COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 392 final 
Brussels, 18 October 1991 
Proposal for a 
COUNCIL REGULATION (EEC) 
derogating from Regulation (EEC) No 1357/80 introducing 
a system of premiums for maintaining suckler cows 
for the period during which applications for 1991/92 may be lodged 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
Since 1990 supply and demand in beef and veal have been out of balance. The 
consequences are massive quantities of meat bought in and substantial aids 
through export refunds. Furthermore, since 25 April 1991, the issuing of import 
licences for calves has been suspended (protective clause). 
Despite all these measures to support the sector, producer prices remain very 
low. The result is substantial losses of income for stockfarmers and in 
particular for those engaged in rearing suckler calves. 
For these reasons and without prejudging the measures to be adopted under the 
reform, it is proposed to provide for a derogation for the 1991/92 marketing year 
only, affecting the premium for maintaining suckler calves as fixed in Article 3 
of Regulation (EEC) No 1357/80 and to make it: 
ECU 50 per cow (Community premium); 
ECU 35 per cow (maximum additional national premium). 
In the case of Greece, Ireland and the United Kingdom (Northern Ireland 
only), a maximum of ECU 28 per cow is co-financed. 
Draft 
COUNCIL REGULATION (EEC) No /91 
Of 
derogating from Regulation (EEC) No 1357/80 introducing 
a system of premiums for maintaining suckler cows 
for the period during which applications for 1991/92 may be lodged 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Article 43 thereof, 
Having regard to the proposal from the Commission^1), 
Having regard to the opinion of the European Parliament(2), 
Whereas Article 3 of Council Regulation (EEC) No 1357/80 of 5 June 1980 
introducing a system of premiums for maintaining suckler cows(^), as last 
amended by Regulation (EEC) No 3577/90(4), fixes the premium at ECU 40 per cow; 
Whereas the effects on the beef and veal sector of the fall in the prices at 
which meat breeds of cattle are marketed have been lasting; whereas this economic 
fact inevitably affects the income level of stockfarmers using suckler cows; 
(1) OJ No L 
(2) OJ No L 
(3) OJ No L 140, 5.6.1980, p. 1. 
(4) OJ No L 353, 17.12.1990, p. 23 
- 2 -
Whereas the result is serious economic consequences for those producers and in 
particular for the viability of their holdings; whereas, in view of the 
advantages of rearing calves using suckler cows for production of both beef and 
veal and milk products, in order to solve the problems encountered, the premium 
for maintaining suckler cows and the additional national premium should be 
increased; whereas that increase should be reflected in the contribution from the 
EAGGF to the additional premium for certain Member States; 
Whereas in the near future agricultural policy as a whole and the measures laid 
down for beef and veal will be the subject of an overall review extending far 
beyond the scope of this measure; whereas its application should therefore be 
limited to the period during which applications for 1991/92 may be lodged, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Notwithstanding Article 3 of Regulation (EEC) No 1357/80, for applications for 
the suckler cow premium lodged in 1991/92: 
1. the premium is hereby fixed at ECU 50 per suckler cow; 
2. the additional national premium provided for in the first subparagraph of 
Article 3(2) shall be ECU 35 per eligible cow. In cases where the additional 
premium is granted by a Member State referred to in the second subparagraph 
of Article 3(2) of that Regulation, the first ECU 28 per cow shall be 
financed by the European Agricultural Guidance and Guarantee Fund (EAGGF), 
Guarantee Section. 
- 3 -
Article 2 
This Regulation shall enter into force on the third day following its publication 
in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all 
Member States. 
Done at Brussels, For the Commission 
FINANCIAL STATEMENT 
DATE: 16 October 1991 
1. BUDGET HEADING: Item 2120 APPROPRIATIONS: ECU 363 mi 11 ion 
2. TITLE: 
Proposal for a Council Regulation derogating from Regulation (EEC) No 1357/80 for 1991/92 
3. LEGAL BASIS: 
Council Regulation (EEC) No 1357/80 
4. AIMS OF PROJECT: 
To fix the suckler cow premiun at ECU 50 per cow (1991/92) 
To fix the additional premium at ECU 35 per cow (EAGGF: ECU 28 - IRL, NIRL, GR) 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENT ION) 
- NATIONAL ADMINISTRATION 
-OTHER 
5.1 REVENUE 
- Cm RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL 
5.0.1 ESTIMATED EXPENDITURE 
5-1.1 ESTIMATED REVENUE Period of 12 months 
+ ECU 100 mi 11 ion Current Financial Year 
1992 
+ ECU 85 mi 11 ion Following Financial Year 
1993 
+ ECU 15 ml I Mon 
1994 1995 1996 1997 
Measure limited to 1991/92 marketing year 
5.2 METHOD OF CALCLLATIOM: 
Calculation of impact for the 1991/92 marketing year: 
Suckler cc^ prelum; 7-54 mi 11 ion head x ECU 10 x 1.1-47 (DFO - * ECU 86.5 mi I Men (B) 
rremiiro for œixed herds: 0.40 mi H ion head x ECU 10 x 1.145 (DR) --• -3- ECU 4.6 mi I i ion (0) 
Additional premium: 1.00 mi 11 ion head x ECU 8 x 1.143 (DR) - + ECU 9.1 mi IiIen (0) 
+ ECU ICO.2 ml . i 1er 
6.0 CAN TH£ PROJECT BE FINWCED FRC^ APPROPRIATIONS ENTERED IN TKS RELAYANT CHAPTER G' 
6.1 CAN THE PROJtCT BE FINANCED BY TRANSFER 3ETWEEN CHAPTERS OF THE C; 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
6.3 WILL FUTURE BIDGE7 APPROPRIATIONS 3E r^CESSARY? 
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ISSN 0254-1475 
COM(91) 392 final 
DOCUMENTS 
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ISBN 92-77-76554-2 
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