22-24 July Agriculture Council

Date: 25/07/1996

AFTER months of near misses, farm ministers finally agreed on the reform of the Union's 1.6-billion-ecu fruit and vegetable regime. The deal reinforces the role of recognised producer organisations and establishes 'operational funds' co-financed from the EU budget. Changes will also be made to the rules on market withdrawal of surplus fruit and controls on the sector will be reinforced. The aim of the changes is to improve quality, raise prices for fruit for processing and reduce waste.

MINISTERS also decided that a single rate of arable set-aside of 5&percent; would apply for the 1997 harvest. The base rate for future years was set at 17.5&percent;. In response to French pressure, ministers agreed that there should be no penalty set-aside in 1997-98 due to excess planting this season. A number of other changes were made to the arable aid system to add flexibility. Cereal monthly increments were cut as proposed by the Commission.

OVER dinner, farm ministers discussed the various options put forward by Agriculture Commissioner Franz Fischler to support the beef market. He will present formal proposals to the full Commission at its meeting next Wednesday (31 July), including a commitment to raise the beef intervention ceiling brought in under the 1992 Common Agricultural Policy (CAP) reform. The Commissioner confirmed that proposals for an EU-wide beef labelling system would be ready in September and that promotional measures would be discussed at the informal meeting of farm ministers in Killarney on 22-24 September.

FOLLOWING new evidence from French authorities about the theoretical possibility of transmitting BSE from cattle to sheep, Fischler announced that he would propose to the Standing Veterinary Committee on 1 August that certain tissues from all ruminants (sheep, goats, deer) should be excluded from the human and animal food chains. These would include the brain and certain spinal tissues and possibly the spleen.

INCREASED import quotas for rice were adopted after the Commission pledged to monitor closely the effects of the changes on the domestic market. Monthly storage costs for sugar were set at 0.42 ecu per tonne, slightly higher than the Commission's original proposal. Portugal finally had its 10,000 tonne quota increase confirmed. A decision on reforming the flax sector was deferred until December and the rate of aid was cut. Despite opposition from Germany, the 15&percent; reduction in aid for hop producers was also adopted.

AUSTRIAN Minister Wilhelm Molterer presented a memorandum on the disadvantages faced by farmers in mountain areas. Fischler asked each member state to submit by mid-September the evidence which they felt justified classifying areas in their countries as 'less-favoured'. Submissions will be evaluated in time for a conference on rural development to be held in Cork in November.

CHANGES were made to a declaration on the future of the dairy regime to leave the Commission's options open when it considers how to adjust the current quota system.

THE 'grubbing-up scheme' for vines was extended by two years and the ban on planting new vines will be for two years rather than one. This will not, however, apply to quality wines.

GREECE persuaded its partners to extend special aid to cover transport costs for operators having to circumvent the former Yugoslavia until the end of the year.