Proposal for a Council Regulation (EC) amending Regulation (EEC) No 805/68 on the common organization of the market in beef and veal (96/C 300/10) COM(96) 422 final - 96/0211(CNS)

(Submitted by the Commission on 31 July 1996) THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas the market in beef and veal has been seriously disturbed, mainly as a result of consumer fears concerning bovine spongiform encephalopathy (BSE); whereas this situation has led to a sudden, continuing deterioration on the market, entailing a sharp fall in consumption, a collapse in prices paid to producers and public intervention buying-in; whereas forecasts show that, despite the battery of measures adopted by the Community in this area, consumption is unlikely to return to previous levels in the near future; whereas measures should therefore be taken to restore balance on the market while safeguarding the operational praticability of the support arrangements for the beef industry; whereas, to that end, production must be brought more closely into line with consumption;

Whereas the special premium for male bovine animals may currently be granted twice, by age bracket, in the life of each animal; whereas the granting of a second premium for bulls over 22 months old is an incentive to the rearing of particularly heavy animals; whereas, in order to remedy that situation, the second payment should be discontinued; whereas this measure must be accompanied by an increase in the premium paid once only to avoid penalizing producers economically;

Whereas the total number of animals qualifying for the special premium each calendar year depends on the regional ceilings fixed in Article 4b (3) and (3a) of Council Regulation (EEC) No 805/68 (1); whereas, in line with past experience, the number of animals covered by premium applications in certain Member States is substantially below those ceilings while in others it is significantly above them; whereas, in order to adjust the ceilings to actual production, they should be redefined on the basis of actual applications; whereas, with a view to reducing the total quantity produced, the adjusted ceiling should be further reduced by 5 % and any increase which might result from this financial year in certain Member States should be reduced by a half;

Whereas, in order to encourage extensive production, Article 4h of Regulation (EEC) No 805/68 provides for the granting of an additional amount on top of the special premium and the suckler cow premium where the stocking density observed on the holding is less than 1,4 LU per hectare of forage area; whereas, in order to enhance the effectiveness of this measure from the viewpoint of both extensification and production control, that stocking density should be reduced to 1,2 LU for payment of the standard amount and provision should be made for a higher amount to be paid where the stocking density observed is below 1 LU per hectare;

Whereas the impact on production of the processing premium provided for in Article 4i of Regulation (EEC) No 805/68 must be stepped up; whereas it should accordingly apply compulsorily in all Member States, its scope should be extended to cover all male calves and the Member States should be authorized to extend it to animals withdrawn before they are 20 days old on condition they introduce the controls necessary to eliminate from the human food chain the animals thus withdrawn; whereas also, given the existence of certain special types of production in some Member States, beef-breed animals slaughtered before or at the age of six weeks should also be eligible for the premium; whereas, in order to ensure that the premium or premiums, as the case may be, are adjusted to the requirements of the arrangements, the Commission should also be given the task of setting the amount;

Whereas there is likely to be an overrun in the ceilings fixed in Article 6 (1) of Regulation (EEC) No 805/68 as a result of the quantities which have had to be bought in since the onset of the BSE crisis; whereas, in order to prevent the application of the ceilings from triggering the 'safety net` arrangements provided for in Article 6 (4) of that Regulation, the ceilings for 1996 and 1997 should be raised to levels corresponding to the requirements of the market; whereas the measures to restore balance on the market can nevertheless be expected to allow a return to previous levels from 1998 on;

Whereas the temporary buying-in of light animals can also help to restore sound conditions on the market for beef and veal; whereas, to that end, special intervention arrangements covering male animals from seven to nine months old and of a live weight not exceeding 300 kilograms should be introduced;

Whereas, in order to deal with the special situation stemming from German unification, Article 4k of Regulation (EEC) No 805/68 provides for a system of special regional ceilings for the new German Laender by way of derogation from the provisions on regional and individual ceilings for the special and suckler cow premiums; whereas in the meantime there has been sufficient progress in the structuring of the beef industry in the new Laender for special measures no longer to be indispensable; whereas, however, certain adjustments should be made;

Whereas transitional measures ensuring a smooth switchover from the old arrangements to those provided for in this Regulation may prove necessary even before the entry into force thereof,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EEC) No 805/68 is hereby amended as follows:

1. In Article 4b:

(a) paragraph 2 is replaced by the following:

'2. The premium shall be granted no more than:

(a) once in the life of each uncastrated male bovine animal from 10 to 21 months old, or

(b) twice in the life of each castrated male bovine animal:

- the first time at the age of 10 months,

- the second time after it has reached the age of 22 months.

To qualify for the premium, any animal covered by an application must be held for fattening for a period to be determined.`;

(b) paragraph 3 (b) and paragraph 3a are replaced by the following:

'(b) "regional ceiling": the number of animals qualifying for the special premium within a region and in respect of a calendar year; the total numbers of animals falling within the regional ceilings of the Member States shall not exceed:

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` (c) the first subparagraph of paragraph 6 is replaced by the following:

'6. The premium per eligible animal shall be:

- ECU 108,7 per castrated male animal,

- ECU 123,9 per uncastrated male animal.`.

2. Article 4h (1) is replaced by the following:

'1. Producers receiving the special premium and/or the suckler cow premium may qualify for an additional:

- ECU 36,23 per premium granted provided that the stocking density on their holdings during the calendar year is less than 1,2 LU per hectare, or

- ECU 54 per premium granted provided that the stocking density on their holdings during the calendar year is less than 1 LU per hectare.`

3. Article 4i is replaced by the following:

'Article 4i

1. Operators may qualify for a processing premium in respect of young male calves originating in the Community:

- which are withdrawn from production before they are over 10 days old. However, the Member States may decide to grant the premium for such animals which are withdrawn from production before they are 20 days old provided they take the necessary measures to ensure that such animals are excluded from entering the human food chain, or

- which belong to a beef breed and are slaughtered before they are more than six weeks old.

2. Save in duly justified exceptional cases, the processing premium must be paid within four months of the date of submission of the application.

3. In accordance with the procedure laid down in Article 27, the Commission:

- shall adopt detailed rules for the application of this Article,

- shall set the premium at a level or, where appropriate, levels enabling a sufficient number of calves to be withdrawn from production in line with market requirements,

- may suspend the granting of the premium.`

4. Article 4k is replaced by the following:

'Article 4k

In the new German Laender:

1. The arrangements on premiums applicable to the rest of the Community shall apply subject to the provisions of this Article.

2. Germany shall determine individual ceilings for rights to the suckler cow premium as provided for in Article 4d (2) on the basis of the number of animals for which the producer received the suckler cow premium in respect of 1996 and shall inform each producer thereof.

Where natural circumstances result in non-payment of the premium in respect of 1996 or in a reduction in the amount paid, the number corresponding to payments during 1995 may be used.

Where the premium is not paid in respect of 1996 or the amount paid is reduced as a result of the application of penalties laid down to that end, the number ascertained during the inspection which resulted in the penalties shall be used.

3. Following the introduction of individual ceilings, where the sum of the rights allocated to producers whose holdings are located in the new German Laender is less than the regional ceiling set previously for that territory, the balance of the rights shall be cancelled, with the exception of a number of rights from among the surplus which shall be added by Germany to the national reserve provided for in Article 4f (1) not exceeding 3 % of the sum of the ceilings allocated to those producers.

The new reserve thus established shall apply to the whole of Germany. The sum of the rights allocated to producers located in the new German Laender, plus the 3 % intended for the reserve, shall not under any circumstances exceed the regional ceiling allocated to that territory at that time.

4. As and when the need arises, the Commission shall adopt detailed rules for the application of this Article in accordance with the procedure laid down in Article 27.` 5. The second subparagraph of Article 6 (1) is replaced by the following:

'Such buying-in may not cover more than the following quantities, per year and for the Community as a whole:

- 720 000 tonnes for 1996,

- 500 000 tonnes for 1997,

- 350 000 tonnes as from 1998.` 6. Article 6a is replaced by the following:

'Article 6a

1. Notwithstanding Article 5 (2), where market forecasts demand, certain kinds of fresh or chilled meat of lean male bovine animals from seven to nine months old of a live weight not exceeding 300 kilograms and originating in the Community may be bought in by intervention agencies in one or more Member States or in a region thereof under invitations to tender.

2. The quantities of meat bought in pursuant to paragraph 1 shall be taken into account for the purposes of applying the ceilings on buying-in provided for in Article 6 (1).

3. The Commission shall adopt detailed rules for the application of this Article in accordance with the procedure laid down in Article 27.`

Article 2

As and when the need arises, the Commission shall adopt measures to ensure a smooth switchover from the previous arrangements to those provided for in this Regulation in accordance with the procedure laid down in Article 27 of Regulation (EEC) No 805/68.

Article 3

This Regulation shall enter into force on the seventh day following its publications in the Official Journal of the European Communities.

Article 1 (1), (2) and (4) shall apply from 1 January 1997.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No L 148, 28. 6. 1968, p. 24. Regulation as last amended by Commission Regulation (EC) No 2417/95 (OJ No L 248, 14. 10. 1995, p. 39).