Regulations 2004

B

L.N. 63 of 2004

PRODUCER ORGANISATIONS ACT 2002

(ACT No. IX OF 2002)

Fruit And Vegetable Producer Organisations

Regulations 2004

IN exercise of the powers conferred by articles 9 and 19 of the Producer

Organisations Act, 2002, the Minister for Rural Affairs and the Environment has

made the following regulations:-

Part I

Preliminary

(1) The title of these regulations is the Fruit and Vegetables

Producer Organisations Regulations 2004.

(2) These Regulations shall come into force on 15 th February

2004.

Products referred to in Regulation 3

Description

Tomatoes, fresh or chilled

Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or

chilled

Cabbages, cauliflowers, kohl-rabi, kale and similar edible brassicas,

fresh or chilled

Lettuce (Lactuca sativa) and chicory (Cichorium sp.)

Carrots, turnips, salad beetroot, salsify, celeriac, radishes, and similar

edible roots, fresh or chilled

Cucumbers and gherkins, fresh or chilled

Leguminous vegetables, shelled or unshelled, fresh or chilled

Other vegetables, fresh or chilled, excluding vegetables of subheadings

0709 60 91, 0709 60 95, 0709 60 99, 0709 90 31, 0709 90 39 and 0709

90 60.

Other nuts , fresh or dried, whether or not shelled or peeled, excluding

areca (or betel) and cola nuts falling within subheading 08029020

Fresh plantains

Dried plantains

Figs, fresh

Pineapples

Avocados

Guavas mangoes and mangosteens

Citrus fruit, fresh or dried

Fresh table grapes

Melons (including watermelons) and pawpaws (papaya) fresh

Apples, pears and quinces, fresh

Apricots, cherries, peaches (including nectarines), plums and sloes, fresh

Other fruit, fresh

Mixtures exclusively or dried nuts of CN Nos. 0801 and 0802

Carobs

(1) Unless the context otherwise requires, words and phrases

used in these regulations shall have the same meaning as is

assigned to them in article 2 of the Producer Organisations Act,

2002. (2) Where reference in these regulations is made to monetary

amounts in Euros, these are to be converted to Maltese liri using the

rate of exchange applicable at the time of such conversion.

Part II

Establishment and recognition of producer organisations

Products referred to in Regulations 24 to 27

Withdrawal Compensation

Item

(Euros/100 kg)

Aubergines

3.97

Cauliflowers

7.01

Lemons

13.00

Melons

4.00

Nectarines

13.04

Oranges

14.00

Peaches

10.99

Table Grapes

8.02

Tomatoes

4.83

Apples

8.81

Apricots

14.17

Pears

8.39

Satsumas

13.00

Clementines

13.00

Mandarins

13.00

Watermelons

4.00

For the purposes of these regulations a producer organisation is

any legal entity

(a) which is formed on the own initiative of growers of one or more

of the following categories of the products listed in the First

Schedule

(i)

Fruit and vegetables

(ii)

Fruit

(iii)

Vegetables

(iv)

Products intended for processing

(v)

Citrus fruits

(vi)

Nuts

(vii)

Mushrooms

Provided that with regard to the category of products referred to in

subregulation (a) (i) above, only individual recognition is possible;

(b) which has the following principal aims

(i)

ensuring that production is planned and adjusted to demand,

particularly in terms of quality and quantity;

(ii)

promoting concentration of supply and the placing on the

market of its members’ produce;

(iii)

reducing production costs and stabilising producer prices;

(iv)

promoting the use of cultivation practices, production

techniques and environmentally sound waste-management

practices in particular to protect the quality of water, soil and

landscape and to preserve and, or encourage biodiversity.

(c) whose Rules of Association are in conformity with regulation 5.

The Director shall recognise as producer organisations for the

purposes of these regulations, all producer groups applying for such

recognition, on condition that

(a) they meet the requirements laid down in regulation 3 and

provide the relevant evidence, including proof that they have a

minimum number of five members and cover a minimum value

of marketable production of 100,000 Euros.

(b) with regard to the categories of products referred to in

subregulations 3 (a) (i) to (vi) above they indicate the specific

products they will be producing.

(c) there is sufficient evidence that they can carry out their activities

efficiently;

(d) they effectively enable their members to obtain technical

assistance in using environmentally-sound cultivation practices;

(e) they effectively provide their members with the technical means

for storing, packaging and marketing their produce and ensure

proper commercial and budgetary management of their

B

activities;

The Rules of Association of applicant groups shall provide for

(a) procedures for determining, adopting and amending the said

rules of association;

(b) the democratic scrutiny by members of the producer organisation

and its decisions;

(c) the payment by members of the financial contributions provided

for in their Rules of Association for the establishment and

replenishment of the operational fund provided for in regulation

11 (1) (a);

(d) the provision by members of the information requested by the

producer organisation for statistical purposes, in particular on

growing areas, quantities cropped, yield and direct sales;

(e) the imposition of penalties for infringement by members of the

obligations arising from the Rules of Association or of other

rules laid down by the producer organisation;

(f) the admission of new members, particularly concerning

a

minimum membership period;

(g) the accounting and budgetary rules necessary for the operation

of the producer organisation.

(1) The minimum membership period of a producer shall be not

less than two years

Provided that where an operational programme pursuant to

regulation 9 has been submitted, no member may disclaim his

obligations under that programme during the period of its

implementation, except where the producer organisation concerned

gives its approval.

(2) Resignation of membership shall be notified to the producer

organisation and such resignation will become effective six

months after notification.

The Director shall

(a) within three months of the lodging of an application with all the

supporting documents, decide whether to grant recognition to a

producer organisation; and

(b) cause to be carried out checks at regular intervals to ascertain

that producer organisations comply with the terms and

conditions for recognition, impose in the event of non-

compliance the applicable penalties and decide, where necessary,

to withdraw recognition.

(1) New producer groups may request preliminary recognition in

accordance with the provisions of Articles 15, 16, 17, 18 and 19 of

Regulation (EC) 1432/2003 .

(2) During the five years following the date of preliminary

recognition, the Director may grant to the producer groups referred

to in sub-regulation (1) aid to encourage their formation and

facilitate their administration according to the provisions of Articles

3 and 4 of Regulation (EC) 1943/2003.

Part III

The operational programme

Producer organisations may submit operational programmes to the

Director, who shall approve or reject them or request their

modification in line with these regulations.

The operational programmes should comply with the

requirements of Articles 8 to 17 of Regulation (EC) 1433/2003.

Part IV

The operational fund

(1) The producer organisation shall set up an operational fund,

which shall be maintained by

(a) financial contributions paid by members based on the quantities

or value of fruit and vegetables actually marketed;

(b) financial assistance allocated to the producer organisation by the

Minister in terms of Article 15.5 of Regulation (EC) 2200/1996.

(2) Producer organisations shall submit an application for the

financial assistance referred to in regulation 11 1 (b) according

to the provisions of Regulation (EC) 1433/2003, and for

assistance under other aid schemes on the basis of Regulation

(EC) 1092/2001 and Regulation (EC) 1535/2003.

(3) Producer organisations and their members must keep up-to-date

suitable documentation and should, in particular, specify the

areas under tomatoes, peaches, pears, citrus and vegetable crops

on the basis of Regulation (EC) 3508/92.

Operational funds shall conform to the provisions and

B

requirements of Articles 5, 6 and 7 of Regulation (EC) 1433/2003.

Use of the operational fund to finance market withdrawals

according to the provisions of Article 15.3 (a) and (b) of Regulation

(EC) 2200/1996 shall be permissible only if an operational

programme has been approved by the Director.

An association of producer organisations recognised by the

Director may replace its members for the purpose of managing their

operational fund and for establishing, implementing and submitting

their operational programmes as referred to in regulations 9 and 10.

In such cases, the association shall receive the financial assistance

referred to in regulation 11 (1) (b).

Operational programmes and their financing by producers and

the producer organisations on the one hand and by the Director on

the other shall have a minimum duration of three and a maximum

duration of five years.

Submission of an operational programme to the Director by a

producer organisation or by an association of producer organisations

shall imply a commitment by the producer organisations or

association to submit to national checks, in particular as regards

proper management of public resources.

Part V

Interbranch organisations and Agreements

For the purposes of these regulations, “recognised interbranch

organisations”, hereinafter referred to as interbranch organisations,

means legal entities which

(1) are made up of representatives of economic activities linked to

the production of and, or trade in and, or processing of the

products referred to in regulation 3 (a);

(2) are established on the initiative of all or some of the

organisations or associations which constitute them;

(3) have been recognised by the Director in terms of regulation 18;

(4) carry out several of the following measures taking account of the

consumers’ interests

(i)

improving knowledge and the transparency of production

and the market;

(ii)

helping in the better co-ordination of the way fruit and

vegetables are placed on the market by means of research and

market studies;

(iii)

drawing up standard forms of contract;

(iv)

exploiting more fully the potential of the fruit and vegetables

produced;

(v)

providing the information and carrying out the research

necessary to adjust production towards increased suitability to

market requirements and consumers’ tastes and expectations,

in particular with regard to product quality and protection of

the environment;

(vi)

seeking ways of restricting the use of plant health products

and other inputs and ensuring produce quality and soil and

water conservation;

(vii)

exploiting the potential of and protecting organic farming as

well as designation of origin, quality labels and geographical

indications;

(viii) promoting integrated production or other environmentally

sound production methods.

The Director may recognise as interbranch organisations within

the meaning of these regulations all organisations established in

Malta which make an appropriate application, on condition that

(1) they carry out their activity in Malta;

(2) they represent a significant share in the production of and, or

trade in and, or processing of fruit and vegetables or products

processed from fruit and vegetables in Malta;

(3) they carry out several of the measures referred to in regulation

17;

(4) they are not themselves engaged in the production or processing

or marketing of fruit and vegetables or products processed from

fruit and vegetables;

(5) they present evidence that at least 75% of members in the

participating producer organisations are in agreement with the

setting up of the interbranch organisation

Provided that no more than one interbranch organisation for each

product listed in the First Schedule shall be so recognised.

B

The Director shall decide whether to grant recognition to

interbranch organisations in terms of article 11 (2) of the Producer

Organisations Act, 2002.

Recognition of an interbranch organisation shall constitute an

authorisation to carry out the measures listed in regulation 17 (4).

(1) In cases where an interbranch organisation is considered to

be representative of the production of and, or trade in and, or

processing of a given product, the Director may, at the request of

the organisation, make some of the agreements, decisions or

concerted practices agreed on within that organisation binding

for a limited period on other operators in Malta, whether

individuals or groups, who do not belong to the organisation.

(2) An interbranch organisation shall be deemed representative

within the meaning of sub-regulation (1) where it accounts for at

least two thirds of the production and, or trade in and, or

processing of the product or products concerned.

The rules for which extension to other operators may be

requested

(1) must concern one of the following aims

(a)

production and market reporting;

(b)

drawing up of standard contracts;

(c)

rules on marketing;

(d)

rules on protecting the environment;

(e)

measures to promote and exploit the potential of products;

(f)

measures to promote organic farming as well as designations

of origin, quality labels and geographical indications;

(2) must have been in force for at least one marketing year and may

be made binding for no more than three marketing years;

(3) must not cause any harm to other operators in Malta.

In cases where rules for one or more products are extended and

where one or more of the activities listed in regulation 22 (1) are

pursued by a recognised interbranch organisation and are in the

general economic interest of those persons whose activities relate to

one or more of the products concerned, the Director may decide that

individuals or groups that are not members of the organisation but

which benefit from those activities shall pay the organisation all or

part of the financial contributions paid by its members to the extent

that such contributions are intended to cover costs directly incurred

as a result of pursuing the activities in question.

Part VI

Intervention arrangements

Producer organisations and their associations may choose not to

put up for sale any of the products listed in the first column of the

Second Schedule contributed by their members, both in quantities

and for periods which they consider appropriate.

The destination of products withdrawn from the market under

regulation 24 must be fixed by the producer organisation or

association in such a way as not to disturb the normal disposal of the

products in question and must respect the environment, particularly

as regards water and landscape quality.

Where regulation 24 is applied to any one of the products listed

in the first column of the Second Schedule which meet the relevant

standards, producer organisations and their associations shall pay

their members the withdrawal compensation set out in the second

column of the Second Schedule in accordance with the provisions of

Article 23 (3) (4) and (5) of Regulation (EC) 2200/1966.

In connection with the products listed in the first column of the

Second Schedule, and in terms of article 13 of the Producer

Organisations Act, 2002, producer organisations shall allow the

benefits of regulation 26 to non-member producers, if they so

request.

Part VII

Recovery and Penalties

Aid unduly paid or aid applied for fraudulently or irregularly

shall be recovered or withheld and penalties shall be applied to the

beneficiary and, or applicant concerned according to the provisions

of Article 24 of Regulation (EC) 1433/2003

Any producer organisation or interbranch organisation which

fails to comply with or contravenes any of the provisions of these

regulations shall be liable to an administrative fine, which shall be

imposed by the Director, of not less than one hundred liri and not

more than one thousand liri for each offence, and to an additional

fine of fifty liri for each day during which the said failure to comply

or contravention persists.