Common organisation of the market in olive oil and table olives

This Regulation sets up a common organisation of the market in olive oil and table olives. The support scheme for these products is covered by the "Mediterranean package" which is part of the major reform of the common agricultural policy (CAP) of June 2003 with its provisions for the hop, cotton, olive and tobacco sectors. It remains in force until 30 June 2008.

ACT

Council Regulation (EC) No 865/2004 on the common organisation of the market in olive oil and table olives and amending Regulation (EEC) No 827/68.

SUMMARY

As from 1 July 2008, products falling under the scope of this Regulation will be covered by the common organisation of agricultural markets.

This Regulation is part of the "Mediterranean package" and contains far-reaching amendments to the common organisation of the market in olive oil and table olives.

It provides for a system of intervention within the framework of the internal market and certain support measures for European products when they are traded on the world markets.

Scope

This common organisation of the market covers:

• olive oil and its fractions;
• fresh olives and olives which have undergone processing such as chilling, cooking, pickling;
• oil-cake and other olive residues.

Single payment

The common organisation of the market in olive oil and table olives has undergone drastic change in that it has partly changed over to the single farm payment scheme. This scheme will apply to the common organisation of the market in olive oil and table olives for the 2005-06 marketing year.

Marketing year

The marketing year starts on 1 July each year and ends on 30 June of the following year. However, the 2005/06 marketing year began on 1 November 2005.

INTERNAL MARKET

Marketing standards

Olive oil and other oils obtained from olive oil may be subject to marketing standards. These standards apply in particular to quality grading, packaging and presentation.

Intervention

In the event of a serious disturbance of the market in the European Union or some of its regions, the Commission may authorise storage. The storage mechanism is used in particular when, for a long period of time, the average price recorded on the market is less than:

• EUR 1 779 per tonne for extra virgin olive oil*;
• EUR 1 710 per tonne for virgin olive oil*;
• EUR 1 524 per tonne for lampante olive oil* having 2 degrees of free acidity (this amount will be reduced by EUR 36.70 per tonne for each additional degree of acidity).

Operators' organisations

Professional or operators' organisations may draw up work programmes for the purpose of improving the market in olive oil and olives with regard to product quality, environmental impact, information and administrative management.

Funding for these initiatives ranges from 50% to 100% of the maximum amounts for direct aid. Member States may finance up to 50% of the costs not covered by Community funding.

TRADE WITH THIRD COUNTRIES

Issuing of import licences

Imports of certain products are subject to the presentation of import licences issued by Member States. Export licences may also become necessary to counter certain market developments.

Common Customs Tariff

The Common Customs Tariff applies to all products involved. However, if the market price significantly exceeds the average prices for a period of at least three months, certain derogations may enter into force.

Barriers to trade

Charges having an effect equivalent to customs duty and quantitative restrictions on imports or equivalent measures are normally prohibited in trade with third countries. The use of inward processing arrangements may be prohibited.

Safeguard measures

If there is a risk that imports will cause disturbances in the market, safeguard measures may be adopted for all products, provided the Community's international obligations are also met.

OTHER PROVISIONS

The price of other vegetable oils

Member States may not increase the price of other vegetable oils so as to ensure an outlet for nationally produced olive oil.

Communication

The Member States and the Commission are to exchange any necessary information concerning the implementation of the Regulation and the respect of international obligations relating to olive oil and olives.

Committee procedures

The Commission will be assisted in its implementation of the Regulation by a Management Committee for Olive Oil and Table Olives (FR), made up of representatives from the Member States and chaired by a member of the Commission staff.

This common organisation of the market replaces the one relating to oils and fats.

Background

The reform of the common organisation of the market in olive oil and table olives was negotiated as part of the “Mediterranean package” (hops, cotton, tobacco), but became the subject of a separate Regulation. In a second phase (April 2004) these products were integrated into the major CAP reform of June 2003, with the approval of the changeover from the system of direct payments (where aid was given per hectare, per unit of quantity or per animal) to the single farm payment scheme.

In 2007, this common organisation of the market was subsumed under the single common organisation of the market (l67001), which replaced the 21 individual systems in place for various sectors and simplified the legislative framework for the common agriculture policy.

RELATED ACTS

Commission Regulation (EC) No 2153/2005 of 23 December 2005 on the aid scheme for the private storage of olive oil [Official Journal L 342, 24.12.2005].

Commission Regulation (EC) No 2080/2005 of 19 December 2005 laying down detailed rules for the application of Council Regulation (EC) No 865/2004 as regards operators’ organisations in the olive sector, their work programmes and the financing thereof [Official Journal L 333, 20.12.2005].

Commission Regulation (EC) No 1345/2005 of 16 August 2005 laying down detailed rules for the application of the system of import licences for olive oil [Official Journal L 212, 17.8.2005].

Commission Regulation (EC) No 1019/2002 of 13 June 2002 on marketing standards for olive oil [Official Journal L 155, 14.6.2002]. See consolidated version (pdf).

Last updated: 07.03.2008