Brussels, 14/07/2010 (Agence Europe) - Following a vote in the EU Management Committee on Tuesday 13 July, which resulted in a so-called “no-opinion”, the European Commission will, in the next few days, adopt a regulation which will amend provisions in the fruit and vegetable sector. The aim of these new rules is to clarify arrangements on the support given by the EU to producer organisations (POs). Voting in the Management Committee was as follows: 170 votes for, 19 against and 156 abstentions. The producer countries (France, Spain, Portugal and Italy) voted for the new rules, while Germany and the United Kingdom, fearing that their introduction would lead to a budgetary increase, voted against. The operational programmes already approved at the start of this year will not be affected by the new methods of calculating aid to POs.
Community support to producer organisations is capped at 4.1% of the total value of marketed production (this cap can be raised to 4.6% provided the additional amount is used for crisis prevention or management). During the 2007 reform, it was decided to grant aid to POs at first stage processing, but not for the processing itself. For example, apples from the orchard cost €1 per kilo, but, after peeling and washing, cost €3 per kilo, then, after various other stages, the value increases further (storage and marketing of puréed apples in pots). The notion of “first stage processing” has given rise to interpretation difficulties and this has led to problems over the figures submitted on the value of the marketed product.
The new rules will replace the notion of “first stage processing” with a system of fixed coefficients (flat rates) to be applied to the invoiced value of the processed goods in a way that will exclude aid for processing. There are to be 11 coefficients in all: for example, for fruit juices it will be 53%, for concentrated juices 73%, for tomato concentrate 77%, for frozen fruit and vegetables 62%, for dried fruits 81%, for processed aromatic herbs 12% and for paprika powder 41%.
During the 2007 reform, aid for processing was done away with, and provisions were introduced to encourage the setting up of POs (to enhance the negotiating position of producers). (L.C./transl.rt)