COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 511 final 
Brussels, I8.II.W4 
MEMORANDUM 
on the forecast for frozen meat for processing and 
live animals for fattening 
Proposal for a 
COUNCIL ESTIMATE 
concerning young male bovmc animals weighing 100 kilograms 
or less and intended for fattening for the period 
1 January to 30 June 1995 
Proposal for a 
COUNCIL ESTIMATE 
concerning beef and veal intended for the processing industry 
for the period 1 January to 30 June 1995 
(presented by the Commission) 
z 
MEMORANDUM 
ON 
THE FORECAST FOR FROZEN MEAT FOR PROCESSING 
AND LIVE ANIMALS FOR FATTENING 
In accordance with the commitments made by the EC within the framework of 
the Multilateral Trade Negotiations, the Commission has held 
consultations with Australia, New Zealand, Slovenia, Hungary, Slovakia, 
Poland, Romania, Bulgaria, the Czech Republic, Argentina and Uruguay on 
their forecast for their export potential of frozen beef for processing 
and live animals. 
Summary of each country's presentation 
Australia : 
The Australian representative reported that her authorities were in 
favour of a full conversion of processing beef into high quality grade, 
she renewed the Australian demand for a permanent conversion into High 
Quality beef which otherwise could be considered as a reduction in market 
access and voiced concern toward the total share in the EU market of East 
European exports of meat for processing. 
New Zealand 
The New Zealand spokesperson stressed the importance of implementing 
rapidly Council's decision in the first half of 1995 since a GATT tariff 
quota will supercede the existing arrangement as from July 1995. 
she also reserved her country's rights to further comment on the 
presentation given by the Commission Services. 
Romania 
Romania's authorities expressed the same concern as New Zealand with 
respect to the need for a timely implementation of Council's Decision but 
was not in the position to state whether their country will export any 
meat for processing to the EU in the first 6 months of 1995. Furthermore 
the Romanian representative indicated that the situation in the animal 
breeding sector is improving, therefore it is hoped that live animal 
exports into the EU will increase. 
Czech Republic : 
The Czech authorities explained that a sectorial restructuring has 
entailed a significant reduction of the Republic's herds, expected to 
continue till 1996. Their country forecasts export totals to the EU of 
500 tonnes of frozen meat for processing and 8 to 10.000 calves (max. 
weight 80 kg). 
3 
Hungary : 
This country requested the creation of a sub-quota in the framework of 
the balance sheet (first 6 months in 1995) for 25.000 heads of young 
calves. 
Slovenia : 
The Slovenian authorities explained that due to new economic priorities 
and the ensuing structural changes, their country will not be in the 
position to export meat for processing to the E.U. but could export some 
live animals. 
Poland : 
This country expressed a strong interest in exporting more young live 
animals. It regretted that the EU has the intention to maintain an 
import ceiling (safeguard measures) in spite of an improved beef market 
and the stabilisation of the E.U.'s herd. Poland also explained her 
difficulties in working with a quarterly system (because most young 
bovines are ready to be exported early in the year). 
Slovakia : 
The Slovakian authorities indicated that internal consumption of meat is 
higher than production therefore this country is more likely to import 
than export meat. 
Argentina : 
The Argentinian representatives, after having stressed that situation in 
the beef sector in their country is not good, argued that the fixing of 
the full balance sheet for meat for processing without any conversion to 
high quality meat will worsen this sector's situation. Furthermore it 
was stressed that exports of meat for processing are more vulnerable to 
competition from Eastern European countries. 
Uruguay : 
The Uruguayan representative stated that his country expects to export 
2.000 to 4.000 tonnes of meat for processing to the E.U. in 1995. He 
conveyed the same concern as Argentina with respect to East European 
exports. 
Bulgaria; 
Has given some statistics on the number of animals for 1994, but no 
provisions were available for imports and exports of meat or live animals 
for 1995. 
Y 
EXPLANATORY MEMORANDUM 
Within the framework of the Uruguay Round, the two estimates provided for in 
Articles 13 and 14 of Regulation (EEC) No 805/68 are to be replaced by 
tariff quotas with effect from 1 July 1995. Consequently, these two 
estimates need be fixed only for the first half of 1995. 
In accordance with the bilateral agreements between the Community and 
certain supplier countries introducing arrangements for cooperation in the 
preparation of the two estimates, consultations have been held with the non-
member countries in question. 
The first draft estimate proposes that the number of young male bovine 
animals that may be imported for fattening be fixed at 99 000 head, taking 
account of the foreseeable shortfall for this type of animals and the 
Community's interest in maintaining harmonious relationships with the non-
member supplier countries. 
In the case of frozen beef for processing, the draft estimate proposes that 
the quantity of imports be fixed at 25 000 tonnes on the basis of the 
calculated Community supplies and the requirements of the beef processing 
industry. 
Proposal for a Council estimate 
concerning young male bovine animals weighing 
300 kilograms or less and intended for fattening for the period 
1 January to 30 June 1995 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EEC) No 805/68 of 27 June 1968 on the 
common organization of the market in beef and veal*, as last amended by 
Regulation (EEC) No 1884/94^, and in particular Article 13(2) thereof, 
Having regard to the proposal from the commission, 
HAS ADOPTED THIS ESTIMATE: 
Introduction 
Article 13(2) of Regulation (EEC) No 805/68 provides that each year, before 
1 December, the Council must draw up an estimate of the young male bovine 
animals which may be imported under the arrangements laid down in that 
Article. This estimate must take account both of the forecast supplies of 
young bovine animals intended for fattening within the Community and of 
Community livestock farmers• requirements. 
In order to establish the volume of imports under this estimate, in 
accordance with the Community's undertakings within the framework of the 
General Agreement on Tariffs and Trade (GATT), consultations are held 
between the Commission and representatives of some non-member countries 
before the annual draft estimate is put forward. The Commission proposed 
consultations with representatives of the following non-member countries: 
Hungary, Poland, the Czech Republic, the Slovak Republic, Romania, Bulgaria 
and the Republic of Slovenia. 
These consultations included an exchange of views on the beef and veal 
market as a whole, the production and consumption prospects within the 
Community and the scope for exports of young male bovine animals by the non-
member countries. 
(1) OJ No L 148, 28.6.1968, p.24. 
(2) OJ No L 197, 30.7.1994, p. 27 
G 
This estimate relates only to the period 1 January to 30 June 1995, since 
this type of estimate is to be replaced by a tariff quota within the 
framework of the Uruguay Round from 1 July 1995. It has been prepared in the 
light of information available to the Commission and on the basis of the 
foreseeable trend for 1995 of supplies of and requirements for young male 
bovine animals intended for fattening in the community. The commission will 
continue to apply appropriate management measures if forecasts suggest that 
imports of young bovine animals into the Community could exceed the 
traditional 425 000 head per year and that such imports of beef could 
threaten seriously to disturb the Community market. 
It should be noted that this estimate is likely to be supplemented in the 
event of ah enlargement of the European Union on 1 January 1995. 
I. Assessment of Community supplies for 1994 
In view of the number of breeding females (cows and heifers) anticipated for 
1995 (about 36 000 000), some 28 300 000 births of calves are expected 
during that year. Production over the year of male calves would therefore be 
about 14 150 000 head. 
II. Estimated Community requirements for 1995 
1. On the basis of data collected from the Member states, the number of 
slaughterings of male calves envisaged for 1995 should be about 
4 000 000 head. 
2. The number of male animals intended for slaughter (steers, fattened 
young bulls or bulls for breeding) should be about 10 250 000 head. 
3. In the light of information provided by the Member States and of the 
above, it is expected that in 1995 the requirements of Community 
livestock farmers as regards young male bovine animals for fattening 
will be 10 250 000 head. 
4.* From the considerations set out in 1. and 3. it follows that the 
Community's overall requirements for male calves will be 14 250 000 head 
in 1995. 
} 
CONCLUSION 
in view of the above estimates and the tariff quota to be applied from 
1 July 1995, a slight Community shortfall of around 50 000 head may be 
expected during the period 1 January to 30 June 1995. 
However, in order to maintain harmonious trade relations with the non-member 
countries concerned, as in previous years, the number of young male bovine 
animals which may be imported under the estimated supply balance for the 
period in question should be fixed on the basis of an annual reference level 
of 198 000 head, taking account of the traditional level of imports of young 
bovine animals which the Commission envisages for 1995. The estimate for the 
first half of 1995 will therefore be fixed at 99 000 head. 
Proposal for a Council estimate 
concerning beef and veal intended for the 
processing industry for the period 1 January to 30 June 1995 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, 
Having regard to Council Regulation (EEC) No 805/68 of 27 June 1968 on the 
common organization of the market in beef and veal*, as last amended by 
Regulation (EEC) No 1884/942, and in particular Article 14(2) thereof, 
Having regard to the proposal from the Commission, 
HAS ADOPTED THIS ESTIMATE: 
Introduction 
Article 14(2) of Regulation (EEC) No 805/68 provides that each year, before 
1 December, the Council must draw up an estimate of meat which may be 
imported under the arrangements laid down in that Article. This estimate 
must take account both of the forecast Community supplies of meat of a 
quality and type of cut suitable for industrial use and of industrial need. 
The estimate is to mention separately the quantities: 
(a) intended for the manufacture of preserves which do not contain 
characteristic components other than beef and jelly; 
(b) intended for the processing industry for the manufacture of products 
other than the preserves referred to at (a). 
1 OJ No L 148, 28.6.1968, p.24. 
2 OJ No L 197, 30.7.1994, p. 27. 
3 
The- annual presentation of the draft estimate is preceded by consultations 
between the Commission and certain non-member countries. The purpose of 
these meetings is to review the overall situation of the beef market in the 
Community and the non-member countries, as well as current forecasts of 
production and consumption so that a joint analysis can be made of the 
factors which could contribute towards drawing up estimates of Community 
requirements for frozen beef for processing and so that information 
concerning the potential export market can be exchanged. 
The Commission has consulted representatives of Argentina, Uruguay, 
Australia, New Zealand, Hungary, Poland and Romania. 
This estimate concerns only the period 1 January to 30 June 1995, since this 
type of estimate is to be replaced by a tariff quota within the framework of 
the Uruguay Round from 1 July 1995. 
It should be noted that this estimate is likely to be supplemented in the 
event of an enlargement of the European Union on 1 January 1995. 
I. Supplies of meat for processing 
According to information supplied to the Commission by the Member States, 
Community supplies of home-produced fresh meat for processing for 1995 can 
be estimated at 1 230 000 tonnes of bone-in meat. 
At the end of 1994 the Community will hold a public stock of meat as a 
result of intervention buying. The quantity of this meat suitable for 
processing can be estimated at 100 000 tonnes of bone-in meat. 
-7;> 
with effect from 1 January 1995 the Community Intends to open a tariff quota 
for 53 000 tonnes of boned frozen meat, which corresponds to 68 900 tonnes 
of bone-In meat. 
Past experience indicates that, under this quota, 13 000 tonnes of frozen 
bone-in meat will be imported for processing in 1995. 
In 1995 the quantity of meat originating in the ACP states which satisfies 
the requirements for processing may be estimated at 7 000 tonnes of bone-in 
meat. 
For 1995 the total available supplies intended for processing will thus be 
as follows : 
(tonnes) 
fresh meat: 1 230 000 
frozen meat bought into intervention 100 000 
frozen meat imported under GATT quota: 13 000 
frozen meat imported under ACP 
Convention arrangements: 7 000 
TOTAL 1 350 000 
II. Industrial demand for meat for processing 
According to information supplied to the Commission by the Member states, 
Community demand for meat for processing in 1995 can be estimated at 
1 400 000 tonnes of bone-in meat. 
This figure includes the quantity required for the preparation of preserved 
foods as referred to in Article 14(1)(a) of Regulation (EEC) No 805/68. This 
latter quantity is estimated at 210 000 tonnes. 
1 0 
CONCLUSION 
It emerges from the foregoing that requirements can only partially be met 
from Community supplies of such meat. 
The foreseeable Community shortfall for 1995 of beef for processing will 
therefore be about 50 000 tonnes. Accordingly, the deficit for the first 
half of 1995 corresponds to 25 000 tonnes. 
It has been decided, in accordance with Article 14(1) of Regulation (EEC) 
No 805/68, that this quantity should be divided so that: 
12 500 tonnes of meat for the manufacture of preserves which do not 
contain characteristic components other than beef and jelly are eligible 
for total suspension of the levy; 
12 500 tonnes of meat intended for the processing industry tor the 
manufacture of products other than the preserves referred to in the 
first indent are eligible for partial suspension of the levy. 
Done at Brussels, For the Council 
/) z 
1. BUDGET HEADING: Article 120 (customs duties) 
Item 1000 (agricultural levies) 
Article 210 (refunds) APPROPRIATIONS: ECU 13 712 million 
ECU 861 million 
ECU 1 452 million 
2. TITLE: Proposal for an estimate concerning young male bovines weighing up to 300 kg and intended for 
fattening for the period 1 January to 30 June 1995 
3. LEGAL BASIS: Article 13 of Regulation (EEC) No 805/68 
4. AIMS OF PROJECT: 
To set the Community's import requirements of young male bovines intended for fattening at 99 000 head for 
the first half of 1995 
5. FINANCIAL IMPLICATIONS 
5.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS) 
- xxxxxxxxxxxxxxxxxxxxxxx 
- xxxxx 
5.1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- xxxxxxxx PERIOD OF 6 MONTHS 
+ ECU 52 million 
+ ECU 15.6 million CURRENT FINANCIAL 
YEAR 
(1995) 
+ ECU 52 million 
+ ECU 15.6 million FOLLOWING FINANCIAL 
YEAR 
(1996) 
1997 1998 1999 
f>. 0 . 1 . ESTIMATED EXPENDITURE 
5.1.1. ESTIMATED REVENUE Measure restricted to 1995 2000 
5.2. METHOD OF CALCULATION: Given the surplus in the sector, these imports would not take place without that 
concession. 
Levy: 85 000 head X 230 kg X ECU 1 450/t x 25% x 1.207 (DR) = + ECU 8.6 million (B) 
14 000 head x 230 kg x ECU 1 450/t x 35% x 1.207 (DR) = + ECU 2 million (B) 
+ ECU 10.6 million (B) 
Customs duties: 22 700 t (live) x 0.55 x ECU 2 500/t (dead) x 16% = + ECU 5.0 million (B) 
Refund: An equivalent quantity should be exported: 
99 000 head x 300 kg (net slaughter weight) x ECU 1 450/t x 1.207 (DR) = + ECU 52 million (B) 
6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
' ' yes 
6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? xxx) 
6.2. IS A SUPPLEMENTARY BUDGET NECESSARY? 
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
COMMENTS: 
The 1995 APB takes account of this measure. 
FINANCIAL STATEMENT 
BUDGET HEADING: Article 120 (customs duties) 
Item 1000 (agricultural levies) 
Article 210 (refunds) APPROPRIATIONS: ECU 13 712 million 
ECU 861 million 
ECU 1 452 million 
TITLE: Proposal for a Council estimate concerning supply and demand for beef and veal in the processing 
industry for the period 1 January to 30 June 1995 
LEGAL BASIS: Article 14 of Regulation (EEC) No 805/68 
AIMS OF PROJECT: 
To set the Community's import requirements for frozen beef and veal for the processing industry at 
25 000 tonnes for the first half of 1995 
FINANCIAL IMPLICATIONS 
.0. EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS) 
- xxxxxxxxxxxxxxxxxxxxxxx 
- xxxxx 
. 1. REVENUE 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PERIOD OF 6 MONTHS 
+ ECU 43.8 million 
+ ECU 19.3 million CURRENT FINANCIAL 
YEAR 
(1995) 
+ ECU 4 3.8 million 
+ ECU 19.3 million FOLLOWING FINANCIAL 
YEAR 
(1996) 
1997 1998 1999 
0.1. ESTIMATED EXPENDITURE 
1.1. ESTIMATED REVENUE Measure restricted to 1995 2000 
.2. METHOD OF CALCULATION: 
Levy: - suspension of levy (scheme a): 12 500 t 
- reduction of levy by 55% (scheme b): 
12 500 t X ECU 2 100/t x 45% x 1.207 (DR) = + ECU 14.3 million (B) 
Customs duties: 25 000 t x ECU 200/t = + ECU 5 million (B) 
Refund: An equivalent quantity should be exported: 
25 000 t x ECU 1 450/t x 1.207 (DR) = + ECU 43.8 million (B) 
.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? yes 
1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? 
2. IS A SUPPLEMENTARY BUDGET NECESSARY? 
3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
OMMENTS: 
he 1995 APB takes account of this measure. 
ISSN 0254-1475 
COM(94) 511 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-94-538-EN-C 
ISBN 92-77-82365-5 
Office for Official Publîcadons of the European Communities 
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