24-25 October Agriculture Council

Date: 02/11/1995

FARM ministers expressed broad support for the Commission's proposals for the reform of the fruit and vegetable sector, but some countries, notably the Netherlands and Belgium, objected to having to co-finance reform measures. The UK was unhappy at giving producer organisations a greater role in market management. The Mediterranean states opposed plans to reduce withdrawal prices for surplus production. The UK and Sweden said the system should rely purely on market forces. Ministers were also split over whether to adopt UN quality norms or maintain the current system.

AGRICULTURE Commissioner Franz Fischler agreed to amend proposals to reform the EU's internal rice market, but stressed that changes must not jeopardise GATT commitments.

FISCHLER told ministers of the progress made in the Commission on various set-aside questions. He said two ideas - concentrating penalties for over-planting in certain areas and reducing penalty set-aside where over-planting is caused by drought - should not be linked to the existing proposal on cutting penalty set-aside for farmers who have set extra land aside voluntarily.

SPAIN thanked the Commission for the transfer of 700,000 tonnes of cereals from intervention, but pointed out that this covered only 40&percent; of demand and that wheat prices are 50&percent; above intervention. Spanish minister Luis Atienza requested the transfer of a total of 1.5 million tonnes urgently. Fischler said that the latest Spanish harvest estimate was a million tonnes higher than initially forecast. Maize and sorghum imports would also help, Fischler concluded.

FISCHLER presented a proposal to raise the Chinese preserved mushroom quota by 4,400 tonnes for the second six months of 1995, to account for enlargement. If ministers were to refuse, then “the fine words of the General Affairs Council about improving trade relations with China will appear to be quite empty”, Fischler said.

ITALY raised its concern about the Commission's interpretation of the tobacco agreement from June. It wants to offset excessive output for one variety against under-production of other types. Fischler said the agreement could not work retroactively.

BELGIUM, the Netherlands, the UK and Greece called for harmonisation of maximum levels of nitrates in greenhouse vegetables, such as lettuce. UK minister Douglas Hogg claimed strict levels could mean an end to lettuce production in the UK. Fischler pledged a new proposal taking account of the latest scientific data.

IRISH minister Ivan Yates complained about reductions in the export refund for beef and claimed that it could lead to market instability. He was supported by France, Austria, Belgium and Greece. The Commissioner maintained that the cuts had not affected beef prices.

THE vote was split on whether to continue a 200-million-ecu annual food aid scheme to help the EU's poorest citizens. The UK, Sweden and the Netherlands voted against, but could not stop the measure going through.