Pigmeat: common organisation of the markets

PURPOSE : to present a proposal for a Council Regulation amending Regulation 2759/75/EEC on the common organisation of the market in pigmeat. CONTENT : the purpose of this proposal is to incorporate a regulatory mechanism, that will enable producers' incomes to be stabilised by a system of levies to be collected during periods when the short-term economic situation is satisfactory and a system of payments to be made in times of recession, in the basic Regulation 2759/75/EEC. The main components of this proposal are the following : - Member States will be authorised to establish a regulatory fund in their territory. Participation by pigfarmers will be on a voluntary basis and for a period of not less than 5 years; - the regulatory funds will be financed by the pigfarmers themselves, on the basis of a levy paid in respect of each fattening pig. To meet the administrative costs incurred on setting up the fund, Member States may grant degressive launching aid. The funds may seek loans from banks on market terms; - the regulatory mechanism will have 2 components: a levy threshold, triggering the collection by the funds of an amount in respect of each fattening pig, and a payment threshold, triggering the grant of an amount in respect of each pigfarmer. The 2 thresholds will be set by the funds and authorised by the Commission in accordance with the management committee procedure; - where a fund must start a payment period without the necessary financial resources being available, the Member State concerned may grant it an interest-free loan. The loan reimbursed by the fund in full; - where a regulatory fund has sufficient financial resources, it may suspend collection of the levy temporarily; - upon becoming a member of the fund, the pigfarmers must declare the number of their fattening places. They must give an undertaking not to increase that number during their period of membership. However, where market prospects permit, Member States may be authorised by the Commission to derogate from that requirement.�