92001E3169

WRITTEN QUESTION E-3169/01

by Sergio Berlato (UEN) to the Commission

(19 November 2001)

Subject: Unfair competition in the European aquaculture sector

While production costs in the aquaculture sector are very similar around the European Union (and especially in certain Member States such as France, Spain, Greece and Italy), many companies in Greece are selling their products (in particular, sea bass and bream) at prices which are unquestionably lower than the production costs, thereby placing the sector in serious difficulty in various other EU Member States.

The reasons for this marketing policy, which can surely be defined as unfair competition, would seem to be the following:

- 30 % of medium-sized companies in Greece are apparently heading towards bankruptcy and are therefore marketing their products at any price for the sake of bringing in cash, in the hope of being able to see the crisis out;

- a number of medium-sized companies have apparently laid down the rules for obtaining a listing on the stock market under which they must show that their turnover is on the increase; representatives of the companies quoted on the stock market have themselves admitted that accounts were touched up in recent years to show substantial profits and thus improve their stock market position; however, these measures have now proved counterproductive, with the result that the same companies are having to find ways of increasing their turnover in order to balance their accounts.

In view of the above, will the Commission ascertain whether urgent action is needed to remedy the serious damage which the commercial policies of Greek companies are causing this sector in all EU Member States, and particularly in Italy?

Answer given by Mr Fischler on behalf of the Commission

(17 December 2001)

The Commission is aware that the average market prices for farmed sea bass and sea bream fell appreciably during 2001 in all Member States which are significant producers and consumers of these species.

The Commission held discussions on this topic with representatives of Community aquaculture producers who consider that the price drop was due to a number of factors, including the financial difficulties of certain companies. Strategies that can be regarded, however, as seeking deliberately to distort conditions of competition were not observed.

The Commission notes that many improvements could still be made to Community sea bass and sea bream producers' commercial organisation. In these discussions, therefore, it called upon the producers to establish structures which are better tailored to modern marketing requirements.