ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (83) 758 
 
 
 
Vol. 1983/0 268 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
COM( 8 5) 758 final  
Brussels, 5 January 1984
THE SITUATION OF THE AGRICULTURAL MARKETS  
REPORT 1983
(report from the Commission to the Council)
Sorti du Secrétariat 
Générai

COMMISSION OF THE EUROPEAN COMMUNITIES
COM(85) 758 final  
Brussels, 5 January 1984
THE SITUATION OF THE AGRICULTURAL MARKETS  
REPORT 1983
(report from the Commission to the Council)
COM(83) 758 final

-  2 -
This report was drafted in autumn 1983 and a summary appeared in "The  
Agricultural Situation in the Community - 1983 Report" published in  
conjunction with the seventeenth General Report on the Activities of the  
European Communities. This summary is given in its entirety under point A of  
the present report.

- 3 -
CONTENTS
THE SITUATION ON THE AGRICULTURAL MARKETS  
1983 REPORT
Page
A. AGRICULTURAL MARKETS - SUMMARY
Introduction 4
Situation on the principal markets 4
Outlook for the Agricultural markets 19
B. ANALYSIS BY SECTOR
I. Products subject to common market organization
1. Cereals 22
2. Rice 36
3· Sugar 42
4. Olive oil 49
5. Oilseeds and protein seeds 54
6. Dried fodder; peas and field beans 61
7. Fibre flax and hemp 65
8. Seeds 72
9. Wine 75
10. Raw tobacco 82
11. Fruit, vegetables and live plants
.a Fresh fruit and vegetables 87
.b Processed fruit and vegetables 98
.c Live plants 102
12. Hops 103
13. Milk and milk products 104
14. Beef and veal 117
15. Pigmeat 129
16.  Eggs 136
17. Poultrymeat 139
18. Silkworms 142
19. Sheepmeat 143
II. Products not subject to common market organization
20. a Agricultural alcohol 150
,b Potatoes 151
.c Honey 155
C. SURVEY OF CERTAIN GROUPS OF SECTORS
21. Feedingstuffs 156
22. Meat 159
23. Oils and Fats 165

- 4 -
A - MARKETS FOR AGRICULTURAL PRODUCTS - SUMMARY  
I. INTRODUCTION
1. Examination of the markets for agricultural products is separated into two  
distinct sections. The first focusses attention on those sectors which  
represent nearly 80% of agricultural output and on which more than 90% of  
the total agricultural budget was spent in 1982. Individual sectoral  
analysis for crop products is given for cereals, sugar, fruit and  
vegetables, wine and tobacco; included for animal products are milk and  
milk products, beef and veal, sheepmeat and pigmeat. This review by  
sector includes reference to the pattern of production and consumption as  
well as to the development of the internal market in terms of prices and  
support measures taken in the Community during the year; it also covers  
the evolution of Community trade in world markets.
The second part draws the major strands of these analyses together and  
sets out the outlook for agricultural markets in the short to medium term,  
indicating those sectors where problems exist or are likely to arise.
Further details concerning the market situation of all agricultural  
products are provided in 'The Situation of the Agricultural Markets - 1983  
report'. Statistical information on all sectors is contained in the  
second part of the present report.
II. SITUATION ON THE PRINCIPAL AGRICULTURAL MARKETS 
Cereals 
Community
2. The total area of cereals under cultivation in the Community in 1982 was
28.1 million ha or 28% of the utilized agricultural area (UAA).  There was  
considerable variation concerning land use for cereals according to the  
Member State concerned. About 42% of the UAA was utilized for cereals in  
the Federal Republic of Germany and 59% in Denmark (compared to 7% in  
Ireland and 10% in the Netherlands).

- 5 -
Production and Consumption
3. Total cereals production in the Community for 1982/83 reached a record  
level of 130,5 million tonnes (excluding rice), an increase of 7,1% over  
the previous year, owing to excellent growing conditions in all Member  
States except Italy and Ireland. Preliminary indications for 1983/84 are  
that production forecasts, excluding rice, will be around 123 million  
tonnes; yields for barley and maize are expected to be well below last  
year's high levels.
4. Total consumption of cereals utilized in the Community during 1981/82  
amounted to 116.3 million tonnes, a fall of 1.6 million tonnes compared to  
1980/81. About 59% of all cereals were utilized in animal feed, 35,6% for  
human consumption and industrial use, while the remainder was used for  
seed (roughly the same proportions as in 1980/81). Within these three  
categories, the percentage varies substantially from one Member State to  
another and from year to year, according to the cereal concerned. Final  
balance sheets for 1981/82 show that self-supply of cereals remained  
stable at about 105%; it is expected to increase to around 117% in  
1982/83 owing to the record crop harvested.
5. The use of cereals in animal feed has been significantly affected in  
recent years by the growth of cereal substitutes such as manioc and a  
variety of food industry by-products. In 1982, imports of cereal  
substitutes amounted to the equivalent of 16,2 million tonnes of cereals.  
Imports of manioc have increased from 2,3 million tonnes in 1974 reaching
8,1 million tonnes in 1982. Even if such imports can be stabilized at  
these levels through self-restraint arrangements with the major suppliers  
e.g. as with Thailand, imports of other similar products are likely to  
increase over the medium term owing to the ease of substitution. As an  
example, corn gluten feed imports have risen from 0,7 million tonnes in  
1974 to 2,8 million tonnes in 1982 and can be expected to increase still  
further in line with the development of the production of alcohol from  
maize in the USA (imports are expected to reach 3,2 million tonnes in  
1983).

-  6 -
6.  Use of home-grown cereals has been given some support by the operation of  
the silo system which encourages the use of more Community wheat in animal  
feed. The trend of decreasing utilization of home-grown cereals for  
animal feed, however, is continuing (less than 45% in 1981/82 compared 
with around 50% in 1975/76). This is mostly accounted for by farmers  
tending to sell more of their cereals (or producing less oats, normally  
used for animal feed) and to purchase compound feedingstuffs made from  
imported cereal substitutes. In 1972/73 cereals represented over 62% of  
the energy supplied by concentrate feeds (i.e. excluding barley fodder,  
root crops and grazing, etc.). This proportion fell to 53,5% in 1980/81.
7. Cereals used for industrial purposes decreased by 2,9% in 1981/82.  
Industrial use of wheat decreased slightly while that of maize declined by  
3,0%. These two cereals, accounting for 4% and 45% respectively of total  
industrial use of cereals, are mainly used for the production of starch  
and glucose. A large quantity of maize is also used in the distilling  
industry in the UK. Industrial use of barley decreased by 3,0% in  
1981/82 to 5,1 million tonnes (5,6 million tonnes in 1980/81).
Main market features
8.  The 1982/83 marketing year opened with stock levels at about 12 million  
tonnes (of which 0,9 million tonnes was stored on farms) including
5,9 million tonnes of common wheat, 0.6 million tonnes of durum wheat,
1.3 million tonnes of barley and 2,5 million tonnes of maize in public  
intervention stocks. At the beginning of the 1983/84 marketing year, off  
farm stocks were at 16,0 million tonnes.
9. Despite substantial exports during the 1982/83 marketing year, internal  
market prices were depressed owing to large quantities of wheat and barley  
being available. The notable exception to this general trend was in Italy  
where the prices of common wheat were well above support levels. With the  
decline in availability of coarse grains, it is expected that an extra  
quantity of 3-4 million tonnes of wheat will be absorbed into animal feed.
In 1982/83, intra-Community trade increased by 15% to around 20 million  
tonnes, France remaining the principal supplier of cereals to other Member  
States. Its exports of common wheat, barley and maize decreased to
9.4 million tonnes in 1982/83 (9,6 million tonnes in 1981/82). Trade in  
cereal products such as wheat flour, barley malt and maize grits is also  
continuing to grow.

- 7 -
World markets
10. At the beginning of the 1982/83 marketing year, world stocks of wheat were
estimated at 85 million tonnes with coarse grains at about 114 million  
tonnes. World production of cereals (excluding rice) in 1982/83 reached  
the record level of 1,285 million tonnes, with excellent harvests in all  
the major exporting countries; Community production was equivalent to 10%  
of this total. Equivalent percentages of other major exporting countries  
of cereals were: USA 26%, Canada 4%, Australia 1% and Argentina 3%.
With stabilization in global consumption levels and the continuing  
vigorous export activities by the US (under pressure from a high level of  
carryover stocks), prices were under strong pressure in the first few  
months of the 1982/83 marketing year; this eased towards the end of the  
marketing year mainly because of the strengthening of the dollar.
11. For 1983/84, world production of wheat is expected to reach 486 million  
tonnes while a significant drop is anticipated for coarse grains (about  
700 million tonnes against 780 million tonnes in 1982/83) owing to reduced  
expectations for the US soya and maize crops. This has led to the  
situation that feed grain prices have risen sharply on the world market  
and are now close to the level of wheat prices. As a result, wheat  
stocks will remain high while the stock of feed grains is expected to  
decrease. Closing global stocks at the end of the 1983/84 marketing year 
for wheat and coarse grains are currently forecast at 199 million tonnes  
(190 million tonnes in 1982/83).
12. In 1981/82, the Community imported 14,4 million tonnes of cereals (7,6%  
less than in 1980/81) confirming the trend of diminishing imports noted  
over the past few years. Of the overall total in 1981/82, 8,7 million  
tonnes were maize (about 92% imported from the USA), 3,5 million tonnes of  
common wheat (over 95% from North America, including 0,7 million tonnes  
under inward processing) and about 0,9 million tonnes of barley (coming  
mainly from Canada). Total imports of cereals during 1982/83 are expected 
to be about 10,5 million tonnes.

-  8 -
13. Total exports of cereals and cereal products in 1981/82 from the Community
rose by 1,8% to 21,6 million tonnes: within this total, common wheat and
flour accounted for 14,3 million tonnes. For 1982/83, estimated exports  
of common wheat and flour are expected to be 13,2 million tonnes
12,4 million tonnes as commercial sales, of which 2,9 million tonnes in  
the form of flour, and the remainder as food aid. About 1,5 million  
tonnes of flour as commercial sales were exported under inward processing 
arrangements (0,6 million tonnes in 1981/82). During both these marketing  
years, sales have been made to the Community's traditional clients in West  
and North Africa, as well as several Eastern European countries. In  
1982/83, a larger percentage of exports went to the Middle East. Flour  
exports continued to go to a wide variety of traditional destinations, in  
particular Egypt, Syria and the USSR. Barley and barley products exported  
(principally malt) amounted to a total of 5,7 million tonnes in 1981/82 of  
which 1,7 million tonnes in the form of barley products. Exports in  
1982/83 are expected to be slightly lower at around 5,1 million tonnes.
Sugar
Community
14. The total area under cultivation for sugar beet in 1982/83 fell by 9,3% in  
comparison to 1981/82, covering about 1,8% of the utilized agricultural  
area in the Community. The decrease was principally due not only to world  
price levels being much lower than Community prices at the time of  
planting, but also to substantial quantities being carried over in stock  
in certain countries.
15. In terms of production structure, the total number of farms producing  
sugar beet is falling (about 370.000 in 1977) although the rate of decline  
is now tending to fall off less rapidly than previously.
At the same time, the number of sugar-beet processing factories has  
decreased from 250 in 1972/73 to 203 in 1982/83, a decrease of 19%,  
accompanied by an increase in total processing capacity of 36%. This  
improvement of production structure over the past decade illustrates that  
the development of production has not been hindered by the existence of a  
quota system, now in operation for over seven years.

- 9 -
Production and Consumption
16. Total sugar production in the Community in 1982/83 was 13,94 million  
tonnes, 7,3% less than the record level of 15 million in 1981/82. Taking  
into account the carryover of 1 million tonnes of sugar for the preceding  
marketing year, 9,4 million tonnes was produced within the basic quota  
('A' sugar); an amount of 2,1 million tonnes was reached outside the  
basic quota but within the maximum amount ('B*  sugar) while the remainder 
of the production (*C*  sugar) remained at 3,5 million tonnes. For  
1983/84, the Community crop is expected to be much lower than for 1982/83  
owing to the lower acreage planted as well as lower sugar yields (about
11,1 millon tonnes).
17. Human consumption of sugar during 1982/83 in the Community remained at  
about the same level as 1981/82 (34,5 kg per head). Less than 1% of total  
production went for industrial purposes, mostly to the chemical industry.  
Total production and consumption of isoglucose in 1982/83 remained almost  
static at 182.300 tonnes.
Main market features
18. The marketing year 1982/83 was the second where the new sugar policy has
been in force (since July 1981). With the continuing presence of  
significant quantities for export together with very low prices on the  
world market, the Commission and the Community sugar producers agreed to  
continue their stocking policy during 1982/83, as initiated in 1981/82.  
Producers carried over 1,083 million tonnes of *  C'  sugar to the following  
marketing year. They also bore, through levies on 'A' and ’B'  quota
sugar, the full cost of exporting sugar in excess of internal demand in  
the Community other than the equivalent of about 1,3 million tonnes  
imported from ACP countries (financed by the EAGGF). The Commission  
limited export commitments in 1982/83 to the same level as 1981/82
(5,2 million tonnes of 'quota' and 'C sugar).

-  10  -
Market prices remained near to the intervention price level during the  
1982/83 marketing year and then approached the level of the new  
intervention prices decided in the 1983/84 price package (+ 4% for white  
and raw sugar). Intra-Community trade increased in 1982/83 mostly because 
production fell in Italy: about two thirds of the trade in raw sugar took
place between the UK, Italy and Germany.
World Markets
19. As in 1981/82, world production exceeded consumption in 1982/83 by more  
than 5 million tonnes (as compared to more than 8 million tonnes in  
1981/82). As a result, stocks at the end of August 1983 were very  
high. World prices remained depressed during the 1982/83 marketing year  
until May 1983. The rise in the world market price since then has been 
stimulated by reduced expectations for world production for the 1983/84  
marketing year (the current estimate is for 92 million tonnes against  
99,9 million tonnes the previous year) as well as hopes for rising  
consumption (96 million tonnes compared to 94,4 million tonnes in  
1982/83). For 1983/84, the Community expects to have a total quantity of  
5,2 million tonnes of sugar available for export, of which 3,5 million  
tonnes of 'C  sugar.

-  11  -
Fruit and vegetables
20. Total production of fresh fruit and vegetables during 1982 in the  
Community, including that part destined for the processing industry, rose  
by 8,6% in comparison with 1981. Community production of fresh fruit  
increased to 22,5 million tonnes while vegetable production remained at  
about the same level at 28,7 million tonnes. Italy was the major producer  
of fresh fruit (45%) and vegetables (39%) in the Community. In contrast,  
production of processed fruit and vegetables rose slightly during 1982  
mainly due to increases for canned products (other than tomatoes) and  
frozen products.
Consumption of fresh fruit in 1981/82 was 16,6 million tonnes, a fall of  
12,9% in respect of the preceding year. 90% went for human consumption,  
each inhabitant in the Comunity eating approximately 85 kg per head during  
the year. The total internal utilization of vegetables fell by 3,3% to  
31,7 million tonnes.
21. Market prices fluctuated considerably over the year and were supported in  
several instances by temporary measures like countervailing charges on  
imports. Quantities withdrawn for pears (3,2% of total production) and  
lemons were lower in 1982/83 than in 1981/82, but higher for other  
products such as apples ( 11,1%) and cauliflowers ( 1,6%).
22. Turning to trade, fresh fruit imports into the Community remained at about  
the same level in 1982 as in 1981, around 4,3 million tonnes (including
3,1 million tonnes of citrus fruit and 0,48 million tonnes of apples), or  
nearly five times the total export volume. Total imports of fresh  
vegetables were about 1,2 million tonnes in 1982, or 3 times the total  
export volume. Intra-Community trade for fresh fruit remained at 2,8  
million tonnes in 1982, the level of vegetables being similar (tomatoes  
being the main product traded at 0,46 million tonnes).
Intra-Community trade for processed fruit and vegetables in 1982 remained  
at a similar level to 1981. Total imports from non-member countries  
diminished slightly while exports rose to 3,35 million tonnes in 1982  
compared to 2,71 million tonnes in 1981.

-  12  -
Wine
23. Production in the Community during 1981/82 was 141 million hectolitres 
(hi), accounting for 45,8% of world production, after reaching a record  
level of 182 million hi in 1979/80. In 1982/83, production rose by
30 million hi to 171 million hi. Domestic consumption in 1981/82 totalled  
150 million hi (164 million hi in 1980/81): the comparable figure for  
1982/83 was 157 million hi. A decreasing amount went for human  
consumption in 1982/83 (126,4 million hi compared to 127,5 million hi in  
1980/81), confirming a downward trend noted over the past few years, while  
the majority of the remainder was distilled (29,7 million hi, 68% with 
Community aids). The level of self supply for the Community in 1981/82  
was about 103%.
24. Intra-Community trade slightly decreased to 20,7 million hi. in 1981/82  
(22 million hi in 1980/81). Exports in the same period were 10,6 million  
hi. in comparison to imports of around 5,8 million hi. The general trend  
observed is for exports to increase as a result of increasing Italian  
sales while imports are tending to decrease.
25. For 1983/84, production is expected to fall slightly to 163 million hi.  
Disposal of those quantities in excess of human consumption will be  
facilitated by the new distillation measures now in force following the  
decisions taken by the Council in the context of the 1982/83 prices  
package.
Tobacco
26. Production in the Community in 1982 increased to 329 300 tonnes (6,5% up  
on 1981), accounting for about 5% of world production, representing 0,6%  
of total agricultural output. Consumption in the Community slightly  
declined to 570,000 tonnes, falling in the Federal Republic of Germany,  
France and the United Kingdom. Self-supply in 1982 was about 49%.

- 13 -
27. 21% of world production was traded in the world market in 1982, falling to  
1,43 million tonnes (3,4% down on 1981). EC exports took up about 8% of 
the world market (118.300 tonnes). About 60% of EC imports
(413.900 tonnes) were flue-cured Virginia tobacco: furthermore, about
2/3rds of imports entered duty free or at a preferential level into the  
Community, being covered by ACP or GSP arrangements. Costs of this  
sector are expected to be 668 million ECU in 1983, accounting for 4,2% of  
total EAGGF expenditure, a rise of 7,3% over 1982.
Milk
Production and consumption
28. A small increase of 1,6% in cow numbers to 25,4 million head in 1982  
coupled with a significant rise of 3,8% in the average annual yield per 
dairy cow to 4.382 kg per animal (e.g. Denmark increasing its average  
yield by 8.1%, France by 5.1% and Germany by 2,5%) led to a jump in milk  
production of 3,5% in 1982 compared to 1981. This reflected the further  
improvement in herd structure, the quality of milk cows and cheaper feed  
inputs. Milk production in 1983 is also anticipated to rise by about  
3,5%.
29. A similar proportion of milk production from dairy cows in 1982, as in  
1981, continued to be sold by farmers to dairies for processing into milk  
and milk products (about 92.2% amounting to 99.6 million tonnes in 1982).  
Total milk deliveries to dairies increased by 3,5% in 1982, helped  
considerably by favourable autumn weather. The extra 3,4 million tonnes  
so generated were mostly converted into the two intervention products,  
butter and skimmed milk powder. The rate of increase in production of  
condensed milk (+1%) and cheese (+1,7%) slowed down while whole milk  
powder production declined by 18%, reflecting the decline in external and  
internal demand. Conversely, the increase in butter (+7,8%) and  
skimmed-milk powder (+ 6,6%) resulted in high year end intervention stocks  
at 31 December 1982 (112.000 tonnes for butter and 574.000 tonnes for  
skimmed-milk powder).

- 14 -
30. The overall use of milk in the Community for liquid milk and fresh milk  
products increased only marginally in 1982. The general tendency emerging  
over the past decade to consume more semi-skimmed milk and less whole milk  
continued in 1982. The total share of UHT milk, as a percentage of  
Community consumption of whole and semi-skimmed milk, was 23% in 1982 (22%  
in 1981), the highest levels being found in France (55%) and West Germany  
(46%). Consumption of cheese continued to increase by 2% in 1982 (2,5%  
in 1981).
31. Internal consumption of both condensed milk and whole milk powder are low  
as these two products are mainly geared to the export market. Total  
internal off-take for butter rose slightly by 1% in 1982 mainly because of  
an increase in the quantities sold at reduced prices to the food industry  
(bakeries and ice-cream) and non-profit making institutions. An end year  
sale also took place (Christmas butter) but reduced normal consumption is  
likely to result during 1983 owing to the low level of additional sales  
resulting from the operation. Disposal of skimmed-milk powder also  
continued to cause difficulties as only about 12% of the powder 
manufactured could be sold at a fixed price in the Community: about 1.36  
million tonnes were sold for animal feed in 1982 (or 60% of production).
Main market features
32. The target price for milk was fixed for 1983/84 with effect from 23 May 
1983 at 27,43 ECU/100 kg, an increase of 2,3% (estimated to be an increase  
in average producer prices of 4,5% in terms of national currencies - much 
below the average rate of inflation). The limited increase reflected the  
operation of the guarantee threshold system for the first time in the milk  
sector. As milk deliveries to dairies in 1982 exceeded the "guarantee  
threshold" by 3%, the price increase was adjusted downwards accordingly.  
The coresponsibility levy for 1982/83 was maintained at 2% of the target  
price while the previous criteria fixed for reduced levy and exemption 
from the levy were left unaltered. In recognition of the problems of  
small milk producers, the Council continued the payment of 120 million ECU 
to be distributed between them.

- 15 -
33. During 1982/83, the principal effort in the milk sector was to continue to
find markets for the volume of milk produced at the cheapest unit cost,  
both internally and externally. With the sharp rise in domestic  
production of butter and skimmed-milk powder continuing during 1983,  
coupled with stagnation in internal consumption and declining  
possibilities for export as the world market for most dairy products has  
continued to contract, public intervention stocks for both these products  
have risen very rapidly in spite of raising subsidies for internal  
disposal. The special measures introduced in July 1982 to encourage the  
inclusion of skimmed-milk powder in animal feed for pigs and poultry  
resulted in additional sales of 74.000 tonnes in 1982: sales of more than
500.000 tonnes are expected in 1983. Nevertheless, on 15 October 1983,  
the levels for butter and skimmed-milk powder in public store were
614.000 tonnes and 1.044.000 tonnes respectively.
World Markets
34. World milk production increased in 1982 by more than 2% (compared to 0,5%  
in 1980). This rate of increase was due mainly to the significant 
expansion of the milk yield per dairy cow as a result of favourable animal  
feed conditions. Production increased in the USA by 2.1%, in the USSR by  
1,3% and in Canada by 3,2%. World milk production is likely to increase  
by more than 3% during 1983 with substantial increases in the Community,  
the USA and the USSR. In contrast the constant expansion in the world 
markets for all dairy products noted since 1975 has now been reversed;  
markets have been decreasing in terms of total exports since 1981. Thus,  
as world milk production has increased, the world market has continued to  
decline in 1982 for butter and skimmed-milk powder (by 7% each); for  
whole milk powder (by 3%); stagnated for condensed milk and expanded only  
for cheeses (by 5%).

- 16 -
35. Furthermore, the Community's world market shares for butter and butteroil  
and for skimmed-milk powder continued to decline in 1982. Its market  
share for butter has dropped from 62% in 1980 to 51% in 1982 and has  
fallen for skimmed milk powder from 61% in 1980 to 42% over the same  
period. For example, while the Community exported 193.000 tonnes less  
butter in 1982 than in 1980, the US and New Zealand increased butter sales  
by 67.000 and 23.000 tonnes respectively over the same period. This was  
mostly due to decreased export opportunities in Eastern Europe. A  
feature of the present market is a sharp increase in the use of  
concessional sales by a few third countries (particularly the US). As a  
result of these developments, international market prices reported to GATT  
have continued to weaken during 1982 and 1983, despite continued close  
cooperation between the Community and New Zealand on the functioning of  
the markets. EEC whole milk powder exports also fell by 15% while whole  
EEC exports for condensed milk and cheese only increased by 3% and 5%  
respectively.
36. Total butter imports in 1982 into the Community amounted to 108.000 tonnes  
(of which 92.000 tonnes of New Zealand butter were imported into the  
United Kingdom representing over 7% of the world butter trade or almost 5%  
of total butter production in the Community). Cheese imports in the  
Community amounted to 104.000 tonnes (representing 13% of the world cheese  
trade). Thus, the Community remained the world's second largest importer  
of butter, next to the USSR, and the second biggest importer of cheese,  
next to the USA..
Beef and Veal
Community
37. Beef production takes place on about half of the farms in the Community,  
contributing about 16% to final agricultural production in the Community.  
It is mostly concentrated in the Member States with a large grass  
production and comes either from herds producing milk or from specialized  
beef herds. The trend towards larger units since 1973 has continued, the  
number of producers decreasing at a rate of 3,7% per annum since 1975.
The beef herd slightly decreased in 1982 (approximately 1% over 1981)  
while the number of veal calves increased by 2,0%.
(2)

- 17 -
Production and Consumption
38. After the cyclical reduction in beef production during 1976 and 1977,  
total beef production rose by 3,4% in 1980 (compared to 6,2% in 1979), but  
fell by 3,5% in 1981 and by 4% in 1982, declining to 6,65 million tonnes.  
Within this figure, adult beef production fell by 4,5% while veal  
production rose by 0,7%. As a normal indicator, beef consumption can be  
linked to the rate of general growth in the economy. With a slowing down  
in growth rates and a significant rise in unemployment, consumption of  
beef and veal in the Community diminished by 2% in 1982 to 6,6 million  
tonnes or 24,4 kg per head (21,6 kg per head for beef and 2,8 kg per head  
for veal).
Main market features
39. Market prices of adult beef animals have gradually risen over the past  
three years from 130 ECU/100 kg live weight in autumn 1980 to more than  
160 ECU/100 kg live weight in September 1983. At this date, the average  
producer price level in the Community was about 78% of the guide price.  
After two consecutive years of lower prices, the market prices for veal  
rose during 1981 and 1982.
40. Despite continuing a flexible management of intervention, avoiding public  
purchasing to a considerable extent throughout the year, public  
intervention stocks have risen from 160.000 tonnes at 30 September 1982 to
350.000 tonnes a year later owing to rising production and reduced export  
opportunities (see point 41 below). Production is expected to rise by  
about 3% in 1983 compared to 1982. Intra-Community trade was at the same  
level as 1981, stabilizing at around 1,4 million tonnes in 1982.
World Markets
41. The Community produces around 14% of the total world production of beef  
being the second largest producer in the world (well behind the USA).
Beef exports from the Community have declined from their 1981 peak of
662.000 tonnes to 480.000 tonnes in 1982. The principal destinations were  
Mediterranean countries (about 24%), Eastern European countries (around  
26%, of which the USSR 14% compared to 36% in 1981) and to the Middle East  
(30%).

- 18 -
42. Imports from non-member countries, mostly entering the Community under  
special conditions negotiated bilaterally or multilaterally in GATT, rose  
during 1982 to 440.000 tonnes (including 66.000 tonnes of live animals and
164.000 tonnes of frozen beef).
Principal suppliers were Latin American countries (e.g. Uruguay, Brazil  
and Argentina), accounting for more than 50% of total imports, and Eastern  
European countries, accounting for over 10% of total imports (in  
particular over half the total imports of live animals).
Sheepmeat
43. The percentage of sheepmeat production in the value of final agricultural
production in the Community is about 2%. 92% of the Community's total
flock (58,8 million head at 31 December 1982) is to be found in 4 Member  
States - United Kingdom (38%), France (23%), Italy (16%) and Greece  
(15%). Sheepmeat production remained stable in 1982 at 706.000 tonnes:  
it is expected to rise by 3,4% during 1983 to 730.000 tonnes.
Consumption rose in 1982 by 4,5% to 975,000 tonnes: Community consumption
per head has been remarkably stable over the past 15 years oscillating  
between 3,3 and 3,8 kg per head (ranging from 13,8 kg per head in Greece  
to 1,5 kg per head in Italy). The average Community price in 1982 was  
369,86 ECU/lOOg, a 4,3% rise in respect of 1981.
44. The Community produces around 12% of the total world production of sheep  
and goat meat, being the second largest producer in the world just below  
the USSR (800.000 tonnes) but in front of Australia and New Zealand (both  
producing about 600.000 tonnes each).
45. Imports in 1982 rose by 24% over 1981 to 281.000 tonnes mostly due to  
increases from suppliers of frozen meat (in particular Australia,
Argentina and New Zealand). Exports over the same period fell to  
3.800 tonnes (a 36% decrease compared to 1981). Intra Community trade  
remained stable in 1982 at around the same level as 1981 of 81.000 tonnes.

- 19 -
Pigraeat
46. Production of pigmeat in the Community remains concentrated in regions  
surrounding the North Sea and the Channel as well as in Northern Italy.
In 1982, pigmeat production slightly fell by 0,2% compared to 1981,  
settling at 10,1 million tonnes. It is expected to rise by about 2% in  
1983. Consumption in contrast rose a little to 10,2 million tonnes. As  
a result, self-sufficiency in the Community decreased to 100,7%, the  
highest being in Denmark with 395%.
47. Low market price levels on representative markets in the first part of the  
year led to the introduction of support through private storage between
31 March and 23 July 1982. Seasonal demand then lifted market price  
levels to 167 ECU/100 kg in December 1982, (150 ECU/100 kg in April  
1982). A similar pattern was seen during 1983 when private storage was  
open from 1 February to 9 September 1983 during which 120.000 tonnes was  
taken into intervention.
48. The Community is the world's second largest producer of pigmeat after the  
People's Republic of China. In 1982, the Community exported
274.100 tonnes (22.6% less than in 1981) while importing 191.700 tonnes (a  
decrease of 12% in comparison to 1980). Exports of live pigs and fresh  
meat went to a wide variety of destinations, while processed pigmeat was  
mostly exported to the USA and Japan. Major suppliers of pigmeat and pig  
products in 1982 to the Community included Eastern European countries  
(e.g. Hungary and Rumania), the USA, the People's Republic of China and  
Sweden. Intra-Community trade in 1982 rose slightly to 2,32 million  
tonnes or 3,1% more than in 1981.
III. Outlook for the agricultural markets in the Community
49. In general terms, Community production is now running at high but not  
record levels in the major product sectors. This is to be expected after 
the significant fluctuations in climate during the year with a wet spring  
and a dry summer in many parts of the Community. For 1983/84, cereal  
production will be 9,3% down on its record level of 130.5 million tonnes  
in 1982/83; the sugar crop will be about 24% less than its peak  
production of 1981/82 of 15 million tonnes and the wine harvest is  
expected to be 10,5% down on the record level reached in 1979/80 of 182  
million hi.

-  20  -
50. The situation for most animal products is less reassuring as increases are
expected in 1983 for beef, sheepmeat and pigmeat:  the picture is also
particularly disconcerting in the milk sector. The rhythm of increase in milk  
deliveries to dairies continues unabated with a 3.5% rise expected in 1983.
This will mean that, in the past two years, an extra 8 million tonnes of milk 
has been produced for which additional internal or external markets have to be  
found. With the extreme difficulty of finding new commercial outlets under  
present economic conditions, stock levels in the milk sector have continued to  
increase for the two intervention products, butter and skimmed milk powder  
(SMP). At 30 September 1983, the public intervention stock for butter and SMP  
were 614.500 tonnes and 1.044.000 tonnes respectively. The total butter stock,  
when including private stocks of 206.000 tonnes, thus has already touched
860.000 tonnes: the previous record for Community butter stocks was reached in
September 1976 with 600.000 tonnes.
51. Additional outlets on the internal market are circumscribed by a shortage of  
finance. In 1982, about 88% of the skimmed milk powder and around 40% of the  
butter consumed on the domestic market was subsidised. The average cost of  
disposing of butter internally is still about twice the cost of export (about
3.000 ECU/tonne). The cheapest outlet for these two products has always been  
the export market but, despite increases in 1983 in export refund levels,  
quantities so far committed for export this year for most dairy products are  
well below those for the same period in 1982 (which were lower than in 1981).
In addition, the existence of high stock levels in other developed countries,  
particularly the United States, are not contributing towards price stability in  
the world market. Nor can it be expected that traditional customers (e.g. the  
USSR) will continue to purchase large quantities in the future owing to  
substitution of butter by margarine as well as increasing domestic production.
52. The milk sector provides the most acute example of a sector where domestic  
consumption is not keeping up with production increases. A similar situation,  
however, is also evident for most other temperate products (e.g. for cereals,  
sugar, wine and beef). This decrease can be explained partly by the  
unfavourable economic environment, with high levels of unemployment, less  
purchasing power and lower growth rates than in the 1970s, and partly by the  
fact that there are fewer additional people to feed through declining  
population growth. Externally, some reduction in demand in third countries is  
also being affected by the economic recession coupled with considerable  
difficulties for some of them in financing high costs of external debt.

-  21  -
53. Thus, even if the production levels expected in certain sectors in 1983/84 are  
below peak levels, there is a growing market imbalance through declining inter­
nal and external demand for these products. Increasing expenditure and higher  
stock levels for many products (e.g. for butter, skimmed milk powder, cereals,  
rapeseed and beef) provide evidence of this trend.
54. While there is room for optimism in the sugar sector that the regime introduced  
in July 1981 is beginning to have a significant effect on production through its  
system of coresponsibility, there can be no doubt that the Council has not yet  
taken sufficiently strong decisions in other market sectors to bring production  
into line with expected demand.
55. While the budget cost of agricultural support in the Community fell in 1981 and  
was only a little above the 1980 level in 1982, expenditure has surged in 1983  
with the need for a supplementary budget of 1.78 billion ECUs in order to cover  
the cost of market support.
Although the domestic situation has recently improved for pigmeat, eggs and poul  
try and some savings can be expected in the budget cost for cereals and rapeseed  
in 1983/84 through the sharp rise in feed grain prices on the world market du­
ring August/September 1983, there can be no room for complacency in 1984 in  
terms of total budgetary cost. The trend observed in 1983 will continue over  
the next 12 months in the absence of decisions to change the direction of the  
common agricultural policy. Sufficient savings cannot be generated by continu­
ing to manage the agricultural markets in an efficient and cost-effective manner
56. With little perspective of significant expansion of exports in the major product
sectors of the Community (e.g. milk products and cereals) in the medium term,  
either because of continuing financial difficulties or because of intense com­
petition from our major trading partners in third world markets, it is not  
possible for the Commission to continue to operate the markets successfully  
within the guidelines currently established by the Council. Urgent changes are  
called for in the support arrangements as they are now operated for certain sec­
tors, particularly milk, in order to remain within budgetary limits over the  
next couple of years. ___________
It
 is for this purpose that the Commission has repeatedly sought decisions from  
the Council in this direction, the latest set of proposals being set out in  
COM(83)500 following the European Council meeting in Stuttgart in June 1983. As  
in other sectors of the general^economy,  where unemployment is now at very high  
levels, it is no longer possible for agriculture to be shielded indefinitely  
from the realities of the market place. Decisions must now be taken by the  
Council to bring the Common Agricultural Policy back in proper balance.

-  22  -
B. Analysis by Sector
I. Products subject to common market organisation
1. CEREALS
1. Introduction
(a) General situation:
The 1982/83 harvest was again at record level with a crop approximately  
5% higher than the record crop in 1980/81. The increase is  
particularly due to an increase in the yield. The quality of the  
harvest was likewise well above the quality of last years crop.
Although the opening stocks were at a normal level the stocks increased  
considerably through the year as the supply, particularly for common  
wheat, strongly exceeded the internal demand, and the outlets on the  
world market were limited to last years level as a matter of the  
Commission's position not to increase the Community share of the world  
market in a situation with general over supply in the main exporting  
countries. This measure has had a dampening effect on prices, which in  
general has been relatively stable around the support price level  
throughout the year.
The 1983/84 prospects are well below last years record, mainly due to a  
drop in the coarse grain crop. Though the harvest of common wheat is  
expected to be slightly lower than last year it is still at a high  
level and is well above the crop of common wheat in 1980/81.
World market prospects for 1983/84 are exceptional as production of  
common wheat is still at a record level while the major producing 
countries (particularly USA) have recorded a remarkable drop in the  
coarse grain crops. Prices for wheat therefore remain depressed while  
prices on the feed grain market have increased considerably and are  
close to wheat prices.
(b) Cereals in Community agriculture:
The total area of cereals in 1982 was 28.1 million ha. Their 
importance in the land use of individual Member States varied  
considerably, being lowest in Ireland and the Netherlands (7% and 10%  
of UAA respectively) where fodder crops and permanent grasslands are  
more important. Cereals are of greatest significance in Germany and  
Denmark (42% and 59% of UAA respectively) where they account for about  
70% of the arable land; they also account for a high proportion of the  
arable land in Luxembourg (67%). In the remaining Member States  
cereals occupy 20% to 30% of the UAA and 26% to 57% of the arable land.
Cereals' share in final production is a less useful measure of their  
economic importance since in many cases a large proportion of  
production is used for livestock feeding on the farm where it is  
produced. This means that the final production of such cereals is in  
the form of livestock products. Thus in Germany, where cereals account  
for 42% of the UAA, they represented only 10% of the value of final  
production in 1982 because over 40% of the total quantity produced was  
used for animal feeding on the farm where it was grown. In the

- 23 -
United Kingdom, by way of contrast, cereals accounted for only 21% of  
the UAA but 18.4% of the value of final agricultural production because  
only 15% of the crop was fed to livestock on the farm where it was  
grown. In the Community as a whole, where about 27% of the crop was  
fed to livestock on the farm where it was grown, the contribution of  
cereals to the final production of agriculture was 12.8% in 1982.
(c) The Community in world cereals production :
World production of cereals in 1982/83 amounted to 1 285 million t, of  
which the Community produced 10% (equal to 1981/82). The proportions  
produced by other major exporters of cereals were: United States 26%;  
Canada 4%; Australia 1%; Argentina 3%.
2. Production
Community cereals production in 1982/83 reached 130.5 million t — excluding  
rice — an increase of 7.1% on the 1981/82 crop and 5.0% above the 1980/81  
record of 124.3 million t. Weather was generally excellent and yields  
increased in all Member States except Italy and Ireland, where adverse  
weather conditions resulted in a slight decline of both yields and final  
production for cereals.
The total area sown with cereals for 1983 was slightly below the area in  
1982. The growing conditions were difficult, particularly for spring-sown  
cereals, and yields especially for barley and maize are expected to be well  
below last years high yields. Final production for all cereals will be  
well below that in 1982, preliminary estimates indicate a total production  
of about 123 million t.
(a) Common wheat :
Sowing conditions were generally good in the winter of 1982/83. The  
harvest is forecast at about 55 million t (— 1.0%). Harvesting  
operations have been facilitated by good weather and quality is  
expected to be good but not exceptional. The tendency among producers 
to switch from high-quality varieties to higher yielding but  
mediocre-quality varieties of breadmaking wheat is continuing. On the  
other hand the production of varieties which are only suitable for  
animal feeding seems to have stabilized.
(b) Durum wheat :
The area of durum wheat in 1983 declined slightly in France and Italy  
and continued to increase in Greece. Total area under durum wheat in  
the Community was unchanged at 2.1 million ha. Yields have further  
decreased from their 1982 levels and production is expected to reach  
3.8 million t (- 7%). Italy accounts for the lion's share of Community  
durum production but the area under cultivation has remained stable for  
a number of years. Durum wheat occupies about 50% of total wheat area  
in Italy.

- 24 -
(c) Rye :
The area of rye increased by about 5% in 1983 indicating a  
stabilization around 0.65 million ha. Yields are expected to be  
slightly below last year and production will be a little higher than
2.4 million t.
(d) Barley :
The total area of barley in 1983 was 9.1 million ha, slightly below the  
area in 1982. Weather conditions were unfavourable particularly for  
spring seed because of very bad sowing conditions. Yields in 1983 are  
therefore expected to drop by 6% to less than 40 qt/ha but with big  
regional variations.
The area of winter barley as a percentage of total barley area is still  
increasing in the four main producing countries although it seems to  
have stabilized in Germany and France. In the UK and especially 
Denmark the use of winter barley has started at a later date but it is  
steadily increasing.
Area of winter barley (% of total barley area)
:  1975 197619771978
Germany :  39 % 46 %49 %53 %
France :  20 % 31 %42 %51 %
UK : -- -
DK :  - -- -1979 :  1980 :  1981 :  1982 :  1983
55 % :  59 % :  63 % :  48 % :  62 %
38 % :  55 % :  57 % :  55 % :  62 %
25 % :  32 % :  35 % :  39 % :  42 %
:  0.4%: 1.4%: 1.2%: 6 %
(e) Oats:
The area of oats has continued its longterm downward trend and is at a  
total of 1.8 million ha in 1983 (- 12%). Production is forecast at  
about 6 million t.
(f) Maize:
The area of maize in the Community in 1983 will be slightly below 1982  
or approximately 2.94 million ha. Yields are as well a little lower  
and the production is expected to be 18.4 million t (- 4%).
3. Consumption
In 1981/82 the total volume of cereals used in the Community amounted to  
116.3 million t, a decline of 1.6 million t compared to 1980/81. About 35%  
consisted of wheat, 30% of barley and 22% of maize. The utilization of all  
cereals was made up as follows in 1981/82:
human consumption and industrial use: 35.6% (34.4% in 1980/81); animal  
feed: 59.2% (60.4% in 1980/81); seed and losses, 5.2% (5.2% in 1980/81).

- 25 -
The proportions vary substantially from cereal to cereal, from one Member  
State to another and from year to year; the following table gives the  
breakdown by cereals for 1981/82:
Cereal consumption in 1981/82 - breakdown by cereal
Human Animal Industrial Seed and Total
consumption consumption use losses
% % % % %
Durum wheat 90.7 0.0- 9.3100.0
Common wheat 59.5 33.3 1.0 6.2100.0
Rye and mesiin 48.1 44.8 1.5 5.6100.0
Barley - 78.6 14.9 6.5100.0
Oats and
mixed cereals 4.6 89.9 0.0 5.5100.0
Maize 4.3 77.1 17.4 1.2100.0
(a) Net human consumption in 1981/82 increased at about 3.0%. Per capita 
consumption of durum wheat rose by 1,8% on 1980/81 while per capita  
consumption of common wheat increased by 4,1% to 66.3 kg/head which is  
equal to that of 1979/80. The per capita consumption of both durum and  
common wheat has remained roughly unchanged over the past ten years.
Net human consumption of cereals in 1981/82 - breakdown by cereal
Net overall  
human consumption  
('000 t)Net per capita 
Kg per capitaconsumption
% change  
1980/81 to  
1981/82
Wheat - common 17 985 66.3 + 4.1
- durum 3 073 11.3 + 1.8
Rye 1 048 3.9 0.0
Barley 42 0.2 0.0
Oats 210 0.8 +14.3
Maize 778 2.9 - 3.3
(b) Animal consumption:
The animal consumption is the principal outlets for cereals grown in  
the Community and make up about 59% of cereals used in the Community in  
1981/82.
The total quantity of cereals used for animal consumption has dropped  
from a record 74.7 million t in 1973/74 to 67 million t in 1976/77. An  
increase to 73.2 million t was registered in 1977/78 since when the  
trend has been downwards.
Annual consumption of cereals was 71.4 million t in 1980/81 and  
68.9 million t in 1981/82, a further decrease is expected in 1982/83.

- 26 -
The following table compares the consumption of different cereals on 
the farms where they are grown with the animal feed use of cereals  
which pass through the market (usually purchased as compound  
feedingstuffs).
Animal feed use of cereals in 1981/82, on the farm where grown and  
through the market - breakdown by cereal
Cereals Usedon farms Marketed Total
1000 t 1000 t
1 000 t %
Wheat 5682 7866 13 548 19.7
Rye 894 265 1 159 1.7
Barley 14954 12009 26 963 39.1
Oats etc. 4927 1560 6 487 9.4
Maize 4578 15542 20 120 29.2
Other 72 561 633 0.9
31107 37803 68 910 100.0
Total
45.0% 55.0% 100.0%
Up to 1975/76, the animal feed use of cereals on the farms where they  
were grown accounted for around 50% of the total feed use. Since then,  
however, this proportion has fallen to about 45%. This shift is due to  
a greater tendency for farmers to sell cereals and to purchase compound  
feedstuffs. Production of oats, a cereal which is largely used on the  
farm where grown, has also been declining rapidly.
The importance of cereals in animal feeds reached a peak in 1972/73 and  
1973/74 where they accounted for more than 26% of total energy  
requirements (expressed in feed units). Since then it has slightly  
decreased to around 24% in 1979/80.
In 1972/73 cereals represented over 62% of the energy supplied by 
concentrate feeds (i.e. excluding bulky fodder, root crops and grazing,  
etc.). This proportion had fallen to 53.5% in 1980/81. In the same  
period the part taken by manioc passed from 1.5% to above 4% and that  
of oilcakes from 12% to around 17%.
This decline is principally due to the substitution of cereals by  
products such as manioc, oilcakes and a variety of industrial  
by-products which may be imported into the Community with little or no  
import charge. The most important substitute for cereals is manioc,  
imports of which rose from 2.1 million t in 1974 to 6 million t in 1978  
and reached 8.1 million t in 1982.
Since 1982 the voluntary restraint agreement on manioc has been in  
force, which limits the imports of manioc to a little less than 6  
million t. The imported amount registered in 1982 is well above that  
limit, which is due to the fact that shipments done by the exporting  
countries in the last months of 1981 are registered as imported into  
the Community in 1982.

- 27 -
Another important substitute for cereals is maize gluten feed, imports  
of which have risen from 0.7 million t in 1974 to more than 2.8  
million t in 1982 and are expected to increase to about 3.2 million t  
in 1983. Without any import limitations a continued increasing trend  
must be envisaged, due to the limitations in import of manioc on the  
one hand and the evolution in the production of isoglucose on the other  
hand, since it is a by-product of this process.
(c) Industrial use:
The use of cereals for processing and industrial purposes decreased by  
2.9% in 1981/82. There were, however, substantial differences from one  
cereal to another
Industrial use of wheat decreased slightly while that of maize has  
declined by 3.0%. These two cereals, which account for 4% and 45%  
respectively of total industrial use of cereals, are mainly used for  
the production of starch and glucose. A large quantity of maize is  
also used by the distilling industry in the United Kingdom (600 000 t  
in 1981/82) and a substantial amount in brewing mainly in France, the  
Netherlands and the BLEU.
Industrial use of barley decreased by 3.0% in 1981/82, to a total of
5.1 million t..
(d) Self-sufficiency;
Even though production dropped by 2% in 1981/82, the self sufficiency 
degree remained almost unchanged around 105% (- 0.6%) because of a drop  
in domestic consumption of 1.6 million t (- 1.4%). The lower domestic 
consumption was mainly due to a drop in animal consumption of 2.3  
million t (-3.2). Industrial use decreased as well by 2.9% while human  
consumption increased by 3.5% solely due to an increase in the  
consumption of durum and common wheat.
The preliminary estimates of domestic use in 1982/83 are about 112  
million t, i.e. 3.7% less than in 1981/82. Production on the other  
hand increased by 7.1% to 130.5 million t, so that the degree of self  
sufficiency is estimated at about 117%
Summary of the cereal balance sheet in 1981/82
(million t)
Common
wheatDurum
wheat RyeBarleyOats
etc.MaizeOther
cereals Total
Stock change(l) +1.66+0.24+0.11+0.35 +0.03 0.00.0+2.39
Net external  
balance ( 2)-10.73 +0.010.0-5.45 +0.08 +7.53 +0.18 -8.38
Domestic use  
less production - 9.07 +0.25+0.11-5.10 +0.10 +7.54 +0.18 -5.99
Self-
sufficiency (%) 122.3 94.7 95.7114.8 98.6 71.1 72.1105.1
(1) + = stock reduction; - = stock increase
(2) + = net imports; - = net exports

- 28 -
(e) Stocks :
The estimation of stocks in the different Member States is undoubtedly  
of very variable accuracy as between both Member States and stock  
positions. According to the best available estimates, the total stocks  
of cereals in the Community at the beginning of the 1982/83 marketing  
year amounted to 12.0 million t of which 0.9 million t were held on 
farms. Common wheat accounted for 5.9 million t, durum wheat for  
0.6 million t, barley for 1.3 million t and maize for 2.5 million t.
By 1 August 1983 the off-farm stocks increased to about 16.0 million t,  
including more than 9.7 million t of common wheat (17.5% of  
production), 0.7 million t of durum wheat (18% of production),
2.1 million t of barley (5% of normal production) and about  
2.7 million t of maize (14.3% of normal production).
4. Trade
(a) Between Member States :
Trade between Member States of the Community falls into two distinct  
categories: trade in cereals of Community origin and trade in or  
transhipment of cereals produced in non-member countries.
Briefly, the latter consist of imports into one Member State via  
another Member State, generally for sound economic reasons such as  
vessel size and port charges, but occasionally in order to benefit from  
anomalies arising from the mechanisms of the common agricultural policy  
and in particular its monetary compensatory amounts system. The  
majority of this trade consists of imports of grain ultimately destined  
for Germany, France and the United Kingdom via the large Benelux  
ports. The cereal most commonly involved is still maize, exports of  
which from the Benelux countries to other Member States amounted to  
1.9 million t in 1981/82 (— 7% from 1980/81). There has also been a  
significant trade of this kind in common wheat (0.5 million t from the  
Benelux countries in 1981/82).
The major Community supplier of cereals to other Member States is  
France. French deliveries in 1981/82 totalled 9.4 million t (including  
cereal products) as compared with 9.7 million t in 1980/81. Deliveries  
of French wheat in 1981/82 were 4.0 million t but decreased in 1982/83  
to 3.3 million t.
Deliveries of barley decreased as well in 1982/83, from 2.3 to
2.1 million t, the main customers being Belgium, Germany and Italy.  
However a significant part of the consignments to Belgium are believed  
to have been for subsequent export to non-member countries via Belgian 
ports. French deliveries of maize to other Member States rose from
2.5 million t in 1981/82 to 3.9 million t in 1982/83. The principal  
customers were the Benelux countries, Germany, the United Kingdom and  
Ireland.

- 29 -
Intra-Community trade in cereal products is also of increasing  
importance, including such products as wheat flour and semolina, barley  
malt and maize grits.
(b) With third countries;
Imports of cereals from non-member countries (reduced by the estimated  
level of transhipments) amounted to 14.4 million t in 1981/82 (7.6/6  
less than in 1980/81) of which 8.7 million t were maize (13-6% less  
than in 1980/81). In 1982/83 the preliminary estimates indicate  
imports of about 10.5 million t of cereals, including only
6.5 million t of maize. In 1981/82 about 92% of the maize imports came  
from the United States, with the remainder coming mainly from  
Argentina. Imports of barley for malt production in 1981/82 amounted  
to over 600 000 t. The barley came mainly from Canada but also from  
Australia and the United States. Imports of barley in 1982/83 are  
estimated at around 200 000 t and again consisted mainly of imports of  
North American barley into Italy.
Imports of common wheat rose from 3*3 million t in 1980/81 to almost
3.5 million t in 1981/82 and then dropped back again to 2.2 million t  
in 1982/83.  This total includes temporary imports under inward  
processing arrangements for subsequent re-export in the form of flour:  
0.7 million t (wheat equivalent) in 1981/82 and about 0.7 million t in  
1982/83· Durum wheat imports increased from 1.2 million t in 1980/81  
to 1.3 million t in 1981/82. Over 90% of imports in 1981/82 came from  
North America and most of the remainder from Argentina. It is expected 
that durum wheat imports in 1982/83 will be slightly down, to  
approximately 1.0 million t.
Total exports of cereals and cereal products in 1981/82 rose by 1.8% to  
21.6 million t. Within this total, common wheat and flour accounted  
for 14.3 million t. Exports of wheat and wheat flour in 1982/83 are  
estimated at about 13.2 million t, broken down as follows:
12.4 million t of commercial sales, of which 2.9 million t in the form  
of flour, and almost 0.8 million t as food aid. The estimated total of  
commercial flour exports includes around 1.5 million t exported under  
inward processing arrangements (+). The arrangements on an equivalent  
basis has been suspended since the end of 1982. Commercial exports of  
wheat in 1981/82 went to the Community’s regular clients in West and  
North Africa as well as to countries in eastern Europe. In 1982/83 the  
pattern was similar, with a larger percentage of exports going to the  
Middle East. Flour exports continued to go to a wide variety of  
destinations, with the Soviet Union and Syria among the most important.
(+) Inward processing traffic: importation into the Community of products
from non-^nember countries for processing and subsequent re-exportation;  
such operations are exempt from import levies and charges.

- 30 -
There were again large exports of barley in 1981/82 and 1982/83. Total  
exports of barley and barley products (mainly malt) amounted to  
5.7 million t in 1981/82 (- 1050, of which 1.7 million t was in the  
form of malt. The quantities exported in 1982/83 are believed to have  
been slightly lower (about 5.1 million t, including 1.5 million t in  
the form of malt), though the principal destinations of the barley were  
once again other European countries, the Soviet Union, the  
Mediterranean area and the Middle East. In both years France was the  
dominant supplier (including French barley exported through the Belgian  
ports) though the United Kingdom and Denmark were also important.
5. Prices
(a) Common prices:
The reference price for common wheat of bread-making quality has for  
several years been fixed for the minimum quality by way of derogation  
from the Regulation on the common organization of the market. Since  
fixing the prices for the 1981/82 marketing year, however, the Council  
defined an average bread-making quality as provided for in the basic  
Regulation and fixed the reference price for that quality.
Nonetheless, at the same time it fixed a reduction to be applied in the  
event of intervention in respect of the minimum quality. Thus for  
1983/84 there are two prices designed to support the market in bread  
wheat:
- the actual reference price (215.29 ECU/t) which serves as a basis for  
deriving the target price and thus the threshold price;
- a derived price (215.29 - 11.62 = 203*67 ECU/t) at which level any  
intervention measures for minimum-quality bread wheat must take place.
The latter price may be compared with the derived price fixed for  
1982/83 (+ 2.5$). Such a comparison reveals a slight improvement in  
the competitive position of common wheat in animal feed in relation to  
the intervention price for coarse grains (+ 3·0% in 1983/84) and the  
threshold price for maize (+ 4.4$ in 1983/84).
As for durum wheat, its intervention price was increased by 4.6$, which  
has slightly improved its competitive position compared with common  
wheat in the areas where it is grown.
(b) Internal market prices;
The 1982/83 marketing year, like the previous one, was characterized by  
surpluses of wheat and barley. These surpluses depressed prices of  
common wheat to the "reference price" (1) (this reference price was  
10.8$ above the intervention price)(2) except in Italy, where prices  
were around the reference price - average quality as intervention 
measures for common wheat were carried out at this price in Italy in  
1982/83. The most notable exception to these general observations was  
the situation in Italy and France, where the price of maize was higher 
than the guaranteed prices.
(1) ("minimum quality") _ _________
(2
) In the case of barley the market prices were, in some Member States, near 
or below the intervention price levels.

- 31 -
(c) World prices
At the beginning of the 1982/83 marketing year world stocks of wheat 
were estimated at 85 million t, an increase from last year, while  
feedgrain stocks also increased by about 30 million t to approximately  
114 million t. Global production of both common wheat and feed grains  
again attained record levels in 1982/83.
There were excellent harvests in all the major exporting countries,  
with the United States and Canada achieving record wheat and feedgrain  
crops. While the production in Australia was extremely low (- 46% in  
1981/82), Argentina also reached a very high production level. In the  
Soviet Union the crop was better than the previous year (106 and  
99 million t for wheat and feedgrains respectively), while China had a  
satisfactory harvest.
The United States' aggressive export activities continued under the  
pressure of high American stocks. The global consumption remained more  
or less unchanged. Prices were under strong pressure in the first  
months of the marketing year but eased towards the end of the marketing  
year mainly because of the strengthening of the dollar.
Prospects for 1983/84 show a different situation for wheat and other  
cereals. Wheat stocks will remain high while the stock of feed grain  
is expected to decrease. Consumption will remain unchanged. Wheat  
prices will continue to be depressed, while feed grain prices are  
expected to increase between 15% and 20% depending on the strength of  
the dollar.
Highest and lowest monthly average prices in 1982/83  
CIF Antwerp/Rotterdam
:  TypeHighest Lowest :
ECU/t Month ECU/t Month :
:  Common wheat :
:  Soft Red Winter II  
:  Dark Northern  
:  Spring 11/14%193.88
215.69July 1983  
June 1983145.64
184.52October 1982 :  
August 1982 :
:  Barley :
:  Canada Feed I 136.99 April 1983 115.16 October 1982 :
:  Maize :
:  Yellow Corn III 183.70 July 1983 118.65 October 1982 :
:  Durum wheat :  
:  US Hard Amber  
:  Durum III 224.54 May 1983 173.79 August 1982 :

- 32 -
(d) Consumer prices:
Bread prices increased by an average of about 9% between 1981 and 1982,  
rather less than in previous years. There were, however, great  
differences from one Member State to another:
- Belgium, Germany, United Kingdom, Ireland: from 3 to 7%
- Denmark, Netherlands: from 9 to 11%
- Italy, Greece, France: from 12 to 17%.
It is very unlikely that these increases were caused by the price of  
wheat, as the price of bread is determined primarily by distribution  
and manufacturing costs and by government price controls and/or  
consumer subsidies. Moreover, these increases are very much smaller or  
even negative when expressed in relation to the general index of  
consumer prices.
6. Short-term outlook
Community cereals production in 1983/84 is estimated at about  
123 million t, i.e. much lower than in 1982/83. Even then the Community is  
expected to be in net surplus for all cereals, with continuing imports of  
certain substitutes such as manioc, gluten feed and citrus pulps.
Cereal imports, which consist mainly of maize and quality wheat, are  
unlikely to diminish significantly. The exportable surplus of common wheat  
will remain almost unchanged at about 14.4 million tonnes, of which
13.1 million t is in the form of commercial exports of grain and flour.  
Barley available for export is expected to be around 3.5 million t, malt 
included, against 6.7 million t in 1982/83.
In the first months of the 1983/84 marketing year the situation on the  
world market has been favourable. The world production of wheat has  
remained at the record level of 1982/83, while the production of maize has  
been significantly lower (- 15%) due to an exceptionally low production in  
the US (- 38%). The very high price of maize (above common wheat) together  
with the strength of the dollar has made it possible for the Community to  
find outlets for a rather big part of the quantity foreseen to be exported  
with refunds substantially lower than last year.
The outlook for the rest of 1983/84 is still uncertain as the high 
production of wheat must be balanced against a low international demand and  
the uncertainties about the Soviet or Chinese demand.
7. Economic aspects of the measures taken
(a) Levies and refunds:
(1) Import levies:
Import levies varied considerably, influenced by the great  
fluctuations in world prices during 1982/83:
- common wheat:
76 to 125 ECU/t, i.e. 39 to 85% of the cif price (net of tax)
U )

- 33 -
- barley:
106 to 113 ECU/t, i.e. 77 to 97* of the cif price (net of tax)
- maize:
63 to 112 ECU/t, i.e. 34 to 94^ of the cif price (net of tax).
(2) Export levies:
Export levies have not been applied in the cereals sector since the  
end of 1975«
(3) Export refunds (1982/83):
Export refunds for common wheat and barley were mainly fixed by 
standing invitations to tender from the open market.
For wheat, one tender covered all destinations except Scandinavia and  
South America (6.0 million t sold), a second covered South America only  
(375 000 t sold,). The total quantity of wheat sold in tenders from  
the free market was 6 million t with an average refund of 73 ECU/t.
For barley, a tender was opened for all destinations except 
Scandinavia, Japan and South East Asia (2.3 million t sold, average  
refund 69* 0 ECU/t).
As far as fixed refunds are concerned, licences were issued as usual at  
the beginning of the marketing year for Vest Africa. Licences were  
also issued for the major basic cereals (apart from maize, of which  
there is a Community deficit) for countries bordering on the Community  
(notably Switzerland, Austria, Liechtenstein and Scandinavia) which see  
the logistic advantage of importing from the Community rather than its  
competitors. Export refunds were also fixed in the normal way for  
wheat flour, rye flour and durum wheat semolina.
The tenders ran from July 1982 to the end of May 1983, with the  
following results:
- common wheat :  6.0 million t
- barley: 2.3 million t.
Refunds for malt continued to be fixed as in the previous year by a  
special system which involves a weekly calculation based on the import  
levy for barley, with an added precaution in order to avoid speculation.
The period of valdiity of normal export licences was two months from  
the end of the month of issue except where licences were issued under  
the refund tendering procedure, in which it was four months from the  
end of the month of issue.
(b) International agreements and food aid:
The commitment of the Community and Member States under the 1980  
Convention is for the annual supply of 1,650,000 t instead of  
1,287,000 t under the previous Convention. Of this amount, 927,663 t  
(i.e. about 56^) normally is to be supplied by the Community as such  
and the remainder by the Member States, broken down by agreement  
amongst them, but exceptionally the amount to be supplied by the  
Community was increased to 1 million t in 1982.

- 34 -
By 30 September 1983 the Community had put in hand 91% of the 1981/82  
programme and 25% of the 1982/83 programme (started only in August  
1983). The previous programmes are executed at 99-100%.
The corresponding figures for Member State's aid were 98% for the  
1981/82 programme, 39% for the 1982/83 programme and 98-100% for the  
previous programmes.
(c) Intervention:
The intervention agencies experienced an exceptional level of activity  
during the 1982/83 marketing year. The quantities accepted totalled
8.1 million t, common wheat 5.7 million t, which overburdened storage  
capacity and analysis facilities in some Member States. Stocks  
therefore had to be transferred to regions under less pressure. About
3.2 million t of cereals were sold during the marketing year, most of  
it for export. Stocks increased from 2.7 million t on 31 July 1982 to  
7.6 million t on 31 July 1983, mainly due to an increase in stocks of  
common wheat (+ 4.0 million t).
Details of changes in intervention stocks during 1982/83 were as  
follows :
Intervention stock changes in 1982/83 (provisional estimates)
(1 000 t)
Common wheat Durum wheat Rye Barley
:  Stocks on 31.7.82 1 583 752 286 121
:  Purchases 5 705 79 412 232
:  Sales 1 630 4 211 521
:  Net change 4 075 75 20 711
:  Stocks on 1.8.1983 5 658 827 306 832
All the common wheat is bread-making wheat offered during the first  
three months of the marketing year under the special intervention  
measures in the form of buying-in at the reference price.
(d) End-of-season carryover payments:
Payments were made on private stocks of wheat in order to prevent  
recourse to special intervention measures for this product at the end  
of the marketing year. Carryover payments were also granted for maize 
stored in the surplus production regions and for rye stocks at mills.  
These carryover payments, which are designed to compensate for the  
price adjustment at the end of the marketing year, are calculated on  
the basis of the differences in intervention prices.

- 35 -
(e) Uniformity of prices:
Monetary compensatory amounts:  In common with other sectors, cereals  
suffer from some disunity caused by monetary differences.
(f) Produc t ion re fund s:
Production refunds are paid to cereal and potato starch manufacturers  
in order to enable them to compete with starch manufactured from other  
raw materials. The refunds fixed for the 1983/84 marketing year are  
19.41 ECU/t for maize starch, 27.79 ECU/t for wheat, 23.91 ECU/t for  
broken rice and 31.25 ECU/t for potato starch.
(g) Durum wheat aid;
This direct income aid to certain producers of durum wheat is aimed at  
those areas of the Community where producers are dependent on this  
cereal for a significant part of their income.
For 1983/84 the aid is fixed at 99.81 ECU/ha in Italy and France, and  
in Greece at 77.36 ECU/ha for the regions receiving national aid before 
entry into the Community and 57.26 ECU/ha for the regions not receiving  
national aid.
8. Budgetary expenditure
Expenditure by the EAGGF Guarantee Section on cereals was 1 824.5 million  
EUA in 1982; it is estimated at 2 548 million EUA for 1983 and  
2 510 million EUA for 1984, i.e. a slight decrease (- 5.0%) in 1982 but an  
exceptional increase (39.7%) in 1983 compared to the previous year. The  
1 824.5 million EUA for 1982 breaks down into 1 065 million EUA for export  
refunds and 759.5 million EUA for intervention measures.

- 36 -
2. RICE (*)
1. Introduction
In the 1982/83 marketing year the area under rice in the Community of Ten  
represented about 0.21% of its total UAA and 0.14% of the total area under  
rice in the world.
Rice is grown only in France, Italy and Greece. Some 89.8% of Community 
production comes from Italy; in 1982 the Community accounted for only 
0.25% of world rice production (419 million t) (1).
Rice represents around 0,3 % of final agricultural production.
2. Production
In 1982 the area sown with rice in the Community was 198 000 ha, an  
increase of 4.2% compared with the previous year. In France the 'area was  
5 450 ha compared with 4 500 ha in 1981, a rise of 21.1%. In Greece the  
area under rice rose by 2.6% from 15 123 ha in 1981 to 15 500 ha in 1982.  
In Italy the area under rice in 1982 totalled 178 000 ha, an increase of  
5.3% compared with 1981.
In 1982 rice production in the Community of Ten, at 1 074 000 t, was 13.8%  
up on the 944 000 t produced in 1981 (1). This rise was due partly to the  
increase in area and partly to a higher average yield of 54.2 q/ha in  
1982, as against 50.0 q/ha in 1981 (1).
The 1982 production figure in France was 27 450 t (1), a rise of 35%, and  
in Italy 964 000 t, a rise of 15.2% (1). Production in Greece, at  
83 000 t, was 4.6% lower than the 87 000 t produced in 1981.
3. Internal consumption
In 1981/82 Community consumption of rice amounted to 978 000 t, a drop of  
4.7% compared with the previous marketing year (1 026 000 t). Industrial  
uses dropped by 31.8% (30 000 t against 44 000 t in 1980/81), but the  
amount of seed used rose by 12.0% (3 } 000 t against 3 5 000 t in 1980/81).  
The use of rice in feedingstuffs was well up (+ 20.3%), rising from  
69 000 t in 1980/81 to 83 000 t. Human consumption fell slightly, from  
877 000 t in 1980/81 to 829 000 t (- 3.1%).
(l) Quantities expressed in terms of paddy rice.
In this document the word "rice" means "husked rice" unless otherwise 
stated.
(*) Because of the change in the basis for calculating the estimate and the  
estimate's new form the figures cannot be compared with those contained in  
previous reports. In addition it must be stressed that broken rice is  
included in these new figures.

- 37 -
(b) Market prices
During the 1982/83 marketing year market prices in the main producing  
area (Vercelli) were :
. for round-grain rice, 11.3% above the intervention price;
.  for long-grain rice, 16.5% above the intervention price for Lido and  
26.0% above the intervention price for Ribe.
In 1981/82 market prices for round-grain and long-grain rice were 29%  
and 37% respectively above the intervention price.
The end of the 1982/83 marketing year saw a decrease in prices, which  
at the beginning of September 1983 had settled somewhat and stood at :
- approximately 114.3% of the intervention price for round-grain rice;
- approximately 113.4% of the intervention price for long-grain rice  
(Lido) and 120.4% for Ribe.
(c) World prices
In 1982/83 world market prices were lower than in the previous  
marketing year at the start but by September 1983 they were close to  
the September 1982 level.
On the Thai market the price of milled rice went down from USD 300 in  
August 1982 to USD 285 at the end of August 1983, while the price of  
husked rice stayed around USD 275.
The United States market lacked transparency because of the  
payment—in—kind programme, coupled with a reduction in the area sown.  
Most United States deliveries were made under PL 480, which explains 
the lack of price transparency on the world market. Forward market 
prices at New Orleans rose appreciably until that market closed on  
14 June 1983.
(d) Consumer prices
These are available for only some Member States. The following were 
recorded :
1981 1982 1982/81 %
:  .  Germany DM 3.58/kg DM 3.70/kg + 3.4 :
:  .  Belgium BFR 54.88/kg BFR 61.25/kg +11.6 :
:  .  France --- FF 6
.50/kg~ ---- FF 7.56/kg + 
16.3 :
:  .  Italy LIT 1,237/kg LIT 1,666/kg +34.7 :
:  .  Netherlands HFL 5.00/kg HFL 5.12/kg + 2.4 :
:  .  Greece DR 45.31/kg DR 57.15/kg + 26.1 :

-3 8 -
4. Trade
In 1981/82 imports from non-member countries, including the quantities  
imported under inward processing arrangements, amounted to 0.802 million t  
compared with 0.655 million t in 1980/81, an increase of 22.4%.
Rice exports in 1981/82, including the quantities exported under inward  
processing arrangements, amounted to 0.463 million t compared with  
0.327 million t in 1980/81, an increase of 41.6%.
The Community's share of world trade in 1982 was 8% of imports and 2.6% of  
exports. The main sources of whole rice remain the United States,
Thailand, South America and Surinam and of broken rice South America,
Burma and Thailand.
Exports were again concentrated on the Community's neighbours :  
Switzerland, Austria, Portugal and countries around the Mediterranean.  
There were also some special sales to more remote destinations.
Intra-Community trade fell slightly by 1.1% from 469 000 t in 1980/81 to  
464 000 t in 1981/82, approximately 50% of this being Italian rice  
exported to the other Member States. Italian exports to the rest of the  
EEC reached the figure of 280 000 t in the 1981/82 marketing year.
5. Prices
(a) Common prices
Prices for the 1983/84 marketing year have been fixed as follows :
- the intervention price for paddy rice has gone up by 5.5% compared  
with the previous year to 306.53 ECU/t;
- the target price for husked rice (round-grain and long-grain) has  
been set at 523.16 ECU/t, an increase of 5.3% on 1982/83;
- the threshold price for husked rice (long-grain and round-grain) is  
516.64 ECU/t, an increase of 5.3% on 1982/83.

39
6. Short- and long-term outlook
As forecasts had indicated, the 1982/83 harvest was 13% up overall on the  
previous marketing year. Production in 1983 looks like being around 4%  
more than in 1982. In 1982, as in previous years, 25% of the rice produced  
was round-grain and 75% long-grain. These proportions are expected to  
change slightly for the 1983 harvest, with an increase in the quantity of  
long—grain rice and a marked drop in the quantity of round—grain.
Despite the fact that Community demand is for long-grain rice, some  
long-grain rice produced mainly in Italy continues to find its only  
practical outlet on the world market while the Community continues to  
import types of long-grain rice which seem to be particularly popular with  
consumers in the northern countries. Community trade continues to progress  
satisfactorily; there is nothing to indicate that this situation will not  
continue, even though the latest figures show a fall in exports from Italy  
to the other Member States.
7. Economic aspects of the measures taken  
(a) Levies and refunds
The sharp drop in world market prices in 1982/83 meant that import  
levies stayed high and were sometimes higher than in the previous year.
For the last three marketing years levies have been as follows:

40
ECU/t
:  1980/81 1981/82 1982/83
Round-grain husked rice 30.66 133.39 212.55
Long-grain husked rice :  30.89 138.64 210.59
Round-grain milled rice :  59.93 193.65 343.34
Long-grain milled rice :  169.57 313.30 442.40
Broken rice :  8.04 36.40 64.69
Levies were high from March 1983 onwards because of the drop in world  
market prices, and remained high until mid-August.
A structural surplus brought about by the insufficient number of easy  
outlets for rice in the EEC meant special measures had to be taken  
regarding exports. These measures had two different aims, depending on  
whether they were applied to traditional exports of quality products  
or to disposing of purely structural surpluses to non-member  
countries. The following measures were adopted to maintain traditional  
export flows to Switzerland, Austria and Liechtenstein.
For long-grain husked rice refunds of 90 ECU/t at the beginning and  
103 ECU/t until the end of the marketing year were fixed for the  
traditional exports to Austria, Liechtenstein and Switzerland. The  
corresponding refunds on long-grain milled rice were 112.5 ECU/t and  
128.75 ECU/t.
The disposal of the surplus proper was carried out under the tendering  
procedure so that the quantities to be exported and the expenditure  
incurred could be better supervised (1). The highest amounts granted  
under these arrangements were between 198 and 302 ECU/T for long-grain  
milled rice and between 193 and 285 ECU/t for round-grain rice. A  
refund of 145 ECU/t for Zone I was maintained until July 1983 so that  
it might still be possible to penetrate markets further afield than  
Switzerland, Austria and Liechtenstein. The amounts so exported were  
fairly small.
(b) Food aid
+ 78 000 t of rice (milled equivalent) had been exported as food aid  
in 1982/83, including 70 300 t as national aid and 7 700 t as  
Community aid. The reduction in quantitiy is due to problems  
unconnected with the availability of funds and products. In the coming  
marketing year the quantities may be similar to those in 1981/82.
(1) 146 250 t of long-grain rice and 38 500 t of round-grain were exported  
from 18 August 1982 to 30 June 1983.

41
(c) Quantities offered for intervention
There has been no intervention for rice since 1972/73.
(d) Monetary compensatory amounts
No monetary compensatory amounts have so far been set for rice.
8. Budgetary expenditure
Expenditure by the EAGGF Guarantee Section for rice amounted to  
50.3 million EUA in 1982; the estimate for 1983 is 71 million EUA, i.e.
0.5% of the Guarantee Section's total expenditure. The total of 
71 million EUA breaks down into 62 million EUA for refunds and 9 million  
for intervention.
9. Other measures
In view of points of uncertainty that have arisen when the rice supply  
forecast was being prepared a Regulation introducing a compulsory  
declaration of production and stocks was adopted by the Council along with  
the 1983/84 prices package (R. (EEC) No 1566/83).

- 42 -
3. SUGAR
Introduction
The 19832/83 marketing year was the second one governed by the new basic  
Regulation in the sugar sector (1). This provides in particular for a system  
of production quotas, to apply until 1985/86, and an arrangement whereby the  
producers themselves bear the full cost of the disposal of surpluses resulting 
from the difference between Community production and consumption.
The salient features of this second marketing year in the sugar sector were as  
follows:
- the area under been contracted by 9,3% compared with the previous marketing  
years ;
- sugar production approached 14 million t of white sugar equivalent 
(1 million t short of the record figure of 1981/82);
- large surplus stocks were maintained throughout the year (especially owing  
to the carryover of 1,1 million t of C sugar to 1983/84);
- total exports on the world free market in 1982/83 were maintained at the  
1981/82 level (i.e. about 5,3 million t);
- sugar prices on the world market stayed extremely low throughout the year  
(making the export of surpluses particularly costly).
1. Cultivation of sugarbeet in the Community
In 1982 the area under beet for sugar production declined by 187.000 ha,  
or 9,3%, on the previous year.
The area under sugarbeet in the Community at present represents about 1,8%  
of the total UAA.
The figures provided by the 1975 Structure Survey, and confirmed by those  
yielded by the 1977 Survey (about 370.000 units), show the total number of 
holdings growing sugarbeet to be declining in all Member States. It  
would appear that at present the number is still declining but that the  
rate of decrease has slowed.
(1) Regulation (EEC) No 1785/81, OJ No L 177, 1.7.1981, p. 4.

- 43 -
The figures provided by the 1975 Structure Survey, and confirmed by those  
yielded by the 1977 Survey (about 370.000 units), show the total number of  
holdings growing sugarbeet to be declining in all Member States. It  
would appear that at present the number is still declining but that the  
rate of decrease has slowed.
The average area of sugarbeet per grower varies between Member States,  
ranging from about one hectare in Greece to almost 11 ha in France.
Generally speaking, large acreages are to be found in France and the  
United Kingdom, medium-sized ones in Germany, the Benelux countries,  
Denmark and Ireland and small ones in Italy and Greece.
On the whole, the far-reaching structural changes in sugarbeet growing  
over the last ten years have brought about an improvement in production  
conditions and indicate that the current system of production quotas has  
not hampered the necessary restructuring process.
2. Restructuring of the processing industry
In 1972/73 there were 128 sugar manufacturers in the Community of Ten,  
with greater concentration in France, Germany and Italy. In the same  
year there were 250 beet processing factories.
The latest figures available for 1982/83 show a marked change in the  
structure of the sector.
The number of sugar manufacturers has dropped to 98 (- 23$) and the number  
of processing plants in operation to 203, a decrease of 19$.

_ 44-
The average area of sugarbeet per grower varies between Member States,  
ranging from about one hectare in Greece to almost 11 ha in France.
Generally speaking, large acreages are to be found in France and the  
United Kingdom, medium-sized ones in Germany, the Benelux countries,  
Denmark and Ireland and small ones in Italy and Greece.
On the whole, the far-reaching structural changes in sugarbeet growing  
over the last ten years have brought about an improvement in production  
conditions and indicate that the current system of production quotas has  
not hampered the necessary restructuring process.
2. Restructuring of the processing industry
In 1972/73 there were 128 sugar manufacturers in the Community of Ten,  
with greater concentration in France, Germany and Italy. In the same  
year there were 250 beet processing factories.
The latest figures available for 1982/83 show a marked change in the  
structure of the sector.
The number of sugar manufacturers has dropped to 98 (- 23%) and the number  
of processing plants in operation to 203, a decrease of 19%.
This development has been accompanied in the main by improvements in the  
equipment of the factories remaining in operation and the daily throughput  
of the Community as a whole rose from 879.000 t of beet in 1972/73 to  
1.194.000 t in 1982/83, an increase of about 36%.
The most significant restructuring measures have been in Italy where, in  
1982/83, three of the biggest sugar producers also encountered major  
financial problems.
3. Sugar production
Sugar production in 1982/83 did not attain the exceptional figure of the  
previous year (a record output of 15 million t of white sugar equivalent)  
but, at 13,942 million t (i.e. 7,3% below 1981/82), it must be regarded as  
excellent.
Given this level of production in 1982/83 and the carryover of  
one million t from the previous year, sugar production under the A quota  
(A sugar) stood at 9,4 million t, while output of B sugar attained 
2,1 million t and production of C sugar was about the same as in 1981/82  
at 3,5 million t.

- 45-
In view of the large quantity of C sugar and the unpromising outlook on  
the world market, the Commission and the Community producers 
(manufacturers and growers) agreed to pursue the storage policy introduced 
in 1981/82 in an effort to improve world sugar prices. Consequently, for  
the second time, the producers carried over 1,083 million t of C sugar to  
the next marketing year; this means keeping this sugar in store for  
12 months. The Commission, for its part, limited export commitments so  
that the Community's exports on the world market in 1982/83 would not
exceed the 1981/82 level (i.e. about 5,3 million t of quota sugar and  
C sugar.
4. Sugar consumption  
Human consumption
In 1982/83 human consumtion of sugar was slightly down on the previous  
year, per capita consumption in the Community amounting to 34,6 kg  
compared with 35,1 kg in 1981/82.
Non-i°od_sector a.nd de£ree_of^ £eif-sufii£iency_
In 1982/83, about 80.000 t were used in the chemical industry. The  
production refund was 3,72 ECU per 100 kg of white sugar used up to  
31 July 1983 and 3,88 ECU per 100 kg used after that date.
The Community's self-sufficiency in sugar in 1982/83 fell to 147,2%.
This surplus was further increased by imports of preferential sugar from  
the ACP countries, amounting to 1,29 million t of white sugar equivalent.
5. Isoglucose
Consumption and production of isoglucose in the Community remained  
practically unchanged in 1982/83.
Pr^duct^on/c£nsumpt^on_(EUR - 10^
('000 t dry matter)
1976/77 1977/78 1978/79 1979/80 1980/81 1981/82 1982/83
82,6 102,8 139,1 164,2 179,7 182,6 182,3
6. Trade
Between Meraber_States^
More than two thirds of imports of sugar in the natural state are to the  
United Kingdom, Italy and Germany from the other Member States.

_ 46_
The main outlets for sugar in the form of processed products are the
Federal Republic of Germany and France, which import from the other Member  
States.
In 1982/83 the total volume of intra—Community trade increased,  
particularly as a result of the decline in production in Italy.
Wi^h_njDnjTnember countries
As in the past, more of the preferential sugar imported in 1982/83 went to  
the United Kingdom. Some was also imported by France (13,6% of total  
preferential imports).
In 1982/83 contracts were awarded by tender for most of the sugar exported  
on Community responsibility. Awards were thus made for 2.524.000 t of  
sugar (white sugar equivalent). In addition, 305.000 t were committed  
under the "periodic" system. Including exports of C sugar, the total  
volume of exports of sugar in the natural state in 1982/83 should reach  
about 5,3 million t of white sugar equivalent.
7. Community prices  
1982/83
The average increase in agricultural prices in ECU was 10,4% for the  
Community as a whole.
In the sugar sector the increase in the intervention price for white sugar  
was less (+ 9,5%) less than for raw sugar (+ 10,5%).
The extra 1% for raw sugar made up for the difference in the previous  
marketing year, when the price rose by 1% less for raw sugar than for  
white sugar.
The rates of increase in the intervention prices for white sugar and raw 
sugar are thus the same overall for the two marketing years.
Under the system of compensation for storage costs, the reimbursement  
calculated on the basis of an annual interest rate of 13% (almost the same  
as that applied in 1981/82) was raised by 8,6%.
1,983/84
The average increase in agricultural prices in ECU was 4,2% for the  
Community as a whole, against an increase of only 4% in the intervention  
price for white sugar. ------------:

- 47 -
Other prices in the sugar sector were aligned on the latter increase,  
except the threshold price for molasses which was increased by 6,0%.
Storage costs reimbursed so far, on the basis of an annual interest rate  
of 11,0%, are about 10% less than in 1982/83.
Prices_on the; inte_rnal_marke_t
Ex-refinery market prices net of tax charged by the sugar industry in  
1982/83 were close to the intervention price until May 1983, and then  
moved closer to the intervention price for the new marketing year  
1983/84. In Italy and Ireland, prices continued to exceed the  
intervention price by a larger amount.
8. World market trends
During 1981/82 the situation on the world market was marked by a  
significant excess of production over consumption. The same situation  
prevailed in 1982/83, causing a considerable increase if effective surplus  
stocks (stocks above normal stocks). By the end of August 1983, these  
had exceeded 13 million t (raw sugar equivalent).
During 1982/83 world sugar production reached 99,9 million t, 1% less than  
the previous year, while consumption showed signs of recovery with a total  
of 94,2 million t.
The persisting surpluses have depressed world prices since 1981.
In 1982/83 the annual average price of white sugar on the Paris exchange 
was 24,07 ECU/100 kg for short-term deliveries (spot prices), compared 
with 30,82 ECU/100 kg for the previous year.
At the end of September 1982 prices for raw sugar in New York had fallen  
to around 5,5 cents/lb, the lowest level since 1968 in real terras; it was  
not until May 1963 that the situation improved and raw sugar prices in New  
York have been fluctuating between 8 and 12 cents/lb since then.
Accordingly to the first estimates for 1983/84, world production is  
expected to drop to 94-96 million t (compared with 99,9 million t in the  
previous year);  this should be accompanied by a further increase in world 
consumption, to 96 million t compared with 94,3 million t in 1982/83.
9. EEC outlook for 1983/84
Given the further decrease in the area under sugarbeet, which in 1983  
totals about 1,67 million ha in the Community, compared with  
2,03 million ha in 1981, and given the weather during the crop year, in  
effect, better than expected in many regions of the Community, the  
production in 1983/84 will probably be about 11,1 million t of white sugar.

-48 -
Total consumption in the Community in the same year may be estimated at  
about 9,5 million t; if imports of preferential sugar, the customary  
trade with non-member countries in the form of processed products and the  
quantities carried over to 1983/84 are also taken into account, the total  
quantity of sugar available for export in the natural state will probably  
be distinctly less than effective exports in 1982/83.
10. Economic aspects of the measures taken  
Levi£S_and_re^ funds_
In view of the trend in world prices, which throughout the marketing year  
were below Community prices, all exports of sugar covered by the quota  
qualified for export refunds.
The average refund at the fob stage for the 1982/83 marketing year was
35.12 ECU per 100 kg of white sugar (39% higher than the refunds in the  
previous year).
Import levies for 1982/83 averaged 38,82 ECU per 100 kg white sugar and
35.50 ECU per 100 kg raw sugar.
The average refund at the fob stage for the 1982/83 marketing year was
35.12 ECU per 100 kg of white sugar (39% higher than the refunds in the  
previous year).
Import levies for 1982/83 averaged 38,82 ECU per 100 kg white sugar and
35.50 ECU per 100 kg raw sugar.
In te rvjî nt i£n_and_ frj o d aid
In 1982/83 no sugar was offered to the intervention agencies and noe of  
the customary food aid operations was effected.
11. Budgetary expenditure
In recent years expenditure in the sugar sector has fluctuated  
considerably on account of changes in world prices and in Community stocks.
Expenditure by the EAGGF Guarantee Section was thus 768 million ECU in  
1981 and 1.242 million ECU in 1982 and is estimated at 1.434 million ECU 
for 1983.
From the 1981/82 marketing year the cost of disposing of surpluses  
resulting from the imbalance between sugar production and consumption in  
the Community has had to be borne entirely by the producers themselves.

- 48a -
This expenditure is covered by revenue from the production levies payable  
on A and B sugar and isoglucose. Another levy to equalize storage costs  
is charged on all sugar produced and disposed of within the quotas. The  
latter levy must cover the reimbursement of the relevant storage costs.
After deduction of the revenue from the levies in the sugar sector  
(production and storage levies), net Community expenditure totalled  
285 million ECU in 1981, 536 million ECU in 1982 and 475 million ECU in  
1983. However, most of this is expenditure resulting from the need to  
export a quantity of Community sugar corresponding to the 1,3 million t of 
preferential sugar imported from the ACP countries; this expenditure has  
fluctuated between 330 and 460 million ECU in recent years.

■  49 ·
4. OLIVE OIL
1. Introduction
Establishing Community olive oil statistics for the most recent marketing  
years presents the same difficulties as previously. The information  
available gives the following picture.
Of the oil produced in the Community, 0,20% comes from France, 30% from  
Greece and 70% from Italy. In 1980 the value of olive oil production as a  
proportion of the value of agricultural production in each country was  
11,0% in Greece and 5,8% in Italy, and olive oil production overall  
represented 1,4% of the value of final agricultural production in the  
Community.
Until 1975 approximately 70% of the Community's requirements were met by  
Community production, but over the last six years this percentage has been  
steadily increasing and with the accession of Greece the Community has  
become virtually self-sufficient, quantitatively, if not qualitatively.
According to available information, 2,7 million ha are planted with olive  
trees in the Community (2,2 million ha in Italy and 0,5 million ha in  
Greece). This accounts for roughly 27% of the total world area under  
olives and 2,5% of Community UAA. These areas remain more or less the  
same. According to certain estimates, the total number of cultivated and  
wild olive trees is about 307 million (185 million in Italy, 117 million  
in Greece and 5 million in France).
The number of families involved in olive-growing in Italy, Greece and  
France is about one million, 400.000 and 40.000 respectively.
In a normal year, Community production of olive oil is 47% of world  
production but since olive trees bear fruit in alternate years only,  
production can vary sharply from one year to another.
2. Production
Since 1978/79 aid to growers belonging to a producers' organization has  
been based on the actual quantity of oil produced. Other growers receive  
aid at a fixed rate according to the number and production potential of  
the trees they cultivate.
There are at present four producers' organizations in Italy, four in  
France and 90 in Greece. In France all growers belong to an organization,  
in Italy roughly 95% and in Greece about 85%.

- 50 -
On the basis of application for aid, production in the 1980/81 marketing  
year was 720.000 t in Italy, 338.000 t in Greece and 1.800 t in France.  
The quantities covered by aid applications for 1982/83 were not yet known  
when this report was drawn up. The Italian applications for 1980/81 are  
still being reexamined by the Italian authorities.
3. Consumption and marketing
A system of consumption aid was introduced in the Community on  
1 April 1979. The aid in question is granted for oil put up in packaging  
of a maximum capacity by approved packaging establishments and is subject  
to the oil being marketed at a price which takes account of the  
consumption aid. Only four countries, however, operate packaging  
establishments approved for the purposes of the scheme (Italy, France, the  
United Kingdom, Greece and the Netherlands).  The scheme has been in  
operation in Greece since 1 November 1981.
From 1978/79 - the marketing year in which the aid scheme was operated for  
the first time - up to and including 1981/82, aid applications (almost all  
of which are made in Italy) have shown an average annual increase of about 
30%.
For 1981/82 applications were made in respect of about 260.000 t.
Applications made during the period to the end of September 1983 suggest  
that the figure for 1982/83 will be of the order of 320.000 t.
The increase in the quantities eligible for consumption aid does not  
necessarily imply a rise in consumption. It can be explained partly by  
the heavier consumption of Community oil at the expense of oil imported  
from non-member countries which does not qualify for the aid.
Regarding the impact of the aid on the retail price, five years of  
operation of the scheme show that it has been effective and that retail  
prices for olive oil have increased much less than wholesale prices.

- 51 -
4. Trade
Traditionally the Community has been the world's largest bulk importer of  
olive oil. Since the accession of Greece, however, and in view of the  
quantity of oil available in that country imports from non-member  
countries have fallen from 125.570 t (average for the five marketing years  
preceding enlargement) to 61.600 t in 1980/81 and 81.210 t in 1982/83 (the  
latter figure being based on import licences issued up to 30 September  
1983). The main importing Member State remains Italy, followed by France.
Since the accession of Greece, exports from the Community to non-member  
countries have exceeded the quantities traditionally exported. Compared 
with the five marketing years prior to enlargement, during which exports  
were 16.890 t, exports were 62.100 t in 1981/82 and are already in excess  
of 50.000 t in respect of 1982/83 (export licences issued up to  
30 September 1983 covered 51.000 t).
Of the quantities exported during the 1982/83 marketing year, no less than  
24.580 t came from intervention, of which 7.390 t were from Italy and  
17.190 t from Greece.
5. Prices
(a) Common prices
The new organization of the market in olive oil came into force on 
1 January 1979. For the 1982/83 marketing year the mechanism established  
was as follows:
ECU/100 kg
Producer target price 302,77 
Production aid 66,60 
Intervention price 217,93 
Representative market price 159,50 
Threshold price 155,88
The consumption aid is equal to the difference between the producer target  
price less production aid, and the representative market price. For the  
1982/83 marketing year it was 76,67 ECU/100 kg.
For 1983/84 the prices fixed by the Council are as follows:

- 52 -
ECU/100 kg
Producer target price 319,42
Production aid 70,26
Intervention price 229,92
By 1 November 1983 the Council had not yet fixed the representative market  
price or the threshold price; the figures proposed by the Commission are  
as follows:
ECU/100 kg
Representative market price 196,87
Threshold price 193,25
(b) Market situation and intervention purchases
The 1982/83 crop was small in Italy (resulting in negligible quantities  
being taken into intervention) but large in Greece. This has increased  
direct sales of Greek oil on the Italian market and reduced the quantities  
taken into intervention in Greece. Sales from intervention totalled  
nearly 100.000 t in 1982/83. Stocks of olive oil therefore fell from  
169.000 t on 31 October 1982 to 117.000 t on 30 September 1983.
(c) Olive oil held by the Italian and Greek intervention agencies  
After purchases and sales in Italy and Greece approximately 117.440 t of  
olive oil were in storage on 31 September 1983 (46.680 t in Italy and  
70.760 t in Greece).
6. Economic aspects of the measures taken
(a) Import levies
Since June 1976 the levy has been fixed by tender, account being taken not  
only of the world market but also of the Community market and of levy  
offers made by traders. No particular difficulties arose in connection  
with the fixing of levies in 1982/83.

- 53 -
(b) Refunds
During the 1982/83 marketing year a refund was granted on exports of olive  
oil put up in packaging of less than 5 kg. The level of the refund, which  
fluctuated between 14 and 35 ECU/100 kg, enabled 35.580 t to be exported 
by the end of September 1983, compared with 15.702 t by the same date last  
year. Olive oil exports to Libya qualified for a special refund during a  
four-month period.
7. Budgetary expenditure
Expenditure in the olive oil sector consists of intervention purchasing,  
aid paid to olive oil producers, consumption aid paid to packaging plants  
and export refunds.
EAGGF Guarantee Section expenditure on olive oil was 493,1 million ECU in
1982. Forecast expenditure for 1983 is 676 million ECU.
For 1984, expenditure is estimated, on the basis of the draft budget for
1983, at 761,4 million ECU. Two main factors explain the size of the
figures for these last two marketing years compared with expenditure in  
previous years: the steady increase in the catching-up rate for
production aid payments in Italy and the alignment of aids in Greece,  
which is a major olive oil producer.
The figures for 1983 and 1984 can be explained by a further factor, the  
increase in the rates of aid.
Expenditure on olive oil accounted for 4% of total Guarantee Section  
expenditure in 1982 and 4,3% in 1983. For 1984 the estimate is 4,7%.

- 54 -
5. OILSEEDS AND PROTEIN SEEDS
I. Rape and sunflower seed  
1. Introduction
In 1982, the share of oilseeds in the value of final agricultural 
production was 1,0% and these crops accounted for 1,5% of the  
Community's UAA. World production of rape seed rose from 12.3 million  
in 1981 to 15.0 million t in 1982; Community production increased in  
1982 to 2 695 000 t, and the Community's share of world production  
therefore rose from 16% to 18%.
World production of sunflower seed rose from 14.5 million t in 1981 to  
16.6 million t in 1982. Community production of sunflower seed was  
721 000 t in 1982, representing 4% of world production.
The Community's own oilseed production meets only a very small part of  
its oil and oilcake needs. The degree of self-sufficiency in 1982 was  
approximately 24% for oil, excluding olive oil, and 8% for oilcake.
2. Production
In 1982, the Community area under rape was 1 006 000 ha compared with  
881 000 ha in 1981. Area increased in all the major producing countries 
and by 14% in the EEC as a whole. Yields increased by 18%, taking total  
production to 2 695 000 t.
In the Community of Ten, the area under sunflower seed rose by 62% from  
210 000 ha in 1981 to 340 000 ha in 1982. Yields were lower, however,  
and production rose by only 44%.
3. Consumption
The demand for rape and sunflower seed depends on the demand for rape  
and sunflower oil and oilcake; the latter is in turn determined by the  
overall demand for oil and oilcake and by the relationship between the  
prices of rape and sunflower oil and oilcake and the prices of  
alternative products. This being the case, two sets of consumption data  
^£11 be given, one for oil and the other for rape and sunflower cake,  
while oilseeds will be dealt with separately.

55
(i) Oil
Consumption of colza oil in 1982/83 rose by 46%, reflecting the  
increase in Community production.
Sunflower oil consumption increased by 6% in 1982/83 compared to  
1981/82, to 607 000 t. This reflects largely the increase in EEC 
sunflower production.
(ii) Oilcake
Consumption of rape seed cake increased in 1982/83 in comparison  
to 1981/82, from 1.388 million t to 1.784 million t. This  
reflects the increase in Community production, since the Community  
tends to crush the major part of its requirements in the EEC and  
exports very little.
Sunflower cake consumption rose in 1982/83 compared to 1981/82  
from 988 000 t to 1.131 million t. This reflects not only an  
increase in the EEC level but also a reduction in imports.
(iii) Oilseeds
Since the crushing margins for rape seed were more favourable than  
for competing oilseeds, no difficulty was experienced in marketing  
the 1982 rape seed crop.
Since the Community is considerably deficient in sunflower seed,  
no difficulty was experienced in marketing even the larger 1982  
crop.
4. Trade
Imports of rape seed fell from 135 000 t in 1981/82 to 110 000 t in  
1982/83, reflecting a poor crop in the main producing country, Canada.
Imports of sunflower seed also declined, from 874 000 t in 1981/82 to  
654 000 t in 1982/83. This reflects the increase in the EEC's own 
sunflower seed production.

- 56 -
Exports of rape and sunflower seed remain at a relatively low level,
(15 000 t of rape seed and 2 000 t of sunflower seed in 1982/83).
Trade in rape within the Community consists mainly of French exports to  
Germany. Sunflower seed is traded largely between France and Germany.
5. Prices
(a) Common prices
For the 1982/83 marketing year, the target price for rape seed was  
46.39 ECU/100 kg and for sunflower seed 54.44 ECU/100 kg. For  
rape an increase of 4% was decided on for 1983/84. This is the  
first marketing year in which prices have been influenced by the  
guarantee threshold arrangements. In view of the Community's wish  
to encourage the cultivation of sunflower seed, a rise of 6% was  
adopted. The target price for rape seed was therefore fixed for  
1983/84 at 48.22 ECU/100 kg and for sunflower seed at  
51.71 ECU/100 kg.
For 1983/84, the Commission again provided for a special bonus in  
addition to the intervention price for double-zero rape  
varieties. This measure is designed to support the production of  
these varieties in the Community.
6. Market prices
(1) World market
During 1982/83 world market prices generally fell following an  
increase in the USA's soya production compared to 1981/82. For 
1983/84, world oilseed production is expected to be at a very low  
level, and prices are expected to rise above 1982/83 levels.
(2) Community market
Prices obtained by Community producers were generally between the  
intervention price and the target price. The sunflower crop is  
normally sold at prices well in excess of the intervention price  
and even close to the target price.
7. Outlook
The Community rape crop for the present marketing year (1983/84) is  
estimated at 2.4 million t, which is down on last year, despite 
increases in planted area, particularly in the United Kingdom and  
Germany. As regards selling the crop, the marketing is well advanced,  
and trade sources expect little problem in disposing of the remainder.

- 57 -
The Community sunflower seed crop for 1983/84 is estimated at  
1 050 000 t compared to 778 000 t in 1982/83. This reflects a  
substantial production increase in France, a smaller increase in Italy  
and a limited output in Greece.
8. Economic aspects of the measures taken
(a) Aid and refunds
Aid for rape seed in the 1982/83 marketing year fluctuated between  
21.759 ECU/100 kg and 35.354 ECU/100 kg with an average of about  
24.3 ECU/100 kg. The export refund during the same period varied 
between 21 and 24 ECU/100 kg.
For sunflower seed, aid varied between 25.841 and  
34.970 ECU/100 kg, averaging around 30.1 ECU/100 kg. No export  
refunds were fixed for this product because of the Community 
deficiency situation.
(b) Intervention
During the 1982/83 marketing year, 38 213 t of rape seed were  
offered for intervention. This amount was sold during the same  
marketing year.
(c) Change in aid rules
(i) By Regulation (EEC) No 1594/83, the Council extended the aid  
system for oilseeds to rape seed incorporated into animal  
feedingstuffs.
(ii) By Regulation (EEC) No 2027/83, the Council also extended the  
system of differential amounts for rape and sunflower seed to  
take account of forward exchange rates.
9. Budgetary expenditure
EAGGF Guarantee Section expenditure on rape and sunflower seed amounted  
to 703 million ECU in 1982. The appropriations for 1983 are 932 million  
ECU. The appropriations allocated in the 1984 draft budget are  
955 million ECU.
II. Soya beans
From 1974 to 1978 the area under soya, almost all of it in France, was  
about 4 000 ha. Between 1979 and 1982 it rose to 17 000 ha, with 
production reaching 27 000 t in 1982. In Italy the area sown for 1983  
shows signs of increase.

- 58 -
The soya crop accounts for only a very small proportion of Community UAA,  
world production (95 million t of soya in 1982/83) or Community consumption  
(18 million t of seed equivalent in 1982/83).
The guide price for the 1983/84 marketing year was set at 56.17 ECU/100 kg,  
a 6.5% increase compared with the 52.77 ECU/100 kg for 1982/83.

- 59 -
III. FLAX SEED
Two types of flax are grown in the Community :  fibre flax, which is grown  
mainly for the production of fibres but which also yields large quantities of  
seed, and seed flax cultivated solely for seed.
With about 65 000 ha producing 65 000 t of seed in an average year, the  
cultivation of flax^ accounts for only a very low proportion of the  
Community UAA and the world production of flax seed (5.3 million ha with  
2.8 million t in 1982 according to the FAO, against only 4.9 million ha with  
2.3 million t in 1981). Argentina, Canada, India, the USSR and the United  
States are the main producers, accounting for 86% of world production.
This crop makes only a modest contribution to meeting the community's large  
requirements, since imports in 1982 amounted to 204 000 t of flax seed  
(187 000 t of which came from Canada), 34 000 t of oil (26 000 t from  
Argentina) and 459 000 t of oilcake (331 000 t from Argentina and 84 000 t  
form the United States).
Despite this deficit and despite yields which are as high as, or higher than,  
the yields in other countries (in 1982, 1 400 kg/ha compared with 1 000 kg in  
Canada and 760 kg in Argentina) the cultivation of seed flax is not expanding  
within the Community. In fact, areas are declining because returns are  
inadequate (yields, although double or triple the world average, are well  
below those of other oilseeds) and insufficiently guaranteed compared with  
those from competing rotating crops, namely cereals and other oilseeds. In  
1982 only 3 147 ha (4 400 t) were sown compared with 4 294 ha in 1981 and  
4 955 ha in 1980.
France, Italy and the United Kingdom are practically the only Member States  
which produce flax seed. Community production of flax seed amounted to  
62 500 t, compared with 47 400 t in 1981 and 64 000 t in 1980.
For the 1982/83 marketing year, the guide price was fixed at 51.50 Ecu/100 kg  
compared with 46.40 ECU/100 kg for 1981/82 (+ 11%). the average world market  
price having been set at 26.638 Ecu/100 kg, aid was 24.862 ECU/100 kg compared  
with 14.866 ECU/100 kg for 1981/82 (world price :  31.534 ECU).
EAGGF Guarantee Section expenditure on seed flax and fibre flax (1) are for  
1982 6,7 Mio ECU.
(l) See also under 7 B :  Fibre flax and hemp.

- 60 -
IV. CASTOR SEED
Despite serious attempts to encourage the growing of castor seed in the  
Community, only about 10 hectares were producing this crop in 1981 and 1982.  
The share of castor seed in the value of final agricultural production, in the  
Community UAA or in world production is therefore infinitesimal.
According to the FAO, world production of castor seed in 1982 was 804 000 t  
from 1.5 million ha. India (250 000 t), Brazil (212 000 t) and China  
(130 000 t) together accounted for 74% of this production.
In the Community this crop is still at an experimental stage since some  
problems have proved more difficult to solve than expected. Yields are very  
satisfactory but the varieties cultivated are too late and the development of  
harvesting equipment is progressing too slowly. In 1982 imports amounted to  
43 400 t of seed, principally from China, Pakistan, Sri Lanka and Sudan, and  
60 000 t of oil from Brazil, India and China.
The aid system set up in 1978/79 for a minimum of five marketing years 
involves the fixing of a guide price, which is 66.39 ECU/100 kg for 1983/84  
(as for 1982/83), and the granting of aid equal to the difference between that  
price and the world market price, provided that the producer has received at  
least the minimum price, which was fixed at 63.23 ECU/100 kg for 1982/83 and  
1983/84.
For 1982/83 the average aid was 23.081 ECU/100 kg compared with  
21.304 ECU/100 kg for 1981/82.
An additional aid (launching aid) of 12.90 ECU/100 kg was introduced for the  
five marketing years for which the system applies.
Since Community castor seed production does not seem to be expanding, despite 
the aid system, the Council has decided not to extend the latter beyond  
1983/84.

-  61 -
6. DRIED FODDER, PEAS AND FIELD BEANS
a. Dried fodder
1. Introduction
The common organization of the market in dried fodder covers the following  
products: dehydrated fodder, the main sun-dried legumes, protein
concentrates obtained from lucerne and grass juice and by-products  
obtained in the manufacture of protein concentrates. By a Regulation of 
17 May 1983 the Council decided that the common organization of the market  
would continue to apply to dehydrated potatoes for the 1983/84 marketing  
year.
The common organization of the market in dried fodder (see below under 6)  
has been operating since 1 April 1978. It replaces and strengthens the  
common organization of the market which had operated in respect of  
dehydrated fodder alone since 1 May 1974.
2. Production
Production of dehydrated fodder, other than dehydrated potatoes, in the  
Community in 1982 was 1 330 000 t, 9% down on 1981.
In 1982 France was once again the main producer with 768 000 t, more than  
half (58%) of Community production.
Dehydrated potatoes are much less important than conventional dehydrated  
fodders (mainly lucerne and grass).. In 1982/83 Community production of  
such potatoes was 28 810 t, 19% down on the previous year (35 695 t). The  
main producer in the Community is Germany, with around 25 814 t.
For sun-dried fodder, the common organization of the market has been in  
operation since 1 July 1978. Community production eligible for aid is  
estimated at 120 000 t in 1982/83 (80 000 t in France and 40 000 t in  
Italy). This is about 8% up on 1981/82.

- 62 -
3. Quantities available
Dehydrated fodder available in 1982/83 totalled 1 537 495 t, appreciably  
down on 1981/82 (1 607 866 t). The drop both in Community production  
(about 70 000 t) and imports (about 51 000 t) was responsible for this  
fall in available fodder.
4. Trade
Mainly as a result of the steep rise in production costs in certain  
non-member countries, Community imports of lucerne meal fell from  
444 000 t in 1980 to 184 000 t in 1981. Imports in 1982 totalled  
235 000 t.
As in earlier years, the United States and Hungary remained the largest  
exporters of dehydrated fodder to the Community. Imports from non-member  
countries went mainly to Germany (134 000 t) and Italy (38 000 t).
Community exports of dehydrated fodder to non-member countries have never  
been on a large scale. In 1982, they amounted to 27 800 t compared with  
38 000 t in 1981.
5. Prices
On 1 April 1982, which was the beginning of the 1982/83 marketing year,  
the world market price of dehydrated fodder was 143 ECU/t. Since then  
prices have risen, reaching maximum levels in July 1982 (144 ECU/t) and  
February 1983 (148 ECU/t). However, following the general fall in the  
prices of protein products, the prices of dried fodder fell to 136 ECU/t  
in October 1983.
6. Economic aspects of the measures taken
For 1983/84 the Council fixed the guide price for dried fodder at  
178.940 ECU/t and the flat-rate aid at 8.49 ECU/t, i.e. at levels higher  
in both cases by 6% than in 1982/83.

- 63 -
7. Outlook
Community production of dried fodder amounted to 1.46 million t in 1982/83  
as compared with 1.59 million t in 1981/82. Production forecasts for  
1983/84 range between 1.4 and 1.5 million t.
Drying costs account for a considerable part of the production cost of 
dehydrated fodders, which are thus particularly sensitive to any increase  
in energy prices. Recent and foreseeable increases in the price of fuel  
oil are a cause of concern for the sector's future. In some Member  
States, however, a lot of research has been carried out recently into ways  
of reducing fuel consumption by dryers and some results have already been 
achieved. Over the next few years Community production of dehydrated  
fodder seems likely to drop further.
8. Budgetary expenditure
EAGGF Guarantee Section expenditure on dried fodder was 42 million ECU in  
1982. The appropriations set aside for 1983 in the budget total  
49 million ECU. The appropriations set aside in the draft 1984 budget  
total 56 million ECU. These amounts correspond respectively to 0.3%, 0.2%  
and 0.3% of the EAGGF Guarantee Section budget.
b. Peas and beans used in animal feed
Since the Community's demand for feed protein greatly exceeds production,  
the Council adopted, on 22 May 1978, special measures designed to expand  
the utilization of peas and beans in animal feed.
( 5 )

- 64 -
In 1982/83 aid for the processing of peas and field beans was paid in  
respect of 419 000 t of peas and 194 000 t of field beans. This  
represents a 70% increase in the case of peas and an 83% increase in the  
case of beans compared to 1981/82 (246 000 t and 106 000 t). It reflects  
increases in utilization in the United Kingdom and France, but a decline  
in Belgium.
For the 1982/83 marketing year, the activating price for aid to peas and  
field beans was fixed at 47.60 ECU/100 kg of soya cake, while the minimum  
purchase price was set at 31.40 ECU/100 kg. The aid varied between 11,949  
and 10,636 ECU/100 kg.
For the 1983/84 marketing year, the activating price was fixed at  
51.76 ECU/100 kg and the minimum price at 29.19 ECU/100 kg; these prices  
represent increases of 8.7% and 6.4% respectively as compared to 1982/83.
Expenditure on this sector by the EAGGF Guarantee Section in 1982 totalled  
41 million ECU. The appropriations for 1983 are 60 million ECU. The  
appropriations entered in the draft 1984 budget amount to 70 million ECU.
c. Peas and beans for human consumption
On 18 May 1982, by Regulation (EEC) No 1432/82, the Council adopted a new  
set of special measures for peas and beans, extending the aid system to  
peas and field beans used for human consumption. The new system entered  
into force on 1 August 1982.
The aid for peas and field beans destined for human consumption is granted 
on a different basis to that applicable for peas and field beans for  
animal feed. In the case of human consumption, aid is granted for an  
amount equal to the difference between the guide price and the world 
market price registered at the frontier of the Community for peas and  
beans of varieties capable of competing with Community production.
EEC production of peas and field beans qualifying for such aid was  
78 000 t in 1982/83.

- 65 -
7. COTTON, FIBRE FLAX AND HEMP
A. Cotton
1. Introduction
Although cotton is not included in Annex II to the Treaty, Protocol  
No 4 on cotton which is part of the Treaty of Accession of Greece  
recognizes the specifically agricultural character of this product.
At Community level cotton is of limited importance both with regard to  
the areas planted (125.000 - 145.000 ha in recent years, or 1,5% of the  
UAA) and with regard to the number of growers (50.000). Nevertheless,  
for Greece, which is effectively the only producer Member State, cotton  
is of very great economic and social importance. The yield of unginned  
cotton and fibre is very high in Greece (in 1982/83, 738 kg/ha of fibre  
compared to a world average of 465 kg and 649 kg in the United States)  
and the fibre produced is of excellent quality. At present about 75%  
of the harvest is mechanized but the small size of the cotton fields  
(less than 3 ha on average) does not facilitate the use of machinery.
According to the FAO world production of cotton fibre was
14,7 million t in 1982. The Community share of world production is
therefore less than 1%.
2. Production
Under the Greek national aid system it has not been possible to  
maintain the area under cotton. It fell from 183.000 ha in 1977 to
141.000 ha in 1980. In 1981, the first year of application of the  
Community aid system, the area under cotton was 126.000 ha and in 1982  
it rose again to 137.000 ha. In Italy cotton growing has virtually  
disappeared. Community production in 1982 was 316.000 t of unginned  
cotton and 101.000 t of cotton fibre compared to 351.000 and 121.000 t  
in 1981. Production of cotton seed was 156.000 t in 1982 compared to
192.000 t in 1981.
3. Trade
Since unginned cotton is difficult to transport over long distances  
both for technical (preservation is difficult) and economic reasons (it  
is more profitable to gin the cotton on the spot), there is no  
international trade in this product.
Since the Community has a spinning capacity which is far greater than  
its production of fibre, it imports large quantities.
In 1982 the Community of Nine imported 772.000 t of cotton fibre (raw  
cotton plus linters) compared to 671.000 t in 1981. The Soviet Union  
(179.000 t), the United States (145.000 t), and Turkey (91.000 t), are  
the main suppliers (54% of total supplies). Community exports of  
cotton fibre were only 25.000 t.
Trade between Greece and the other Member States is limited.

-  66 -
4. Prices
Because there is no trade in this product there is no world price for  
unginned cotton.
As regards the world price for fibre, the "A" index published by  
Liverpool Cotton Services and by "Cotton Outlook" is considered one of  
the most representative of the world spot market for a specific usual  
grade. ( Middling 1 - 3/32 inch).
During the 1982/83 marketing year world cotton prices stayed at fairly  
low levels until December 1982. The "A" Index, which was 78,8 ct/lb on  
1 August 1982, declined to 68,7 ct/lb in December. Since January 1983  
it has gradually recovered and at the end of the marketing year was  
87,10 ct/lb.
The average for 1982/83 was 77 ct/lb compared to an average of 74 ct/lb 
in 1981/82, a rise of 4%.
5. Aid system and budgetary expenditure
The aid system involves the granting of aid for the Community quantity  
of unginned cotton, equal to the difference between a guide price fixed  
every year by the Council and the world market price recorded regularly 
by the Commission.
The aid is fixed once a month except when there is an important change  
in the world market situation. The aid is granted to ginning  
undertakings provided that they have paid the producer at least the  
minimum price fixed by the Council for the marketing year in question.  
The full aid is granted only for a limited quantity. Any excess  
production results in a reduction in aid for all producers, so that this  
maximum quantity provides a barrier to any excessive development of 
Community production.
In any case, production finds a natural limit in the fact that fertile  
irrigated land in an area with a subtropical climate is not very  
abundant in the Community.
For the 1983/84 marketing year, the Council fixed the guide price at  
92,75 ECU/100 kg, the minimum price at 88,12 ECU/100 kg and the quantity  
of unginned cotton which will receive the full aid at 450.000 t. The  
corresponding figures for 1982/83 are 85,88 ECU/100 kg, 81,59 ECU/100 kg  
and 450.000 t. The prices have therefore been increased by 8%.

- 67 -
During the 1982/83 marketing year the Commission, taking into  
consideration the world market situation, fixed the aid for unginned 
cotton 20 times. The aid was about 33 ECU/100 kg in August but then due  
to the fall of cotton prices during the ginning months of October,  
November and December, it was increased to 36,4, 37,4 and  
37,6 ECU/100 kg respectively. Following a recovery of prices the aid  
was gradually reduced from January to 22,4 ECU/100 kg in July 1983. The  
expenditure on cotton by the Guarantee Section of the EAGGF for the  
1982/83 marketing year was about 125 million ECU compared with  
116 million in 1981/82.

-  68 -
B. FIBRE FLAX AND HAMP
1. Introduction
The area under fibre flax and hemp is less than 1% of Community UAA, but  
these crops are of considerable importance for the regions in which they  
are concentrated.
The Community area under fibre flax is 50.000 to 55.000 ha. Fibre flax  
is grown on about 10.000 farms in the Netherlands, Belgium and north  
west France. Flax straw is processed into fibres in about 250 retting  
and scrutching concerns located in the production areas. Their number  
is decreasing but they are growing in size and they produce a  
considerable and relatively stable quantity of raw materials which the  
Community lacks: natural textile fibres, oilseeds and wood particles.
The Community accounts for only 4% of the total world area under fibre  
flax (1,5 million ha) but for 12% to 15% of world production of flax  
fibre (700.000 t), as a result of yields which are well above the world 
average. The quality of the Community fibre is also well above that of  
flax produced elsewhere in the world (USSR, Eastern Europe, China,
Egypt).
Paper hemp is grown only in a very small area in France. The raw  
material supplied by 1 500 to 2 000 producers is used in manufacturing  
special types of paper. Italy produces a very small quantity of textile  
hemp.
2. Production
In 1982 the Community area under fibre flax, which in earlier years had  
been close to 60.000 ha and in 1981 was only 49.600 ha, rose again to
50.000 ha. This increase (+ 2%) is attributable to an overall  
improvement in the industry. The relative importance of the producer  
Member States has changed slightly: France (79%) lost two points to
Belgium (15%). Dew retting continues to replace water retting, the  
higher cost of the latter (in terms of labour and energy) being  
insufficiently compensated for by the higher price for the fibre and  
higher seed yield. This trend is a danger to future supplies of good  
quality certified seed, particularly in years when weather conditions 
hamper or delay seed stripping in the fields.
On the whole, growing, pulling and retting conditions for the 1982  
harvest have been very satisfactory. The straw yield was normal and  
the quantity and quality of the fibre were above average.

- 69 -
The area under paper hemp, after a steady increase in previous years,  
began to fall in 1979 and dropped again in 1982, reaching only 5.300 ha  
(5.100 ha in France) compared with 5.700 ha in 1981 (- 7%).
The difficulties in selling paper have caused paper mills to conduct a  
very cautious buying policy consisting mainly in replacing hemp by  
flax. Sales of hemp seed, on the other hand, have improved.
3. Consumption and stocks of fibres
Stocks of fibres held by scutching concerns, dealers and spinning  
undertakings at the start of the 1981/82 marketing year were estimated 
by the trade at the alarming level of 75.000 t. During the marketing  
year, however, 300.000 t were absorbed and stocks at the end of the year  
(44.800 t) can be considered normal or even slightly down on normal.
Sustained operations by the spinning industry combined with the loss of 
around one third of the French harvest during retting explain this fall  
in stocks.
The market in short flax fibres and to a less extent the market in hemp 
fibres have also improved, with a rise in prices and a fall in stocks.
4. Trade
Since its unit value is too small to justify long-distance transport,  
there is no trade in flax straw with non-member countries.  
Intra-Community trade is limited to Belgian imports from France and the  
Netherlands.
In 1982 retting and scutching concerns in Belgium purchased 51.000 t of  
flax straw in France and the Netherlands to swell the Belgian crop. The  
fall compared with the previous marketing year (- 7%) is explained by an  
increase in the number of years the Belgian retting and scutching  
industry has been processing a relatively stable quantity of straw which  
it has been obtaining from as near home as possible.
The quantities of flax fibre imported in 1982, which were down on 1981  
(15.900 t) and 1980 (14.000 t), fell to the very low level of
13.000 t. The quantities exported on the other hand (30.500 t) far  
exceed those recorded in previous years.
The Community does not produce enough low and medium quality fibre,  
which it imports from Eastern Europe, Egypt and China where it is  
produced in large quantities, but it supplies the entire world and in  
particular Eastern Europe (12.200 t) with good and superior quality  
fibre which is not produced elsewhere.

- 70 -
Imports of hemp fibre fell from 9.400 t in 1981 to 5.600 t, thus  
confirming the difficulties in this sector, and exports were only about  
1.500 t.
5. Prices
The damage caused to the 1981 harvest sharply pushed up the prices of  
flax straw for the 1981/82 marketing year, and prices continued to rise  
in 1982/83. Returns for the majority of growers also rose sharply.  
Average selling prices for long flax fibres, which have been rising  
since October 1981, continued rising throughout the 1982/83 marketing  
year.
The market situation for short fibres improved but the level of prices  
continued to remain lower than in 1978/79 and 1979/80. The contract  
price for hemp straw agreed between users and producers rose from FF  
435/t (75,40 ECU/t) in 1980 and to FF 475/t (79,23 ECU/t) in 1981 to  
FF 524/t (84,58 ECU/t) in 1982.
6. Outlook
In 1983 the Community area under fibre flax was 53.100 ha. This  
represents a recovery (+ 4,5%) which is smaller, however, than was  
originally expected in view of the fact that the flax could not be sown  
at the appropriate time.
The quality of both straw and fibre was very uneven. Yield for straw,  
fibre and seed was down on normal.
The drop in the areas under hemp which began in 1979 slowed down in  
1983. About 5.000 ha have been sown (4.900 in France) compared with  
5.300 ha in 1982. However, there is no prospect of this crop  
recovering in the short term.
7. Projections for fibre flax for 1983/84 and beyond
The very satisfactory marketing situation for straw and the promising  
situation for long fibres from the 1983 harvest should enable producers  
and scutchers to increase without risk the areas currently sown.  
However, the fact that the market is currently in balance and should  
remain so in the short term is due principally to a contraction of  
supply.
The future of the sector will be assured in the long term only if flax  
succeeds in capturing an increasing share of the range of textile  
products available to the modern consumer. To do this, not only will  
flax have to maintain and increase the outlet it has found in the  
clothing industry but it will also have to recover some of the other  
outlets it has lost.

Budgetary expenditure
The aid for fibre flax was fixed at 355,12 ECU/ha for 1983/84 compared  
with 335,02 ECU/ha for 1982/83 (+ 6%). Of this amount, 23,08 ECU are  
to contribute towards financing measures to encourage the use of flax  
fibres.
For hemp, aid for 1983/84 is 322,52 ECU/ha compared with 304,26 ECU/ha  
for 1982/83 (+ 6%).
Expenditure chargeable to the Guarantee Section of the EAGGF for fibre  
flax and hemp in 1982 was 19,5 million ECU.

- 72 -
8. SEEDS
I. Introduction
The common organization of the market in seeds covers  
products :the following
- dried leguminous vegetables for sowing
- spelt for sowing
- hybrid maize for sowing
- rice for sowing
- oilseeds and oleaginous fruit for sowing
- seeds, fruit and spores, of a kind used for sowingCCT 07.05  
CCT 10.01  
CCT 10.05  
CCT 10.06  
CCT 12.01  
CCT 12.03A
A
A
A
A
This sector must be considered not only in terms of seed production but  
also in terms of its strategic value. In 1981 fodder seed produced a
12.526.000 ha crop of green fodder in the EEC, while permanent grasslands 
covered an area of over 46.000.000 ha. A production of around  
1,4 million quintals provides enough hybrid maize seed to put  
approximately 5 million ha under grain maize and forage maize. Similar 
examples can be given for rice and other seeds. It should also be  
stressed that indigenous varieties, particularly of leguminous  
vegetables, are generally more persistent (long-lived) than varieties  
imported from abroad.
II. Production
Denmark is the main Community producer of grass seed; the Netherlands  
and the United Kingdom are also large-scale producers. France and Italy  
are the main producers of leguminous plants.
In 1982 production of fodder seed in the Community was about 2,4 million  
quintals (2.988.243 in 1981); with the leguminous plant sector  
apparently reaching an equilibrium state. The area declared for the 1983  
harvest (212.305 ha) was substantially down on 1982 (242.302 ha),  
particularly in the case of leguminous plants:
Graminae :  96.611 ha in 1982 as compared with 104.042 ha in 1983
Leguminosae :  145.691 ha in 1982 as compared with 108.263 ha in 1983.
The production of rice for sowing is running at around 409.000 quintals  
(1982). With the granting of Community aid, the use of certified seed  
now meets 80%, rather than just 40%, of requirements; Community aid thus  
seems to be having a positive effect in this sector.
Production of hybrid maize seed is around 1,4 million quintals (1982) but  
the area sown is still shrinking, particularly in Italy.

- 73 -
III. Supply situation
Community supplies of fodder seed continue to be satisfactory. With  
+ 3 million quintals available to meet an estimated demand of some
1.800.000 quintals the Community is able to cover its own requirements  
for most of the species grown. The situation should remain more or less  
the same for the marketing year ahead. However, trade with non-member  
countries will continue, particularly in the case of certain species  
which are in short supply in the Community (Phleum pratense, Trifolium  
repens, Vicia sativa, etc.). The beginning stocks of the crop year are  
superior to 1982 figures. Approximatively 900.000 q against 808.000 q.
In the case of hybrid maize the supply situation is deteriorating and  
imports from certain Eastern bloc countries and the USA continue to rise  
(216.280 q in 1979/80; 386.987 q in 1982/83 to 31 May). The trend in
the rice seed sector is positive.
IV. Prices
Producer prices inthe Community are moving downwards by comparison with  
the same period last year. Prices on the Danish market, which is the  
main Community market, were as follows:
ECU/100 kg
Lolium perenne L (late varieties)  
Lolium multiflorum L  
Festuca pratensis L  
Festuca rubra L  
Poa pratensisSeptember 1982 September 1983
97 - 100 90
109 86
121 107
121 - 124 107
120
The countervailing charges on hybrid maize imports range at present  
(October 1983) from 10,9 to 80,8 ECU/100 kg depending on the country of  
origin.
For 1983/84 the reference prices for hybrid maize have been fixed as  
follows:
I. Double hybrids and topcross hybrids:  
II. Three-cross hybrids:
III. Single hybrids:78 ECU/100 kg  
97 ECU/100 kg  
174 ECU/100 kg

-74 -
V. Action decided
The Council decided to include various species of Graminae and  
Leguminosae in the Annex to Regulation (EEC) No 2358/71; it also fixed  
the aid levels for seeds for the 1984/85 and 1985/86 marketing years.
The Commission fixed the reference prices for hybrid maize for the  
1983/84 marketing year. The lists of varieties of Lolium perenne L  
(varieties of high persistence, late or medium-late; varieties of low  
persistence, madium-late, medium-early or early) have been altered  
slightly.
VI. Outlook
The 1983 harvest would seem to be satisfactory, with prices at the  
beginning of the marketing year moving downwards.
VII. Budgetary expenditure
EAGGF Guarantee Section expenditure on seeds was around 40 million ECU in  
1982.

- 75 -
9. WINE
I. 1981/82 wine-growing year
1. Introduction
In 1982 wine represented 5,8% by value of the Community's final  
agricultural production. In the 1981/82 wine-growing year the area under  
vines in production amounted to 2.373.000 ha, out of a total area of
2.463.000 ha, or 2,7% of the Community's UAA; in five years the total area  
has been reduced by 200.000 ha (8,1%).
The FAO puts world wine production in 1981/82 at 306 million hi, which is  
43 million lower than the previous year's figure and lower than average  
production over the last five years (324 million hi).
2. Production
Production in the Community was 141 million hi in 1981/82, compared with  
164 million hi in 1980/81 and 182 million hi in 1979/80 (an absolute  
record).
In the three years this represented 45,8% (in 1981/82), 47,0% (in 1980/81)  
and 48,6% (in 1979/80) of world production (on the basis of FAO figures).
Since the area under vines in the Community represents only about 24% of  
the world vineyard, the average Community yield is considerably higher 
than the world figure.
3. Consumption
In 1981/82 total internal utilization accounted for 150 million hi  
compared with 164 million hi in 1980/81; these quantities include the  
intervention distillation mentioned below.
(a) Human consumption
In 1981/82 direct human consumption was 124,8 million hi against  
127,5 million hi in 1980/81.
These figures confirm that the trend is still downwards, even though  
there was a slight upturn in consumption in 1979/80 (probably owing to  
the increase in growers' own consumption which generally occurs in  
years of abundant harvest).
This drop can be attributed to the reduction of consumption in the  
main producing countries, which the slight increases in the other  
countries do not offset.

- 76 -
(b) Processing
The quantities processed in 1981/82 amounted to 24 million hi,  
including quantities used for making spirits of designated origin,  
quantities distilled under compulsory distillation measures and  
quantities distilled with Community aid.
The quantities distilled with Community aid in 1981/82 totalled  
14 million hi.
In the two previous wine-growing years the quantities processed were  
35 million hi and 32 million hi, while the quantities distilled with  
Community aid were 23 million hi and 18 million hi.
(c) Self-sufficiency
The degree of self-sufficiency of the Community of Ten in 1981/82 for  
all internal utilizations was 93,5% (99,9% in 1980/81).
If the quantities distilled under the various intervention measures  
(about 14 million hi) are included in the supply figure, the degree of  
self-sufficiency for 1981/82 becomes 103,2% compared with 116,3% in  
1980/81 and 126,4% in 1979/80.
4. Stocks
At the end of 1981/82 stocks in the Community amounted to 76,4 million hi,  
well down on the previous year (91,4 million hi) and below the level in  
1978/79 (78,1 million hi).
5. Trade
In 1981/82 imports into the Community of Ten were 5,8 million hi, whilst 
exports amounted to 10,6 million hi. (The figure for exports in the  
attached tables (the balance sheet) is different because it is calculated  
from the difference between the total of exports from Member States and  
intra-Community trade which is worked out on the basis of imports).
The trend is still for imports to drop (despite the slight increase of 0,3  
million hi compared with the previous year), although since the 1975/76 
wine-growing year exports have shown an upward trend, mainly owing to  
expanded Italian exports.

- 77 -
II. 1982/83 wine-growing year
1. Production
The most recent production figures indicate a volume of 171 million hi, an  
^ increase of 31 million hi compared with the previous year.
2. Consumption
Total internal utilization accounted for 157 million hi, an increase of 
7 million hi.
(a) Human consumption
In 1982/83 direct human consumption was 126,4 million hi, confirming  
the downward trend which has been apparent for several years  
(127,5 million hi in 1980/81).
(b) Processing
The quantities processed in 1982/83 amounted to 29,7 million hi  
compared with 24,0 million hi in the previous marketing year.
The quantities distilled under Community intervention measures rose  
sharply (20,1 million hi as against 14,1 million in 1981/82) owing to  
the increase in quantities coming forward.
3. Prices
(a) Institutional prices
For 1982/83 the average increase in guide prices for all types of  
table wine was 11,0% compared with the previous year.
(b) Average prices for the wine-growing year 
- Red wine of type RI
French prices remained stable for most of the year but fell in the  
last two months and even ended up slightly below Italian prices.
Average French prices for the year as a whole, however, were about 2%  
up on the previous year. They were around 79% of the guide price.
Prices of Italian wines rose slowly and steadily over the year. From  
July onwards they were above French prices and around 80% of the guide  
price. Quotations in Italy varied from the previous year's by 6% to  
28%.

- 78 -
The only Greek quotation taken into account during the year was equal  
to 90% of the guide price.
- Red wine of type RII
The only French quotation, for Bastia, fell continuously throughout  
the year. It started at around 87% of the guide price and finished  
the year at 71% of the new guide price.
Italian prices, on the other hand, improved markedly until April but  
then lost ground. Average prices for the year were about 18% up on 
the previous year; they are now around 72% of the guide price.
No Greek quotation were taken into account.
- White wine of type AI
French prices were very irregular throughout the year, with a strong  
downward trend. They started the year well above the guide price but  
were around 80% of the new guide price at the year's end. Prices were 
19% to 23% down on the previous year.
Italian prices remained stable but at a low level. They fluctuated  
around 78% of the guide price. Average prices were 15% to 25% up on  
the previous year.
The gap between French and Italian quotations, which was considerable  
in the middle of the previous year, narrowed steadily thereafter 
(because of the fall in French quotations) and was only fractional at  
the end of 1982/83.
Some Greek quotations were taken into account. They remained low  
(about 70% of the guide price) and stayed down (4% to 11%) on the  
previous year.
- German wine
Quotations for white wine tumbled when a very abundant harvest was  
announced. They had been well above the guide but by November  
quotations for type All were around 50% of the guide price and  
quotations for type AIII around 80%. They finished the year on a very  
weak note, at 45% and 60% of the guide price respectively.

- 79 -
Prices for red wine were also down, but not by so much. They finished  
the year still above the guide price.
(c) Prices on the Spanish market
Prices of white wines on the Spanish market were fairly stable  
throughout the year. There was a slight increase compared with the  
previous year, but because of the devaluation of the peseta the  
average Spanish price fell from 66% of the average Community price in  
1981 to 55% in 1982.
III. Outlook
(a) Short term :  forecasts for the 1983/84 wine-growing year
The latest information available suggests that the 1983/84 harvest  
will yield slightly less than the previous year.
Production should be aroupd 165 million hi.
(b) Medium-term
Although the 1981/82 harvest was comparatively small, the trend in  
recent years increases the likelihood of bigger average surpluses. It  
is therefore more necessary than ever to apply the instruments set up  
by the 1980-86 action programme effectively, especially as regards the  
conversion of vineyards to other uses. This requires the parallel  
implementation of a market policy which is consistent with the  
structural action programme, and therefore full implementation of the  
latest amendments to the basic Regulation, which aim to rebalance the  
market from the beginning of the year by means of distillation.
IV. Economic aspects
(a) Levies and refunds  
1) Import levies
The import levies in the wine sector are known as "countervailing  
charges" and play only a very minor part since they do not apply to  
the 19 non-Community countries which have undertaken to observe the  
reference price and are the Community's principal suppliers. The level  
of the countervailing charges has remained unchanged since 1981/82.
(6)

-  8 0 -
2) Export refunds
The level of export refunds for wine rose at the beginning of 1982/83 
from 1,15 ECU to 1,45 ECU per % vol per hi, except on exports to 
Africa, for which the refund was kept at 1,15 ECU. Refunds for 
liqueur wines other than quality wines p.s.r. were retained.
The quantities qualifying for refunds fell slightly in 1982, amounting 
to 2,05 million hi against about 2,33 million hi in 1981.
They should drop appreciably in 1983.
(b) Quantities in respect of which intervention measures were taken 
In 1982/83 the following intervention measures were applied :
- at the start of the marketing year :
. authorization to conclude long-term storage contracts for table 
wines, grape must and concentrated grape must,
. distillation carried out under the "price guarantee" (reserved 
for holders of long-term storage contracts),
.  preventive distillation.
- distillation of wine produced from table grapes and dual-purpose 
grapes.
- so-called support distillation, which started in March 1983. 
(So-called exceptional distillation had been necessary in 1980,
1981 and 1982 under the previous rules).
The quantities of wine distilled with Community aid were of the order 
of 20 million hi, against 14 million hi in 1981/82.
The average of the monthly quantities covered by storage contracts 
amounted to 25,2 million hi (22,3 million hi in 1981/82), the maximum 
figure being 37,9 million hi (34,3 million hi in 1981/82).
(c) Stock situation
At the beginning of 1982/83 stocks held by producers and the trade in 
the Community of Ten amounted to 76,4 million hi (against 91,4 million 
hi at the beginning of 1981/82). A far larger quantity (around 
85 million hi) can be expected at the end of the year; part of this 
increase is due to expanded stocks of quality wines p.s.r., caused by 
an exceptionally abundant harvest of wines of that type.
(d) Price unity
During the 1982/83 wine-growing year monetary compensatory amounts 
were retained or reintroduced for Germany, France, Greece and Italy. 
They were discontinued for Italy from 16 May 1983.

- 81 -
In the wine sector the representative rates for the various currencies 
were altered as follows: twice (on 31 January and 11 July 1983) for 
the drachma, twice (on 23 May and 20 June 1983) for the Belgian and 
Luxembourg francs and the Irish pound, once (on 23 May 1983) for the 
lira and once (on 11 July 1983) for the French franc.
V. Budgetary expenditure
Expenditure by the Guarantee Section of the EAGGF on wine amounted to 
570,5 million EUA in 1982; the provisional figure for 1983 is
638,0 million EUA and the estimate for 1984 is 588,0 million EUA. This is 
4,6%, 3,9% and 3,6% respectively of total expenditure by the Guarantee 
Section.
The figure of 638,0 million EUA can be broken down into 32,0 million EUA 
on refunds and 606,0 million EUA on intervention.

- 82 -
10. RAW TOBACCO
1. Introduction
In 1982 world leaf tobacco production reached a record 6,77 million t, a 
14,1% increase over the figure for 1981, which was 5,93 million t. The 
1982 figure was the result of bumper crops which raised the production of 
flue-cured varieties in the main producer countries (China, India, Brazil, 
Zimbabwe and Argentina) by 18,7% and that of Burley by 16,5%, in 
particular in the United States, Brazil, Korea, Argentina and Malawi. The 
only exception was dark air-cured cigar tobacco: its production fell 
slightly, by 1,6%. Flue-cured varieties accounted for 52% of total world 
tobacco production. It is estimated that in 1983 world production will be 
5,98 million t, a fall of 11,5% compared with 1982, and this as a direct 
result of the drop in production in certain countries, viz. the United 
States, China, India and Brazil.
2. Production and structure
In 1982, Community production was 329.345 t, an increase of 6,5% over 
1981. During that period the area under cultivation rose from 171.555 ha 
in 1981 to 175.552 ha in 1982, i.e. an increase of 2,3%, which can be 
attributed to the two main producer countries: Italy and Greece.

- 83 -
EEC
TYPEAREA (ha)
1980 1981 1982 1980 1981 1982
Dark air cured 28.173 27.422 27.340 62.966 65.579 73.280
Sun cured 104.597 103.059 105.204 123.995 132.163 132.608
Light air cured 22.483 23.891 25.278 76.085 76.055 82.923
Flue cured 11.152 12.013 12.660 21.787 26.081 30.240
Fire cured 5.863 5.019 5.018 9.779 9.113 10.196
Other 209 151 52 334 257 98
Total, EUR-10 172.477 171.555 175.552 294.946 309.248 329.345PRODUCTION (t)
TYPEAREA (%)
1981/1980 1982/1981 1981/1980 1982/1981
Dark air cured - 2,7 - 0,3 + 4,1 + 11,7
Sun cured - 1,5 + 2,1 + 6,6 + 0,3
Light air cured + 6,2 + 5,8 0 + 9,0
Flue cured + 7,7 + 5,4 + 19,7 + 15,9
Fire cured - 14,4 0 - 6,8 + 11,9
Other - 27,8 - 65,6 - 23,1 - 61,9
Total, EUR-10 - 0,5 + 2,3 + 4,9 + 6,5PRODUCTION (%)
AREA (ha)
COUNTRY
1980 1981 1982 1980 1981 1982
Germany 3.363 3.161 3.035 6.889 7.839 8.112
Belgium 423 496 493 1.187 1.450 1.480
France 18.701 17.075 15.541 44.669 41.587 43.818
Greece 89.306 90.162 93.820 116.659 127.403 132.382
Italy 60.684 60.661 62.663 125.542 130.969 143.553
EUR-10 172.477 171.555 175.552 294.946 309.248 329.345PRODUCTION (t)

- 84 -
3. Consumption
In 1982 world consumption of tobacco in the form of cigarettes and other 
manufactured products increased by 0,8%, reaching 5,27 million t 
(5,23 million t in 1981). This slight increase was achieved despite the 
build-up of anti-smoking campaigns, the health hazard warnings printed on 
cigarette packets and in advertisements, and higher taxes and retail 
prices. In Europe, the effect was particularly marked in the Federal 
Republic of Germany, where tobacco consumption was 9% down on 1981, with 
cigarette production more than 13% down. Cigarette consumption also fell 
in the United Kongdom, but by a smaller amount: 7,5 %.
Cigarette consumption did, however, increase in certain countries, viz. 
India, the Philippines and Turkey. The Community's degree of 
self-sufficiency is about 49%.
4. Trade
World exports in 1982 reached 1,43 million t, i.e. 3,4% less than in the 
previous year.
Community exports in 1982 were 118.300 t (109.800 t in 1981). This 
tobacco was exported in 1982 but came from several previous harvests.
Virginia flue-cured tobacco accounted for about 60% of total imports. 
Furthermore two thirds of imports enter the Community at a zero or 
preferential rate of duty under the terms of the EEC policy towards the 
developing countries (Generalized Preferences, ACP). Consequently, 
imports from the ACP countries and those which took place under the 
Generalized Preferences Scheme are estimated to have amounted to 80.285 t 
and 186.000 t respectively in 1982. The total figure for imports in 1982 
was 413.900 t.
5. Prices
The trend towards higher prices recorded on the American market in 1981 
continued in 1982 both for export prices and for prices charged on the 
domestic market. The average export price of Virginia flue-cured and 
Burley was USD 6.67 and USD 6,90 per kg respectively, an increase of about 
8% in both cases.
The increase in average prices of leaf tobacco on the American domestic 
market was smaller than the previous year's: in the case of Burley and
Virginia flue-cured tobacco, the figures were USD 3.98 (+ 4,0%) and USD 
3,95 (+ 7,6%) per kg respectively. The substantial gap between domestic 
market prices and export prices is accounted for by differences in quality.

- 85 -
The prices of oriental tobaccos in the two main producting countries 
(Yugoslavia and Turkey) were slightly up.
The prices of certain varieties which are equivalent to and in direct 
competition with Community varieties have followed a downward trend.
6. Outlook
At 5,27 million t, world consumption of tobacco in 1982 was more or less 
the same as in 1981 (5,23 million t). Together with the sluggish demand, 
the sharp increase in leaf tobacco production in 1982 is expected to lead 
to record high stocks of about 7,3 million t.
The forecasts at present available concerning world production of baled 
tobacco from the 1983 harvest suggest that production will be of the order 
of 5,32 million t, i.e. a decrease of 12%. This foreseeable drop - most 
producer countries will, it is expected, return lower production figures - 
is mainly attributable to the high level of stocks of leaf tobacco which 
built up following the bumper crop in 1982. It is expected that demand 
will remain sluggish in 1983 as a result of the adverse effect of price 
increases, taxation and anti-smoking campaigns on cigarette sales. Since 
in 1983 demand is expected to do no more than keep face with production, 
stocks will remain high.
As far as the Community is concerned, the structural difficulties 
affecting oriental tobacco in particular will continue, but special 
measures for reducing prices and imposing quantitative restrictions are 
now being applied to certain varieties taken into intervention. Moreover, 
conversion programmes are currently being implemented in most of the 
countries where the varieties which are difficult to market are grown. In 
1982 the production of oriental tobaccos was unchanged (132.500 t) but 
that of dark air-cured varieties rose by 12%. Despite this substantial 
increase, dark air-cured tobacco can be marketed without activating the 
intervention measures. The increase in Burley and flue-cured tobacco 
production (9% and 16% respectively) is a positive development, since it 
is in response to market demand.
7. Economic aspects of the measures taken
Regulation (EEC) No 727/70 on the common organization of the market in raw 
tobacco was amended in 1982 by reducing the ratio between the intervention 
price and the corresponding norm price from 90% to 85% for all varieties 
with the exception of some for which it has been 80% since 1979. The 
period of validity of this measure was extended so that it applies in 
respect of the 1983 harvest.
The aim of these measures is to achieve a better balance between 
production and market requirements by limiting the price guarantee 
applying to unsold tobacco.

-  86 -
Other measures were taken to discourage intervention buying. As in 
previous years, the "processing costs" component used to calculate the 
premium granted for tobacco sold commercially, but also taken into 
consideration when calculating the derived intervention price, was applied 
differentially and reduced in relation to the actual cost in the latter 
case.
An investigation of the effectiveness of premiums and their levels was 
carried out in 1982. It showed the premiums's role as a driving force not 
only as regards production and marketing but also as regards producer 
incomes and the maintenance of employment. The investigation was followed 
up in 1983 by a report on the updating of the list of competing 
varieties. Greek and Italian tobacco from the 1981 harvest taken into 
intervention accounted for 6,3% and 1,1% of production respectively.
During the first six months of 1983, following an invitation to tender, 
the Community exported 15.543.409 kg of tobacco held in intervention 
stores. A second invitation to tender, in respect of 8.477.856 kg of 
tobacco, is scheduled for the second half of 1983. If contracts are 
awarded in respect of all the tobacco concerned, the total quantity left 
in intervention stores - not including the tobacco harvested in 1982, for 
which figures are not yet available - will be 8.077 kg, i.e. the quantity 
of Greek tobacco taken into intervention following the 1981 harvest.
The granting of export refunds serves to consolidate the Community's 
position as an exporter on the world market. Export refunds were granted 
in respect of an estimated 47.310 tonnes of tobacco from the 1981 
harvest. Prior to Greece's accession, export refunds were granted almost 
entirely in respect of Italian tobacco.
Budgetary expenditure
EAGGF Guarantee Section expenditure in the tobacco sector was 622,6 
million u.a. in 1982 (1981 harvest) and 668 million u.a. in 1983 (1982 
harvest), an increase of 7,3%. This represents 4,23% of total expenditure.

- 87 -
11. FRUIT AND VEGETABLES
A. Fresh fruit and vegetables
1. Introduction
Production of fresh fruit and vegetables in 1982, including crops for 
processing, was up on the 1981 figure by 8.6%.
Within the Community of Ten, Italy is by far the largest producer, 
accounting for 45% of Community fruit production and nearly 39% of 
vegetable production. France comes second with 16% of fruit output and 
18% of vegetable output, while the third most important producers are 
Germany for fruit (19%) and Greece for vegetables (13%), the latter 
closely followed by the United Kingdom (12%).
2. Production
Fruit production in the Community (1) in 1982 was 22.5 million t, a 
rise of 20.6% over 1981 but still close to the average figure for 
previous harvests. The rise in production affected all Member States 
except Greece, where production was down by 0.9%.
The following observations may be made about the main fruit crops :
- in apple production, which accounted for 38% of fruit production, the
1982 harvest was 70% higher than in the previous marketing year, with 
a rise in all Member States except Greece where there was drop about 
13%; ·
- in pears (11% of fruit production) the harvest was also up especially 
in Germany, Belgium and Greece, and to a lesser extent in the 
Netherlands. Production was up on 1981 but down on 1980. Denmark 
and the United Kingdom saw a drop in production in 1982. The 
increase for the Community as a whole over 1981 wa 7.9%;
- the peach harvest in 1982 was slightly up in Italy (+ 1.7%) as well 
as in the Community as a whole compared with 1981 (+ 0.7%) and 1980 
(+ 9.5%);
- in table grapes,  which represented 9% of fruit production, the 1982 
harvest was down 3.8% on 1981 and 5.3% on 1980. Italy is by far the 
largest producer, accounting for 67% of Community production.
Commercial vegetable production in the Community reached 28.7 mil­
lion t, much the same as in 1980 and 1981. Production fell in Greece, 
Ireland, the United Kingdom and Italy and remained about the same in 
Belgium; France, Germany and the Netherlands saw a slight increase.
(1) Harvest figures for the Community of Ten.

-  88 -
Consumption
Internal consumption of fruit (1) in the Community of Ten in 1981/82 
came to 16.6 million t, a drop of 12.9% over 1980/81 and 12.5% over 
1979/80. For citrus fruit this consumption was 8.8 million t.
Internal consumption of vegetables, at 31.7 million t, showed a drop of 
3.3% compared with the previous marketing year.
a) Human consumption
Human consumption was the principal use made of fresh and processed 
fruit, and accounted for 90% of all internal consumption.
Per capita annual consumption in the Community of Ten amounted to 
85 kg for all fruit (30 kg of citrus fruit and 55 kg of other fruit).
Human consumption of vegetables was 90% of all internal consumption. 
Per capita annual consumption was 105 kg for the Community of Ten.
b) Animal consumption and industrial uses
These products are seldom fed to animals systematically and industrial 
uses (for non-food purposes) are also only sporadic, so that the 
quantities of fruit and vegetables involved are appreciably less 
significant even than wastage during marketing.
c) Degree of self-sufficiency
The self-sufficiency rate of the present Community is particularly 
high for vegetables, reaching 101% in 1981/82; the figure for 
non-citrus fruit is 82% and for citrus fruit 45%. The figures for the 
1980/81 marketing year were 99%, 84% and 45%.
Including preserves, fruit juices and tropical fruits but excluding dry 
or dried fruits and citrus fruit.

- 89 -
Community's trade
In 1982 the Community's total imports of fresh fruit from non-member 
countries amounted to 4.3 million t, a rise of 1.3% compared with 1981. 
Citrus fruits were by far the predominant import at 3.1 million t 
(oranges 1.7; grapefruit 0.41; small citrus fruits 0.74) since apples, 
which occupied second place, accounted for only 0.48 million t.
Fruit exports to non-member countries were just over 0.9 million t, 
including 0.22 million t of apples, 0.15 million t of lemons and
0.09 million t of peaches.
Imports of fresh vegetables from non-member countries totalled 
1.18 million t and exports 0.39 million t.
Intra-Community trade in fresh fruit and vegetables was also substantial.
Although the quantity of fruit traded within the Community did not equal 
imports from non-member countries, it nevertheless totalled
2.8 million t. Apples (1.0 million t) were the main product, followed 
by table grapes (0.40 million t) and pears (0.22 million t).
Intra-Community trade in vegetables, on the other hand, totalled
2.8 million t, approximately twice the quantity imported from non-member 
countries. Tomatoes were the main product at 0.46 million t.

- 90 -
Prices
a) Common prices
Basic prices and buying-in prices were increased for the 1982/83 
marketing year in such a way that the resulting average withdrawal 
prices at which producer groups buy back their members' unsold produce 
were 12% higher than in the 1981/82 marketing year for all products 
except dessert apples (+ 11%), tomatoes (+ 8%) and mandarins (+ 11%).
In the case of Greece, basic prices and buying-in prices for 1982/83 
were fixed by the Council to continue the gradual adjustment required 
by the Act of Accession. Common prices were introduced in Greece for 
lemons and table grapes.
The average increase for 1983/84 was 6.5% for all products except 
dessert apples and dessert pears (+ 3.5%), mandarins (+ 5.5%) and 
tomatoes (+ 3.5%).
Reference prices, which determine the minimum level of entry prices 
for a number of products imported from non—member countries, were 
increased on average by 10% between 1981/82 and 1982/83 for cucumbers, 
tomatoes, table grapes, apples, pears, peaches, cherries, plums, 
aubergines, courgettes, lemons and clementines.
In the case of oranges and mandarins, reference prices remained at 
the level of the previous marketing year because of the link between 
movements in the basic and buying-in prices, penetration premiums and 
reference prices for these products (see 7(c)).
Between 1982/83 and 1983/84, reference prices were increased by a 
maximum of 9% except in the case of oranges and mandarins, where the 
increase in the basic and buying-in prices was reflected entirely in 
the penetration premiums; in the case of lemons the increase in 
agricultural prices adopted by the Council was reflected in their 
reference price, while in the case of clementines the reference price 
went up by about 15% in line with the reduction in marketing premiums.

-  91  -
Under the Act of Accession of Greece, the Community fixed Community 
offer prices for 1983/84 to apply to imports into other Member States 
from Greece of all products subject to reference prices except 
aubergines and courgettes.
b) Market prices
Fruit and vegetable prices fluctuate constantly and may vary 
considerably from one time of the year to another, from one market to 
another and even from one consignment to another.
An analysis of the available figures leads to the following 
conclusions based on average basic and buying-in prices for pilot 
products.
- Apples (Golden Delicious, quality class I, 70 mm or over).
As the average prices for the 1982/83 harvest were influenced by an 
above-average crop, they settled throughout the marketing year below 
the average level recorded in 1981/82.
For 1981/82 the average price level remained higher than in the 
previous year, but varied from Member State to Member State. The 
increases were 66% in the Netherlands, 63% in Germany, 142% in 
Belgium, 86% in France, 34% in Italy and 47% in Greece. The United 
Kingdom and Denmark do not have meaningful quotations for this 
product.
The monthly analysis made throughout 1982/83 the marketing year 
showed that in all Community countries except Greece apple prices 
were nearly always above the basic price.
- Pears (various, quality class I, 60 mm or over / 70 mm or over, 
according to time of year).
Prices in 1982/83 were down in nearly all Community countries. This 
marked drop, ranging from 21.3% in Belgium to 13% in Germany, did not 
affect Italy (+ 12.1%) or Greece (+ 8.3%). Ireland and Denmark do 
not have meaningful quotations for this product.
The monthly analysis showed that there was a measure of price 
stability.
Prices on all Community markets remained above the basic price and 
sometimes reached the exceptional levels encountered in previous 
marketing years. At the start of the marketing year in August, 
however, prices for the early varieties Guyot and Williams lay 
between the basic and the buying-in price on some markets in France 
and the United Kingdom.

- 92 -
- Peaches (various, quality class I, 51/61 mm or 61/67 mm according to 
the time of year).
In 1982, prices were 29.5% higher than in 1981 in Italy, 22.1% higher 
in France and 10.4% higher in Greece (prices in 1979 and 1980 had 
sometimes reached nearly twice the basic price). The seasonal pattern 
was normal, however, and the monthly average was above the basic 
price with the exception of some early varieties, which reached 
levels sometimes below the basic price on some producer markets at 
the beginning of the season.
- Table grapes (various, quality class I).
Grape prices on producer markets were up on the previous year in 
Italy and Greece, but down in France.
However, French prices moved at a level above the basic price, 
whereas in Italy only the "Regina dei Vigneti" variety reached prices 
higher than the basic price in August.
Prices for the "Regina" variety, on the other hand, remained more or 
less at the basic-price level until early September, falling during 
that month to the level of the buying-in price on the Chieti and 
Ascoli Piceno markets.
- Oranges (various, quality class I, 67/80 mm).
Prices in Italy in 1982 were 32.0% up on the previous year while 
Greece saw a smaller rise over 1981.
- Mandarins (quality class I, 54/64 mm).
The average annual price for mandarins in Italy was up on 1981/82 by 
20.0%, while in Greece there was a drop of about 10%.
The monthly quotations did not show major fluctuations, normally 
being more than 8-10 ECU above the basic price in Greece and Italy.
- Lemons (quality class I, 53/62 mm)
The average annual price for lemons in 1982/83 was slightly higher in 
Italy than in the previous year, when prices had already been high as 
a result of stationary production levels.

- 93 -
Prices are still high and throughout the year the monthly averages 
were above the basic price, especially in Greece; in Italy, 
quotations in March, April and May at Catania were sometimes below 
the buying-in price.
- Cauliflowers (with leaves or trimmed according to time of year, 
quality class I).
Average annual prices decreased throughout most of the Community 
compared with 1981/82, the drop varying from 12.2% in the Netherlands 
to 2.1% in Belgium. Only in the United Kingdom, Denmark and Greece 
were prices up on the previous marketing year.
- Tomatoes (round type, quality class I, 57/67 mm).
In 1982 prices fell in all the Community countries except Italy 
(+ 42%), Ireland (+ 6%) and Germany (+ 17%). The most marked drops 
were in the Netherlands (- 20%), France (- 7%) and the United Kingdom 
(-9.8 %).
The monthly analysis shows that daily prices sometimes fell below the 
basic price in France and Italy, particularly during the high season 
in August and September.
The changes - often rapid - in daily prices and the various 
coefficients applied to products other than the pilot products explain 
why some fruit and vegetables fell short of the withdrawal price and 
were withdrawn from the market by producer groups even when the 
average prices of the pilot product were higher than the basic price.
c) World prices
The prices of fruit and vegetables - highly perishable products - are 
established more or less independently on the main markets. There are 
no real world markets for such products and consequently no world 
prices.
d) Consumer prices
In view of the large number of varieties, quality classes and sizes of 
fruit and vegetables, and in view of the wide differences in prices 
for an apparently identical product from one retailer to another, it 
is not possible to determine consumer prices for the various products.
6. Outlook
In the case of vegetables - most of which are annuals - the rapid 
succession of crops and the use of fixed or movable means of weather 
protection make for flexibility and enable growers to adapt production 
promptly to demand.

- 94 -
In view of the trends in vegetable production over the last few years 
and the stability observed in this sector, no major changes are to be 
expected for some time to come.
In the case of fruit, too, analysis of production trends over a 
relatively long period shows a certain stability, albeit with 
considerable fluctuations from one season to another, as was observed 
for example with the 1977/78, 1981/82 and 1982/83 harvests. The 
Community apple crop, for example, went from 5 million t in 1981 
(deficit) to 8.5 million t in 1982 (surplus).
7. Economic aspects of the measures taken
a) Import and export measures
i) Countervailing charges on imports
During the 1982/83 marketing year, countervailing charges were 
imposed on imports of the following products:
- cucumbers from Spain, Romania, Poland, Bulgaria and Albania
- tomatoes from Romania, Spain, Albania, Poland, Morocco and Bulgaria
- apples from Chile, Spain and New Zealand
- pears from Spain
- aubergines from Spain
- courgettes from Spain
- peaches from Spain and Yugoslavia
- some varieties of plums from Yugoslavia, Bulgaria, Albania, Romania 
and Poland
- cherries from Turkey
- lemons from Israel, Spain and Uruguay.
These measures, some of which were applied for only a short time, 
resulted in higher prices for imported products following a drop or 
even a complete halt in shipments to the Community (see also (iv) 
below).
Corrective amounts were applied in 1982/83 to peaches and cucumbers 
exported by Greece to the other nine Member States.
ii) Export refunds
Export refunds were fixed during the 1982/83 marketing year for fresh 
sweet oranges, fresh mandarins, fresh lemons, table grapes, walnuts 
in shell, shelled almonds, shelled and unshelled hazelnuts, peaches, 
dessert apples and tomatoes.
These refunds, which vary according to product and are generally low, 
were fixed only for destinations which afforded real export outlets 
and only if there were export difficulties to be overcome. Greece was 
eligible for the same level of refunds as the Community of Nine 
except in peaches; here the refund was corrected by the price 
difference recorded when Greece joined.
iii) Protective measures
No measures to restrict imports into the Community were taken during 
the 1982/83 marketing year.

- 95 -
iv) Apples from the southern hemisphere
Estimated exports from southern hemisphere countries and the price 
trend for Community apples were such that it was necessary to ask 
suppliers in the southern hemisphere to adjust their planned exports 
to the Community between March and August 1983.
b) Withdrawals from the market
Intervention during 1982/83 was on a smaller scale than in 1981/82 in 
the case of pears, peaches, tomatoes and lemons; there was increased 
intervention in all other products except table grapes, where there 
have been no withdrawals in two of the last three marketing years.
The quantity of apples withdrawn was 954 107 tonnes, equivalent to 
11.1% of Community production. The largest withdrawals were in Italy 
(400 000 t), but as a proportion of the harvest France saw a higher 
percentage (16.9% or 333 000 t).
Provisional figures indicate that withdrawals of citrus fruit in Italy 
accounted for 5 940 t of oranges, 5 046 t of mandarins and 65 572 t of 
lemons representing 0.39%, 2.47% and 10.4% respectively of Italian 
output. In Greece about 116 000 t of oranges and 6 500 t of mandarins 
were withdrawn.
Withdrawals of peaches amounted to 225 500 t (82 000 t in Greece) but 
this represented only 9.92% of Community production. Withdrawals in 
Greece accounted for 17% of the harvest. Withdrawals of other products 
in relation to output were even lower: 1.55% in the case of 
cauliflowers,  0.70% in the case of tomatoes and 3.16% in the case of 
pears.  Apricot withdrawals in 1982/83 were marginal.
c) Measures to promote the marketing of Community citrus fruit 
Measures to promote the processing of oranges
Measures to assist the marketing of products processed from lemons
The "penetration premiums" (financial compensation to promote the 
marketing of Community citrus fruits) were fixed at the levels below 
for 1982/83.
Greece Other Member States
5.5214.37ECUper 100 kg
calabrese,
varieties ;
4.7312.33ECUper 100 kg
variety ;
3.128.12ECUper 100 kg
and Biondo
4.7112.22ECUper 100 kg
2.586.43ECUper 100 kg
3.147.85ECUper 100 kgnet for oranges of the Moro, Ovale 
Belladona, Navel and Valencia late
net for oranges of the Sanguinello
net for oranges of the Sanguigno
comune varieties;
net for mandarins ;
net for clementines;
net for lemons.

- 96/97 -
Compared with 1981/82, the financial compensation was increased by 
the total percentage fixed for the increase in basic and buying-in 
prices of the same products, i.e. 12%. In accordance with the Act of 
Accession, Greece received only about 40% of the premium granted in 
other Member States.
Pursuant to Council Regulation (EEC) No 2601/69 of 18 December 1969 
laying down special measures to encourage the processing of certain 
varieties of oranges, the minimum price to be paid by processors to 
producers of oranges and the financial compensation payable to 
processors were fixed for 1982/83 at the levels shown in the table 
below.
:  Type of product Minimum price Financial compensation :
(ECU per 100 kg net) (ECU per 100 kg net) :
Greece Other Greece Other :
Member States Member States :
:  Oranges of the following
:  variety
:  Biondo comune
:  Class I 12.11 13.55 7.66 9.10 :
:  Class II 9.95 11.12 5.50 6.67 :
:  Class III or mixed 7.84 8.77 3.39 4.32 :
:  Oranges of Class III or
:  mixed of the following
:  varieties
:  Moro and Tarocco 15.44 17.29 10.99 12.84 :
:  SanguineIlo 14.32 16.05 9.87 11.60 :
:  Sanguigno 12.12 13.56 7.67 9.11 :
Finally, under the measures adopted to assist the marketing of 
products processed from lemons which were applied for the first time 
in 1977/78, the minimum price to be paid to growers by processors in 
1982/83 in both the Community of Nine and in Greece was fixed at 
16.57 ECU per 100 kg net and the financial compensation payable to 
processors at 9.83 ECU per 100 kg net.
d) Price unity
No monetary compensatory amounts were fixed for fresh fruit and 
vegetables.
e) Budgetary expenditure
EAGGF Guarantee Section expenditure on fresh fruit and vegetables 
amounted to 358.4 million EUA in 1982, is provisionally put at 417.5 
million EUA in 1983 and estimated at 350 million EUA for 1984, i.e. 
2.9%, 2.5% and 2.2% respectively of total EAGGF Guarantee Section 
expenditure. The figure of 358.4 million EUA can be broken down into 
53 million EUA for refunds, 192 million EUA for intervention, 15 
million EUA for penetration premiums in the citrus fruit sector and 
99 million EUA for financial compensation to assist the processing of 
citrus fruit.

- 98 -
B. PROCESSED FRUIT AND VEGETABLES
1. Introduction
Production of processed fruit and vegetables in the Community of Ten is 
shown for 1981 and 1982 in the table below.
in l'OOO t
:  Processed products 
:  (Community of Ten)1981 1982 :
:  VEGETABLES 
:  FRUIT4 937 (*) 
2 9005 185 (*) i  
3 027 :
(*) Including preserved tomatoes.
Production of processed vegetables rose again in 1982 compared with 
1981. This was mainly due to an increase in output of preserved 
products other than tomatoes, particularly deep-frozen products.
Production of certain sensitive products in the Community of Ten was as 
follows :
a) Tomato concentrates: production fell further from 602 000 t (1)
(Greece 220 000 t) in 1981 to 565 000 t (Greece 180 000 t) in 1982, 
a decrease of 6.2%;
b) Whole peeled tomatoes: production again fell slightly from
1 009 000 t (Greece 11 000 t) to 1 004 000 t (Greece 9 500 t), a 
decrease of 0.5%;
c) Tomato juice (CCT heading No 20.07): production declined from
46 000 t (l) (Greece 9 500 t) in 1981 to 44 000 t (Greece 9 000 t) 
in 1982, a decrease of 4.3%;
d) Preserved mushrooms: production rose slightly between 1981 and 1982 
from 225 000 t (1) to 235 000 t, Greek production being negligible;
e) Preserved peaches: production fell slightly again from 283 600 t 
(Greece 130 000 t) in 1981 to 280 000 t (Greece 155 000 t) in 1982, 
a decrease of 1.2%;
(1) Updated from previous report.

- 99 -
f) Production of orange juice in Italy was 175 000 t (1) in 1981 and 
125 000 t in 1982, a decrease of more or less 29%; the production 
of lemon juice was also reduced from 112 000 t (1) in 1981 to 86 000 
t in 1982, a reduction of 23,2%.
2. Consumption and trade
The trade of the Community of Ten in processed fruit and vegetables is 
summarized in the aggregate figures in the table below (excluding dried 
grapes and dried figs).
1981
IMPORTS EXPORTS :
tonnes m ECU tonnes m ECU :
:  TOTAL
:Intra-Com. exc.Greece 
:Non-member countries 
:  of which Greece4 100 000 
2 500 000 
1 600 0003 050 000 
2 150 000 
900 0002 710 000 
2 100 000 
610 0001 950 000 :  
1 550 000 :  
400 000 :
1982
IMPORTS EXPORTS :
tonnes m ECU tonnes m ECU :
:  TOTAL
:Intra-Com. (EUR 10)
:  Non-member countries4 250 000 
2 600 000 
1 650 0003 550 000 
2 000 000 
1 550 0003 350 000 
2 700 000 
650 0002 520 000 :  
1 960 000 :  
560 000 :
The available quantities of tomato concentrate and peeled tomatoes in 
the Community of Ten have seen a turnround in trend with a pronounced 
drop between 1981 and 1982.
The quantity of tomato concentrates available for consumption was 
385 000 t (1) in 1981 and 354 000 t in 1982.
(1) Changed from last year's figure.

-  100  -
Intra-Community trade in concentrates rose from 120 000 t in 1981 to 
170 000 t in 1982.
Imports of peeled stayed fairly low in 1982 at around 20 000 t. Exports 
rose from 91 000 t in 1981 to 103 000 t in 1982. The quantity available 
for consumption went down slightly from 940 000 t in 1981 to 919 000 t 
in 1982. Intra-Community trade fell slightly from 310 000 t in 1981 to 
301 000 t in 1982.
In the case of tomato juice, imports dropped again from 10 500 t in 
1981 to 7 400 t in 1982 while exports remained fairly low at around 
2 000 t.
Imports of preserved peaches, which were 75 000 t in 1981, were only 
62 000 t in 1982. Exports remain very low, declining slightly from 
10 000 t in 1981 tot 8 300 t in 1982.
The quantity of preserved mushrooms available for consumption remained 
stationary at about 200 000 t in 1981 and 1982. Imports fell from 
35 000 t in 1981 to 28 000 t in 1982. Exports went up, however, from 
4 500 t to 7 000 t.
It should be noted that for two products, Williams pears in syrup and 
cherries in syrup the Council has put ceilings on the quantities 
eligible for aid.
The accession of Greece has also brought Community dried grapes and 
dried figs into the market.
A production aid system for these products was introduced to cover two 
marketing years from 1981/82, accompanied by a storage aid scheme and a 
price guarantee system for the basic product. Production of dried 
grapes in 1981 was 158 000 t and 141 000 t in 1982; production of dried 
figs was 25 000 t in 1981 and 30 000 t in 1982.
3. Prices
World prices for peeled tomatoes and concentrate increased slightly but 
less than the average rate of inflation in the Community. At certain 
times, however, (end of the year) world prices have gone higher.
In the case of preserved mushrooms, the rules introduced from 1 July 
1981 tended to restore balance on the market.
Generally speaking, price levels in the Community for other products 
did not give rise to any difficulties, except in the case of dried 
grapes. Here it was necessary to introduce a minimum price at the 
frontier as a protective measure.

-  101  -
4. Outlook
Production of tomato-based products in 1983 should remain at the same 
level as in 1982 in view of present policy on fixing aid for products 
in this sector.
5. Budgetary expenditure
EAGGF Guarantee Section expenditure on processed fruit and vegetables 
amounted to 420.3 million ECU in 1981 and 555.9 million ECU in 1982 and 
is estimated at 683.8 million ECU for 1983, or 3.9%, 4.5% and 4.2% 
respectively of total expenditure by the Guarantee Section.

-  102  -
11. c. LIVE PLANTS
One of the features of this sector is the great variety of products: cut 
flowers and greenery, pot plants, bulbs and nursery products. Each of these 
branches has its own characteristics with regard to both production and 
marketing.
In view of this diversity, the production statistics are too complicated for 
carrying out the necessary analysis every year. An idea of the statistical 
difficulties can be gained by considering, for example, that one hectare used 
to grow flowers and plants may produce either just one or several crops during 
a year and that the production system (under cover, either heated or not, or 
open-air) has a decisive influence on production itself.
As regards the value of production, the Commission's staff does not yet have 
sufficiently detailed figures to allow an analysis of the past year, but an 
estimate can be made based on the fact that the overall production of this 
sector represents 3 - 4% of the value of final production in agriculture in 
the Community.
It should be noted that the prices recorded on the main Community markets show 
major fluctuations during the season and may also vary considerably from one 
market to another at any given period.
Intra-Community trade in 1982 rose by 17.6% (1981: 7.5%); imports from 
non-member countries over the same period increased by 4.6% (1981: 4.2%) and 
exports to non-member countries by 18.1% (1981: 10.6%).PRICES
TRADE
Trade by value (EUR 10)
Intra-Community trade
Imports from non-member countries
Exports to non-member countries1 452 million ECU (+ 17.5% over 1981) 
260 million ECU (+ 4.6% over 1981)
443 million ECU (+ 18.1% over 1981)
Exports, at 443 million ECU, exceeded imports at 260 million ECU by 
182 million ECU (1981: 126 million ECU).
CONSUMPTION
The level of consumption varies considerably from one Member State to another, 
depending on the living standards and habits of consumers.

- 103 -
12. HOPS
Community production in 1982 was 56.646 tonnes or 39 % of world production, 
from an area of 27.565 ha or 29 % of total estimated world area under hops. 
This was an increase of nearly 23 % in quantity (3 % in area) as compared with 
1981. Yields were high, the average yield being 2,05 T/ha compared with 
1,73 T/ha in 1981 and a ten year average of 1,65 T/ha. The shortfall of the 
1980 harvest and the broad balance of supply and demand for the 1981 harvest 
combined to provide some limited incentive to further expansion of area, which 
rose in the Community by 861 ha. In the United States, area was reduced by 
549 ha following its rapid expansion of 2.439 ha between 1980 and 1981.
As in 1981, world beer production increased by just under 2 % compared with 
annual rates of growth in the late 1970s of 3 % to 4 L  Community production 
continued to decline overall at the same rate as in 1981 (fall of 0,4 %). 
Particularly marked was the fall in beer production by a further 2,9 % in the 
United Kingdom where the total decline since 1979 is now nearly 12 %. The 
rate of increase of world demand for hops in 1982 remained the same as, if not 
higher than, the 1,4 % in 1981. However, the general trend is one of 
stagnation in the rate of increase of the world demand for hops, after the 
relatively rapid expansion of demand in the 1970s. In the Community demand is 
definitely decreasing, as it has done markedly in the U.S.A. over the past 
three years, as a result of continued technological improvement in brewery 
hops utilization and also a gradual reduction in many countries in the 
bitterness of beer. Together the U.S.A. and the Community accounted for 48 % 
of world beer production in 1981. In 1982, despite world recession, it was 
beer production in the developing and State-trading countries which provided 
the growth areas in the market.
The Community continues to be heavily dependent on export markets. Net
exports were 13.200 tonnes in 1981/82 compared with 10.600 tonnes in 1980/81 
and 14.200 tonnes in 1979/80.
The year 1982 can be regarded as one of serious over-production of hops due to 
both exceptional yields and an underlying structural imbalance in the market 
caused by an excess of world area over that required to meet annual brewery 
demands given average yields levels. Stock levels on the eve of the 1983 
harvest were estimated to be equivalent to approximately 9 months supply for 
breweries (both within the Community and for the world). Whilst average 
prices levels were to some extent cushioned by contracts struck at favourable 
prices in previous years of relative shortage, producer incomes were severely 
hit by low spot market prices. The average spot market price was 65 ECU/50 kg 
for the 1982 harvest compared with 226 ECU/50 kg for 1981. As the proportion 
of the Community crop covered by contracts at good price levels declines over 
the next few years so pressure upon grower returns is likely to increase 
unless there is substantial adjustment in the world area of hop production.
The level of producer income aid for the 1982 harvest has been fixed at :
Ecu/ha
Aroma
Bitter
Others300
250
300

-  104  -
13. MILK M D  MILK PRODUCTS
1. Production and utilization of milk
(a) At the end of 1982, the Community (1) dairy cow number was 
25,4 million, which is an increase of 1,6% (or more than
400.000 head) over the level at end 1981. Increases in 1982 were 
mainly noticed in Ireland, Germany, France and the United Kingdom 
(by 3,7%, 1,7%, 1,6% and 1,8% respectively), representing 80% of the 
total dairy cow number. The remaining Member States, except for 
Denmark, showed a smaller increase.
The overall development replaces the decrease and stagnation 
tendencies experienced between end 1978 and 1981. These tendencies 
partly reflected the limited impact of the non-marketing of milk and 
conversion schemes and partly the impact of several general economic 
elements, of which cautious price policy and costs development 
(particularly interest rates) have been most important. In 1982 the 
price/cost ratio improved and the structural development continued 
involving a reduction of the number of smaller dairy herds and an 
increase in the number of bigger and more efficient ones. In 
addition, the favourable weather during autumn 1982 influenced both 
the level of slaughterings and the milk production.
In 1982 the average annual yield par dairy cow in the Community 
increased to 4.332, or by 3,8%, which was considerably above the 
longer term trend and the increases of 2,5% and 1,8% in 1980 and 
1981. The average increases were: Denmark 8,1%, Luxembourg 5»7%, 
France 5,1%, United Kingdom 4,7%, Ireland 3,7% and Germany 3%. The 
high percentage clearly reflect the further improvement of herd 
structure, the quality of the milking cows and better feed economy 
obtained through relatively low prices of feed concentrates compared 
to the milk prices. In addition, the favourable weather conditions, 
especially during off-peak seasons, resulted in high milk production 
and yield.
The increased cow numbers and the above-mentioned factors resulted 
in an increase in dairy cow milk production of 3»5% in 1982 over the 
1981 level (which was unchanged compared to 1980), while the 
proportion of the dairy cow milk production delivered to dairies 
remained stable at 92,2% compared to 1981. The total cow milk 
deliveries increased, mainly due to very high increases during the 
last four months of 1982, by 3,5% compared to 1981 and the 
additional deliveries of 3,4 million tons were mainly used for the 
production of the two intervention products, butter and skimmed milk 
powder. The rate of increase of production of liquid milk products 
and cheeses tended to slow down due to the development of internal 
and external demand, and the push-over of production to butter and 
skimmed milk powder resulted in very high 1982 end-year stocks 
compared to the two previous years.
(1) In this text, Community - EEC 10 if no other indication.

-  105  -
2. Production and consumption of milk products
(a) ^rijiking_inillc
The overall, use of milk in the Community for liquid milk and fresh 
milk products increased only marginally in 1982, and the consumption 
of drinking milk remained practically unchanged compared to 1980 and 
1981. However, the picture showed a certain degree of differentiation 
as to individual products and Member States. Thus, the general 
tendency of the last nine years to consume more semi-skimmed milk and 
less whole milk continued in 1982. The total share of UHT-milk (ultra 
heat treated) continued to increase. In the United Kingdom, the 
decreasing trend in the consumption of whole milk continued in 1982.
In the Netherlands, consumption of semi-skimmed milk increased but 
that of whole milk decreased. In Germany and France, total 
consumption of these two products increased in 1982. In Germany, the 
consumption of both products have been increasing continuously over 
the last six years, while the previous years' development in France 
showed rapid increase in the consumption of semi-skimmed milk and 
decline in whole milk consumption.
The total share of UHT milk of the Community consumption of whole and 
semi-skimmed milk stood at 23$ in 1982, compared with 22$ in 1981, 
with highest levels found in France (55$) and Germany (46$).
Consumption of cream and other fresh milk products (yoghurt, etc.) 
continued to increase in 1982, but at a significantly lower rate, 
reflecting the impact of unemployment and other economic/social 
difficulties.
(b) Butte_r
Total butter production in the Community increased by 7»8$ in 1982, 
compared with 1981. This development is mainly due to the high 
increase in milk deliveries and the relatively low increase of milk 
utilization for other dairy products in response to the commercial 
off-take possibilities on both the internal and external markets. The 
internal consumption of butter at market price continued to decrease 
in 1982 and total consumption increase of 1$ is only due to increased 
sales at reduced prices to the food industry (bakeries, ice cream) and 
no-profit-making institutions and, finally, to the end-year sale 
(Christmas butter). However, the increase due to the latter in 1982 
should only be considered as technical as the high substitution effect 
will occur mainly at the beginning of 1983, resulting in a decline in 
the normal consumption in 1983· Commercial exports continued to 
decline and were, in 1982, 26$ lower than in 1981, and the export 
figure of 400.000 tons is the lowest since 1978. The main reasons for 
this are the general economic situation in the consumer countries and 
the absence of refunds for export of butter to the USSR.

- 106 -
Because of the high increase in production, the relatively low 
consumption and the decrease in total exports of butter, the 
end-stocks for 1982 were more than double the stocks at end 1981. 
Public stocks increased from 10.000 t to 112.000 t in this period and 
the imbalance between supply and demand and the continuous drop in 
exports will result in public stocks of about 650.000 t at end 1983.
(c) Skimmed^ milk_powder
The Community skimmed milk powder production increased by 6,6%, or
135.000 t, in 1982 compared with 1981, which showed a decrease of 2% 
compared to 1980. This increase is partly due to the high increase in 
milk deliveries and butter production and the comparable relatively 
smaller use of skimmed milk in the production of cheese and liquid 
milk products and/or fresh milk products with a relatively low fat 
content. The other main uses of liquid skimmed milk for animal feed 
declined by 35.000 t but the introduction of special aid for powder to 
feed for pigs and poultry in July 1982 resulted in additional sales of
74.000 t. This latter scheme is expected to result in sales of more 
than 500.000 t in 1983. Also, the skimmed milk used for casein 
production increased (by + 13%) and the increase is expected to 
continue in 1983 but at a lower rate.
The manufacture of skimmed milk powder in the Community far exceeds 
demand at market prices, which amounts to less than 15% of total 
production. This is the background for the aid given to skimmed milk 
powder incorporated in animal feed compounds. In 1982, 1,27 million 
tons or 58% of the production was sold with a price reduction of 40% 
for calf-milk replacers.
Both the commercial and food aid exports continued to decline in 1982, 
when 351.000 t were exported against 501.000 t in 1981. The export in 
1982 is the lowest since 1976 and the decline is expected to continue 
in 1983.
The high increase in production, relatively stable consumption and 
decline in export has resulted in increased public stocks. The stocks 
of 279.000 t increased to 574.000 t in 1982 and the end-stock for 1983 
is expected to exceed 900.000 t despite more than 500.000 t of 
additional sales under the pigs and poultry scheme.
(d) Cheese
Community (EUR 9) cheese production increased in 1982 by 1,7% against 
3,6% in 1981 and the internal cheese consumption increased by 2% 
against 2,5% in 1981. Thus, the upward trend in consumption 
continued, but at a slower rate. No doubt, one of the main reasons 
for this continued increased is the availability to the Community

- 107 -
consumers of a wide range of cheese types and qualities, including 
imports of about 100.000 tons of cheese from third countries. On the 
other hand, the Community is the world's biggest cheese exporter, 
exporting 380.000 t in 1982. The increase of these exports in recent 
years - in 1982 exports increased by 38.000 tons - has decisively 
influenced the total level of Community production.
(e) Whole milk powder
Traditionally, the production of whole milk powder in the Community is 
linked to the development on the international market. Having 
increased by more than 60% from 1978 to 1980, the international market 
came to stagnation in 1981 and exports decreased by 15% in 1982 to 
458.888 t. The Community production decreased by 18% in 1982 compared 
to 1981 and the decline is expected to continue in 1983, although not 
so significantly.
(f) Condensed milk
The EEC production increased by 1% (or 15.000 t) in 1982 compared to 
1981, mainly in response to international demand for EEC products 
which, for the first time, reached 600.000 t (19.000 t over the 1981 
level).  Although the EEC share of the international market has been 
falling from 1977 to 1980, a recovery, both in quantities exported and 
market share, was recorded in 1981 and 1982. However, a slowdown of 
production and exports are expected in 1983*
(g) C_as€dn_
EEC production of casein is based on a system of aids paid for skimmed 
milk used in the production of casein and caseinates. This is to 
compensate for the very low import duties bound under GATT.
Reflecting a decrease in the level of aids in 1980, the EEC production 
fell in 1981, by 18.000 t. However, due to higher aid levels, the 
production increased again in 1982 by 20.000 t to 105.000 t and the 
increase iB expected to continue in 1983 although at a slower rate.

- 108 -
World Market Situation
JInj[_e_raat_ional jDejve^o^ment_s_in. ^r^djjc^i^n_a_nd_Trad_e_
(a) Milk production and policies
International milk supplies increased only moderately in 1980 and 1981 
at rates of around 0,5$ per annum. However, in 1982, the speed of 
increase rose to more than 2$ and is likely to attain more than 3$ in 
1983· This acceleration of international milk supplies has taken 
place against a background of economic recession which has hampered 
economic growth and boosted unemployment, thus creating budgetary 
problems, currency instability and balance of payment deficits.
These, in turn, discouraged consumption levels and international 
trade. At the end of 1982 "Western World" international stocks of 
butter and skimmed milk powder, the two most representative surplus 
products in the milk sector, had increased by more than the increase 
of the corresponding production levels for these two products through 
the whole of 1982, reflecting a general decline of consumption and 
exports.
Dairy cow numbers tended to increase in 1982, in particular in the 
EEC, the USA, New Zealand, Japan and the USSR. However, the most 
important contributory factor as to the increased international milk 
deliveries in 1982 and the first half of 1983 has been the significant 
expansion of the milk yield per dairy cow as a result of favourable 
animal feed conditions. In this respect, the climatic conditions and 
high support price levels relative to prices of concentrate feed have 
been the most decisive elements.
Thus, USSR milk production in 1982 increased by 1,3$, mainly because 
of climatic reasons and indicating a reversal of the downward trend 
which had occured since 1977· Supported by improved farm organization 
and coordinated advisory services, USSR milk deliveries seem set for a 
significant increase in 1983 (plus 13$ during the months January-June 
1983 compared with the same period in 1982).
In the USA,  both cow numbers and yields have continued to increase, 
resulting in an increase of 2,1$ of milk production in 1982 compared 
with 1981, and 1983 production is estimated to be up by 2-3$ from the 
1982 record level. Some moderation to this development is expected 
from policy changes (see below). Canadian milk deliveries increased 
by 3,2$ in 1982 but were stabilizing by mid 1983 and probably in 
consequence of market and policy changes. New Zealand produced 4,9$ 
more milk in 1982 than in 1981, whereas milk production over the first 
seven months of’  1983 was down by 3,3$ compared with the same period of 
1982, mainly because of dry weather. Milk deliveries in Australia 
increased by no less than 5,6$ in 1982 compared with 1981 and 
preliminary figures suggest an increase of 4,6$ over the first six 
months of 1983, compared with the same period of 1982. Milk 
production also expanded significantly in Japan by 4,2$ in 1982 over 
1981, and for 1983 is estimated to be up by nearly 3$ from the 1982 
level.

-  109  -
This production in the most important dairy product producing and 
trading countries explains the increasing concern about current milk 
policies and the amendments and alternatives under discussion and 
consideration in several countries and international organizations. 
Thus, the International Dairy Council under GATT is undertaking a 
study of measures applied in certain countries to increase internal 
disposal of dairy products and avoid surplus disposal at low prices on 
the world market. The OECD organization has recently reported that 
there are not sufficient market possibilities to offset the impact of 
the increasing international milk supplies. Therefore, according to 
the OECD, to avoid a complete breakdown of the international market 
for dairy products, one must face the necessity of important price 
reductions or quota arrangements in the milk sector.
Certain comments are given below on recent changes in milk policies in 
some non-EEC countries of special importance.
In the USA the planned implementation of a producer levy on milk 
production (50 cents per 100 lbs) from 1 October 1982 only came into 
operation as from 16 April 1983· From 1 September 1983 this levy has 
been increased to 1 US$ per 100 lbs, but 50 cents per 100 lbs will be 
refunded to milk producers who reduce their milk deliveries by 8,4$ 
during September 1983-September 1984, compared with the "base period" 
(l October 1980-30 September 1982). Furthermore, the support price 
will continue unchanged up until 1 October 1984 at the present level 
of $13,10 per 100 lbs (or $ 28,88/100 kg). The US Administration 
believes that this price levy decision will reduce 1983/84 milk 
production by 1,2$ compared with a situation of unchanged prices and 
no levies. Total intervention purchases would decrease by 12,1$ and 
net outlays of the intervention agency CCC would decrease from 
2.323 million dollars to 722 million dollars, after the deduction of 
1.354 million dollars paid by producers as levies on milk production.
At the end of August 1983 US uncommitted stocks of butter, skimmed 
milk powder and cheese amounted to 210.000 tonnes, 608.000 tonnes and
423.000 tonnes respectively. At the same date in 1982, these stocks 
were at 188.000 tonnes, 528.000 tonnes and 369-000 tonnes 
respectively. Stocks have increased in spite of expanded internal 
donations and exports. Internal production levels continued to rise 
in 1982 for all dairy products except canned milk and cottage cheese.
Statistics show that Canadian milk deliveries increased in 1982 in 
spite of the quota arrangements in force. However, while the Market 
Share Quota for industrial milk has been maintained at the same 
quantitative level since August 1982, the over-quota levy has been 
increased in two steps, from 67,5$ of target returns at 1 January 1983 
to 74,3$ at 1 August 1983· Canadian production levels in 1982 
increased slightly for butter and evaporated whole milk and by 10$ for 
skimmed milk powder, whereas cheese production, especially for Cheddar 
cheese, fell in comparison with 1981 levels. Exports of skimmed milk 
powder increased by 48$.

-  110  -
Hev Zealand milk producer prices have been on a constant increase over 
recent years. Thus, the year-over-year increase in 1981/82 was 24,5? 
compared with 27,4? a year earlier. However, the final settlement 
price for the 1982/83 milk year of 360 NZ cents per kg milkfat, 
represented an increase of 9? compared with 1981/82 and, hence, a 
slower price development. The preliminary payment price for 1983/84 
of 340 NZ cents/kg milkfat would represent a direct price decrease if 
there is no "end of season distribution" to be added. The New Zealand 
price authorities have announced that this could well be the case in 
the current 1983/84 milk year.
New Zealand milk production in 1982 (calendar year) was up by 4,9? on 
1981 figures, but 1983 is likely to be slightly below 1982 levels, 
because of dry weather during the first part of 1983. The most 
significant change in New Zealand production pattern over recent years 
has been a marked increase of the manufacture of whole milk powder, 
increasing in the 1981/82 milk year to 114.520 tonnes up by 64? on the 
level three years earlier, and this high level was maintained in 
1982/83· Also cheese production increased in 1982/83, but only by 3? 
compared with 1981/82. However, cheese production in that latter year 
was 23? higher than the level three years earlier. These developments 
are reflected in a decrease of the production levels of 
butter/butteroil. On the other hand, total skimmed milk utilization 
for skimmed milk powder and casein has remained relatively stable over 
recent years, whereas the individual production levels for these two 
products have varied considerably from year to year. Thus, skimmed 
milk powder production in 1982/83 decreased by 41.000 tonnes or 19? 
compared with 1981/82, and casein production increased by
18.000 tonnes or 38? during the same period. At mid-year 1983 New 
Zealand stocks of butter and skimmed milk powder remained at levels 
close to those one year earlier.
The aim of the Australian dairy policy is to differentiate individual 
product prices according to obtainable market prices. Under the 
scheme introduced on 1 July 1981 for a period of two years, the 
following underwriting values (A$/ton) were established for the 
1982/83 milk year: butter 1.850, skimmed milk powder 875, casein 
2.155, certain cheeses 1.575 and whole milk powder 1.150. These 
prices have been extended to 1983/84· In the meantime, the 
"Industries Assistance Commission" is undertaking a comprehensive 
review of the Australian dairy industry as basis for eventual 
amendments of dairy policies, market mechanisms and administration.
The prolonging of the 1982/83 guarantee prices will probably result in 
lower milk producer prices in 1983/84 because of the pooling of export 
and domestic prices and the combined effect of increased Australian 
milk production and lower export returns on dairy products.
Australian milk production obviously bottomed out in 1981 and has 
since then been increasing. Milk deliveries in the milk year 1982/83 
amounted to 5*525 million litres or 6,2? above 1981/82 deliveries.

-  111  -
A further increase is expected in 1983/84· Apart from liquid milk, 
fresh milk products and special (non-leviable) cheeses, Australian 
consumption has declined in 1982/83 compared with 1983/84· This 
general trend plus the increased production will result in more dairy 
products being available for exports in 1983/84·
Milk deliveries in Japan increased in 1982 by 4$ compared with 1981. 
Thus, the important gains in Japanese milk production have 
recommenced, and in particular due to substantial increases in the 
average yield per cow. Through the first quarter of 1983 the rate of 
increase of milk deliveries was exceeding 6$, resulting in production 
increases for butter and skimmed milk powder of 20$ and 24$ 
respectively. However, the consumption trend for milk and dairy 
products seems rather favourable and contributes to the maintenance of 
the market balance; but imports in 1982 of cheese (74.000 tonnes) and 
skimmed milk powder (76.000 tonnes) remained at lower levels than in 
1980 .
(b) International Trade
(i) World m_a_rkj^t_expo_rts_
In terms of total exports, including food aid and exports on 
concessional terms, the 1982 market continued to decline for 
butter (including butteroil), skimmed milk powder and whole milk 
powder, whereas world exports of cheese increased slightly and 
condensed milk export tended to stagnate. In fact, 
butter/butteroil exports and skimmed milk powder export fell by 
7$, whole milk powder exports by 3$ and cheese exports increased 
by 5$, compared with the 1981 levels. From their peak level in 
1980, world butter exports have decreased by more than
180.000 tonnes or 19$ over two years. Compared with the 1980 
level, the USA increased butter exports by 67.000 tonnes in 1982 
and New Zealand by 23.000 tonnes, whereby the US and New Zealand 
market shares increased to 9$ and 32$ respectively. At the same 
time, the EEC exported 193*000 tonnes less butter in 1982 than in 
1980 and experienced a reduction of its market share for butter 
from 62$ in 1980 to 51$ in 1982. More than 60$ of the reduction 
of EEC butter exports in this period were caused by lower sales to 
Eastern Block countries and in particular the absence of EEC 
butter exports to USSR in 1981 and 1982. The USSR and Eastern 
European countries imported globally 100.000 tons less butter in 
1982 than in 1980, and this explains the biggest part of the 
butter market contraction in this period. Other important 
reductions in 1982 have been registered in Algeria, Egypt and 
Mexico.

-  112  -
Drastic changes in quantities and market shares have also taken 
place in the international SMP market, falling from more than one 
million tonnes at the peak in 1979 to approximately 840 thousand 
tonnes in 1982. Through this period, the EEC market share fell 
from 61$ to 42$, whereas increased market shares in this period 
were registered in particular in favour of the USA and Canada, 
whilst Hew Zealand reduced export quantities but remained at a 
fairly stable market share. It has been characteristic for the 
recent development of the international SMP market that food-aid 
deliveries and concessional sales have increased in importance 
and may, by 1982, cover more than one-third of the total market. 
Another characteristic of this market has been reduced imports of 
SMP for animal feed (Japan, Spain). Important reductions of SMP 
imports have also been registered in Mexico, Venezuela and Chile, 
whereas India, Indonesia, the Philippines, Egypt and Algeria 
represented higher imports in 1982 than in 1979-1980.
Reflecting the above-mentioned market developments, international 
market prices reported to GATT weakened through 1982 for all mnin 
dairy products, and this tendency continued in 1983. Thus, in 
the second quarter of 1983, average prices had fallen, in 
comparison to the same quarter in 1982, by 20$ for skimmed milk 
powder, by 17$ for whole milk powder, by 15$ for butter and by 
23% for certain cheeses.
(ii) EEC Elxports and J^mjsorts in_19_82
Commercial butter exports including the butter equivalent of 
commercial exports of butteroil but excluding food-aid, decreased 
by 2Q% in 1982 compared with 1981. This reduction, although at a 
slower speed, continued in the first half of 1983. Commercial 
SMP exports from the EEC decreased by 39$ in 1982 and have also 
continued to be low in 1983* EEC whole milk powder exports 
peaked in 1981 at 537*000 tonnes but fell by 15$ in 1982 and 
showed a further decline in the first half of 1983. Exports of 
condensed milk and cheese continued to increase in 1982 by 3$ and 
5$ respectively. However, in the first half of 1983, only cheese 
seemed able to continue this expansion.
Total butter imports in 1982 amounted to 108.000 tonnes, of which
92.000 tonnes to the United Kingdom from New Zealand in 
accordance with the special arrangement following the Protocol 18 
of the Treaty of Accession. The Community imported 14$ of the 
total international butter trade in 1982 and remained the second 
biggest butter importer, next to the USSR (at 151.000 tonnes in 
1982). As to cheese, the Community imports in 1982 of 
104*000 tonnes represent 13$ of world cheese trade and are only 
second to US cheese imports (at 115.000 tonnes in 1982).

-  113  -
Milk prices
The target price for milk for the 1983/84 milk year was fixed with effect 
from 23 May 1983 at 27»43 ECU/lOO kg, corresponding to an increase of 2,3$ 
on the previous year. At the time of fixing this price, it was estimated 
that average producer prices, in national currencies, would increase by 
4,5$ and, thus, well below the average rate of inflation. This limited 
price increase reflected the application of the "guarantee threshold" of 
+ 0,5$ introduced in 1982 as the limit for increased milk deliveries in 
comparison with 1981 and the fact that 1982 milk deliveries exceeded this 
threshold by 3$·
Consequently, intervention prices for 1983/84 were also increased by 2,3$ 
only, and the guarantee threshold was prolonged for the calendar year 
1983, i.e. the 1981 level of milk deliveries plus 1,0$.
Threshold prices were adapted to the price changes, whereas the level of 
the coresponsibility levy was maintained unchanged at 2$ of the target 
price. The general upper limit for the Community financed aid to direct 
butter consumption was fixed at 51 ECU/lOO kg against 45 ECU/lOO kg in 
1982/83· The validity of the school milk scheme was prolonged for a 
five-year period and the level of Community-financed aid was increased to 
125$ of the target price for milk. Furthermore, an (unchanged) amount of
120,0 million ECU was reserved for distribution to small-scale milk 
producers during the 1983/84 milk year.
Market Prospects
The extraordinary high rate of increase of the EEC milk deliveries in the 
latter half of 1982 and at the start of 1983 was mainly due to a 
combination of certain factors as higher cow numbers, favourable climatic 
conditions and exceptionally good price relationship milk:concentrate 
feed. Consequently, it is not likely that milk deliveries will continue 
to increase at the same high rate of speed because (a) foreseeable changes 
in cow numbers are limited, (b) preliminary harvest results for 1983 could 
indicate reduced quantities - and qualities - of roughage féed, (c) while 
remaining favourable, the price relationship milk:concentrate feed is 
remarkably less attractive due to a fall in real milk producer prices, 
increasing soya prices and increasing dollar value. Finally, the 
Community is committed to the introduction of a policy which reduces the 
rapid growth of surplus production, for which there is no longer any 
reasonable market possibility. To this end, the Commission has presented 
further concrete proposals to the Council of Ministers, in communications 
of July and September 1983·

-  114  -
Against this background, a certain slow-down in the increase of milk 
deliveries is expected in early 1984 and should be replaced by 
stabilization and, hence, decrease when the Council has decided for 
1984/85 on the most recent quota and super-levy proposals.
Unfortunately, the short-term prospects for internal Community consumption 
of dairy products do not indicate any further increase, in particular 
because of stagnating cheese consumption and reduced butter consumption.
Together with the deteriorating international market aspects, this 
situation leads to increasing stocks and will require more internal 
disposal measures. In this context, it is likely that the pigs and 
poultry sector will continue in 1984 to absorb annual quantities of about
500.000 tonnes of SMP.
The lack of balance between supply and demand is also characteristic for 
the international situation towards the end of 1985. Globally, the 
measures so far suggested and implemented do not seem, according to the 
OECD, to give a sufficient contribution to a better and lasting market 
balance.
6. Economic effects of common measures 
(a) _ImjDOjrts
The import levies as foreseen under Article 14 of Regulation (EEC)
No 804/68 continue to represent the difference between the threshold 
price and the lowest free-at-frontier Community offer price. When 
fixing new prices for the 1983/84 milk year, the threshold prices were 
increased. The fixing of import levies has not resulted in imports of 
milk and dairy products liable to disturb the Community price levels.
( b ) Ex£ojrts_
As mentioned above (under point 3) international prices weakened in 
the course of 1982. However, through a long period, the Community has 
pursued a price stabilization policy taking into account in particular 
fluctuations in the US dollar and especially the strong upturn in this 
value since June 1982. Only since end-April 1983 has the weakening of 
world market prices forced the Community to adapt to existing price 
levels.
(c) Aid fo_r ^kimmeU mi_1 kj_ s_kimme^3 mi_lk_j)[Owdejr and _ca_se_in_
At the beginning of the milk year 1983/84 (l June 1983), aids for the 
use of skimmed milk had been fixed as follows:

-  115  -
- skimmed milk powder for animal feed 64,5 ECU/100 kg
- liquid skimmed milk for calf-feed 6,45 ECU/100 kg
- liquid skimmed milk for feeding other young animals 9,60 ECU/100 kg
- liquid skimmed milk for the manufacture of casein 6,50 ECU/100 kg.
Compared with 1981, the use of liquid skimmed milk in animal feed in 
1982 showed a decrease of 6$; the use of skimmed milk powder decreased 
hy 3$, while the quantities of skimmed milk transformed into casein
increased by 24$·
(d) Storage - Butter
In 1982, 150.400 tonnes of butter was bought in by the Intervention 
Agencies. In the same year, only 28.300 tonnes of intervention butter 
was sold within the Community in connection with special measures, 
while 20.400 tonnes was allocated for food aid. At the end of 1982, 
public stocks of butter were 112.000 tonnes. During 1982, private 
storage aid was granted for 362.700 tonnes of butter. At the end of 
1982, 194.000 tonnes were still in private storage. Certain 
programmes for internal, special sales measures of intervention butter 
were modified in 1981 to grant an equivalent aid for market butter; 
with 181.100 tonnes sold in 1982, these programmes were far more 
important than the intervention butter schemes in this year. The 
end-year butter action in 1982 included 120.000 tonnes of which the 
main part was market butter.
Storage - Skimmed milk powder
In 1982, 465.653 tonnes of skimmed milk powder were bought in by the 
Intervention Agencies, while 164-500 tonnes were removed from storage, 
of which 108.500 tonnes for internal EEC measures and 56.000 tonnes 
for food aid. 9
Storage - Italian cheeses, long-keeping cheeses
Private storage aids for certain long-storage cheeses have been 
applied regularly in 1982.
(e) Eoo_d_aid
In 1982, the Community supplied a certain part of its food aid in the 
form of butteroil and skimmed milk powder. The quantities annually 
set aside for this purpose have been 45*000 tons of butteroil and
150.000 tons of' skimmed milk powder. For 1983, the butteroil quantity 
is reduced to 36.500 tonnes. For 1984, further reductions are 
foreseen for both butteroil and skimmed milk powder.

-  116  -
7. Financial Expenditure
The expenditure of the Guarantee Section of the EAGGF in respect of milk 
products amounted to 4*752 million ECU in 1980 and decreased to 
3.343 million ECU in 1981 and 3*328 million ECU in 1982. Thus, the part 
of the Guarantee Section expenditure utilised in the milk sector fell from 
42$ in 1980 to 26,8$ in 1982. Estimated expenditures for the milk sector 
in 1983 amounted to about 4*708 million ECU (1).
Receipts from the coresponsibility levy represented 223 million ECU in 
1980, 478 million ECU in 1981, 537 million ECU in 1982 and are estimated 
at 519 million ECU in 1983 (1).
(!) Foreseen in BRS 2/1982

14. BEEF/VEAL
Introduction
Beef/veal production accounted for about 14,6% of the value of final 
agricultural production in 1982.
About 2,58 million farms, or more than half the total in the Community, 
raise cattle. Since 1975, however, the number of cattle farmers has 
declined at an average annual rate of 3,7% and the average number of head 
per farm in the Community is now about 30. Land used for fodder production 
accounts for about 60% of the Community's UAA, and since cattle-rearing is 
essentially extensive it is not surprising that most beef/veal is produced 
in the countries with large areas of pasture.
The Community, acounting for about 14% of world production, is second among 
world producers ahead of the USSR but lags well behind the United States.
Production
(a) Cattle numbers
Because of the relatively low rate of slaughterings, and especially the 
fall in cow slaughterings, the Community's cattle herd held steady in 
1982.
The survey of cattle numbers carried out in December 1982 gave a result 
of 78,8 million head, including 31,4 million cows, up 1,0% and 1,1% 
respectively on the previous year.
The number of calves (cattle less than one year old), however, was down 
by about 1,2% on the December 1981 figure, and the number of beef cows 
had fallen to below 6 million head.
The average rate of increase in cattle numbers has been falling sharply 
in recent years.
(b) Production of beef/veal
After three years of heavy slaughterings, 1982 saw a sharp drop in the 
number of animals - both cows and heifers and adult males - sent for 
slaughter; calf slaughterings, meanwhile, stayed at the relatively low 
level they reached in 1981.

-  118  -
Slaughterings
In 1982 about 20,4 million head of adult cattle were slaughered, a drop of 
about 5% compared with 1981; in the first half of 1983 there was an upturn of 
about 34 in the number of slaughterings of adult cattle.
Given the trend in the Community cattle population, the number of adult cattle 
marketed in 1983 will probably show an increase of .about 2%.
The number of females (cows and heifers) slaughtered should pick up again in 
the second half of 1983.
The trends in slaughterings of adult cattle on the one hand and of calves on 
the other have differed in previous years: up for adult cattle but down for 
calves.
In 1982 the figure for calf slaughterings (6,7 million head) was the same as 
in 1981; during the first half of 1983 the number of calf slaughterings rose 
by about 2-3% compared with 1982.
Slaughtering coefficient (i.e. the ratio of slaughterings to cattle numbers)
After reaching a peak in 1980 the slaughtering coefficient for adult cattle 
fell sharply in 1981 and 1982. The slaughtering coefficient for calves 
continues to decline.
Average slaughter weight
The average slaughter weight of adult cattle in 1982 (289,0 kg), rose by 
nearly 1% compared with 1981; in keeping with the trend recorded in recent 
years, the average slaughter weight of calves in 1982 (114,0 kg) showed a 
further rise of about 0,5%. This very positive trend as regards the average 
slaughter weight of adult cattle is probably due mainly to the fairly low 
prices for cattle feed in 1982.
Production of beef/veal
Production has declined for two consecutive years following the cyclical peak 
in production in 1980. The net beef/veal production of 6.928 million t in 
1981 and 6.654 million t in 1982 represented a drop of 3,5% and 4,0% 
respectively compared with the previous year.
In 1982 beef production dropped by 4,5% in the Community; in the first half 
of 1983 it rose by about 4,5-5%.

- 119 -
Veal production was 0,7% up in 1982 with the average slaughter weight steady 
at 114 kg. In the first half of 1983 veal production rose by about 4% 
compared with the figure for the first half of 1982.
The production of beef/veal is now increasing at a lower average annual rate 
than previously in response to the less favourable market conditions.
In recent years, the structure of cattle-raising has undergone far-reaching 
change :
- a decline in the number of cattle farmers at the rate of almost 4% per 
year, mainly through the elimination of small farms, and
- a slight increase in the number of animals held per farm.
Beef/veal producers fall into three main categories, corresponding to the 
three categories of animals reared, namely:
- cull cows and young calves (milk production),
- suckler herds and grass-reared adult cattle (beef animals),
- young male cattle fattened on cereal-based feedingstuffs (maize silage) in 
special production units.
As a result of the sharp expansion in the organized production of young bulls,
young male animals now account for about one third of all the beef/veal 
produced in the Community.
3. Consumption
(a) Consumption of beef/veal
Because the economic situation, and with it employment, deteriorated in 
the Community, with a decline in the rate of growth and a sharp 
increase in the number of jobless, consumption of beef/veal fell again 
in 1982.
Although supplies were still plentiful, consumption, at about 
6,6 million t, was about 2% down on the 1981 figure.
Consumption of beef/veal is a function of the following factors:
- population growth, which in recent years has slowed down 
considerably;

-  120  -
- economic growth, and changes in the pattern of private expenditure 
in particular;
- the availability of meat on the market and the short-term 
fluctuations in its price;
- lastly, the size of the trading margin between producer and consumer 
prices.
a. Annual per capita consumption of beef/veal rose from about 25 kg in 
the early seventies to about 26 kg towards the end of the 
seventies. In 1982, per capita consumption was about 24,4 kg, of 
which 21,6 kg for beef and 2,8 kg for veal.
Per capita consumption had increased until 1973 at an average rate 
of more than 1% per year. Because of the economic difficulties in 
recent years, the 1982 figure is no more than 1 kg down on that for 
1980.
b. Because population growth slowed down, the overall consumption of 
beef/veal expanded more slowly from 1975 to 1980 than beforehand, by 
about 0,8% per year.
Such has been the down turn in the rate of growth of beef/veal 
consumption since the early eighties that overall consumption has 
fallen as a result.
Rate of self-sufficiency
In past years, the Community had abundant supplies of beef/veal as a 
result of fairly steady production, import commitments entered into and 
intervention stocks.
Exceeding 100% in 1974 and 1975, the self-sufficiency rate fell short 
of that figure in the following three years. From 1979 onwards, it was 
well above 100%. Counting public stocks of intervention meat, the 
Community has consumed less beef/veal than has been available in recent 
years.
However, because of the fairly marked fall in production in 1981 and 
1982 the rate of self-sufficiency in 1982 has moved back down, to about 
101%.

-  121  -
4. Trade
Intra-Community trade in beef/veal has been marking time in recent years at  
about 1,4 million t. Exports to Greece from other Member States have  
increased.
Since 1974, imports of beef/veal from non-member countries have averaged  
about 0,4 million t:
415.000 in 1978
412.000 in 1979
356.000 in 1980
364.000 in 1981
440.000 in 1982
Many of these imports enter the Community on special terms.
The Community's external trade
('000t)
Period 1978 1979 1980 1981 1982 :
Trade
Imports from non-member  
countries:
Beef/veal 415 412 356 364 440 :
of which: live animals  
('000 head)67
(385)73
(451)59
(361)50
(310)66 : 
(488) :
fresh or chilled meat 62 63 61 55 72 :
frozen meat 122 141 114 121 164 :
preserves 164 135 122 138 138 :
Exports 168 338 642 662 480 :
of which: preserves 38 70 30 38 38 :
Net trade balance 247 74- 286 - 298 - 40 :

-  122  -
In 1982, exports of beef/veal to non-member countries fell to 480.000 t
(carcase weight). The Community's external trade surplus in beef/veal thus
fell to 40.000 t in 1982.
The main suppliers of beef/veal to the Community in 1982 were:
- Latin American countries, especially Brazil, Argentina and Uruguay,  
supplying upwards of 50% of total imports and more than 70% of imports of  
frozen meat;
- East European countries, supplying more than 10% of total imports and  
more than half the imports of live animals, mainly from Poland;
- Australia and New Zealand, supplying about 5% of total imports;
- Yugoslavia, supplying upwards of one fifth of the imports of live animals  
and more than one quarter of the fresh and chilled meat;
- Austria, supplying about 20% of imports of live animals and about one  
third of the imports of fresh meat;
- lastly, ACP countries (Botswana, Swaziland, Kenya and Madagascar),  
supplying about 5% of total imports.
The Community's main customers in 1982 were:
- Mediterranean European countries, in particular Yugoslavia, taking about  
8% of total exports;
- East European countries, taking upwards of one quarter of total Community  
exports, the USSR taking more than 14%;
- North African countries, particularly Libya and the Maghreb countries,  
taking about 16% of total exports, especially of live animals;
- Middle East countries, taking about 30% of total exports, with Egypt  
accounting for about 10%.
5. Prices
(a) Common prices
For the 1983/84 marketing year the guide price for adult cattle was  
fixed for the whole Community, from 23 May 1983 onwards, at  
207,09 ECU/100 kg liveweight.
The guide price is the price, valid for all categories of adult cattle  
marketed on Community representative markets, which the Community seeks  
to achieve, by means of Community regulations, during a normal  
marketing year.

- 123 -
The Council has also fixed the intervention price at 186,38 ECU/100 kg  
liveweight, or 90% of the guide price, thereby derogating from  
Regulation (EEC) No 805/68 for this marketing year.
(b) Market prices
In 1981 and 1982 the average Community market price for adult cattle 
showed an appreciable increase of the order of 10% per year, a figure  
comparable to the rate of inflation (1). Average prices for adult  
cattle remained, however, below the Community intervention price.
In September 1983 the Community market prices for all qualities of  
adult cattle were running at about 162,00 ECU/100 kg liveweight,  
i.e. 78,0% of the guide price.
After falling for two consecutive years, the Community price for calves  
firmed in 1981 and 1982.
Prices for adult cattle
(ECU/100 kg liveweight)
Period
Price1979/80 1980/81 1981/82 1982/83 1983/84 % change  
((83/84)/  
(82/83))
Guide price 154,58 160,76 172,82 191,87 207,09 +5,5% :
Intervention
price 139,12 144,68 155,54 172,68 186,38 + 5,5%
Market price
- in money terms 130,65 132,58 149,93 161,00 162,62* + 0,4%**
- as % of the  
guide price 84,8 83,0 86,1 84,2 79,7
Import price 82,55 84,75 90,67 92,00 92,00* + 0,0%**
* From April to September 1983
** Percentage change compared with the corresponding period of the previous  
year.
(c) Import prices
In 1982, as a result of the world-wide economic recession, the prices  
of beef/veal expressed in USD fell on the world market; this fall in  
prices was, however, often more than offset by lower (and in some cases  
much lower) exchange rates for the currencies of exporting countries in  
the southern hemisphere. As a result, Community free-at-frontier offer  
prices expressed_in ECU remained-fairly ^steady,  in particular in the  
case of frozen meat.
(1) In national currencies,the increase averaged about 12%

- 124 -
(d) Consumer prices
Consumer prices for beef/veal expressed in national currencies have  
shown an average annual increase of more than 10% over recent years;  
in 1982 the rate of increase was still about 12% on average.
The rate of increase for 1982 is at least comparable to the rate of  
inflation in most of the Member States.
(e) Cost of animal feed
In 1982, as in the previous year, feed grain prices were fairly low and  
the prices of protein-rich products used in animal feed followed a  
downward trend; accordingly, the prices of commercial cattle feed  
remained relatively stable in the Community until the middle of 1983.
6. Outlook
(a) The running down of the breeding herd ended in 1982; towards the end  
of that year there was an appreciable increase in the number of  
breeding females. Accordingly, it is expected that in 1983 the  
production of beef/veal will be about 3% up on the previous year  
(estimated production: about 6,85 million t, as against 6,65 million t
in 1982).
It may be expected that in 1984 production of beef/veal will again 
increase, by about 1-2%.
The consumption of beef/veal, like that of all meats, declined again in  
1982 and annual per capita consumption is now only about 24.5 kg.
If the economic situation shows continuing signs of recovery,  
consumption may be expected to pick up again in the Community in the  
coming months.
Given the outlook for production and consumption and the present stock  
of intervention meat to be disposed of in coming months, the supply of 
beef/veal on the Community market is likely to exceed demand again next  
year.
As a result of fairly low demand, the rate of self-sufficiency will  
probably be above 100% in coming years.
Market prices are fairly low, in particular compared with the guide  
price, and the market prices of adult cattle are expected to recover  
slightly in the medium term.

-  125  -
(b) There has in recent years been a sharp drop (of 10-15 kg) in per capita 
demand for beef/veal in most of the major countries involved in world  
trade in meat, with the exception of Japan and the Member States of the  
Community.
In other countries the shortage of foreign exchange has also adversely 
affected meat purchases in recent months, in particular in the case of 
new import markets for beef/veal.
In the major exporting countries in the southern hemisphere the  
production of beef/veal is sharply down as a result of adverse weather  
conditions in the stockfarming areas (drought in Australasia and floods  
in Latin America) which have meant that the cattle herd and, by the  
same token, the production potential in those countries has to a  
certain extent been run down.
In North America, after the sharp falls in cattle numbers in recent  
years, production has steadied, albeit at a fairly low level, given the  
adverse effect of the sharp increase in cattle feed prices on the  
profitability of stockfarming.
Accordingly, the quantity of beef/veal available for export, mainly in  
the major exporting countries in the southern hemisphere with the  
exception of Brazil, will in the months to come show an appreciable  
decrease, of about 500-600.000 t over the year as a whole.
In the light of the above and given the dollar's strength on exchange  
markets, beef/veal prices on the world market may be expected to rise  
over the medium term and this despite the adverse effect of the  
economic situation on the demand for beef/veal in certain regions.
7. Economic aspects of the measures taken under the common organization of the  
market
(a) Market support measures
In order to support the market, the Community has continued to apply a  
number of measures:
- Market clearance measures:
. granting of export refunds with the possibility of advance fixing  
of the amounts; it was decided to differentiate some refunds by  
reference to the category of animal;
. direct buying-in by public intervention agencies:
227.000 t in 1978
330.000 t in 1979
410.000 t in 1980
280.000 t in 1981
268.000 t in 1982 (representing 4,5% of Community beef  
production).

- 126 -
.  up to 1 September 1983, 245.000 t had been bought in, a marked  
increase of more than 130.000 t over the corresponding period of  
1982;
.  granting of private storage aid in the autumn of 1982, covering 
an overall quantity of about 25.000 t of hindquarters (with  
provision for boning and/or export after a minimum period of  
storage) and similar aid for private storage in the course of 
autumn 1983 (from 31 October to 16 December 1983).
- Measures to encourage consumption (sale of intervention meat by  
intervention agencies for direct consumption, allocation of a  
certain amout of frozen meat from intervention stocks to industry  
for processing in the Community, and sales of intervention meat at  
special prices to welfare organizations).
- Aid measures
.  possibility of granting variable premiums for the slaughter of  
certain beef cattle (clean cattle) in the United Kingdom;
.  granting of a calf premium in Italy, Greece, Ireland and Northern  
Ireland;
.  lastly, as an income supplement for producers specializing in  
quality meat, granting of a premium for keeping suckler cows,  
with effect from the 1980/81 marketing years;
- Adjustments to the intervention system
As in previous marketing years, the Commission restricted  
intervention buying to certain categories (male animals) and forms  
of presentation (carcases, quarters) by referenc to developments,  
mainly seasonal, in the market situation. In connection with the  
adjustment of the rules in this sector, the Council fixed the  
Community scale for the classification of beef carcases and the  
Commission laid down the provisions for applying the scale and  
defined the arrangements for recording the market prices of beef  
carcases on entry to the slaughterhouse. It was also proposed that  
from 1 January 1984 intervention buying should be on a common basis,  
using the Community scale for the classification of beef carcases.
In preparation for this new system, the Commission laid down the  
rules for recording market prices on the basis of the Community 
classification scale.

- 127 -
(b) International agreements
In addition to the normal arrangements for importing beef/veal, the  
Community has entered into undertakings to import large quantities 
annually on the basis of bilateral and multilateral agreements.
Under the GATT, the Community opens annual tariff quotas for the import  
of:
- 38.000 head (18.000 on an autonomous basis) of heifers and cows of  
certain mountain breeds at the rate of 6%, and 5.000 head of certain  
alpine breeds, other than animals intended for slaughter, at the  
rate of 4%.
- 50.000 t (in terms of boned meat) of frozen beef/veal at the rate of
20%.
Under the arrangement for "high-quality" cuts, the Community undertook  
to raise, as from 1983, the annual tariff quota for fresh, chilled and  
frozen beef/veal imported at the rate of 20% from 21.000 t to 29.800 t,  
as follows:
10.000 t from the United States and Canada
5.000 t from Australia  
12.500 t from Argentina
2.300 t from Uruguay,
plus a tariff quota for imports of 2.250 t (in terms of boned meat) of  
frozen buffalo meat from Australia, also at 20%.
Under the ACP/EEC Lomé Convention, special arrangements were introduced  
for the import of 30.000 t (in terms of boned meat) of beef/veal from  
Botswana, Swaziland, Kenya and Madagascar. The agreement provides for  
exemption from customs duties and the reduction of other import charges.
Under the forward estimated for 1983, the Community provided for the  
possibility of importing:
60.000 t (in terms of unboned meat) of frozen beef/veal for processing;
237.000 head of young male cattle for fattening (205.000 for Italy,
30.000 for Greece and 2.000 for other Member States).
Under a trade agreement with Yugoslavia, 50.400 t of fresh or chilled  
baby beef may be imported annually from that country with a reduced  
levy.

- 128 -
Under an agreement reached with Austria, Sweden and Switzerland,  
special levies may be fixed on imports of live cattle and fresh and  
chilled beef/veal from those countries·
Given the distance by sea, the Community has agreed to the advance
fixing of the levy for fresh and chilled meat imported from Argentina  
and Uruguay.
The levies on frozen meat imported from Romania, Argentina, Uruguay,  
Australia and New Zealand may also be fixed in advance.
Lastly, there is provision for imports with customs duties bound under  
GATT, i.e. with no levy or quantitative limit; this applies to  
ofr26%j^ea<* breeding animals (duty-free) and to preserves (at the rate
8. Budgetary expenditure
EAGGF Guarantee Section expenditure on beef/veal was 1.150,6 million ECU in  
1982; it is provisionally put at 1.283 million ECU in 1983 and estimated 
at 1.412 million ECU in 1984, i.e. 9,3%, 9,1% and 8,5% respectively of  
total EAGGF Guarantee Section expenditure. The figure of 1.283 million ECU  
breaks down into 753 million ECU in refunds, 289 million ECU in  
intervention expenditure for public and private storage and 241 million ECU  
in premiums, mainly the calf premium and the suckler cow premium.

- 129 - 
15. PIGMEAT
1. Introduction
In December 1982 there were in the Community altogether 79.2 million pigs,  
including 8.8 million sows, on about 2 million farms.
Production structures followed the same general trends as in previous  
years :  on the one hand, there has been a decrease in the number of farms,  
particularly those with fewer than 200 pigs or 10 sows; on the other hand,  
there has been an increase in the average pig herd per farm. The average  
size of herd continues to vary greatly from one Member State to another :  
270 pigs per farm in the United Kingdom, 250 in the Netherlands, about 160  
in Denmark, 140 in Belgium and Ireland, about 50 in Luxembourg, Germany 
and France, 17 in Greece and 9 in Italy. The Community average is  
37.5 pigs per farm (1981).
In terms of geographical distribution, pig production is still  
concentrated in the areas bordering the north Sea and the English Channel  
and in northern Italy.
In 1982 pigmeat accounted for close to (11,9) % by value of gross final  
agricultural production and (45,3) % of the total tonnage of meat produced  
in the Community.
The Community is still the second largest pigmeat producer in the world,  
after China.
2. Production
Compared with December 1981, the total number of pigs had risen by 0.3 / < > . 
On 1 April 1983 as compared with April 1982, the total number of pigs was  
2.7 % higher and that of sows 2.4 % higher.
In 1982 the Community produced 10.2 million t of pigmeat, 0.2 / less than  
in 1981. For the first six months of 1983 production was 3 % up, and it  
will increase by about 2 % in the second half of the year.

- 130 -
3. Consumption
In 1982, pigmeat consumption in the Community was slightly up on 1981  
(10.10 million t in 1981 and 10.16 million t in 1982). Per capita  
consumption increased from 37.0 kg to 37.4 kg.
1982
Internal kg/ Degree of
consumption inhabitant self-sufficiency
('000 tonnes) %
EUR 10 10 162 37.4 100.7
BLEU 436 42.7 147.0
Denmark 251 49.0 395.2
Germany 3 556 57.7 86.4
France 2 126 39.2 82.6
Greece 198 20.2 77.8
Ireland 113 32.4 125.7
Italy 1 441 25.4 73.7
Netherlands 608 42.5 235.0
United Kingdom 1 433 25.5 69.4
Germany, with a per capita consumption of 57.7 kg, remains the largest  
consumer of pigmeat in the Community; domestic consumption in Germany  
accounts for 35.0 % on the Community total.
Per capita consumption is still lowest in Greece, Italy and the United 
Kingdom, so that there is room for expansion.
In 1982 the balance between gross home production and consumption  
corresponded to a degree of self-sufficiency of 100.7 f> , slightly lower  
than in the preceding years.
Denmark still has the highest degree of self-sufficiency in the  
Community :  395 % (compared with 386 % in 1981). The figure has also risen  
slightly in Germany, Ireland and the United Kingdom; it has fallen  
slightly in the BLEU, France, Greece, Italy and the Netherlands.
4. Trade
The import-export balance in the various Member States is as follows for  
1982 (all intra-Community and extra-Community trade) :

- 131 -
1982
Net
imports(t)Net
exports(t)Percentage change 1982/81 :
Net imports Net exports :
:  BLEU 218 300 - 16.9 :
:  Denmark 738 200 + 0.3
:  Germany 419 600 + 8.1
:  France 362 000 + 5.4
:  Greece 40 400 + 18.1
:  Ireland 1 700 •  · • · ·
:  Italy 325 100 + 18.2
:  Netherlands 840 000 - 2.4 :
:  United
:  Kingdom 562 400 - 11.4
In 1982, the quantity of pigmeat products traded between the Member States  
amounted to 2.32 million t, 3.1 % more than in 1981 (2.22 million t).
In trade with non-member countries in 1982, imports were 191 700 t and  
exports 274 100 t.
The Community's trade balance with non-member countries again shows a  
surplus, with net exports of 82 400 t. In 1982 the Community's imports  
from non-member countries were 12.0 % down on 1981, whilst its exports to  
these countries decreased by 22.6 %.
The breakdown by type of product imported or exported in 1982 is given in  
the following table :
Imports from Exports to
non-member countries non-member countries
- live pigs 11.3 % 0.1 %
- fresh and salted meat 42.2 % 21.3 %
- lard 14.0 % 13.6 %
- offal 25.3 % 8.4 %
- prepared and preserved meats 7.2 % 56.6 %
In 1982 prepared and preserved meats accounted for a much larger  
percentage of Community exports than in 1981. Processed products 
represented more thans half of all exports. Thus, the Community is  
strengthening its position as a net exporter of such products. On the  
other hand, exports of fresh and salted meat fell sharply in 1982. This  
was mainly due to the closure of the American and Japanese markets to  
fresh meat from Denmark because of the outbreak of foot-and-mouth disease 
in that country.

- 132 -
As regards imports, the percentages accounted for by fresh and salted meat  
and by lard have increased whilst that accounted for by live pigs has  
decreased markedly.
As in the past, certain East European countries (Hungary and Romania) were 
the main suppliers of fresh meat.
The other main supplier countries were :
- the United States of America (mainly offal);
- China (boned meat);
- Sweden (mainly cuts and offal);
- Canada (cuts, offal and back-fat).
The EEC continued to export, inter alia :
- preserves to the United States;
- cuts and preserves to Japan;
- a broad range of processed products to numerous other countries.
Incomplete returns for 1983 show a sharp drop in imports as compared with 
1982, mainly because products form certain East European countries did not  
appear on the Community market. Community exports, on the other hand,  
remained at the same level as in 1982; over 1983 as a whole they may even  
increase slightly, the Japanese market having been reopend to fresh meat  
form Denmark on 1 September 1983.
5. Prices
(a) Common prices  
- Basic price
Management of the Community pigmeat market depends on the basic  
price, which is fixed annually for the period 1 November - 31  
October and applies to Class II pig carcases on the Community scale.
The basic price represents an equilibrium at which producers can  
obtain a fair return while the balance between supply and demand is  
maintained.
The level of the basic price for 1981/82 (1 November 1981 -  
31 October 1982) was 176.18 ECU/100 kg; the basic price for 1982/83  
was 194.68 ECU/100 kg.
Given the trend in production costs as a whole and the economic  
situation, the new basic price appicable from 1 November 1983 to 
31 October 1984 has been fixed at 205.39 ECU/100 kg (+ 5.5 %).

- 133 -
- Sluice-gate prices
The sluice-gate prices, which are fixed every quarter, are  
considered to be normal world market offer prices at the Community  
frontier, at which products from non-member countries may enter  
without undercutting the price levels aimed at by Community market  
regulations. The sluice-gate prices depend on the world market  
prices for feed grain. In 1982/83 (August 1982 - July 1983) the  
sluice-gate prices were reduced accordingly, averaging 6.3 % less 
than in 1981/82. Thus, the sluice-gate price for pig carcases stood  
at 132.30 ECU/100 kg at the beginning of 1982/83 and at  
122.17 ECU/100 kg by the end.
(b) Market prices
The price for pig carcases on representative markets, which had stood 
at 167.5 ECU/100 kg at the beginning of 1982, fell during the first  
four months of the year, reaching a low of 150 ECU/100 kg in April.
From May onwards, the Community market price began to rise, with the  
help of aid for private storage between 31 March and 23 July 1982. The  
price climbed to about 167 ECU/100 kg, where it remained for the last  
three months on the year.
In 1983 prices fell sharply between January and April, necessitating  
the resumption of intervention measures in the form of private storage  
aid between 1 February and 9 September 1983. Having dropped to 145  
ECU/100 kg in April, prices remained unchanged until July, before  
picking up once more in August.
Pig carcase prices
ECU/100 kg of pig carcase
1.11.79 1.11.80 1.11.81 1.11.82 1.11.83
31.10.80 31.10.81 31.10.82 31.10.83 31.10.84
Basic price
absolute value 150.44 158.72 176.18 194.68 205.39
percentage chance 100.00 105.50 117.11 129.41 136.53
Market price
absolute value 133.67 140.21 161.38 153.11
percentage change 100.00 104.89 120.73 114.54
as % of basic price 88.84 88.34 91.60 78.7
Sluice-gate price
absolute value 110.11 131.54 132.33 124.99
percentage change 100.00 119.46 120.18 113.51
(c) Prices in non-member countries
Of the "market economy" non-member countries, the USA is the biggest 
pigmeat producer.
US prices remained relatively high throughout 1982, averaging about  
25 % more than in 1981 because of a substantial drop in pig numbers. In  
1983 production rose sharply again, leading to a fall in prices which  
could continue throughout the year.

-  134  -
The other countries producing pigmeat on a large scale include the East  
European countries with State-run economies. Pigmeat production in  
these countries declined in 1981 and 1982, but pig numbers now seem to  
be on the increase again.
(d) Consumer prices
For nine months of 1982, relatively high producer prices for pig  
carcases on the representative markets caused consumer prices for  
pigmeat to rise also, although to a lesser extent, since marketing  
margins were greatly narrowed in order to maintain the same level of  
consumption. This development did not, however, have a negative effect  
on per capita consumption of pigmeat, which increased by about 1 % .
6. Production costs
In 1982 and at the beginning of 1983, feed prices on the Community market  
were advantageous to producers and remained relatively stable, apart from  
some fluctuations at national level due to the monetary situation in the  
Member States. This could change shortly, however, since the prices for the  
raw materials used in feedingstuffs began to rise in July 1983 and could  
influence pigmeat production costs.
Production costs other than feed represent between 25 % and 35 % of the 
total production costs of pig carcases. As in previous years, these costs  
have been influenced by the general level of inflation and the high  
interest rates charged by banks in the Member States.
7. Outlook
In 1983 the volume of production will probably be 1.5 % to 2 % greater than  
in 1982. Since the level of external trade is relatively stable, any extra  
quantities produced in 1983 will probably have to be sold within the  
Community. This would mean an increase in the consumption of pigmeat,  
perhaps in preference to more expensive red meats.
The results of the August 1983 survey of pig numbers indicate that the  
increase in production recorded in 1983 will probably continue in 1984.
8. Economic aspects of the measures taken under the common organization of the  
market in pigmeat
(a) Levies and refunds
Under the system of trade with non-member countries, levies and

-  135  -
(where appropriate) additional amounts may be charged on imports and  
refunds may be granted on exports.
Levies followed the trend in world and Community prices for feed grain,  
resulting in an increase in 1982. The levies have remained unchanged  
since 1 Februari 1983, when they were fixed at 55 ECU/100 kg for pig  
carcases.
For ten months of 1982, additional amounts were charged on certain 
products and countries of origin. They were discontinued in November  
1982 and reintroduced with effect from April 1983.
The export refunds for fresh pigmeat were increased slightly with  
effect from February 1983 because of the situation on the market and  
then increased again in April 1983, this time by a more substantial 
margin. The refunds on processed products have remained the same as in  
1982 .
(b) Intervention
From 1 February to 9 September 1983 market support measures were 
applied in the form of private storage aid. The quantities involved 
were about 120 000 t. The effect was a stabilization of market prices.
9. Budgetary expenditure
EAGGF Guarantee Section expenditure on pigmeat in 1982 was of the order of 
112 million ECU, including 96 million ECU for export refunds and 16 million  
ECU for private storage aid.
Total expenditure in 1982 was 27.7 % down on 1981.
For 1983, provision has been made for 180 million ECU, i.e. 150 million ECU  
for export refunds and 30 million ECU for private storage aid.

- 136 -
16. EGGS
1. Introduction
The relative value of egg production in the Community may be gauged from  
recent estimates:
1981 1982
Eggs/livestock products 6,2%
Eggs/total agricultural production 3,5% 3,0%
National figures indicate that undertakings with more than 10.000 layers at  
present account for more than 50% of production in most Member States and  
up to 75% in the United Kingdom and the Netherlands. Greece and  
Luxembourg, which account for about 3% of Community production, are the  
only countries where production is still relatively unconcentrated.
According to FAO and USDA statistics, the Community in 1982 was the second  
largest egg producer in the world, after China and before the United  
States, and had become the largest exporter before the United States. This  
corresponds to 14% of world production and 33% of world exports (eggs in  
shell and egg products), not including intra-Community trade.
2. Production, consumption and trade
In 1982 Community egg production (4,26 million t) again increased by 2,4%  
compared with the previous year. This excessive growth of supply compared  
with demand triggered off a further serious crisis on the egg market after  
Easter 1982. As a result of this difficult situation layer chick placings  
fell in 1982 by about 5%. This trend, which accelerated during the first  
six months of 1983, only began to have an appreciable impact on production  
from May 1983 onwards. Taking account of cull hens expected to be  
slaughtered in some Member States, it can be predicted that Community  
production in 1983 will be lower than in 1982, only reaching 1981 levels.  
The market situation has therefore improved distinctly since the summer of  
1983.
4
Consumption increased slightly from 3,82 million t in 1981 to 3,87  
million t in 1982.
In some Member States, however, there is a tendency for consumption to  
stagnate or even decline. Very favourable prices and advertising campaigns  
have been unable to halt this trend which again underlines the very limited  
elasticity of demand. Per capita consumption has remained unchanged since  
1978.

-  137  -
The restrictions on free trade introduced by the United Kingdom on  
1 September 1981 in connection with new national arrangements for combating  
Newcastle disease reduced deliveries to the United Kingdom in 1982. In  
accordance with the judgment of the Court of Justice on the subject in July  
1982, the United Kingdom took steps to enable trade to be resumed with 
France, the Netherlands, Belgium and Germany while safeguarding the health  
status of the poultry flock.
Trade with non-member countries in 1982 totalled 194.000 t - 162.000 t of  
exports and 32.000 t of imports. Exports increased, in particular to North 
Africa and the Middle East. The growth of sales to non-member countries  
speeded up in 1982 (+ 48% for eggs for consumption, + 77% for hatching 
eggs) mainly on account of increased demand in some non-member countries  
and extremely low prices in the Community. In 1983 exports of eggs in  
shell maintained their high level of the previous year. Imports of eggs in  
shell and egg products have since 1982 involved only small quantities  
imported under inward processing arrangements (for re-export after  
processing), whole imports of hatching eggs (turkeys) have increased  
considerably (Italy).
3. Prices
After more than a year of crisis, market prices began to rise again,  
exceeding last year's level in some Member States, from May 1983. This  
improvement was in line with the contraction of supply recorded in most  
production regions. Prices did not reach a satisfactory level until  
August, however. The rise in the price of feed threatens to undermine the  
profitability of this sector again.
r
It should be noted that the producers' organizations played a major role in  
trade negotiations in 1983 and, especially in France successfully defended  
the producers' interests against their trading partners.
The prices of eggs for consumption did not follow in all Member States the  
1982 fall in market prices.
4. Outlook
Until the summer of 1983 the reduction in layer chick placings continued in  
all Member States except the Netherlands and Belgium. Community supply can  
be expected, therefore, to remain until mid-1984 below the previous year's  
level.

-  138  -
In the medium term, a prudent policy of increasing production should be  
pursued, principally on account of stagnating per capita consumption in the  
Community and the limitations of the world market. The volume of world  
trade in eggs in shell is lower than that of intra-Community trade.
5. Measures taken under the common organization of the market
(a) Sluice-gate prices were reduced after 1 August 1982, but have been  
rising since 1 February 1983, in line with the trend in feed grain  
prices on the world market. Levies, which are based essentially on the  
difference between feed grain prices in the Community and on the world  
market, have followed a contrary trend.
(b) Refunds on eggs in shell, which were raised to 18 ECU/100 kg from
1 November 1982, were reduced to 16 ECU on 14 September 1983 in view of  
the Community market situation.
Refunds on hatching eggs and egg products were also reduced from the  
same date.
(c) In 1983 the Council continued its examination of the Commission
proposal for altering the marketing standards for eggs, but was unable  
to reach agreement. The changes proposed in March 1980 comprise in  
particular measures to improve consumer information.
6. Budgetary expenditure
Expenditure by the Guarantee Section of the EAGGF on eggs, all of which is  
for refunds, amounted to 24,2 million ECU in 1982 (0,2% expenditure by the  
Guarantee Section). The figure entered in the budget for 1983 is  
37 million ECU and the estimate for 1984 is 36 million ECU.

-  139  -
17. POULTRYMEAT
1. Introduction
The relative value of poultrymeat production is still fairly similar to  
that of eggs, i.e. together about 14 % of livestock production and 8 % of  
total agricultural production. The figures relating to poultrymeat are :
1981 1982
Poultrymeat/livestock products 7.8 %
Poultrymeat/total agricultural production 4.5 % 4.4 %
Poultrymeat production is still characterized by concentration and by  
various forms of vertical and horizontal integration. The degree of  
concentration, particularly in the chicken sector, is greater than in the  
egg sector, since in the northern countries of the EEC more than 90 % of  
production is accounted for by holdings with more than 10 000 birds.  
However, concentration is less marked in France, Italy and Belgium, where  
traditional forms of production and marketing (roped chickens) are still  
fairly important. This is also true of Greece, which accounts for about  
3 % of Community production.
In 1981, with 15 % of world production, the Community was, after the USA,  
the world's second largest producer not only of all poultrymeat but also  
of chickens and turkeys. It remains the largest exporter (34 % of world 
exports), ahead of Brazil and the USA.
2. Production, consumption and trade
In 1982, total Community poultrymeat production (4.43 million t) rose by  
5.5 %, the largest increase for ten years. Production rose in all Member  
States, although the rate of increase varied considerably, ranging from
0.3 % in Germany to 8-11 % in France, the United Kingdom, Belgium and  
Ireland.
Chicken production rose from 2.8 to 3 million t (= 68 % of all poultrymeat  
production). Half of this increase remained unsold in 1982 because of  
falling demand frozen chicken in Germany and keen competition on the world 
market. As a result, production had to be scaled down in Germany and the  
Netherlands in the second half of 1982. In 1983 production has slowed down 
in almost all the Member States, particularly in Germany, the Netherlands 
and France.
In the turkey sector (700 000 t produced per year), production seems to  
have risen only by about 3 % in 1983, after the marked increase in 1982  
(+ 6.4 %).

-  140  -
The rate of increase in consumption (+ 5 % on average in the Community)  
seems to have been somewhat over-estimated, the supply forecasts for the  
sector having failed to take full account of the build-up of stocks in  
1982. Even so, consumption has increased in all Member States because of  
the favourable prices on the meat market and the widening range of derived 
products (cuts and processed turkey products).
Intra-Community trade in both slaughtered poultry and live birds increased  
in 1981.
Following the Court of Justice ruling of July 1982, the United Kingdom  
took steps to restore trade with its partners, subject to safeguards to  
ensure the health of livestock.
Exports to non-member countries in 1982 totalled 441 000 t, mainly  
chickens (408 000 t) for the Middle East and the USSR. This total was 
5.6 % less than in 1981, because the growth in demand is less marked in  
some importing non-member countries and because competition, especially  
from Brazil, has increased.
World exports of hens and chickens (whole carcases and parts thereof) fell  
by 100 000 t or 8 % in 1982. There has been little or no change in the  
world market situation in 1983 and the volume of Community exports during  
the first eight months was the same as in the previous year. Exports of 
chickens to non-member countries now represent about 14 % of Community 
production (36 % in the case of France, the Community's main exporter).
Imports represent less than 2 % of consumption. They comprise mainly geese  
and ducks from East European countries (30 000 t in 1982). Imports of  
turkeymeat and of poultrymeat preparations fell by 100 t and 3 000 t  
respectively in 1982 as a result of increased offer prices for the  
imported products.
In 1983 there was a further drop in such imports, particularly from the  
USA.
3. Prices
The trend in chicken prices in 1982 reflected the serious crisis on the  
market for frozen chickens, particularly in Germany and the Netherlands.  
Prices for fresh chickens, on the other hand, remained stable throughout  
the Community, except in Italy. In 1983 the market was less plentifully  
supplied, so that prices picked up slowly, but they are still not  
satisfactory in view of the recent rise in feed prices.
In 1982 consumer prices rose in all Member States. Poultrymeat prices  
remain, however, more attractive than those for other types of meat. In  
1982 and 1983 frozen chickens could not be marketed in Germany without big  
price reductions.

-  141 -
4. Outlook
For the first time since the common organization of the market was  
established, Community poultrymeat production will probably slow down in  
1983. This will be attributable to a drop in chicken production, which is  
expected to fall back to the 1981 level. On the otehr hand, stock  
variations being taken into account, consumption will remain at its 1982  
level at least. The recent reduction in the numbers of parent birds would  
seem to indicate that a cautious production policy will be followed for  
the immediate future, pending any new trend in demand on the international  
and world markets.
The outlook for the turkey sector is more optimistic. Although production  
in 1983 will increase by only some 3 % (and may even decrease in the  
second half of the year), the outlook for cuts and prepared products is  
good, so that this sector should expand slowly but surely in the medium  
term.
5. Measures taken under the common organization of the market
(a) Following the trend in feed grain prices on the world market,  
sluice~gate prices were increased as from February 1983, while the  
levies reflecting the difference between Community and world market  
prices for feed grain were reduced.
(b) In view of the Community market situation and the conditions of  
competition on the world market, refunds for chickens were increased 
from 20.5 ECU/100 kg on 20 September 1982 to 22.5 ECU on 1 February  
1983 and reduced again to 20 ECU on 14 September 1983, and to 18 ECU 
on 24 October 1983.
6. Budgetary expenditure
Being limited to refunds, expenditure by the EAGGF Guarantee Section on  
poultrymeat amounted to 79.7 million ECU in 1982 (equivalent to 0.6 % of  
total EAGGF Guarantee Section expenditure).
Expenditure provisionally stands at 88 million ECU in 1983 and is  
estimated at 92 million ECU in 1984.

- 142 -
l8. SILKWORMS
Silkworms, reared in Greece and Italy and on a small scale for research 
purposes in France, account for only a tiny part of Community agriculture and  
of world sericulture.
According to the FAO, world production of raw silk (including waste) in 1982  
was 63.000 t compared with 65.000 t in 1981 and 64.000 t in 1980. Silkworm  
rearing is virtually an Asian monopoly (58.000 t):  China (38.000 t) and Japan
(13.000 t) together account for 8l% of world production.
Community production is declining steadily in the two producer Member States 
since the rise in rearing costs is not adequately offset.
In 1982 only 6.294 boxes were used compared with 8.640 in 1981 (- 27%) and  
11.100 in 1980. Cocoon production was only 153 t compared with 224 t in 1981  
and 308 t in 1980.
For 1983/84 the amount of aid was fixed at 106 ECU per box (84,02 ECU in  
Greece) compared with 100 ECU in 198 /8 ,  a rise of 6%.
EAGGF Guarantee spending was 0,7 Mio ECU in 1982.

- 143 -
19. SHEEPMEAT AND GOATMEAT
1. Introduction
Sheepmeat and goatmeat account for about 2% by value of the Community's 
final agricultural production. Sheep are raised on approximately  
600.000 farms in the Community: 38% of all Community sheep are in the  
United Kingdom, 23% in France, 16% in Italy and 15% in Greece, these four  
Member States thus having 92% of the Community flock. Sheepmeat accounts  
for about 20% by value of the production of all types of meat in Greece,  
and about 13% in the United Kingdom, France and Italy (for the Community 
as a whole the figure is about 4%).
The regional distribution of sheep is such that there is a concentration  
in the areas covered by Directive 75/268/EEC on mountain and hill farming  
and farming in certain less-favoured areas. The regions with the highest  
density of sheep are Scotland and Wales, with more than 1,5 head/ha, and  
the remainder of the United Kingdom, Greece, West-central France and  
Sardinia, with between 0,5 and 1,5.
The Community, with its output of 700.000 t, is the world's second largest  
producer, accounting for about 12% of its sheepmeat and goatmeat. It comes  
after the USSR (with 800.000 t) and before Australia and New Zealand  
(600.000 t each), China (400.000 t), and Turkey (300.000 t).
The common organization of the market in sheepmeat and goatmeat came into  
effect on 20 October 1980 (Regulation (EEC) No 1837/80 of 27 June 1980).
The mechanisms of the common organization of the market were described in  
the 1982 report on the situation on the agricultural markets.

- 144 -
2. Production
a) Sheep numbers
— The number of sheep in the Community, which has risen almost (1)  
uninterruptely since 1972, reached 58,8 million head by 31 December  
1982, including 39,7 million ewes. The rate of increase, at 3,3%,  
was slightly higher in 1982 than the 2,9% in 1981, but it varied  
considerably among Member States: numbers fell sharply in France by  
7,5%, and remained steady in the United Kingdom. In the other Member  
States numbers increased, by 12% in the Netherlands, 6% in the  
Federal Republic of Germany, 5% in Belgium and 1% in Ireland. These  
figures as a whole must be treated with some caution as the  
implementation in 1982 of Directive 82/177/EEC (2) may have modified  
the terms of the comparison, between 1981 and 1982.
- The number of goats in the Community also increased, but to a lesser  
extent (1,9%).
b) Production of sheepmeat and goatmeat
In 1982 production of sheepmeat and goatmeat in the Community of Ten  
(gross indigenous production: 706.000 t) remained almost static  
(+0,7%). It fell in two countries only: Italy (5,5%) and the  
Netherlands (9,5%) (3).
In the other Member States production was either static or slightly up  
(France: 5,1%) (4).
Community production of sheepmeat and goatmeat tends to run in cycles,  
but the underlying trend has been upwards since 1970. Thus, from 1973  
to 1981 there was an annual rate of increase of 2,7%.
3. Consumtion
In 1982 consumption of sheepmeat and goatmeat, at 975.000 t, increased  
sharply (4,5%) due to a steep rise in the United Kingdom (7,6%) and an  
appreciable one in Greece (5,5%) and France (4,0%).
(1) The only exception was 1975. It should be noted that the annual rate of  
increase from 1973 to 1981 was 1,5%.
(2) Council Directive of 22 March 1982 on the statistical surveys to be  
carried out by Member States on sheep and goat stocks.
(3) The fall in the Netherlands was also due to implementation of the above  
Directive.
(4) Due to slaughterings of ewes being higher than usual.

- 145 -
Average annual consumption per head in the Community in 1982 was 3,6 kg.  
Greece accounts for the heaviest consumption with 13,8 kg per head per  
year, followed by Ireland with 7,5 kg, the United Kingdom with 7,5 kg,  
France with 4,3 kg, the BLEU with 1,8 kg and Italy with 1,5 kg. In the  
other Member States consumption is less than 1 kg per head per year.
The long-term trend in consumption per head is upward in all Member  
States, except Ireland and the United Kingdom, where it is falling  
(although there has been a tendancy for this to level out in the United 
Kingdom since the establishment of the common organization of the  
market). Over the Community as a whole consumption is fairly steady:  
since 1968 it has hovered between 3,3 and 3,8 kg per head.
4. Trade
a) Non-Community countries
In 1982 imports into the Community of Ten amounted to 281.000 t carcase 
weight, an increase of 24% over 1981 (226.000 t). This was accounted 
for mainly by the suppliers of frozen meat (Australia, +104%;
Argentina, +64%; New Zealand, +23%) and two other countries (Romania,  
+72%; Yugoslavia, +37%). The increase went mostly to the United  
Kingdom (1) (+27%), Greece (+39%) and the Federal Republic of Germany  
(+30%).
b) Intra-Community trade
In 1982 intra-Community trade was 81.000 t. The United Kingdom, with  
37.600 t, supplied 46,4% and France, with 47.900 t, received 59,1% of  
intra-Community trade. There was little change in total trade as  
against 1981. However, there was a fall in the amounts supplied by the  
Federal Republic of Germany (from 4.700 to 3.400 t), Ireland (from  
18.000 to 16.000 t) and the Netherlands (2) (from 15.000 to 11.000 t).  
On the other hand there was a rise in exports from the United Kingdom  
(from 35.600 to 37.600 t), France (from 4.480 to 6.250 t) and the BLEU  
(from 2.390 to 3.500 t).
5. Prices
a) Institutional prices
For the 1983/84 marketing year:
- the basic price was fixed, for the Community as a whole, at 432.36  
ECU/100 kg (carcase weight) an increase of 5,5% on 1982/83;
(1) The United Kingdom accounted for 74% of Communicy imports.
(2) Nonetheless there was an increase in the number of live animals sent to  
Belgium (115.000 head in 1982 as against 36.000 in 1981).

- 146 -
- the intervention price was fixed at 367,51 ECU/100 kg (+5,5%) and the  
derived intervention price (Ireland) at 347,70 ECU/100 kg (+5,5%);
- the reference prices were fixed as follows:
Region ECU/100 kg Percentage variation
compared with 1982/83
1.(Italy) 441,76 +3,3
2.(France) 432,36 +5,5
3.(Benelux)
(Denmark) 422,96 +7,9
(Germany)
4.(Ireland) 421,40 +8,3
5.(Great Britain) 416,07 +9,8
6.(Northern Ireland) 416,07 +9,8
7.(Greece) 441,76 +3,3
b) Market prices
In 1982 the average Community market price was 369,86 ECU/100 kg 
(carcase weight), an increase of 4,3% over 1981 (354,65 ECU/100 kg).
The trend was thus much less satisfactory than in 1981 (+14,7% up on  
1980) (1). There were appreciable differences, however, between Member  
States: there were increases in Belgium (17,4% in national currency and  
13,2% in ECU), Denmark (14,1% in national currency and 10,5% in ECU),  
Greece (13,3% in national currency and 5,4% in ECU), France (9,5% in  
national currency and 6,1% in ECU) and the United Kingdom (4,4% in  
national currency and in ECU), and decreases in the Netherlands (4,0%  
in national currency and 2,8% in ECU) and the Federal Republic of  
Germany (0,4% in national currency and 2,4% in ECU).
6. Outlook
On the basis of data provided by the Member States, the following can be  
expected for 1983.
a) A further rise in the total number of sheep in the Community
(by 1,7% on average for the Community as a whole: 59.8 million head).  
The rise is likely to occur in certain Member States only, and to  
differing extents: it is likely to be in Italy (1,0%), Ireland (2,7%)  
and above all the United Kingdom (3,3%). In the other Member States  
the number of sheep is expected to remain fairly steady.
(1) Since 1973 the average Community price has fallen only twice, in 1978 (2%)  
and in 1980 (10,8%).

- 147 -
b) An increase in Community production (3,4%)
(due to the foreseeable increase in all Member States except France and  
the Netherlands). Total expected: 730.000 t (up 24.000 t). Production  
is likely to rise by 7,9% in the United Kingdom and to fall by 3,3% in  
France, while remaining steady in the Netherlands.
c) A very slight increase in Community consumption (0,5%)
(a rise of 5.000 t, to 980.000 t). Consumption is not expected to  
increase appreciably in any Member State.
d) A decrease in the Community's deficit
The balance has been as follows in recent years (Community of Ten):
Deficit (consumption less Self-sufficiency
production)
(t) (%)
1977 280.000 68,9
1978 271.000 70,2
1979 286.000 69,4
1980 251.000 75,0
1981 232.000 75,1
1982 269.000 72,4
1983 (estimates) 250.000 74,5
e) A fall in imports from non-Community countries
Under their voluntary restraint agreements with the Community, these  
countries may export to it a maximum of 321.790 t (l) of live animals  
and sheepmeat, expressed as carcase weight equivalent. In 1983 the  
non-Community countries in Europe will be exporting amounts close to  
the agreed limits. On the other hand, Argentina, Uruguay and Chile  
will be below the limits (expected imports from New Zealand 205.000 t,  
the limit being 245.500 t). Total Community imports are thus expected 
to be of the order of 260.000 t in 1983, a decrease of 20.000 t as  
against 1982 (in carcase weight equivalent).
f) An increase of about 1% in the average Community market price
This is well below the increase in the basic price decided on for  
1983/84 (5,5%). The increase in market prices will nonetheless be  
distinctly above the average in France (11%) and Ireland (4%).
(1) Including the 2.290 t granted under autonomous quotas for non-Community  
countries which have not concluded such agreements.

- 148 -
7. Supply balance for 1983
For 1983 the Community supply balance is estimated as follows:
Gross indigenous production  
Total consumption  
Consumption/production deficit  
Import/export deficit
- imports from non-Community  
countries
- exports to non-Community  
countries
- change in stocks730.000 t
980.000 t
250.000 t
255.000 t
255.000 t
5.000 t 
+ 5.000 t
8. Economic aspects of measures taken under the common organization of the  
market
a) Variable premium (in Great Britain)
The total paid under the variable premium scheme in 1982/83 was 236  
million ECU, as against 114 million in 1981/82. This amount represents  
an (arithmetic) mean premium of 91,17 ECU/100 kg for 1982/83, or 35,3%  
of the average market price in Great Britain for that year.
In the week beginning 2 August 1982, the premium reached a maximum of  
148,14 ECU/100 kg, which is 76,4% of the Great Britain market price!
b) Ewe premiums
In 1982/83 ewe premiums were fixed for eight Member States, and  
amounted in all to 100 million ECU.
The amount of the premium per ewe was as follows:
France (1)
Denmark
Netherlands
Luxembourg
Belgium
Fed. Rep. of
Germany
Ireland
Great Britain
Northern Ireland0,566 ECU 
7,041 ECU 
13,376 ECU  
17,308 ECU  
18,844 ECU
10,486 ECU  
10,646 ECU  
4,418 ECU  
15,481 ECU.
For comparison, the amount granted for 1981/82 was 12.7 million ECU,  
distributed as follows:
3,4 million ECU in Ireland (1.9335 ECU per ewe)
9,3 million ECU in the United
Kingdom (0.6916 ECU per ewe).
(1) In actual fact an advance of FF 12 per ewe (3,874 ECU) had been paid at  
the beginning of the marketing year. The excess will therefore be set  
against the amounts to be paid for 1983/84.

-  149  -
For 1980/81, 1.3 million ECU were paid in Ireland (0,772 ECU per ewe)  
and 15 million ECU in the United Kingdom (1,098 ECU per ewe).
On these bases, the total cost of premiums (ewe premium and variable  
premium) can be summarized as follows:
1980/81 (first year, 51/2 months) 84,8 million ECU
1981/82 115,3 million ECU
1982/83 307,4 million ECU
1983/84 (estimate) 371 million ECU
The variable premium clawback (1) on exports from Great Britain (United  
Kingdom until the end of the 1981/82 marketing year) have been deducted  
from these totals.
c) Refunds
No refunds in 1982 or 1983. The Community has in any case not yet  
adopted implementing rules.
d) Management of voluntary restraint agreements
The mechanisms provided for in these agreements operated normally in  
1983. So far no non-Community country has exceeded its limit.
e) Intervention
No intervention in 1982 or 1983 (market prices in France, the only  
Member State where the possibility of intervention buying was agreed  
upon for 1983/84, were above the intervention price).
(1) 1980/81: 9,3 million ECU; 1981/82: 10,9 million ECU; 1982/83: 28,7 million  
ECU. 1983/84 (estimate): 33 million ECU.

-  150  -
II.  Products not subject to common market organization
20.a. ALCOHOL
1. Introduction
The alcohol sector has still not been organized.
2. Production
Production of agricultural alcohol in the Community fell back sharply (by  
9,6%) in 1982 (or the 1981/82 marketing year). This is due to a fall off  
in the production of molasses alcohol (which for the first time fell below
2.900.000 hi), beet alcohol (which dropped to 1.260.000 hi) and vinous  
alcohol (which from about 2.000.000 hi fell back to less than
1.600.000 hi).
3. Consumption
As a result of the economic crisis prevailing in Europe and the relative  
decline in living standards, consumption of alcohol, particularly direct  
human consumption, has fallen in the Community.
4. Prices
Price movements remain abnormal. Whereas on the world market alcohol  
prices have been stable for years, they are unstable on the Community  
market. This is due to French so-called "liberalized alcohol" (alcool  
libéré) at prices well below those ruling on the alcohol markets of other  
Member States.
5. Trade
Sales of French liberalized alcohol are sufficiently substantial (about
400.000 hi) to disturb the markets of other Member States.
6. Outlook
In the absence of a common market organization, alcohol obtained from wine 
surpluses and beet surpluses will continue to represent a constant threat  
of market disturbance to other types of alcohol.
7. Expenditure  
For the record.
It is to be borne in mind that in the wine sector the Community's  
financial liability has begun to replace national liability. So far,  
however, this process is by no means complete.

-  151  -
20b. POTATOES
1. Introduction
There is still no common organization of the market for potatoes. A  
proposal was presented by the Commission to the Council on 23 January 1976 
covering the whole range of fresh and processed products.
It provides for:
- marketing standards;
- measures to encourage the formation of producer groups;
- the support measures required to keep the market stable;
- a system of trade with non-member countries incorporating a reference  
price system for new potatoes.
Products such as potato starch (1), dehydrated potatoes (2) and products  
processed from potatoes (3) are already subject to a common organization.  
The marketing of seed potatoes is subject to a Council Directive (4).
2. Production
According to FAO statistics, the world harvest in 1982 was 254.861.000 t.  
The Community, with 34.176.000 t, accounts for about 13% of the world  
total. The average yield per hectare in the EEC is almost double the  
world average.
The value of potato production represented 2,2% of the value of final  
agricultural production in the Community. According to 1982 EEC  
statistics about 1,8 million holdings (in the enlarged Community) grow  
potatoes. At national level the production structure is very variable,  
the average crop area per farm being 3,8 ha in the Netherlands, 0,4 ha in  
France and 0,3 ha in Italy.
(1) Regulation (EEC) No 2727/75, 29.10.1975, OJ L 281, 1.11.1975.
(2) Council Regulation (EEC) No 1117/78, 22. 5.1978, OJ L 142, 30. 5.1978.
(3) Council Regulation (EEC) No 516/77, 14. 3.1977, OJ L 73, 21. 3.1977.
(4) Consolidated version of the Council Directive ofd 14. 6.1966, OJ No 66.  
8.06.1974, p. 35.

- 152 -
Since 1951-55 the total area under potatoes in the EEC has dropped by about  
68%: from 3.512.000 ha in 1951-55 to 1.120.000 ha in 1982. Because of 
the increase in yields per hectare, however, production has fallen only by  
45% (from 61.957.000 t) in 1951-55 to 34.176.000 t in 1982).
The Community is basically self-sufficient but there have been supply  
problems following very dry years.
The area under new potatoes grew in 1982 (120.000 ha as against 114.000 ha  
in 1981), and production remained over 2 million t. There continues to be  
a shorfall, about 450.000 t being imported into the Community every year.
The area under seed potatoes in the EEC remained at around 100.000 ha in  
1982. About 2,7 million t were harvested, mainly in the Netherlands, the  
United Kingdom, France and Germany.
Processed products (crisps, instant potato, chips, etc.) are also important  
in the potato sector. About 4 million t of fresh potatoes are processed  
annually in the EEC. Some varieties are particularly suited to processing  
and are grown mainly under contracts between farmers and the processing  
industry. Development has been very rapid and conditions are right for  
the further expansion of some products in the near future.
3. Consumption
Potatoes are used mainly unprocessed as foodstuffs and to a lesser extent  
for feeding animals. The quantities turned by the processing industry  
into products for human consumption represent about 20% of total human  
consumption.
(a) Human consumption
Per capita consumption of unprocessed potatoes is again falling off.  
After a sharp drop in 1976/77 as result of the shortage caused by the  
drought in 1976 (69,1 kg per head) it climbed to 76,4 kg in 1979/80 but  
fell back to 75,8 kg in 1980/81 and then fell still further to 74,6 kg  
in 1981/82.

-  153  -
(b) Animal consumption
The quantity fed to livestock ranges from about 3 million t to about  
7 million t, depending on the volume of the harvest. In 1981/82 it  
was 3.463.000 t: 2.133.000 t in Germany; 132.000 t in France;
220.000 t in Italy; 120.000 t in the Netherlands; 355.000 t in the  
United Kingdom; 169.000 t in Ireland, etc.
(c) Products processed for human consumption
Consumption of products processed from potatoes (about 4 million t in  
1979) continues to increase.
Consumption of certain products such as deep-frozen pre-cooked products 
should increase still further, particularly when the current economic  
situation starts to look up.
4. Trade
Intra-Community trade in potatoes absorbs only about 7% of total  
production, although for seed potatoes and new potatoes the figure is  
between 10% and 18%. The net exporters are the Netherlands, France and  
Ireland. The United Kingdom exports seed potatoes and imports new  
potatoes. Italy exports new potatoes and imports seed potatoes and ware  
potatoes. Denmark and the BLEU also have a large-scale import-export  
trade.
The structure of Community trade in processed products is similar to that  
of trade in unprocessed products. The Netherlands and France are  
exporting countries and the others are importers.
Trade with non-EEC countries is mainly in seed potatoes and new potatoes.  
Seed potatoes are exported to South America, Africa and Asia and new  
potatoes are imported from the countries round the Mediterranean.
5. Prices
Prices are very unstable, varying from year to year. Because of the  
inelasticity of demand, plentiful harvests tend to force down prices.
Prices may also be affected by other factors such as the weather or  
unexpected exports to countries with shortages.

-  154  -
In 1982 the harvest was good especially in the Netherlands, France and the  
United Kingdom; it was poor in Germany and Italy. In the 1982/83  
marketing year, therefore, prices started at lower levels than in the  
previous year: at Rotterdam 7,32 ECU/100 kg on 6 September 1982 for Bintje
+ 50 mm (8,35 ECU in 1981); at Arras 8,01 ECU/100 kg for Bintje + 40 mm  
(8,17 ECU in 1981). Throughout the autumn and early winter prices  
remained the same and after Christmas, on 11 January 1983, they were as  
follows: at Rotterdam 7,12 ECU/100 kg for Bintje + 50 mm (10,98 ECU in  
1982); at Arras 7,55 ECU/100 kg for Bintje + 40 mm (9,72 ECU in 1982).
For the rest of the winter fluctuations were small and by 16 May 1983  
prices had not changed much in relation to previous quotations; at  
Rotterdam 8,01 ECU/100 kg for Bintje + 50 mm (22,26 ECU in 1982); at Arras  
6,18 ECU/100 kg for Bintje + 40 mm (20,66 ECU in 1982). In the 1982/83  
marketing year exports went only to Germany and Italy and deliveries to  
non-member countries were rather small. However, the most recent  
quotations recorded on the Rotterdam market on 4 July 1983 showed an  
increase (10,49 ECU/100 kg) for Bintje + 50 mm as a result of the strong  
demand from the processing industry. On the New York futures market the  
price for round white-fleshed varieties varied from 15,04 ECU/100 kg on  
6 September 1982 to 18,07 ECU on 18 April 1983.
Outlook
The 1982/83 marketing year was therefore a year in which production was  
satisfactory, exports to non—member countries small and producer and  
selling prices low. Provisional figures, however, indicate a slight  
increase in the area under potatoes in the Community: 1.130.000 ha in 1983
as compared with 1.120.000 ha in 1982.
The situation is different as regards the harvest. In July and August,  
certain regions had thundery weather whilst others suffered from drought.
In September it rained almost everywhere in the Community. The harvest is  
therefore delayed but the situation in the Community may still prove to be  
difficult.
Prices on the Rotterdam market started at substantially higher levels than  
last year: on 19 September 1983, 20,59 ECU/100 kg for Bintje + 50 mm
(6.69 ECU in JJW2) ; at Arras 16,73 ECU/100 kg for Bintje + 40 mm (6,58 ECU 
in 1982).
Economic aspects
In the 1982/83 marketing year, support measures were taken in the United  
Kingdom by the Potato Marketing Board.

- 155 -
20c. HONEY
1. Introduction
There is no common organization of the market in honey. The only general 
charge on imports is a 27% customs duty, which is reduced to 25% for most 
developing countries and Malta, 10,8% for Turkey and nil for ACP 
countries. The 38 least advanced developing countries are exempted from  
customs duties.
2. Production, consumption and trade
In 1981/82 the Community produced 50.000 t of honey and imported
126.000 t. Germany, France and Greece were responsible for 80% of 
production. Consumption, which exceeds 1 kg per head per year in only  
three countries (Germany, Greece and Denmark), is steadily increasing.
The Community is only 30% self-sufficient, but the situation varies widely  
among the Member States. Greece is the only net exporter, and most of its  
exports go to other Member States. France increases its degree of  
self-sufficiency by applying a licensing system to imports from certain  
countries and, like Italy, by applying bilateral quotas in trade with  
state-trading countrties.
Germany is the biggest importer (60% of the Ten's imports), followed by the  
United Kingdom (15%). Imports are mainly from Latin America (1982:
Mexico 28.000 t, Argentina 13.500 t, China 27.000 t, East European  
countries 21.000 t and Australia 10.000 t).
3. "Common measures" to assist bee-keeping
The system of aid for bee-keeping introduced by Council Regulation (EEC)
No 1196/81 consists of a specific contribution to associations of  
bee-keepers recognized by the Member States which has been fixed at 1 ECU 
per marketing year per hive in production. Associations can use the aid  
to purchase feeding sugar and for general programmes for improving honey  
production, technology and marketing. The aid system covers three  
marketing years: 1981/82, 1982/83 and 1983/84. For 1981/82, 3,7 million
ECU were granted to associations, almost 75% of which was used for the  
purchase of sugar. It was only in France that over half of the aid  
received was used for the general programmes referred to above.
With the aim of combating a bee disease threatening the whole of Europe,  
the Council^_amended the above-mentioned Regulation in July 1983 by  
providing for the additional financing of a research programme on  
varroatosis to be carried out at European level. The Commission is  
responsible for implementing the programme, the costs of which are  
estimated at 250.000 ECU.

- 156 -
Survey of certain groups of sectors
21. FEEDINGSTUFFS
Supply and consumption of raw materials for feedingstuffs In 1982
In 1982 the supply of raw materials created no major problems. There was  
again a tendency to use more cereal substitutes, mainly manioc, on account 
of the favourable prices, especially the price of imported manioc,  
compared with those of feed grains grown in the Community.
Industrial production of compound feedingstuffs and animal feed  
requirements
In 1982 the growth in the industrial production of compound feedingstuffs 
remained sluggish: production was only 1,3% higher than in 1981, whereas
the annual growth rate during the period from 1973 to 1981 had been over  
4%. There are various reasons for this, in particular the trend of 
demand and a shift in what is meant by compound feedingstuffs. Total
demand from the cattle sector began to rise again in 1982 (up by about 
1,5 m FU on 1981) whereas demand in the other sectors marked time.
The rate of penetration of compound feedingstuffs in relation to overall  
demand in FU is one criterion to use in tracing the trend of compound 
feedingstuffs production. The table below sets out the trend since 1973  
as regards demand in FU, production of compound feedingstuffs and the rate  
of penetration of compound feedingstuffs by livestock sector for the  
Community of Nine. Figures for Greece, both as regards demand and  
production of compound feedingstuffs, are not available.

- 157 -
Overall demand in FU and production of compound feedingstuffs
Cattle PigS Poultry :
:  Year Overall:Produc- Overall :Produc- : Overall Produc-
demand:tion of %demand :tion of : %demand tion of % :
:compound :compound: compound
:feeding- :  feeding-: feeding-
:  stuffs :stuffs : stuffs
(m FU):  (m t) (m FU):  (m t) : (m FU) (m t)
:  1973 172,9:  16,9 9,842,5:  21,4 : 50,427,1 18,367,3:
:  1974 175,2:  16,0 9,243,3:  22,1 : 51,026,9 17,766,0:
:  1975 171,8:  17,5 10,2 42,1:  21,3 : 50,426,8 17,264,1:
:  1976 171,4:  22,0 12,9 42,7:  22,6 : 52,927,1 18,367,4:
:  1977 170,8:  23,0 13,4 44,1:  23,7 : 53,727,3 18,367,0:
:  1978 171,8:  24,6 14,3 46,4:  25,0 : 53,928,1 19,167,9:
:  1979 172,1:  28,0 16,3 48,3:  26,6 : 55,128,5 20,070,2:
:  1980 170,3:  28,0 16,5 49,9:  27,0 : 54,229,3 20,770,9:
:  1981 169,1:  28,6 16,9 50,3:  27,0 : 53,230,1 21,370,6:
:  1982 170.6:  29.3 17.2 50.2:  26,8 : 53,431.4 22.170.4:
The rate of cover requirements by compound feedingstuffs in the cattle 
sector, which was only 9,8% in 1973, was 17,2% in 1982, still slightly up  
on the previous year. The rate of cover seemed to be stagnating, but at  
the high level of 70,5% in the poultry sector and at over 53% in the pig 
sector.
As regards what is meant by the term "compound feedingstuffs", statistics  
on industrial production make no distinction between compound (complete)  
feedingstuffs, protein and other concentrates, mineral compounds, etc.
Over the years concentrated supplements seem gradually to have given way  
to complete feedingstuffs. This change in the nature of the  
feedingstuffs declared, which is now slowing down, partly explains the  
growth of production in the past and the slackening recorded now.
Lastly, the criteria for reporting statistics differ according to the  
Member States and over the last 10 years some establishments have lost the  
obligation to report.
These various factors are not quantifiable but they must be taken into 
account when interpreting the statistics.

_158_
3. Short-term outlook
World production of fodder grains will decline in 1983 from 795 million t  
to 689 million t, which represents a drop of 100-105 million t. This is  
attributable to the PIK scheme to prevent surplus production in the USA  
and to the dry summer; these factors have drastically reduced the maize  
and soya bean crops.
In the Community, production of fodder grains has also declined, by about  
7 million t, with barley accounting for most of this figure (about  
5 million t).
World trade in fodder grains in 1983/84 is estimated at some 90 million t,  
which is about 14 million t less than the record level of 1980/81.
Despite the small harvest, exports from the USA are estimated at some  
58 million t (53 million t in 1981/82), disposing to a considerable extent  
of existing stocks (maize and soya beans).
Community exports are expected to fall from about 5 million t to  
2,5 million t.
The main reasons for the decline in world trade are the impoverishment of  
the developing countries, balance-of-payments difficulties in various  
newly-industrializing countries (Mexico, Brazil), the shortage of foreign  
currency in the State-trading countries and a more abundant harvest in the  
USSR.
Fodder grain stocks in 1983/84 are estimated at 283 million t.
World cereal stocks at the end of countries' respective 1983/84 seasons  
point to a total of 283 million t, which would be almost 50 million t or  
14% below their opening level.
Closing stocks for soya beans will drop by 12,4 million t in 1982/83 to  
4,1 million t in 1983/84, and mught even fall to zero level.
The reduction in cereal stocks would be mainly due to the fall in holdings  
of coarse grains. In the United States, coarse grains stocks are  
currently expected to fall by at least 50 million t to half their opening  
level as a result of the expected sharp decline in production.
Only wheat stocks are expected to increase somewhat, from 121 million t at  
the opening of the season to 129 million t at the end.
Export prices for all feedingstuffs have been rising sharply since August  
1983 because of the shortage^of^suppliea^ Thegap between world market
prices and Community prices has narrowed; this has meant less expenditure 
on export refunds and has had a favourable effect on the agricultural  
budget.
In view of these developments, prices are expected to be high but demand  
should be covered without difficulty,, whilst-the producer countries will  
be relieved To"dispose of their record stocks.

-  159  -
22. MEAT
1) Introduction.
Production of all types of meat accounts for 34$ of final agricultural  
output, thus representing the most important activity of EC agriculture.  
Its importance is underlined by the fact that 60$ of the cereals used are  
fed to animals mainly for the production of meat compared to only 25$ of  
cereals going to human consumption.
On the world scale, the European Community accounts for about one sixth of  
total meat production, occupying the third place of world's leading meat  
producers, just behind China and the USA.
2) Production.
In 1982, gross indigenous production of total meat (including offals) has  
shown - for the first time during the last 10 years since the first  
enlargement of the Community - a slight decline of 0.8$. Looking closer at  
the figures, it can even be concluded that production has been stagnating  
for the last three years oscillating only little around the three years  
average of 24*15 Mio t.
This drop is in the main due to a cyclically reduced output of beef  
(- 4*9$) with more or less stagnating pigmeat and sheepmeat production,  
while poultry meat being the only type of meat showing another marked rise  
of 5*5$. The two "cheaper" types of meat - pigmeat and poultry meat - have  
thus increased their share of total EEC meat output to more than 60$.
For 1983» it can be expected that gross indigenous production of total  
meat will be up again by little more than 1$. However, the pattern will  
have changed: rising production of pigmeat, beef and sheepmeat (around  
2-3$), but reduced supply of poultry (- 4$). These changes may be  
interpreted as a result of the cyclical upward trend of supply in the case  
of beef, and as a reaction to the market situation in the case of pigmeat  
and poultry meat. In fact, high market prices of pigmeat in 1982 (+ 15$ as  
compared to 1981) have stimulated production in 1983 (with subsequently  
very low market prices in this year), whereas extremely low prices for  
frozen chicken on both the internal and world market during 1982 have  
forced producers to cut back in 1983.
Consumption.
After a steady increase of meat consumption up to an EEC-average of almost 
90 kg/capita, 1981 was the first year showing a drop of more than 1 kg.  
This reduction had been observed in nearly all Member States (with the  
exception of the Netherlands and Greece) as a consequence of the economic  
recession. In 1982, per capita consumption of meat was further reduced in 
four Member States (Germany, France, UK, Denmark), but went up in the  
other six: Italy, Netherlands, Belgium, Luxembourg, Ireland and Greece. It  
is in particular the 10 percent rise of per capita consumption in Greece  
which has helped to bring up the EEC-average by 100 g in 1982.

-160  -
As to the different types of meat, it seems that the economic recession  
did negatively effect above all beef and, to a lesser degree, sheep  
consumption. Per capita consumption of beef and shepmeat was in 1981 and  
1982 below the level of 10 years ago. On the other hand, pigmeat and  
poultry meat have increased their share on total meat consumption  
(including offals) furthermore to 58.5%.
Further evolution of consumption depends above all upon the recovery of  
the economy and thus the evolution of consumer incomes. According to  
estimates at present available, it may be concluded that overall  
consumption might slightly increase in 1983, and it is hoped that 1984  
will bring about a more significant rise in demand.
4) Trade
Intra-Community trade for the various types of meat depends primarily on  
the differences in self-supply for the individual Member States and thus  
to different degrees of concentration of production and/or consumption.  
Intra-Community trade is more important in pigmeat and beef, corresponding  
to 20% of total EC consumption, than in sheepmeat (10%) and poultry (9%).
Whereas for beef and pigmeat this higher degree indicates more equal  
levels of consumption (beef: 23-33 kg in all the big contries) and/or some  
specialisation in production for specific types of meat (bacon; store  
cattle; high quality beef), for sheep as well as for poultry there is a  
high production level in the main consuming countries.
After some 20 years since the foundation of EEC, the level of intra EEC 
trade in general now tends to stabilize at around one sixth of total  
consumption, following some expansion after the enlargement in 1973.
Regarding trade with third countries, recent years have shown a steady  
tendency to a rather balanced situation with the EEC becoming a net meat 
exporter for the first time in 1981. This was due to rising exports for  
poultry meat, stable exports for pigmeat and the cyclical surplus  
situation in 1980/81 for beef, with at the same time lower imports of 
sheepmeat and horsemeat. 1982 shows a more or less balanced situation for  
total meat (excluding offals), following lower exports of all main types  
of meat, and in particular of beef, as well as rising imports of beef and  
sheepmeat. For 1983, a tendency to somewhat higher net export figures can 
be observed in the beef and pigmeat sector.
It has to be emphasized, however, that the EEC has not only become a major  
exporter in poultry, beef and pigmeat, opening up new markets in the  
Middle East (poultry, beef) and the Far East (pigmeat), but also supplying 
formerly traditional export regions (Eastern Europe - poultry, pork, beef)  
as a result of their recent agro-economic difficulties. It still holds  
true that the EEC is also amongst the biggest world importers for both  
beef and sheepmeat, having concluded for these products a number of  
preferential agreements not only with industrialized countries like  
Australia and New Zealand, but also with developing countries of Africa  
and South America.

13.6.83
M.22.1 Gross production of meat in the Community
·/.of total 1 000 t 7. TAV
1980 1981 1982 :: 1980 1981 1982:  ISSI 1.932
: 1973 1981
1 a 3 4 5 6 7•  8 9
Meat (1)
- Pigmeat 43,0 42,3 42,6 :: io1141025710236 . *: 2,7 - 0,2 :
- Beef and veal 29,7 28,9 27,7 :: 716770096663 : 3,1 - 4,9 :
- Poultrymeat 16,7 17,3 18,4 . ·: 402141994430 . · 3,3 5,5 . ·
- Sheepmeat and goatmeat 3,0 2,9 2,9 . · 720 701 706 . ' 2,7 0,7 . ·
- Horsemeat 0,3 0,3 0,2 ; 69 85 58 : 5,4- 31,8 :
- Other 2,2 2,2 2,2 : 583 523 520 : 0,8 - 0 f  6 ?
Total 93,9 93,9 94,0 . ·: 226742277422613 :: 2,9 - 0,7 :
Edible offals 6,1 6,1 6,0 . '. ·  l47814791438**.*: 3,1 - 2,8 ! ·
Total 100 100 100. ·  241522425324051 . *. *  2,9 - 0,8 . ·
SXSK3SSS3SSS=a=SS ============= =========ss=s3as.ss333333333 = - = = ::  = = = *3 = bb:SS SSSBsssasasssx sssasaaasx ===========
EUR 9 1980 1981 1982: 1980 1981 1982 laai. 1.2321973 1981
Meat (1)
- Pigmeat 4a,a 42,6 42,9. ·  99701010810083: 2,7 - 0,2
- Beef and veal 29,9 29,2 28,1. ·  707069166584 3,1 - 4,8
- Poultrymeat 16,5 17,2 18,2: 390140534274 3,3 5,5
- Sheepmeat and goatmeat 2,5 2,5 2,5 600 582 588 2,9 1,0
- Horsemeat 0,3 0,3 0,2 67 83 57 5,8 - 31,3
- Other 2,4 2,2 2,2 579 517 515 0,9 - 0,4
Total 93,9 94,0 94,1: 221872225922101: 2,9 - 0,7
Edible offals 6,1 6,0 5,9: 144714291388** 3,0 - 2,9
Tota 1 100 100 100: 236342368823489 2,9 - 0,8
s b s = s a s B3BXS3SSS
Source: EC Commission, Directorate-General for Agriculture
(1) Carcass weight

0 4.1 0 . 8 3
M.22.2 Meat consumption
■ s a m s 3 a
04 7 .  of total kg/head : ·/. TAV
05
06 EUR 10 1980 1981 1982 : 1980 1981 1982 : 1.231. 1283 :
07 1973 1981
08
09 1 2 3 4 5 6 7 8 9
10
11
12Meat (1)
13
14- Pigmeat 41,5 42,1 42,1 : 37,2 37,337,4 2,5 0,3 :
15- Beef and veal 28,7 28,2 27,4 : 25,9 25,024,3 0,4 - 2,8 i
16- Poultrymeat 15,4 15,7 16,4 ; 13,8 13,914,6 2,1 5,0 :
17- Sheepmeat and goatmeat 4,0 3,8 4,0 . · 3,6 3,43,6 0,4 5,9 . ·
IS- Horsemeat 0,9 0,9 0,8 : 0,8 0,80,7 0,0- 12,5 :
19- Other 2,8 2,5 2,5 : 2,5 2,22,2 0,6 0,0 :
20
22
23 Total 93,2 93,2 93,2 : 83,8 82,682,8 1,5 0,2 :
24
25
26
27Edible offals 6,8 6,8 6,8 6,1 6,0 6,0** : 2,1 o,o :
28
30
31 Total : 100 100 100 89,9 88,788,8 1,6 o,i :
3233 3 S S S S S 3 S S S 8 C S S S S 3 Bsaaaaeasasasa aaaasaasa ssasacaaa s  a s  as a s a a a zaasaacsa: saaaaaaaaaaaaaasaaa ssaaaaaBaassasaaaBsas
34 EUR 9 :  1980 1981 1982:  1980 1981 1982:  1231 1283 :
35 ; 1973 1981
J6
37
38Meat (1)
39
40- Pigmeat : 41,9 42,5 42,7: 37,9 38,038,1 2,4 0,3 :
41- Beef and veal 28,5 28,1 27,2. ·  25,8 25,124,3 : o *3 -3,2 - ·
42- Poultrymeat :  15,4 15,5 16,4:  13,9 13,914,6 : 2 r  1 b,0
43- Sheepmeat and goatmeat 3,5 3,5 3,6: 3,2 3 ,  13*2 0,4 3*d
44 - Horsemeat 1,0 0,9 0,6:  0,9 0,80*7 . ·  - 1*5” 12*5
45- Other 2,8 2,6 2,6: 2,5 2,32,3 a  0,6 o,o :
46
47•_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ — — :- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - -- - -- - - - - - - - - - - - - - - - - •  
—  —  —  — — — — — — — — — — a
48
49 Total : 93,1 93,1 93,3 : 84,2 83,283,2 1,5 0,0 . ·
50
51
52
53Edible offals : 6,9 6,9 6,7 : 6,2 6,26,0** : 2,2 - 3,2 :
54
55
56
57 Total loo 100 100 * :  90,8 89,4B9,2 : 1,6 - 0,2 :
58
59 ssassaaaaaasBaass aaaaaaaaaasaa& aeaaaaaaa s a  a s aaaaa saaaaaaaac saaasaaaa Bsaaaaaaa saaaaaaaac aaaaaaaaaa aaaaaaaaaaa
Source: EC Commission, Directorate-General for Agriculture  
(1) Carcass weight

04.10.83
M.22.3 Net balance of external trade (1) in meat (2) and degree of self-supply in the EC
EUR 10Net balance ' .  Degree of  
' .  self-supply  
(7.) 1 000 t · .  Net balance
1980 1981 1982 : · .  1980 1981 1982 : : 1973 1982
1 2 3 4 5 6 7 8 9
Meat
- Pigmeat
- Beef and veal
- Poultrymeat
- Sheepmeat and goatmeat
- Horsemeat
- Other
Total36
180
261
- 246
- 158 
- 73169 
298 
401 
- 220 
- 126 
- 8483
40
373
- 277
- 133 
- 84· .  - 16,4  
· .  - 81,8  
: - 118,6  
111,8 
71,8 
33,264,4
118,2
162,1
- 85,4
- 48,6
- 32,B- 36,9 :
- 17,8 · . 
- 165,8 :
123,1 : 
59,1 : 
37,3 :: 101,4
85.0 
· .  103,3
61.0 
25,0 
87,9100,7
100,6
111,6
72.0 
30,4
86.1
0■ 1  438 4 2 : 0 177,9 - 0,9 :: 93,0 100,5
Edible offals
Total- 220 - 197 - 227** : 100 - 77,9 100,9 · . 85,2 86,8
- 220 241- 225 100 100 100: 92,4 99,6
S S S S S S 3 B S S
EUR 9 1980 1981 1982 1980 1981 1982 1973 1982
Meat
- Pigmeat 48 177 93 - 47,1 46,3- 104,5 101,0 100,8
- Beef and veal 286 354 147 - 280,4 103,3- 165,2 86,0 102,5
- Poultrymeat 261 403 375 - 255,9 110,8- 421,3 103,6 112,1
- Sheepmeat and goatmeat - 241 - 210 - 264 236,3 - 51,5 296,6 59,0 70,0
- Horsemeat - 155 - 126 - 134 152,0 - 33,9 150,6 23,7 29,8
- Other -  83 - 85 - 84 81,4 - 22,5 94,4 88,0 86,0
Total 116t 513 t 133 - 113,7 152,6- 149,4 93,4 101,1
Edible offals - 218 - 198 - 222** 213,7 - 52,6 249,4 85,1 86,6
Total - 102 f 315 - 8 9 100 100 100 92,9 100,1
saeasxss sszassaa
EC-Commisson,  Directorate General for Agriculture.
(1) Exports - Imports.
(2) Including live animals, in carcass weight equivalent.

M.22.4 Consumer price indices - Meat  
(in money and real terms)13.6.S3
EUR 10 
* / .  TAV 1975 = 100
1980(1)
21981(1)
31982(1)
41381
1975
51SB2
1981
6
114,1 119,0 127,2 2,9 7,0
155,7 176,1 201,9 9,9 14,7
198,5 235,9 275,3 15,4 16,7
123,2 130,3 141 ,2 4,5 8,4
128,3 132,1 144,5 4,7 9,4
130,2 138,6 162,1 5,6 17,0
183,8 198,2 217,0 12,1 9,4
197,8 229,3 261,8 14,8 14,2
151,3 175,4 191,2 9,7 9,0
211,9 297,7 362,2 19,9 21,7
94,0 94,2 96,7 - 1,0 2,6
95,7 96,6 97,9 - 0,6 1,3
88,7 89,6 89,7 - 1,8 1,1
92,2 92,3 95,5 - 1,3 3,4
98,7 96,6 98,4 - 0,6 1,8
94,6 93,3100,2 - 1,2 7,4
92,3 88,8 89,3 - 2,0 0,6
102,7 101,1 98,0 0,2- 3,1
99,7 104,3 102,8 0,7- 1,4
103,0 120,2 117,5 3,1- 2,2
= = ;  = = :  =  =  = = S S  S S  S  S  SS S =  S  S S  = iS S S S S S S S S S S S S S : =isssasssaaMoney terms
Deutschland
France
Italia
Nederland
Belgique/Belgie
Luxembourg
United Kingdom
Ireland
Danmark
Ellas
Rea1 terms
Deutschland
France
Ital ia
Nederland
Belgique/Belgie
Luxembourg
United Kingdom
Ireland
Danmark
Ellas
ssssaiBsss:
Source:  Eurosta t.

-  165  -
23. OILS AND FATS
Introduction
The oils and fats sector includes:
- vegetable oils and fats which', in view of the structural differences of 
the market, must be subdivided into olive oil and other oils;
- oils and fats of land animals which must also be subdivided, into  
butter on the one hand and lard and fallow on the other;
- oils and fats of sea creatures.
The above oils and fats are the basic raw material but may be consumed in  
their unprocessed state or as prepared oils and fats, such as margarine; 
they may be used as animal feedingstuffs, for human consumption or for  
technical purposes. They may be incorporated in other products. The  
various basic products can also replace one another to a large extent,  
depending on their ultimate use. The form of ultimate use varies  
considerably in the Community. For example, oils and fats are consumed  
principally in the form of butter and margarine in the northern countries,  
whereas in France and Italy liquid vegetable oils account for the largest  
share in the consumption of oils and fats.
The proportions of the various categories in total human consumption vary  
only slightly from year to year. The table below shows the quantities of 
the different categories of oils and fats consumed in 1980 and the  
proportion of each category in relation to total consumption.
Apparent human consumption of each category of oils and fats in terms of  
quantity and as a percentage of total human consumptionTable I
Community of Ten 1982
Quantity (1000 t) (%)
1. Vegetable oils and fats
2. Oils and fats of land animals
3. Oils and fats of sea creatures
4. Butter5.849
2.015
686
1.62058
20
7
15
Total 10.170 100

-  166  -
Different policies are applied for each category of product in the  
Community. In the vegetable oils sector, all oilseeds can enter the  
Community duty-free. Oils are subject to duties ranging from 10% to 15%  
but lower rates of duty or zero rating are applied to imports of oils from  
associate countries, which account for up to 70% of oils imported as such.
The prices of vegetable oils in the Community tend, therefore, to be at  
world market levels, except in the case of olive oil. Similarly, oils and  
fats of sea creatures and land animals are subject to relatively low  
import duties. In the case of butter and olive oil, however, support  
prices are fixed in the Community and imports are subject to a levy. This  
diversity of policies for the various products, which are naturally  
interchangeable, obviously affects consumption.
2. Production
The factors determining production of the different groups of oils and  
fats in the Community vary for each category.
Soya accounts for about 68% of the quantity of oilseeds crushed in the  
Community. It is processed mainly into oilcake, which accounts for 80% of 
its volume. Soya oil is a secondary product which, with 1 700 000 t  
consumed in 1980, accounts for not less than 34% of Community vegetable 
oil requirements. Of our consumption of vegetable oils, 42 % comes from  
other oilseeds crushed in the Community, the remainder being imported in  
the form of oil. Of the total quantity of seeds crushed (17 700 000 t) in  
1982, about 22 % were of Community origin.
According to official statistics, the production of vegetable oils in the  
EEC, not including olive oil, was 3 854 000 t in 1982.
Production of olive oil is normally between 700 000 t and 900 000 t per 
year in the Community of Ten. Since olive trees are perennials, production  
does not depend on demand but principally on weather conditions.
Production of oils and fats of land animals - mainly lard and tallow - is  
almost 1 700 000 t per year. These fats are a by-product of slaughtering,  
and consequently in this category production is determined principally by  
animal numbers and the demand for meat.
Production of oils and fats of sea creatures is carried on principally in  
Denmark, although the United Kingdom and Germany also contribute to  
Community production, which is between 100 000 t and 120 000 t per year.

-  167  -
Production of butter in the Community is determined by cow numbers, milk  
yield and demand for milk products other than butter. The EEC is more than  
self-sufficient in butter, demand for which is stagnating or falling. Here  
again, therefore, demand is not the only factor determining production.
The quantity of butter produced in 1982 was 2 078 000 t, as against  
1 946 000 t in 1981.
3. Consumption
The level of consumption of oils and fats in the Community is determined,  
as elsewhere, by the following factors:
I
- absolute population level and rate of growth;
- absolute level of incomes and income trend;
- price and availability of the product;
- level of consumption reached.
In the Community the population is increasing slowly. The level of  
economic development, although high compared with a large part of the  
world, has been relatively stagnant in recent years.
Per capita consumption of oils and fats (with the exception of butter)  
increased from 28 kg/head in 1977 to 32 kg/head in 1982.
Apparent human consumption of oils and fats of land animals has remained  
fairly stable, at around 7.5 kg/head, since 1975. Consumption of oils and  
fats of sea creatures appears to have increased from 458 000 t in 1977 to  
686 000 t in 1982.
The Community produces more butter than it consumes. Nevertheless, it  
imports around 100 000 t per year as a result of international commitments  
entered into by the Community in 1973 with New Zealand.
Butter is exported partly as food aid and partly at world market prices,  
with the exporter in the latter case receiving a refund.
5. Prices
As stated above, prices in the oils and fats sector show a tendency to  
remain at the world market level for all products except olive oil and  
butter, for which prices are fixed in the Community.
The table below gives the price of soya oil on the Rotterdam market; this  
is the pilot price for vegetable oils, lard, tallow and oils of sea  
creatures.

- 168 -
Table II
Selected oil prices on the Rotterdam market (USD/t).
1978 1979 1980 1981 1982
Soya oil
(Netherlands) 607 662 598 507 447
Lard 626 716 647 610 574
Tallow (United States) 483 595 487 471 422
Fish oil
(all origins) 451 450 450 413 347
\\