Brussels, 07/12/2004 (Agence Europe) - On 6 December, the Commission adopted a proposal to extend the current quotas for production of potato starch to 2005/06 and 2006/07. The Commission explained that to assess the effects of the reform of the CAP, and of enlargement of the EU, on the potato starch sector, this measure was needed.
To take enlargement into account, the Union quota increased by 11% from 1.762 million tonnes in the EU15 to 1.949 million tonnes in the EU25. The contingent has been set by Member States. The proposed quotas for the 2005/06 and 2006/07 marketing years are as follows (rollover of the quotas fixed for 2004/05):
Germany (656 298 tonnes), Netherlands (507 403 t), France (265 354 t), Denmark (168 215t), Poland (144 985t), Sweden (62 066t), Finland (53 178t), Austria (47 691t), Czech Republic (33 660t), Latvia (5 778t), Spain (1 943t), Lithuania (1 211 t), Slovakia (729 t) and Estonia (250t).
In keeping with the decisions of June 2003 on CAP reform, a 40% decoupling of direct aid to producers will be introduced. On the condition of ensuring minimum prices for producers, potato starch producers will receive a bonus in keeping with the quotas allocated to them in the aim of providing more structural compensation in comparison to that received by wheat and corn starch producers (fewer bi-products to evaluate, shorter processing period, higher anti-pollution costs).
The Commission proposal is based on a report, the main conclusions of which are as follows: EU production of potato starch remained close to the quota fixed (period 1998-2004); total exports of cereal starch and potato starch remained relatively stable; total starch production in the EU has grown at a rate of approximately 2 % per year on average since 1998; the share of potato starch in starch production as a whole is declining, at around 20 %; it will probably take up to two years to assess the initial effects of the reform of the common agricultural policy (decoupling), and of the enlargement of the EU on the starch production sector. Consequently, the Commission will present a new report accompanied by an appropriate proposal before September 2006.