Common organisation of the market in processed fruit and vegetables

The common organisation of the processed fruit and vegetables market was radically changed in a 2007 reform which combined the processed products sector with that of fresh fruit and vegetables.

ACT

Council Regulation (EC) No 2201/96 of 28 October 1996 on the common organisation of the markets in processed fruit and vegetable products [see Amending acts].

SUMMARY

From 2008, processed fruit and vegetables and fresh fruit and vegetables will be brought together within the same common market organisation (CMO).

Scope

The products concerned are processed fruit and vegetable products (this also includes dried vegetables, sweet peppers which are neither crushed nor ground, dried fruit, figs and raisins and pectic substances).

AID SCHEME

The aid system established under this Regulation is repealed but will continue to apply for the purposes of the marketing year which will end in 2008.

General provisions

A Community production aid scheme will be introduced for tomatoes, peaches and pears intended for processing. All products, whether they are raw material or finished goods, must meet minimum quality requirements. The aid is granted to producer organisations recognised under Regulation (EC) No 2200/96 on the common organisation of the market in fruit and vegetables. The aid is granted to producer organisations recognised under the Regulation on the common organisation of the market in fruit and vegetables.

In order to receive aid, these producer organisations must conclude contracts with processors approved by the Member States. After the national authorities have checked that the products mentioned in the contracts have been duly delivered to the processing industries, the aid is allocated to the producer organisations which pass it on to the producers.

The aid amounts to:

• €34.50 per tonne of tomatoes,
• €47.70 per tonne of peaches,
• €161.70 per tonne of pears.

If there is overrun of the Community processing threshold for pears, tomatoes and peaches, the aid is reduced. The production of dried figs and prunes derived from dried “d'Ente” plums also qualifies for aid. The aid is granted to those processors who have sold their products via a producer organisation. In all cases, the amount of production aid, which is fixed by the Commission after having consulted the Management Committee ‘Fruit and vegetables’, may not exceed the difference between the minimum price paid to the producer within the Community and the price of the raw material in the main non-EU producing and exporting countries.

Community and national thresholds

The Community aid scheme is open to recognised producer groups which deliver tomatoes, pears and citrus fruits harvested in the European Union (EU) and intended for processing. The EU has established Community thresholds to limit both the total amount of aid and national thresholds. If these limits are overrun, penalties are applied.

Specific provisions for grapes, dried figs and certain regional products

Aid is to be granted for growing grapes intended for the production of dried grapes of the sultana and Moscatel varieties and currants. The Community maximum guaranteed area is fixed at 53 187 hectares.

If overrun occurs during a marketing year, the aid for the following year is modulated as a result. Producers who replant vineyards affected by phylloxera and who are not entitled to aid under the European Agricultural Guarantee Fund qualify for aid for three years. For sultanas and currants, up to 27 370 tonnes of grapes are bought per year by storage agencies approved by the Member States. Storage aid is granted to storage agencies for a maximum of 18 months following the end of the marketing year in which they bought the products.

In the case of products of major local or regional importance, special measures may be taken to enhance their competitiveness and improve their promotion.

Reform of the common market organisations to include the new Member States

The common market organisation for fruit and vegetables was also modified in the agricultural chapter of the Act of Accession. For example, the EU has granted Malta special temporary aid for producers of tomatoes intended for processing. The duration of this aid will be 11 years from the date of accession, and will be gradually decreased over this period.

TRADE WITH NON-EU MEMBER COUNTRIES

The system described will be replaced by a new system for trade with Non-EU Member Countries from 2008.

Import and export licences

Imports and exports may be subject to the grant of an import or export licence.

Common Customs Tariff

The rates of duty in the Common Customs Tariff apply to processed fruit and vegetable products.

Imports

Where imports are likely to cause disturbances, safeguard measures can be adopted for all products subject to the common organisation of the market as long as they comply with the international obligations of the Community.

Tariff quotas

Tariff quotas are allocated on a 'first come, first served' basis, except for tinned mushrooms where the 'traditional/new arrivals' method is applied.

Exports

In order to permit the export of economically important quantities of products without adding sugar, export refunds may be granted to: processed tomatoes, provisionally preserved cherries, candied cherries, processed nuts and certain pure orange juices.

The amount of export refunds is fixed periodically. Export refunds are also provided for sugar and its substitutes used for making certain fruit and vegetable products subject to the common organisation of the markets. This refund is equal to that provided for in the regulations establishing the common organisation of the market in sugar. The refund for glucose and glucose syrup is that applied to products under the common organisation of the market in cereals.

Barriers to trade

When trading with Non-EU Member Countries, it is normally forbidden to impose charges having equivalent effect to customs duties or to apply any quantitative import restrictions or measures having the same effect.

RELATED ACTS

Detailed implementing rules

Regulation (EC) No 1580/2007 [Official Journal L 350 of 31.12.2007]. Following the adoption of the Regulation governing the fruit and vegetable sector, this Regulation will integrate and reorganise the detailed rules concerning this sector. It will regulate the classification of products, producer organisations and trade with Non-EU Member Countries. It also includes, in its Annexes, the details of the official authorities and monitoring organisations, and models for certain certificates and documents needed for trade in these products to take place.

See consolidated version (pdf)

Aid:

Regulation (EC) No 464/1999 [Official Journal L 56, 4.3.1999] Detailed rules for the application of the Regulation on the common organisation of the market in processed fruit and vegetable products as regards aid arrangements for prunes.

See consolidated version (pdf)

Regulation No 1573/1999/EC [Official Journal L 187 of 20.7.1999] Detailed rules for the application of the Regulation on the common organisation of the market in processed fruit and vegetable products as regards the characteristics of dried figs qualifying for aid under the production aid scheme.

Regulation No 1621/1999/EC [Official Journal L 19 of 24.7.1999] Detailed rules for the application of the Regulation on the common organisation of the market in processed fruit and vegetable products as regards aid for the cultivation of grapes to produce certain varieties of dried grapes.

See consolidated version (pdf)

Regulation No 1622/1999/EC [Official Journal L 192 of 24.7.1999] Detailed rules for the application of the Regulation on the common organisation of the market in processed fruit and vegetable products as regards the scheme for the storage of unprocessed dried grapes and unprocessed dried figs.

See consolidated version (pdf)

Regulation (EC) No 1666/1999 [Official Journal L 197, 29.07.1999] Detailed rules for the application of the Regulation on the common organisation of the market in processed fruit and vegetable products as regards the minimum marketing characteristics for certain varieties of dried grapes.

Regulation No 217/2002/EC [Official Journal L 35 of 06.02.2002] Eligibility criteria for raw materials under the production aid scheme in Regulation (EC) No 2201/96.

Commission Regulation (EC) No 1535/2003 [Official Journal L 218, 30.8.2003] Detailed rules for applying Council Regulation (EC) No 2201/96 as regards the aid scheme for products processed from fruit and vegetables.

See consolidated version (pdf)

Quality

Regulation (EEC) No 1764/86 [Official Journal L 153 of 7.6.1986] Minimum quality requirements for products processed from tomatoes.

See consolidated version (pdf)

Regulation (EEC) No 2320/89 [Official Journal L 220 of 29.07.1989] Minimum quality requirements for peaches in syrup and natural fruit juice.

See consolidated version (pdf)

Regulation (EC) No 1010/2001 [Official Journal L 140 of 24.05.2001] Minimum quality requirements for mixed fruit under the production aid scheme.

Regulation (EC) No 1559/2006 [Official Journal L 288 of 19.10.2006] Minimum quality requirements for Williams and Rocha pears in syrup and/or in natural fruit juice under the production aid scheme.

Last updated: 01.10.2008