30. 3. 89 Official Journal of the European Communities i No L 85/3 COUNCIL REGULATION (EEC) No 785/89 of 20 March 1989 instituting specific measures for nuts and locust beans and amending Regulation (EEC) No 1035/72 on the common organization of the market in fruit and vegetables THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European - Patliament ('), Whereas the situation: on the market for -nuts, that is essentially that for almonds, hazelnuts or filberts, walnuts and pistachios, is markedly out of step with technical and commercial requirements from the point of view of both. technical production conditions, which are typified by a large number of small holdings and a low level of mechanization, leading in turn to low productivity and high costs, and marketing conditions; Whereas the same situation is a feature of locust bean cultivation ; whereas, in certain- regions of the Community, such cultivation is closely linked to orchards producing nuts and may be amalgamated with nut cultivation to constitute one homogenous - plantation ; whereas therefore the measures introduced for nuts should be extended to. cover locust beans; ' Whereas the formation of producers’ organizations, placing an obligation on their members-to comply with rules adopted by the organizations in order to improve product -quality and to- adapt the volume of supply to- market requirements,. would be a suitable way of remedying the said - structural - deficiencies ; whereas provisions for facilitating the formation and operation of such organizations  should be adopted; Whereas an incentive of this kind can be provided in the first instance by granting a flat-rate aid for the formation of these organizations which would be paid at the end of- the first and second marketing year following the date of an organization’s specific recognition by the appropriate Member State, and in addition to the aid provided for in Article- 14 of Regulation (EEC) No 1035/72 (%), as last amended by Regulation (EEC) No 2238/88 () ; whereas. provisions should be made for the Community to co-finance this scheme by paying 50 % of the aid granted by the Member State ; (') Opinion delivered on 17 March 1989 (not yet published in the Official Journal). () OJ No L 118, 20. 5. 1972, p. 1. () OJ No L 198, 26. 7. 1988, p. 1. Whereas, in order to allow producers” organizations which produce and market nuts and/or locust beans to concentrate supplies, to stagger the release on to the market. of their products, particularly by creating the appropriate storage capacity, and to improve product quality, the creation of revolving funds for these organi- zations should be encouraged ; whereas such an incentive could-be provided by financial- contributions from the Member State and from the Community to setting up such revolving - funds, with a- ceiling determined with reference to the value of the products marketed by the producers’ organizations over a given marketing year; Whereas in the interests of further encouraging producers who are members of an organization to modernize their orchards in order to meet market requirements, the granting of aid for the formation of an organization and for the creation of a revolving fund should be made conditional on presentation of a quality and: marketing improvement plan which must be approved by the national authorities designated by the Member States; whereas, in order to be consistent with the aims of the scheme, this plan must seek primarily to bring.about a genetic and cultural improvement of products grown in plantations which are given over to producing one homogenous product and are not scattered among other plantations ; whereas a specific aid should be granted for the drawing up of such a plan and should be co-financed by the Member-States and the Community ; whereas the. level of the aid should nevertheless be restricted and the aid-itself temporary and degressive to allow a progressive shift of financial responsibility on to the producers; Whereas, in the interests of bringing the products to the attention of all existing and potential users, promoting marketing which is in line with market needs and giving impetus to the activity of nut producers’ organizations, provision should be made for the Community to contribute to-the financing of measures to develop and improve the consumption-and use of these products ; Whereas it is appropriate to include locust beans among the products covered by the common organization of the market “in: fruit and “vegetables and- to -amend Council Regulation (EEC) No 827/68 of 28 June 1968 on the common organization of the markets in certain products listed in Annex II to the Treaty (%), as last amended by Regulation (EEC) No 3911/87 (%), (9 OJ No L 151, 30. 6. 1968, p. 16. () OJ No L 370, 30. 12. 1987, p. 36.