OBJECTIVE: to reform the common organisation of the market in fruit and vegetables with a view to:
- improving the efficiency and quality of production;
- encouraging producers to orientate their supply to demand and gradually reduce the quantities of produce put forward for intervention;
- halting the increase in costs and making better use of the appropriations available;
- correctly implementing the agreements concluded in the context of the Uruguay Round with regard to the gradual decrease in customs duties on imports.
SUBSTANCE:
The proposal for a Council regulation relates mainly to the following aspects:
* Classification of products:
- the Community shall adopt the UN's quality standards;
- exceptions are provided for products sold by the producer on local markets or products destined for processing, packaging or storage;
- a derogation is granted to take account of products traditionally consumed locally.
* Producer organisations:
- an enhanced model of producer organisations is proposed, which should concentrate supply and strengthen the position of the products in the market;
- producers must belong to only producer organisation and market their entire production through it;
- funding is envisaged to establish groupings and for an operational fund financed through the organisations and public funds (80% from the Community budget, 20% from the Member States), based on the principle that one public ecu equals one private ecu.
* Intervention arrangements:
- the concept of "withdrawal price" is abolished: withdrawals are determined by the producer organisation both in terms of quantities and for periods which they consider appropriate;
- there is no time limit for granting Community withdrawal compensation;
- a limit on quantities is introduced, by product and by producer organisation, for withdrawals eligible for Community withdrawal compensation: 10% of production marketed under the normal system and 50%, 40%, 30% and 20% successively during the transitional period;
- the "serious crisis" system is abolished and replaced by the possibility for individual growers to effect withdrawals through a producer organisation in return for reduced Community compensation;
- Community withdrawal compensation is significantly reduced with regard to the current withdrawal price.
* Trade with third countries: inclusion of a provision to establish another possible procedure for verifying the entry price of certain products entering the Community with a licence and destined for processing, rather than using a flat-rate import value.
* Checks: it is proposed to establish a Community corps of inspectors with the task of ensuring compliance with the rules governing the market in fruit and vegetables.
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