Private storage aid
(a)A storage premium is granted to producers' organizations for Norway lobster and crab, fresh,
chilled or cooked in water, that have not found a buyer at a price at least equal to the
Community selling price and have been processed with a view to freezing and stored, or
preserved in specified conditions. The premium is only granted for quantities not
exceeding 20 per cent of the annual quantities sold of the product concerned.
The amount of the premium may not exceed the amount of the technical and financial costs
related to the operations concerned for a specified period.
(b)Provision is made for private storage aid to producers' organizations in respect of certain frozen
products (sea-bream, squid, cuttlefish, octopus and tuna) when prices received by them
remain below 85 per cent (95 per cent for tuna) of the guide price for the product
concerned during a significant period and if the price situation seems likely to continue.
The amount of this aid may not exceed actual storage costs and interest charges for a
period of three months.
4. Compensatory allowance for tuna
In respect of tuna intended for the canning industry, a compensatory allowance is granted to
producers' organizations in specified conditions regarding price trends on the Community market and
world market prices. The aid is limited as regards the quantities eligible for payment of the allowance and
also as to the amount payable. Provision is also made for phased co-responsibility contributions by
producers' organizations.G/SCM/N/3/EEC
Page 48
5. Fixed-rate aid for certain specified products
For certain species, in particular of regional importance in certain member States, flat-rate aid is
granted to producers' organizations which take market intervention action in a certain context. This
fixed-rate aid is granted only in respect of 10 per cent of the annual quantities offered for sale and on
condition that the producers' organizations make a co-responsibility payment of 25 per cent of the
withdrawal price applied in the market.
6. Initial aid to producers' organizations
Aid, partly financed by the Community, can be granted to producers' organizations in order to
facilitate their establishment and operation. The amount of this aid, which is granted for a period of three
years, may not exceed, for the first, second and third years respectively, 3 per cent, 2 per cent and 1 per
cent of value of the production marketed, nor exceed 60 per cent, 40 per cent and 20 per cent respectively
of the overheads of the producers' organizations concerned.
"TEXTILE FIBRES" SECTOR
1. COTTON
The aid system for the production of unginned cotton production has been modified with effect
from the 1995/96 marketing year, inter alia with the aim of improving the functioning of the stabilizer
system. The Community aid system fixes a guide price (106.30 ECU/100 kg. as from the 1995/96
marketing year) and aid equal to the difference between this price and the world price for ginning
enterprises that pay producers a minimum price. If the production of unginned cotton exceeds the
guaranteed maximum quantity (GMQ) (1, 031,000 tonnes), the guide price and the amount of the aid are
proportionally reduced.
In each member State the reduction of the aid is proportional to the amount by which it exceeds
its GMQ, fixed at 782,000 tonnes for Greece and 249,000 tonnes for Spain. This reduction (abatement)
is unlimited, but if world prices allow the cost of the aid system to be limited it is reduced.
On 1 September 1995, when the 1995/96 marketing year began, the Commission fixed the world
market price at 37.134 ECU/100 kg., corresponding to aid of 69.2 ECU/100 kg. for Spain and 47.6
ECU/100 kg. for Greece (provisional amount). These amounts were calculated on the basis of estimated
production of around 100,000 tonnes of unginned cotton for Spain and 1,250,000 tonnes for Greece.
2. FIBRE FLAX AND HEMP
Community regulations include the following measures:
(1) Production aid
Aid for fibre flax and hemp produced in the Community has been established in order to give the
producers concerned a fair income. The amount of this aid is fixed each year for every
hectare sown and harvested.
For hemp, the aid is given to the producer. For fibre flax, one quarter of the aid is given to the
producer of the straw flax and three quarters to the person who buys the straw to process
into fibre. If the producer processes the straw or has it processed on his behalf, he
receives the total amount of the aid.G/SCM/N/3/EEC
Page 49
Aid (ECU/ha.) Area (ha.)
Fibre flax
1995/96 marketing year 936.65 100,000
Hemp
1995/96 marketing year 774.74 10,000
(2) Aid for private storage of flax fibre bundle and hemp
The owners of bundle may conclude storage contracts when there is a temporary market
imbalance in order to prevent or reduce any significant drop in prices. In 1991, for
example, this condition was met and the possibility was utilized.
(3) Aid to promote the use of flax fibre bundle
Community measures have been taken since the 1980/81 marketing year to promote the use of
flax in the Community. It was decided to include in the basic regulations the possibility
of taking measures to promote the use of flax fibre bundle as from the 1987/88 marketing
year. These measures are entirely financed by a deduction from production aid.
An amount of 53.64 ECU/ha., equal to around 6 per cent of the fixed-rate aid for fibre flax, is set
aside to finance these measures.
3. SILKWORMS
Community regulations in the silkworm-rearing sector include the following measures:
(a) Production aid
Aid for silkworms reared in the Community has been established in order to provide silk
producers with a fair income. The amount of this aid is fixed annually for each box of
silk seed utilized. The aid is given to the rearer who successfully rears silkworms.
In 1995/96, aid amounting to 133.26 ECU/box was granted. Community production is around
37 tonnes of raw silk from approximately 1,600 boxes.
(b) Aid to improve quality
Community measures may be taken to improve the quality of silkworms and silkworm eggs.
However, no such measure has been taken to date.
"DRIED FODDER" SECTOR
The common organization of markets in the dried fodder sector covers the following products:
dehydrated fodder, the principal leguminous vegetables, sun-dried and ground, and protein concentrates
obtained from alfalfa and grass juice. Each year a target price is fixed, and aid is granted if the world
market price falls below the target price; the aid is an amount equal to a percentage of the difference.
Aid for sun-dried fodder is calculated on the basis of aid for dehydrated fodder by deducting a fixed
amount.
The main features of the market organization system have developed as follows:G/SCM/N/3/EEC
Page 50
Target price
(ECU/t.)Aid dehydrated fodder1
percentage %Reduction for
sun-dried fodder2
(ECU/t.)
1990/91 178.61 100% -33.00
1991/92 178.61 90% -33.00
1992/93 178.61 80% -32.96
1993/94 178.61 70% -25.00
1The aid for dehydrated fodder is calculated as a percentage of the difference between the target price and the
world market price.
2The aid for sun-dried fodder is calculated by deducting a fixed amount from the aid for dehydrated fodder.
"PROTEIN CROPS" SECTOR (peas, broad beans, field beans and sweet lupins)
On 30 June 1992, the Council adopted Regulation No. 1765/92 (copy attached) which superseded
the prevailing legislation. This new legislation applied to protein crops harvested from 1993 onwards.
The substance of the new legislation is that in future only producers setting aside a part of their
arable land will be eligible for crop specific subsidies; the current rate of set-aside is 15 per cent. If a
producer is eligible, the crop specific subsidies are payable direct to the producer for the sowing of protein
crops. The payment is per hectare sown, with a system of regional corrections to take account of the
average yields in the reference period 1986-1990.
Since the new system is being applied for the first time to sowings made in the winter of 1992 and
the spring of 1993, it is premature to evaluate the full impact of this fundamental change in policy.
As a basis for evaluation, the following series of budget estimates for the sector provides an
indication of the scale of adjustment envisaged:
19921476 million ECU
19931476 million ECU
19941458 million ECU
19961458 million ECU
1Figures related to the Budgetary Exercise i.e. 1992 represents expenditure made between 16.10.91 and
15.10.92.
"SEEDS" SECTOR
Under the Community Regulations in force since 1 May 1972 and applied as from 1 July 1972, a
production aid is granted for certain types of seeds.
The amount of aid is fixed taking into account the market situation (balance between supply and
demand) as well as the price for these products on third country markets.
The amount of aid is fixed for two consecutive marketing years.
The amount of aid for marketing years 1988/89 to 1991/92 has been fixed as follows:G/SCM/N/3/EEC
Page 51
(ECU/t.)
1990/91 and 1991/92 1992/93 and 1993/94
I. Graminae between 177 and 637 between 175 and 629
II. Leguminosae between 0 and 594 between 0 and 622
III. Oilseeds between 172 and 238 between 170 and 235
IV. Cereals (rice, spelt) between 121 and 150 between 119 and 143
For Spain and Portugal, aid is fixed at a lower level than in the other EEC countries. For
marketing years 1990/91 and 1991/92, the existing difference has been reduced by one third and one half
respectively. In Spain, for seed types on which aid was granted prior to accession, the full amount of
Community aid is paid.
"HOPS" SECTOR
In order to ensure a fair income for hop producers and to achieve sound management of the
market, the Community regulations provide for a system of aid per hectare and per group of hop varieties.
This aid is granted in those regions of the Community in which recognized producer groups are able to
ensure a fair income for their members and to achieve rational management of supply, the aid being
granted to such producer groups alone. In the other regions, aid is granted to individual producers.
The amount of the aid is fixed by the Council each year for the preceding year's harvest, on the
basis of proceeds from the harvest concerned, production costs and the world market situation.
It is granted in respect of the three groups of varieties:
- aromatic
- bitter
- other
The amounts per hectare were as follows:
(ECU/ha.)
1991 harvest 1992 harvest 1993 harvest
Aromatic 340 365 395
Bitter 340 400 435
Other 340 280 307
Because of durable disposal difficulties for most bitter varieties in recent years, the Council
adopted Regulation (EEC) No. 2997/87 providing for special aid at the rate of ECU 2,500 per hectare for
recognized producer groups, subject to a maximum surface area of 1,000 hectares per member State, in
order to encourage a switch of cultivation from bitter hops to the aromatic and super-alpha varieties.
This measure is applicable until the end of 1994.G/SCM/N/3/EEC
Page 52
PART III: INDUSTRY SECTORS
(i) Aid to the Coal Industry
On 1 January 1994, Commission Decision No. 3632/93/ECSC7on the Community rules for
State aid to the coal industry entered into force and will continue to operate until the expiry of the ECSC
Treaty in July 2002.
Article 1 of this Decision clearly defines what is considered to be an aid:
1.All aid to the coal industry, whether specific or general, granted by member States or through State
resources in any form whatsoever may be considered Community aid and hence
compatible with the proper functioning of the common market only if it complies with
Articles 2 to 9.
2.The term "aid" covers any direct or indirect measure or support by public authorities linked to
production, marketing and external trade which, even if it is not a burden on public
budgets, gives an economic advantage to coal undertakings by reducing the costs which
they would normally have to bear.
3.The term "aid" also covers the allocation, for the direct or indirect benefit of the coal industry, of the
charges rendered compulsory as a result of State intervention, without any distinction
being drawn between aid granted by the State and aid granted by public or private bodies
appointed by the State to administer such aid.
4.The term "aid" also covers aid elements contained in financing measures taken by member States in
respect of coal undertakings which are not regarded as risk capital provided to a company
under standard market-economy practice.
In addition to the specific criteria applicable to each category of aid, the Decision allows aid to be
considered compatible with the proper functioning of the common market if it helps to achieve at least
one of the following objectives:
-to make, in the light of coal prices on international markets, further progress towards economic viability
with the aim of achieving a degression of aids;
-to solve the social and regional problems created by the total or partial reductions in the activity of
production units;
-to help the coal industry adjust to environmental protection standards.
The Decision also contains provisions designed to make existing aid schemes more transparent.
Article 9(7) allows for a transitional period not exceeding three years (therefore ending on
31 December 1996) after which aid would only be authorized if it was entered in the national, regional or
local public budgets of member States or channelled through strictly equivalent mechanisms (Article 2(2)).
In addition, from the beginning of 1994, all aid received by undertakings has to be shown together with
their profit-and-loss accounts as a separate item of revenue, distinct from turnover (Article 2(3)).
7OJ L 329 of 30.12.1993, p. 12.G/SCM/N/3/EEC
Page 53
Member States intending to grant aid to coal undertakings during the period 1994 to 2002 are
required to submit to the Commission in advance a modernization, rationalization and restructuring plan
to improve the economic viability of the undertakings concerned by reducing production costs
(Article 3(2)). For undertakings unable to achieve this, aid will only be considered if they are subject to a
closure plan with deadline occurring before the expiry of Decision No. 3632/93/ECSC or, in exceptional
social and regional circumstances, if the closure occurs after the expiry of the Decision.
Aid to the Coal Industry Under Decision 3632/93/ECSC
Aid to Current Production in 1994
(In million ECU)
Direct
Article 3 (operating aid)
Article 4 (aid for the reduction of activity)
Article 6 (aid for research and development)
Article 7 (aid for environmental protection)
Sub-total
ECU per tonne1,833.1
354.0
2,187.1
17.64
Indirect
Article 9(7) (temporary provisions) 3,382.3
Total
ECU per tonne5,569.4
44.92G/SCM/N/3/EEC
Page 54
(ii)Third Framework Programme of Community Activities in the Field of Research and Technological
Development (1990-1994)
1. Policy objective and purpose of the subsidy
Assistance to R&TD activities has been provided, during the period 1990-1994, through the
actions financed under the third Community Framework Programme which was adopted by the Council
of Ministers on 23 April 1990 and subsequently adapted on 15 March 1993. At the time of its adoption,
Title VI of the EEC Treaty constituted the legal basis for Community activities in the field of R&TD. The
activities are described in Annex II of Council Decision 90/221/Euratom, EEC of 23 April 1990 (Annex
1).
The third Framework Programme was primarily aimed at improving industrial competitiveness
whilst maintaining the pre-competitive nature of Community activities.
In industrial applications, the main objective of the third Framework Programme was to
contribute to strengthening the technological bases for the development of standards in order to encourage
the attainment of the single large market, thus making it possible for industry to invest in the design of
products on the basis of common standards. Transfer of technology in order to encourage the use of new
technologies was given particular importance and included certain demonstration projects with particular
reference to use of such standards. There was no financing of product development.
2. Form of subsidy
Detailed arrangements for implementing the third Framework Programme through specific
programmes were agreed by the Council (Annex 2).
The support to Community R&TD activities was provided in the form of grants following a
competitive evaluation of proposals.
Research projects must, as a general rule, be carried out by participants established within the
Community. They must provide for the participation of at least two partners, independent of each other,
and established in different member States. Partnerships may involve universities, research organisations
and industrial firms.
The Commission of the European Communities is responsible for the implementation of the
programmes. Contracts concluded by the Commission govern the rights and obligations of each partner,
in particular arrangements for the dissemination, protection and exploitation of research results.
3. Amount and duration of subsidy
The total amount deemed necessary to implement the various activities during the period
1990-1994 is specified in each Specific Programme decision.
A broad range of research projets of varying duration was supported. On average, a typical
project may involve financing of ECU 0.4 millions, over three years, typically divided among at least three
or four partners. This may however vary from programme to programme (e.g. the contribution was
maximum in Information and Communication Technologies programmes where the financing was
approximately ECU 1.8 millions, on average, per project).G/SCM/N/3/EEC
Page 55
4. Incidence on trade
As an R&TD Programme, there is no direct impact on trade. The Framework programme is of
an entirely pre-competitive nature which means that further work is necessary to arrive at commercially
exploitable processes or products.
Moreover, the research work serves the public interest. Results are shared among partners and
made more widely available under certain conditions. In general, benefits are first and foremost in
establishing links across the Community research community.
The potential economic impact of industrially-oriented programmes may be discernible within
five years of the completion of the project provided further investment is made by companies to develop
competitive applications.G/SCM/N/3/EEC
Page 56
Reference Documents:
(1) THIRD FRAMEWORK PROGRAMME
-Council Decision of 23 April 1990 concerning the framework programme of Community activities in the
field of research and technological development (1990 to 1994)
(90/221/Euratom, EEC - O.J. No. L 117/28 - 8.5.90)
-Council Decision of 15 March 1993 adapting Decision 90/221/Euratom, EEC, concerning the framework
programme of Community activities in the field of research and technological development (1990
to 1994)
(93/167/Euratom, EEC - O.J. No. L 69/43 - 20.3.93)
(2) SPECIFIC PROGRAMMES
-Council Decision of 8 July 1991 adopting a specific research and technological development programme
in the field of information technologies (1990 to 1994)
(91/394/EEC - O.J. No. L 218/22 - 6.8.91)
-Council Decision of 7 June 1991 adopting a specific research and technological development programme
in the field of communication technologies (1990 to 1994)
(91/352/EEC - O.J. No. L 192/8 - 16.7.91)
-Council Decision of 7 June 1991 adopting a specific programme of research and technological
development in the field of telematic systems in areas of general interest (1990 to 1994)
(91/353/EEC - O.J. No. L 192/18 - 16.7.91)
-Council Decision of 29 April 1992 adopting a specific research and technological development
programme in the field of measurements and testing (1990-1994)
(92/247/EEC - O.J. No. L 126/12 - 12.5.92)
-Council Decision of 9 September 1991 adopting a specific programme of research and technological
development in the field of industrial and materials technologies (1990 to 1994) (91/506/EEC -
O.J. No. L 269/30 - 25.9.91)
-Council Decision of 7 June 1991 adopting a specific research and development programme in the field of
the environment (1990 to 1994) (91/354/EEC - O.J. No. L 192/29 - 16.7.91)
-Council Decision of 7 June 1991 adopting a specific research and development programme in the field of
marine science and technology (1990 to 1994)
(91/351/EEC - O.J. No. L 192/1 - 16.7.91)
-Council Decision of 9 September 1991 adopting a specific research and technological development and
demonstration programme for the European Economic Community in the field of agriculture
and agro-industry, including fisheries (1990 to 1994)
(91/504/EEC - O.J. No. L 265/33 - 21.9.91)
-Council Decision of 26 March 1992 adopting a specific research and technological development
programme in the field of biotechnology (1990 to 1994)
(92/218/EEC - O.J. No. L 107/11 - 24.4.92)
-Council Decision of 9 September 1991 adopting a specific research and technological development
programme in the field of biomedicine and health (1990 to 1994)G/SCM/N/3/EEC
Page 57
(91/505/EEC - O.J. No. L 267/25 - 24.9.91)
-Council Decision of 7 June 1991 adopting a specific research and technological development programme
in the field of the life sciences and technologies for developing countries (1990 to 1994)
(91/366/EEC - O.J. No. L 196/31 - 19.7.91)
-Council Decision of 9 September 1991 adopting a specific research and technological development
programme in the field of non-nuclear energy (1990 to 1994)
(91/484/EEC - O.J. L 257/37 - 14.9.91)
-Council Decision of 28 November 1991 adopting a research and education programme in the field of
nuclear fission safety (1990 to 1994)
(91/626/Euratom - O.J. No. L 336/42 - 7.12.91)
-Council Decision of 19 December 1991 adopting a research and training programme in the field of
controlled thermonuclear fusion (1990 to 1994)
(91/678/Euratom - O.J. No. L 375/11 - 31/12/91)
-Council Decision of 16 March 1992 on a specific research and technological development progamme in
the field of human capital and mobility (1990 to 1994)
(92/217/EEC - O.J. No. L 107/1 - 24.4.92)G/SCM/N/3/EEC
Page 58
PART 4: "FISHERY PRODUCTS" SECTOR
1. Financial compensation to producers' organizations
In order to stabilize prices, producers' organizations can apply a withdrawal price below which they
do not sell the products brought in by their members. These prices are currently fixed at Community
level for plaice, dab, megrim, common flounder, long-finned tuna, herring, cod, sardines, haddock, saithe,
mackerel, dogfish, redfish, whiting, ling, anchovies, hake, Spanish mackerel, Ray's bream, monkfish,
cuttlefish, sole, edible crab, Norway lobster and shrimps. In such cases, the producers' organizations grant
an indemnity to associated producers in respect of the quantities withdrawn from the market.
For the financing of these withdrawal measures, the producers' organizations establish intervention
funds made up of contributions based on the quantities offered for sale, or use an equalization system.
To support the action by producers' organizations, financial compensation is granted to them
provided that the producers' organizations observe the Community withdrawal price and that the products
withdrawn from the' market are used for purposes other than human consumption or in such conditions
that they do not hinder normal disposal of the products concerned. This financial compensation is
calculated on the basis of the quantities withdrawn from the market in relation to the annual quantities of
the product concerned offered for sale, and can vary between 93 per cent and 75 per cent of the
withdrawal price according to the quantities withdrawn. The amount of financial compensation is reduced
by the value, fixed on a flat-rate basis, of the product intended for uses other than human consumption or
by the net earnings resulting from disposal of the products in the conditions described above. No
compensation is granted, however, in respect of quantities exceeding 14 per cent of the annual quantities
offered for sale.
2. Carry-over aid
For products withdrawn from the market at the Community withdrawal price, producers'
organizations can choose between financial compensation and the carry-over aid system. Carry-over aid is
granted to producers' organizations if they process, in specified conditions, products withdrawn from the
market with a view to their being offered for sale (at a later stage). This aid is granted only in respect of
quantities not exceeding 6 per cent of the annual quantities of the product concerned offered for sale.
The aid may not exceed the amount of the actual costs of processing and of storage for a limited period.
The products eligible are those mentioned in 1.
3. Private storage aid
Provision is made for private storage aid to producers' organizations in respect of certain frozen
products (sea-bream, squid, hake, shrimps of the family Penneïdae, Greenland halibut, cuttlefish, octopus
and Illex) when prices received by them remain below 85 per cent of the guide price for the product
concerned during a significant period and if the price situation seems likely to continue. The amount of
this aid may not exceed actual storage costs and interest charges for a period of three months.
4. Compensation allowance for tuna
In respect of tuna intended for the canning industry, a compensatory allowance is granted to
producers' organizations in specified conditions regarding price trends on the Community market and
world market prices. The aid is limited as regards the quantities eligible for payment of the allowance and
also as to the amount payable. Provision is also made for phased co-responsibility contributions by
producers' organizations.