RESTRICTED
WORLD TRADE IMA/INV/11
23August 1996
ORGANIZATION(96-3293)
Original: French International Bovine Meat Agreement
INTERNATIONAL MEAT COUNCIL
Inventory ofDomestic Policies andTrade Measures
Romania
Parties haveagreed to"provide information ontheirdomestic policies andtrade measures
including bilateral andplurilateral commitments inthebovine meatsector, andshallnotify assoon
aspossible anychanges insuchpolicies andmeasures thatarelikely toaffect international trade in
bovine meatandliveanimals" (Article III:3). TheSecretariat "shall draw upandkeepuptodatean
inventory ofallmeasures affecting trade inbovine meat andliveanimals, including commitments
resulting from bilateral, plurilateral andmultilateral negotiations" (Article III:4).
Thedocumentscontainingtherepliestothequestionnaireondomesticpoliciesandtrademeasures
arecirculated under theseries IMA/INV. They willberevised asandwhen changes arenotified.IMA/INV/11
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FEATURES OFTHE SECTORAL POLICY RELATED TOTHE NUMBER OF
BEEF CATTLE AND BOVINE MEAT PRODUCTION
I. InRomania, livestock production isthesecond mostimportant inagriculture interms ofvalue.
Theproduction ofbovine meatisthethirdmostimportant sector oflivestock production andaccounts
for7.7percent, afterpigmeat andpoultry meat.
Regarding ownership ofbovine animals, following themajor changes thathavetaken place
since 1989, including inagriculture, thestructure ofbeefherds andtheproduction ofbovine meat
hasaltered significantly. In1992, 77percentofbeefcattle were inprivate farms, 4percentwere
owned byprivate commercial companies andaround 18percentbyState farms. Theprivate sector
nowowns over85percentofthetotalnumber ofbeefcattle (around 90percentofthenumber of
cows andheifers).
There are1,800,000 farms inRomania, ofwhich 99.9percentaresmall family farms.
During theperiod 1989-1995, thenumber ofbeefcattle decreased yearly. On1January 1989,
thetotalnumber ofbeefcattle was6.4million, andin1995 itwas3.5million (areduction of45per
centincomparison with1989).
Thedecrease inthenumber ofbeefcattle directly caused areduction inmilk andmeat
production.
Themain breeds ofbeefcattle were alsothedirect cause ofadecrease inmilkandmeat
production.
Inorder ofimportance inmeat production, themain breeds ofbeefcattle are: "Baltata",
Siemmenthal-type Romanian cattle -41percent, Swiss-type Bruna -30percent, andFriza -27per
cent.
Theproduction ofbovine meatcurrently accounts for18percentoftotalmeatproduction.
Meat consumption hasgradually decreased overthepastfourtofiveyears: from16kg.per
capita in1990 to11kg.in1995, theamount ofmeatconsumed inoverall percapita consumption is
20percent.
Thedecrease inbovine meatconsumption hasbeencaused bythedecrease inthenumber of
beefcattle, aswellasbytheliberalization ofbeefprices; insuchacontext, theconsumer preferred
pigmeat orpoultry meat.
II. Prices
Since 1993, bovine meatproduction andprices havebeenfullyliberalized. From calves to
meatcarcasses andprocessed meat, prices aredetermined bysupply anddemand.
In1995, calves weresoldforanaverage priceoflei2,000 perkg.,incomparison withyoung
bovine animals weighing between 350and450kgs., which were soldforanaverage price of
lei2,300 perkg.IMA/INV/11
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III. Measures atthefrontier
Imports oflivebovine animals forbreeding orslaughter, aswellasimports ofprocessed
products, arenotsubject toanynon-tariff restrictions; customs duties range from3to169percent.
Breeding animals maybeimported freeofcustoms duty.
There arenoexport tariff restrictions. However, theMinistry ofAgriculture andFood fixes
thecategories ofanimal andtheminimum weight forexport onanannual basis(Government Decision
No.79of30January 1995).
Imports andexports require sanitary-veterinary permission, aswellassanitary-veterinary health
andtransport certificates.
IV. Internal assistance
Inorder tocreate viable private farms andtoimprove production, theStateassists beeffarmers
through financial allowances, credit facilities andspecialized assistance (inconformity withLaw
No.83/1993).
Beeffarmers mayreceive assistance covering upto50percentoftheselling price under the
following conditions:
- Thefinancial allowance must beusedtopurchase highquality breeding material so
astoreplace lessproductive breeds;
- breeding animals purchased must notbesoldorslaughtered forfouryears;
- thisassistance maybegranted tofarms which utilize more thanthree dairy cows per
production cycle.