31986R1579

24 . 5 . 86 No L 139 / 29 Official Journal of the European Communities

COUNCIL REGULATION ( EEC) No 1579/86

of 23 May 1986

amending Regulation ( EEC) No 2727/75 on the common organization of the market in cereals

THE COUNCIL OF THE EUROPEAN COMMUNITIES , which will enable a definition to be given of that prod­ uction which requires financial support in order to ensure its disposal and allow an assessment to be made of the resulting charges on the budget, bearing addi­ Having regard to the Treaty establishing the European tionally in mind imports of cereals substitute products Economic Community , and in particular Article 43 on the Community market ; thereof,

Having regard to the proposal from the Whereas determined action aimed at achieving a more Commission ('), satisfactory balance between supply and demand on the market must also entail changes in the price-sup­ port arrangements and adjustment of the intervention Having regard to the opinion of the European machinery ; whereas special intervention measures for Parliament ( 2 ), common wheat of bread-making quality at a higher price-support level than the intervention price have, Having regard to the opinion of the Economic and together with bread-making quality requirements which Social Committee ( 3 ), were not sufficiently stringent , boosted the production of that particular type of wheat ; whereas eliminating the reference price and fixing a ' bread-making quality 7 Whereas the Community cereals market is character­ intervention price can help to achieve the objective ized by structural surpluses resulting from the imbal­ described above ; whereas , however, the production of ance between the supply of, and demand for, the prod­ common wheat of higher bread-making quality should ucts covered by Regulation ( EEC ) No 2727 / 75 ( 4), as be supported ; whereas this objective can be attained by last amended by Regulation ( EEC ) No 1006/ 86 ( 5 ); setting a special premium for this particular quality ; whereas production has outstripped both consumption whereas in the interests of consistency , provision in the Community and outlets on world markets ; wher­ should also be made for a special premium for rye of eas the resulting costs and market management prob­ bread-making quality ; lems could , if that trend is not checked , jeopardize the future of the common agricultural policy ;

Whereas this new approach means that the target price Whereas , in order to achieve, with the utmost urgency , will be derived , for common wheat , from its interven­ an improved balance in market forces and to control tion price and , for feed-grain , from the intervention growth , it is appropriate to develop Community outlets price for barley ; on one hand and on the other to give the producers an indication of the market situation ; whereas this objec­ tive can best be attained by means of a co-responsi­ bility levy applied to cereals produced in the Com­ Whereas when there is a surplus on the market and munity and used for certain operations ; whereas, bear­ market prices are depressed , the fact that cereals can at ing in mind the social implications of this measure, it is all times be sent to intervention is very often , even at appropriate to establish a direct aid system for small the beginning of the marketing year, seen as an outlet cereals producers, intended to compensate for the in its own right by many operators , with the result that effect of the co-responsibility levy on their revenue ; the latter do not have to seek to market their grain ; whereas an estimate of the overall amount of this aid whereas , in order to encourage operators to seek more may be put at 120 million ECU for the 1986/ 87 market­ actively an outlet on the market during the early stages ing year ; of the marketing year, the quantities bought in by inter­ vention agencies should be limited to a certain period Whereas the amount of the levy must be determined of the marketing year, bearing in mind the special fea­ annually , taking into account the various elements tures of certain Member States ; whereas , moreover, allowing operators to offer their grain for intervention without necessarily being taken over by the interven­ tion agency will allow them to seek, during a period to ') OJ No C 53 , 7 . 3 . 1986, p. 5 . be determined , a more advantageous outlet , and will be 2 ) OJ No C 120,20 . 5 . 1986 . in keeping with the objective described above while -') OJ No C 118 , 20 . 5 . 1986 , p. 9, 4 ) OJ No L 281 , 1 . 11 . 1975 , p. 1 . guaranteeing that the grain can , as a last resort, be s ) OJ No L94, 9 . 4. 1986 , p. i . bought in if such is the wish of the producer ;

No L 139 / 30 Official Journal of the European Communities 24 . 5 . 86

Whereas a marketing year beginning on 1 July should 2 . Article 3 is replaced by the following ; allow more fully for the new conditions obtaining in the Community following the accession of Spain and 'A rticle 3 Portugal , where harvests tend to take place early on in the year, and can ease the introduction of the new intervention arrangements referred to above ; 1 . Before the beginning of the marketing year referred to in Article 2 , the following prices shall be fixed annually for the Community : Whereas , moreover, in view of the appearance on the market of the harvests of maize and sorghum , it is — an intervention price for common wheat, appropriate that the threshold price applicable to them durum wheat , rye , barley , maize and sorghum , on import during the preceding month of March should be retained for the first three months of the marketing — a target price for common wheat, a target price year for these two products ; for durum wheat and a common target price for rye, barley , maize and sorghum , Whereas, in the context of the market organization adjusted as described above , a carry-over payment can — a special premium for common wheat and for be regarded simply as a management measure designed rye showing certain features as to quality . to ease the transition from one marketing year to 2 . The prices shall be fixed for a standard quality . another ; whereas the decision to grant such a carry­ over payment should accordingly be a Commission res­ ponsibility under the management committee proce­ 3 . The intervention prices shall be fixed for the dure ; whereas the possibility of applying such a mea­ Ormes intervention centre , which is the centre for sure for maize moreover no longer seems justified , in the Community area having the greatest surplus for view of the recent provisions introduced in respect of all cereals , at the wholesale stage , goods delivered that cereal ; at warehouse , before unloading . They shall be valid for all Community intervention centres desig­ Whereas the aim of restoring balance on the market nated for each cereal . should be to encourage the search for, and develop­ ment of, new industrial outlets for cereals, in particular in the field of energy ; whereas provision should there­ 4 . (a ) The target prices for common wheat and fore be made for granting aid for cereals used for such durum wheat and the common target price research and development work ; whereas the aid , for rye , barley , maize and sorghum shall be should , however, be fixed in such a way as to allow fixed for Duisburg , which is the centre for sound competition with world market outlets for those the Community area having the greatest cereals ; deficit for all cereals , at the wholesale stage , goods delivered at the warehouse , Whereas Articles 15 and 16 introduce arrangements before unloading .

which permit , in cases where there is no carry-over pay­ They shall be calculated by adding, to the ment, the import and export of malt manufactured intervention price for common wheat , from the previous harvest 's crop for the first two durum wheat and barley , a market compo­ months of the new marketing year ; whereas the change in the date of the beginning of the marketing year calls nent and a component reflecting the cost of transport between the Ormes area and for a one-month extension of the period referred to above in order to enable the import and export arrange­ the Duisburg area .

ments for malt to operate at the beginning of the mar­ ( b ) The market component for : keting year,

— common wheat shall reflect the differ­ ence which should exist between the intervention price and the market price HAS ADOPTED THIS REGULATION : for very high quality common wheat of bread-making quality , produced in the Article 1 Community , to be expected , in a nor­ mal harvest and under natural pricing conditions on the Community market , Regulation ( EEC ) No 2727 / 75 is hereby amended as follows : in the area having the greatest surplus ,

— rye , barley , maize and sorghum shall 1 . Article 2 is replaced by the following : reflect the difference which should

exist between the market price for bar­ A rticle 2 ley and its common intervention price , plus the difference in market prices The marketing year for all the products listed in reflecting the ratio between the relative Article 1 shall begin on 1 July and end on 30 June values of barley and maize for use in of the following year.' animal feed . The market prices to be

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taken into consideration are those to products shown in Annex D shall be taken into consideration . be expected in a normal harvest and under natural pricing conditions on 4 . The levy referred to in this Article shall be the Community market , in the produc­ regarded as one of the intervention measures tion area having the greatest surplus , designed to stabilize agricultural markets and shall — durum wheat shall reflect the differ­ be allocated to the financing of costs in the cereals ence which should exist between the sector . intervention price and the market price 5 . The co-responsibility levy shall be collected on to be expected , in a normal harvest cereals that undergo one of the following opera­ and under natural pricing conditions tions : on the Community market , in the area having the greatest surplus . — first processing ,

( c) The component reflecting the cost of trans­ — intervention buying, port shall be determined on the basis of the — export in the form of grain . most favourable means of transport or combination of means of transport and on 6 . The levy shall be passed on to the producer. existing tariffs . When inland waterway or sea-freight rates are not based on a tariff, 7 . The detailed rules for the application of this transport costs shall be determined by tak­ Article , and in particular : ing the average freight rate over the two — the definition of the first processing , months with the lowest average rate during the most recent 12-month period for which — the procedure for collecting the levy ,

data are available . — operations exempted from the co-responsibility levy , 5 . The prices and the special premiums referred to in paragraph 1 and the standard qualities shall be adopted in accordance with the procedure laid down in Article 26 . referred to in paragraph 2 shall be determined in accordance with the procedure laid down in Article The transitional measures necessary for the appli­ 43 ( 2 ) of the Treaty . cation of this Article shall be adopted in accord­ ance with the same procedure . 6 . The Council , acting by a qualified majority on a proposal from the Commission , shall lay down 8 . The Commission shall ensure that the co-res­ rules for determining the intervention centres to ponsibility levy system does not create any distor­ which the intervention prices apply . tion with competing products .

9 . The Commission will consult with trade inter­ 7 . The intervention centres shall be determined , after consultation with the Member States con­ ests on the use of the amount produced by the levy .

cerned , in accordance with the procedure laid down in Article 26 .'

A rticle 4a

1 . Direct aid shall be introduced for small 3 . Article 3a is hereby repealed . producers . For the Community , the overall aid amount shall be fixed each year before the begin­ 4 . Article 4 is replaced by the following : ning of the marketing year in accordance with the procedure laid down in Article 43 ( 2) of the Treaty .

A rticle 4 This amount may not exceed the total estimated amount produced by the co-responsibility levy on 1 . A co-responsibility levy shall be payable in res­ producers marketing not more than 25 tonnes . pect of the cereals referred to in Article 1 ( a ) and 2 . For the 1986 / 87 marketing year the overall aid (b ) produced in the Community and used for one amount shall be set at 120 million ECU . Should of the operations referred to in paragraph 5 hereof. paragraph 4 be applied, this latter amount shall be This arrangement shall apply for the 1986 / 87 to reduced by the amount that would have been paid 1990 / 91 marketing year . to the Member State under the current aid arrange­ ment, had the said paragraph 4 not been applied . 2 . The amount , per unit, of the levy shall be fixed annually before the beginning of the marketing 3 . The Council , acting by a qualified majority on year, in accordance with the procedure laid down a proposal from the Commission , shall lay down in Article 43 ( 2 ) of the Treaty . general rules for such aid .

3 . When the amount of the co-responsibility levy 4. During the 1986 / 87 marketing year only , Mem­ is determined , imports into the Community of the ber States , which experience particular difficulties

No L 139 / 32 24 . 5 . 86 Official Journal of the European Communities

of an administrative or technical nature in applying cular in respect of quality and quantity , to be deter­ the rules laid down for small producers under this mined in accordance with paragraph 5 . However : Article may , subject to conditions to be set in — intervention agencies shall buy in the cereals accordance with the procedure laid down in para­ offered to them from 1 September on deferred graph 5 , grant aid to small producers in the form of payment terms , and , in Portugal , Italy , Greece compensation for the levy payable by those small and Spain from 1 August , for cereals harvested producers . in these countries , The overall amount of that compensation for the — during July 1986 , the Spanish intervention Member State in question may in no event exceed agency shall buy in the cereals harvested in the amount that would have been paid to it , had Spain which are offered to them on the pay­ this paragraph not been applied . ment conditions existing in that country before 5 . The detailed rules for the application of the 1 March 1986 . aid, and in particular its allocation , shall be Subject to certain conditions and in respect of cer­ adopted in accordance with the procedure laid tain periods to be determined in accordance with down in Article 26 on the basis of objective the procedure laid down in Article 26 , the Commis­ criteria .' sion shall have power to authorize the submission to intervention agencies of offers which include a 5 . Article 5 is hereby amended as follows : cancellation clause .'

( a) The following subparagraph is added to para­ 8 . In Article 7 ( 2 ): graph 1 : ( a) ' single intervention price ' is replaced by ' inter­ ' However, for maize and sorghum , the thres­ vention price '; hold price valid during March shall be appli­ ( b ) the third sentence is deleted . cable for July , August and September of the following marketing year/ 9 . In Article 7 ( 5 ) the following indent is inserted (b ) The first indent of paragraph 4 is replaced by between the second and third indents : the following : '— the specific quality criteria which common '— a component representing the cost of wheat of breadmaking quality and rye of transport between Rotterdam and Duis­ breadmaking quality must meet in order to be burg, determined in accordance with the eligible for the special premium provided for in criteria laid down in Article 3 ( 4) ( c).' Article 3 ( 1 )'.

( c ) Paragraph 6 is replaced by the following : 10 . Article 8 is replaced by the following : ' 6 . Threshold prices for products referred to in this Article shall be fixed annually , before 'A rticle 8 the beginning of the marketing year, in accord­ ance with the procedure laid down in Article 26 .' 1 . Particular intervention measures may be adopted whenever the market situation in certain regions of the Community so requires . 6 . Article 6 is replaced by the following : 2 . The Council , acting by a qualified majority on a proposal from the Commission , shall adopt gen­ A rticle 6 eral rules for the application of this Article .

3 . The nature and application of the particular 1 . Without prejudice to Article 5 , the intervention intervention measures and the conditions and pro­ prices, the target prices and the threshold prices cedures for the sale or for any other means of dis­ shall be the subject of monthly increases phased posal of the products subject to those measures over part or all of the marketing year. shall be determined in accordance with the proce­ 2 . The Council , acting by a qualified majority on dure laid down in Article 26 . Detailed rules for the a proposal from the Commission , shall determine application of this Article shall , where appropriate, annually , before the beginning of the marketing be adopted in accordance with the same proce­ year, the number and amount of the monthly dure .' increases and in what months they are to apply .'

1 1 . Article 9 is replaced by the following : 7 . Article 7 ( 1 ) is replaced by the following :

'Article 9 ' 1 . The intervention agencies designated by the Member States shall buy in , during the period from 1 October to 30 April , cereals referred to in To the extent required to facilitate the changeover Article 3 , which have been harvested in the Com­ from one marketing year to another, the Commis­ munity and which are offered to them , provided sion may , in accordance with the procedure laid that the offers comply with conditions , in parti­ down in Article 26, grant a carry-over payment in

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respect of stocks of one or more of the following 13 . In the second subparagraph of Article 15(3 ), 'the cereals harvested in the Community which remain first two months of the marketing year' is replaced to the end of the marketing year : common wheat , by ' the first three months of the marketing year'. durum wheat, rye and barley .'

14 . In the last subparagraph of Article 16(4), ' during the first two months of the marketing year' is 12 . The following Article 1 la is inserted : replaced by ' during the first three months of the marketing year'. 'Article 11a

1 . Aid may be granted for cereals harvested in the Article 2 Community that are put to new industrial uses . The amount of the aid may not exceed that of the This Regulation shall enter into force on the day of its export refund for the cereal concerned . publication in the Official Journal of the European Communities. 2 . The Council , acting by a qualified majority on a proposal from the Commission , shall adopt rules for the application of this Article .' It shall apply from 1 July 1986 .

This Regulation shall be binding in its entirety and directly applicable in all Member States .

Done at Brussels , 23 May 1986 .

For the Council

The President

G. BRAKS