FRUIT AND VEGETABLE PRODUCER ORGANISATIONS REGULATIONS *

SUBSIDIARY LEGISLATION 447.01

FRUIT AND VEGETABLE PRODUCER

ORGANISATIONS REGULATIONS *

15th February, 2004

LEGAL NOTICE 63 of 2004, as amended by Legal Notice 210 of 2011.

The title of these regulations is the Fruit and Vegetable

Producer Organisations Regulations.

In these regulations, unless the context otherwise requires

"Paying Agency" shall have the same meaning as that

assigned to it in the Paying Agency Regulations.

A producer organisation shall be any legal entity

constituted and recognised in terms of the provisions of Articles

122 to 125 of Regulation (EC) 1234 of 2007 and Title III of

Regulation (EC) 1182 of 2007.

The Director shall recognise producer organisations in

terms of the provisions of Article 125(b) of Regulation (EC) 1234

of 2007 and Article 4 of Regulation (EC) 1182 of 2007.

The Rules of Association of applicant groups shall provide

(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.

*These Regulations have been transposed to Cap 639, see S.L. 639.06. - See Act

XXXIII of 2023.

(1) The minimum membership period of a producer shall

be not less than one year

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 or producer group in writing by not later

than the 30th September of a particular year and shall take effect

from the 1st January of the following year.

(3) Producer organisations and producer groups shall inform

the Director, in writing, by the 30th September of each year, of the

resignation of any member or of the recruitment of a new member

during the previous 12-month period. Producer organisations or

producer groups shall provide the Director with a copy of the

signed Members’ Agreement and proof of payment, together with

information regarding the member’s details including name and

address, produce marketed and holdings committed to the producer

organisation or producer group on a prescribed form to be provided

by the Director.

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 38 to 42

of Regulation (EC) 1580/2007.

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

recognition, the Director may grant to the producer groups referred

to in subregulation (1) aid to encourage their formation and

facilitate their administration according to the provisions of Article

45 of Regulation (EC) 1580/2007.

(3) Producer groups shall submit their recognition plans to the

Director, who shall approve or reject them or request their

modification in line with these regulations

Provided that where a producer group is desirous of

applying for EU aid in terms of any of the schemes listed in the

Paying Agency Regulations, it shall submit its recognition plan to

the Paying Agency, which shall approve or reject it or request

modification to such recognition plan in respect of eligibility for

funding, prior to the submission to the Director.

(4) Producer groups may submit a request to effect

amendments to their recognition plans during their implementation.

Notification for change shall be submitted in writing by the

producer group to the Director and to the Paying Agency by the

15th September of that particular year and shall be accompanied by

supporting documentation justifying the amendments being

requested.

Producer

organisations

shall

submit

operational

programmes to the Director, who shall approve or reject them or

request their modification in line with these regulations

Provided that where a producer organisation is desirous of

applying for EU aid in terms of any of the schemes listed in the

Paying Agency Regu latio ns, it sh all subm it its operati onal

programme to the Paying Agency, which shall approve or reject it

or request modification to such operational programme in respect

of eligibility for funding, prior to the submission to the Director.

The operational programmes shall comply with the

requirements of Articles 57 to 68 of Regulation (EC) 1580/2007.

The reference period for the calculation of the value of the

marketed product, shall be of twelve months, and may be selected

by the producer organisation in accordance with any of the criteria

indicated in Article 53(2) of Regulation (EC) 1580/2007. The

producer organisation shall ensure that such reference period

coincides with the financial period as provided for under Article

53(3) of Regulation (EC) No 1580/2007. The selected reference

period cannot be modified for the whole duration of the operational

programme except under exceptional circumstances.

(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 103(d)

of Regulation (EC) 1234/2007.

(2) Producer organisations shall submit an application for the

financial assistance referred to in subregulation (1)(b) according to

the provisions of Regulation (EC) 1580/2007, 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) 73/2009.

Operational funds shall conform to the provisions and

requirements of Articles 54, 55 and 56 of Regulation (EC) 1580/

2007.

Use of the operational fund to finance market withdrawals

according to the provisions of Section 2 of Regulation (EC) 1580/

2007 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 t he o ther shall have a min im um d ura tio n o f thr e e a n d 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.

An interbranch organisation shall be a legal entity

constituted and recognised in terms of the provisions of Articles

1 2 3 t o 1 2 5 o f R e g u l a t i o n ( E C ) 1 2 3 4 / 2 0 0 7 a n d Ti t l e I V o f

Regulation (EC) 1182/2007.

The Director may recognise as interbranch organisations

w i t h i n t h e m e a n i n g o f t h e s e r e g u l a t i o n s a l l o rg a n i s a t i o n s

established in Malta which make an appropriate application, on

condition that

(a) they carry out their activity in Malta;

(b) 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;

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

regulation 17;

(d) they are not themselves engaged in the production or

processing or marketing of fruit and vegetables or

products processed from fruit and vegetables;

(e) 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.

The Director shall decide whether to grant recognition to

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

Organisations Act.

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 t he organisation, make some o f 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 subregulation (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

(a) must concern one of the following aims

(i)

production and market reporting;

(ii)

drawing up of standard contracts;

(iii)

rules on marketing;

(iv)

rules on protecting the environment;

(v)

measures to promote and exploit the potential of

products;

(vi)

measures to promote organic farming as well as

designations of origin, quality labels and

geographical indications;

(b) must have been in force for at least one marketing year

and may be made binding for no more than three

marketing years;

(c) 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.

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 125 of Regulation (EC) 1580/2007.

(1) Any producer organisation or interbranch organisation

which fails to comply with, or contravenes any of the provisions of

these regulations, or of the applicable provisions of Regulations

(EC) 1234 of 2007 and 1182 of 2007 shall be guilty of an offence

against the Act and shall be liable to an administrative fine, which

shall be imposed by the Director, of not less than one thousand five

hundred euro (€1500) but not exceeding two thousand and three

hundred and twenty-nine euro and thirty-seven cents (€2,329.37)

for each offence, and to an additional fine of one hundred and fifty

euro (€150) for each day during which the said failure to comply or

contravention exists.

(2) The Director may withdraw recognition of a producer

organisation or interbranch organisation in terms of the provisions

of Articles 116 and 117 of Regulation (EC) 1580 of 2007 and

Articles 125b of Regulation 1234 of 2007 and Articles 4 and 21 of

Regulation (EC) 1182 of 2007.