(1)

The weather conditions in Portugal during the 2004/05 marketing year have led to a severe drought which has seriously reduced the availability of fodder and caused a shortage for farmers. This shortage of fodder could cause farmers to sell or slaughter their livestock too early and have serious consequences for the sector and farmers’ incomes.

(2)

The abundant cereal harvest in the rest of the Community in that marketing year, particularly in the Member States that joined the Community on 1 May 2004, has at the same time led to a significant increase in intervention stocks of common wheat, maize and barley, outlets for which on the domestic market of the Member States concerned or the export markets have been non-existent for a relatively long period, and for which sufficient local storage capacities are not always available.

(3)

Therefore the Community market in cereals continues to be highly imbalanced and stabilisation and compensation measures should be taken under the intervention system. As a result, given the existence of cereal stocks that may have to be kept for a very long period under the intervention regime in those regions with a large surplus and the resultant costs for the Community budget, and the existence at the same time of a shortage of animal feed in Portugal, part of those stocks should be made available to Portuguese farmers.

(4)

Distribution of these cereals on the Portuguese market requires an appropriate management and financial control structure to be used. Provision should be made for the cereals to be transferred initially to the Portuguese intervention agency, which should then be responsible for selling the cereals and distributing them to the benefit of farmers.

(5)

As a result of the level of demand and the availability of cereals offered for intervention in Hungary, the lack of approved storage capacities for intervention in that country, and the inadequacy of the measures taken so far to solve the problem of disposing of these Hungarian stocks, this operation should be carried out using Hungarian cereals.

(6)

Provisions on the booking of this operation should be laid down in accordance with the mechanisms provided for in Council Regulation (EEC) No 1883/78 of 2 August 1978 laying down general rules for the financing of interventions by the European Agricultural Guidance and Guarantee Fund, Guarantee Section (2).

(7)

For the sake of simplification and for control purposes, the Community’s financial contribution should be set at a standard amount.

(8)

The stocks transferred should be sold in accordance with the conditions laid down in Commission Regulation (EEC) No 2131/93 of 28 July 1993 laying down the procedure and conditions for the sale of cereals held by intervention agencies (3). However, in view of the special requirements of the objectives to be met in the context of the shortage of animal feed, specific provisions should be laid down to be applied by the Portuguese intervention agency, by way of derogation from Regulation (EEC) No 2131/93.

(9)

In order not to disrupt the Portuguese cereal market, it is in particular necessary to lay down specific provisions for the quantities offered and to set limits on the selling price of the cereals.

(10)

The measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Cereals,