COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(92) 478 final 
Brussels, 20 November 1992 
REPORT FROM THE COMMISSION TO THE COUNCIL 
concerning 
application of Council Regulation 2990/82 
concerning the sale of butter at reduced 
prices to persons receiving social assistance 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 2990/82 on the sale of butter at reduced prices 
to persons receiving social assistance 
(presented by the Commission) 
1. Background 
The market situation for milk in general and for butter in particular has 
in the past required a whole range of disposal measures notably for 
butter in order to increase the internal and external sales and 
consequently diminish the purchases into public intervention storage. 
The scheme allowing for sale of butter to persons receiving social 
assistance has been in operation since 197 8 and Article 3a of Council 
Regulation 2990/82, last modified by Regulation 3917/90, requires that 
the Council, on the basis of a report from the Commission before 
31.12.1992, decides whether the subsidized sales under above mentioned 
regulation is to be continued. Two reports have been forwarded to the 
council, one in December 1988 and one in October 1990 resulting in 
continuation of the scheme for two consecutive year periods ending 
31.12.1992. Up until now the Regulation has only been applied in 
Ireland, and national legislation opening possibilities for such sales 
in Belgium as well, was introduced in the beginning of 19 88 but the 
scheme has not been applied in practise. The following therefore refers 
to Ireland only. 
2. Criteria for the determination of entitlement 
Persons entitled to benefit from the scheme are those in receipt of 
social assistance under any of the following categories which provide for 
social assistance payments : 
Old Age Pensions Acts, 1908 to 1978 
Unemployment Assistance Acts, 1933 to 1978 
Widows' and Orphans' Pension Acts, 1935 to 1978 
Deserted Wife's Allowance under the Social Welfare Act, 1970 
Social Assistance Allowance for Unmarried Mothers Social Welfare 
Act, 1973 
Prisoner's Wife's Allowance under the Social Welfare Act 1974 
Single Woman's Allowance under the Social Welfare Act 1974 
Social Welfare (Supplementary Welfare Allowance) Act 1975 
Disabled Persons (Maintainance) Allowances payable under 
Regulations made in pursuance of Section 69 of the Health Act 
1970 
Infectious Diseases (Maintenance) Allowance payable under 
Regulations made in pursuance of Section 44 of the Health Act, 
1947 
Procedure for implementation and control of the scheme 
A system of vouchers entitling two pounds of butter per month to be 
purchased at the normal retail price, less the amount of the subsidy, are 
supplied to those persons determined under the criteria set out at point 
2 above by the competent authority. Vouchers are also supplied for each 
qualified dependent of the social assistance recipient. Vouchers are 
valid for the month they are issued and the following two months. 
In 1990 the system of control was improved and involves checks oi water 
marked and security printed vouchers, numbers, amounts, quantities and 
eligibility of the numbered vouchers. These checks will, together with 
declarations from the retailers selling the butter and on the spot checks 
carried out by the competent authorities, ensure that the scheme is not 
abused. 
Developments in the butter and yellowfat market in Ireland 
In accordance with Article 4(3) of Regulation (EEC) n° 1898/87 the Member 
States shall forward to the commission information concerning the 
developments on the butter and yellow fat market. 
The information received from the Irish authorities concerning 
developments in market shares of butter, low-fat butter, margarine and 
fat mixtures shows the following development between 19 87 and 199 0. 
Butte r 
tonnes (%) Low-fat butter 
tonnes (%) 
2,000 (4%) 
2,750 (6%) 
1,860 (4%) 
1,575 (3,3%) Margarine 
tonnes 
14,900 
14,200 
15,700 
15,100 (%) 
(31%) 
(31%) 
(32.5%) 
(31.8%) Fat 
Mixture 
tonnes 
11,000 
15,000 
17,500 
18,825 !S 
(%) 
(23%) 
(30%) 
(36%) 
(39.6%) 1987 20,500 (42%) 
1988 16,325 (33%) 
1989 13,235 (27.5%) 
1990 12,000 (25.3%) 
It is noted that the total yellow fat market between 1987 and 1990 shows a 
decline of 1,9% while the fat mixtures have taken a continuance higher 
market share compared to that of butter while the market share of 
margarine has been stable. The fat mixtures generally contain butter or 
cream and vegetable fat and have been principally marketed on the basis of 
improved spreadability vis-à-vis butter. The introduction of reduced and 
low-fat butters, which incorporate additional milk protein and moisture to 
reduce the overall fat has also led to a reduction of the market share of 
full fat butter. 
5. Developments of sales, financial costs and number of beneficiaries 
Ireland has operated the aid scheme as provided for in the above mentioned 
Regulation since 1978 and the scheme has especially during the last years 
accounted for important shares of the declining internal Irish butter 
consumption. In 1991 the purchase of around 6.182 tonnes of butter was 
aided under the scheme and the estimated purchases for 1992 are 7.246t. 
In 1990 the purchases amounted to 50% of the total Irish butter 
consumption but accounted for less than 5% of the production and it is 
also expected that the purchases in 1992 will account for more than 50% of 
the consumption and less than 5% of the production. The maximum aid 
reimbursed by EAGGF amounts at present to 149.74 ECU/100kg and the total 
financial costs for EAGGF in 1991 amounted to 9.3S mio ECU. The 
expenditure for 1992 is estimate at 10,87 mio ECU. 
The development in purchases, financial EAGGF costs and number of 
beneficiaries since 1978 is indicated below : 
Purchases Financial Costs Beneficiaries 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 
1990 
1991* 
1992* 
Jan-June* 
year* (in tonnes) 
66 
3.704 
3.958 
3.825 
4.080 
4.892 
4.122 
5.785 
5.189 
5.651 
6.178 
6.567 
6.182 
6.260 
3.623 
7.246 (MECU) 
0.05 
2.96 
3.17 
3.06 
3.26 
3.91 
3.30 
4.63 
4.15 
10.06 
11.00 
9.85 
8.40 
9.39 
10.87 n.a. 
n.a. 
419.000 
431.000 
543.000 
569.000 
617.000 
650.000 
642.000 
720.000 
720.000 
720.000 
720.000 
740.000 
740.000 
* = Provisional 
5. Conclusions and recommendations 
The application of Council Regulation 2990/82 in Ireland has continued to 
be a successful means in maintaining sales to the social assistance 
categories indicated under point 2 who in the normal course of events 
would for economic reasons be in the forefront of change to cheaper 
substitutes. 
With a continued decline in the normal consumption of butter, the 
importance of the scheme will be even greater in future for the milk 
sector in general and the butter sector in particular. The Community 
financial costs are considered limited notably compared with costs 
relating to alternative purchase into public intervention, which, in 1990 
and 1991, has been the outlet for a very important part of the Irish 
butter production. 
A withdrawal of this long standing benefit from the less well off sectors 
of society e.g. unemployed persons, old age pensioners, etc. could hardly 
be defended from a social, market or economic point of view, as well as 
the favourable public perception of a Community scheme promoting butter 
sales should not be neglected. 
The Commission therefore proposes a continuation of the scheme for an 
additional two years ending 31 December 1994. However, in view of the 
reductions in intervention prices for butter already agreed by the Council 
for the next two milk marketing years and the expected resulting declines 
in market prices for butter in Ireland, the aid levels are proposed 
reduced by almost 10 ECU/100kg to 140 ECU/100kg as from 1.1.1993. 
COUNCIL REGULATION (EEC) No 
Of 
amending Regulation (EEC) No 2990/82 on the sale of butter at reduced prices 
to persons receiving social assistance 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to council Regulation (EEC) No 804/68 of 27 June 1968 on the common 
organization *&£ the market in milk and milk products^*), as last amended by 
Regulation (EEC) Ho 2071/92(2) and in particular Article 12(2) thereof, 
Having regard to the proposal from the Commission, 
Whereas Council Regulation (EEC) No 2990/82^), as last amended by Regulation 
(EEC) No 3917/90(4), introduces arrangements, expiring on 31 December 1992, for 
the sale of butter at reduced prices to persons receiving social assistance; 
whereas, as provided for in Article 3a(3) of that Regulation, the Council is to 
examine before that date and on the basis of a report from the Commission the 
possibility of renewing the arrangements laid down; whereas, as a result of the 
report submitted by the Commission and the results obtained, the abovementioned 
arrangements should be extended for a period of two years; whereas, in view on 
the one hand of experience gained and on the other hand of the situation on the 
market for butter, the aid should be reduced, 
HAS ADOPTED THIS REGULATION: 
(1) OJ NoL 148, 28.6.1968, p. 13. 
(2) OJ No L 215, 30.7.1992, p. 64. 
(3) OJ No L 314, 10.11.1982, p. 26. 
(4) OJ No L 375, 31.12.1990, p. 12. 
Article 1 
Regulation (EEC) No 2990/82 is hereby amended as follows: 
1. In Article 1, "31 December 1992" is replaced by "31 December 1994"; 
2. In Article 3, "149,74 ECU" is replaced by "140 ECV"; 
3. In Article 3a(3), "31 December 1992" is replaced by "31 December iff4". 
Article 2 
This Regulation shall enter into force on thm third day following its publication 
in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all 
Member states. 
Done at Brussels, For the Council 
Financial Statement 
Date : 
1. BUDGET HEADING : B-1 2049 APPROPRIATIONS : ECU 17 million (PDB 1993) 
2. TITLE : 
Proposal for a Council Regulation amending (Regulation (EEC) No 2990/82 on the sale of butter 
at reduced prices to persons receiving social assistance 
3. LEGAL BASIS : Article 12(2) of Regulation (EEC) No 804/68 
4. AIMS 
Continuation of the scheme involving the sale of butter at reduced prices to persons receiving 
social assistance at a lower rate of aid 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENT IONS) 
- NATIONAL AUTHORITIES 
- OTHER 
5.1 REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PERIOD OF 12 MONTHS 
+ ECU 16.2 mil lion CURRENT FINANCIAL YEAR 
(1992) FOLLOWING FINANCIAL YEAR 
ii°.?32 
• ECU 10.1 mi 11 ion 
1994 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE + ECU 16.2 mi 11 1995 
+ ECU 6.1 mill 1996 1997 
5.2 METHOD OF CALCULATION 
12 months: 
1993 10 000 t x 1 400 ECU/t x 1.157 (DR) 
10 000 t x 1 400 ECU/t x 7.5/12 x 1.157 (DR) = + ECU 16.2 million (B) 
• ECU 10.1 million (B) 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ? 
YES 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET ? 
6.2 WILL A SUPPLEMENTARY BUDGET BE NECESSARY ? 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY ? 
YES 
COMMENTS : 
The PDB for 1993 has already been drawn up on the assumption that the scheme will be extended beyond 
31.12.1992 for 10 000 tonnes with a reduced rate of aid to take account of the cut in the butter 
intervention price for 1993/94. 

ISSN 0254-•4" 
COM(92) 478 final 
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