Officials contemplate counting olive trees

Date: 03/10/1996

EU FARM inspectors face the potential nightmare of checking on the existence of almost half a billion olive trees under reform plans being considered by the European Commission.

Long-delayed proposals to reform the olive oil market, scheduled for adoption by the full Commission next Wednesday (9 October), would, if implemented, mark a radical shift in the way payments are made in one of the Union's most controversial regimes.

Following the example set by the 1992 Common Agricultural Policy (CAP) reforms, the Commission will propose that support to olive growers should no longer be linked to production but instead be paid per tree cultivated.

The Commission claims its approach places “greater emphasis on environmental considerations”.

Producers in Italy and Spain would receive 4.5 ecu per tree, with the Greeks receiving 3.5 ecu and the French and Portuguese just 2 ecu.

Commission calculations of the number of trees eligible for support in each of the five producer countries put Spain top of the league with almost 167 million, followed by Greece and Italy. Portugal has 27 million, with France lagging far behind with just one million.

To assist it in the nightmarish task of controlling the system, the Commission will propose earmarking money to help set up a grandly-titled Geographical Information System for olives.

This would establish a database of trees, help to spot duplicate aid applications, check there was no overlap in area-related aid for other products, and facilitate on-the-spot checks.

The Commission has long had to endure allegations that the olive oil sector is rife with fraud.

Officials concede this is a problem. “Despite the many control measures which have been introduced, it is still not possible to guarantee that Community funds are paid only to producers who are duly entitled to receive them,” states the text accompanying the Commission's proposals.

But many will question whether the tree-based system will necessarily put an end to such problems.

The Commission is also looking to end the current system of aid payments targeted at stimulating consumption. A redesigned promotional scheme includes measures to increase the size of the EU market and aid research into the nutritional aspects of olive oil.

The present intervention system would also come to an end, but producer groups would be able to take advantage of aid for private storage.

In line with normal practice, the Commission intends to review the system in the year 2001 to judge whether the new approach has made their task any easier and deflect the almost habitual criticism from the Court of Auditors.

EU farmers' bodies COPA and COGECA have reacted angrily to the Commission's plans. They are particularly upset that they were not consulted on the reform.

Stressing that the two main goals of the system are to maintain quality and market stability, COPA/COGECA believe the inevitable extensification of production would actually harm the environment by causing soil erosion.

They claim the removal of intervention would take away a vital safety net for farmers in some of the Union's least hospitable regions.

The EU accounts for 80&percent; of world-wide production, from some 66&percent; of the world's olive groves. Spending on the sector last year totalled around 880 million ecu.