COMMISSION OF THE EUROPEAN COMMUNITIES 
C0MC89) 437 final 
Brussels, 14 September 1989 
Proposal for a 
C0UNUL_RE6yLATigN_(!§C) 
amending Regulations (EEC) No 2764/75 laying down 
the rules for calculating a component of the levy on pig carcases 
and (EEC) No 2766/75 establishing the list of products for which 
sluice-gate prices are to be fixed and laying down 
the rules for fixing the sluice-gate price for pig carcases 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 2765/75 on the general rules 
to be applied In the event of a substantial rise in pigmeat prices 
(presented by the Commission) 
C^ kl> 
EXPLANATORY MEMORANDUM 
Subject: Proposal for a regulation amending Regulations (EEC) No 2764/75 and 
2766/75 laying down the rules for calculating the levy and the 
sluice-gate price for slaughtered pigs. 
1. The sluice-gate price for slaughtered pigs is made up of three components: 
- an amount equal to the value on the world market of the quantity of 
feed grain equivalent to the quantity of feedingstuffs required for the 
production in third countries of one kilogramme of pigmeat, 
- the extra cost, in relation to feed grain, of feedingstuffs other than 
grain required for the equilibrium of the feed ration for pigs, 
- a standard amount representing overhead costs of production and 
marketing. 
As the parameters for the calculation of these elements have not been 
reviewed since 1979 and taking into account the technical, genetical and 
management improvements which have occurred in the pigmeat sector since 
that time, a review and updating of these parameters is considered 
necessary. 
- The quantity of feedstuff necessary in third countries for producing 
1 kg of pigmeat has been last fixed in 1975 by Regulation (EEC) 
No 2766/75 (OJ No L 282, 1.11.1975, p. 25) at a value of 5,46 kg 
(Article 2(1) and (2)). Since that time, the improvement of pig breeds 
in genetic terms as well as the improvement in management of feeding 
and farming have led to a reduction in nutritional needs of the 
animals, which, on the basis of available information at present, can 
be fixed at 4,79 kg of compound feed to produce 1 kg of pigmeat in 
third countries. 
- The composition of the grain ration, fixed by the same regulation at 
40% barley, 35% maize and 25% oats should be adjusted to the more 
frequent composition on the world market where the 25% of oats can be 
replaced by 25% of wheat. 
- The present standard amount expressing the overhead costs of producing 
and marketing of pigmeat has been fixed at 38,69 ecu/100 kg on the 
basis of information available in 1979 by Regulation (EEC) No 772/79. 
In the light of the most recent data available on the overhead costs of 
pig farms in third countries, this standard amount should be increased 
to 43,57 ecu/100 kg to be in line with the cost evolution occurred on 
the world market. 
- The cost of the other components than grain in the compound remains 
still the same, that is to say 15% of the value of the feed grain 
mixture. 
- 2 -
2. The levy for slaughtered pigs is made up of two components: 
- the difference between prices within the Community and on the world 
market for the quantity of feed grain required for the production in 
the Community of one kilogramme of pigmeat adjusted regularly according 
to the price evolution on the world market; 
7% of the average of the sluice-gate prices applied during the four 
quarters preceding the 1 April of each year. 
- The composition of the feed grain mixture has last been fixed by 
Regulation (EEC) No 2764/75 (OJ No L 282, 1.11.1975, p. 21) and 
consists of: 40% barley, 20% maize, 10% oats, 20% rye and 10% sorghum. 
The cost of this mixture being comparable to the cost of the same 
quantity of the mixture currently composed of 40% barley, 20% maize and 
40% wheat, it is proposed to substitute the present composition by the 
latter; that is to say, 40% barley, 20% maize and 40% wheat, which 
would simplify the calculation in the case of the levies and would 
unify the components within the feed grain mixture for the two 
instruments making part of the trade system with third countries and to 
adjust the feed grain mix to the market situation within the Community. 
- The quantity of feed grain necessary to produce 1 kg of pigmeat within 
the Community has last been fixed at 4,2 kg by Regulation (EEC) 
No 2764/75. The favourable evolution within the Community pigmeat 
production allows for a reduction of this quantity down to 3,6 kg on 
the basis of figures available for 1989. 
3. In conclusion, it is proposed to adjust the parameters mentioned hereafter 
and to fix them as follows: 
- quantity of feed grain necessary to produce 1 kg of pigmeat within the 
Community: 3,6 kg; 
- quantity of complete compound necessary to produce 1 kg of pigmeat 
within third countries: 4,79 kg; 
- standard amount for overhead costs of producing and marketing within 
third countries: 43,57 ecu/100 kg; 
- composition of the feed grain quantity within the Community: 
40% barley 
40% wheat 
20% maize; 
- composition of the feed grain quantity within third countries: 
40% barley 
35% maize 
25% wheat. 
/ 
Draft 
REGULATION (EEC) No OF THE COUNCIL 
of 
amending Regulations (EEC) No 2764/75 laying down 
the rules for calculating a component of the levy on pig carcases 
and (EEC) No 2766/75 establishing the list of products for which 
sluice-gate prices are to be fixed and laying down 
the rules for fixing the sluice-gate price for pig carcases 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 2759/75 (1) of 29 October 1975 on 
the common organization of the market in pigmeat (2), and in particular 
Article 9(2) and 12(4) thereof, 
Having regard to the proposal from the Commission, 
Whereas the quantity of feed grain required for the production, within the 
Community, of one kilogramme of pigmeat as well as the percentages of the 
different feed grains making part of this quantity mentioned in 
Article 9(1)(a) of Regulation (EEC) No 2759/75 has been fixed at 
4,2 kilogrammes of a mixture of feed grain of which the percentages of the 
different components have been established at 
Barley 
Maize 
Oats 40% 
20% 
10% Rye 
Sorghum 20% 
10% 
by Council Regulation (EEC) No 2764/75 of 29 October 1975 laying down the 
rules for calculating a component of the levy on pig carcases, as last amended 
by Regulation (EEC) No 4160/87 (4); 
(1) 0J No L 282, 1.11.1975, p. 1. 
(2) 0J No L 129, 11. 5.1989, p. 12. 
(3) 0J No L 282, 1.11.1975, p. 21. 
(4) 0J No L 392, 31.12.1987, p. 46. 
4 
- 2 -
Whereas, in view of the evolution, in the course of the last years, of the 
conditions for pigmeat production within the Community, it is appropriate to 
adjust this quantity of feed grain to the requirement for producing one 
kilogramme of pigmeat in establishing this quantity in the form of a 
transformation coefficient of 1 : 3,6; whereas, in fact, this coefficient 
indicates the ratio between one kilogramme of pigmeat and the required 
quantity of feed grain for its production; whereas, furthermore, to take into 
account the conditions of production within the pigmeat sector, it is 
appropriate to take as a representative composition of this quantity within 
the Community, a mixture of grain with the following composition: 
Barley 40% 
Wheat 40% 
Maize 20%; 
Whereas the quantity of feed grain equivalent to the quantity of compound feed 
required for the production, within third countries, of one kilogramme of 
pigmeat, according to Article 12(2)(a) of Regulation (EEC) No 2759/75, has 
been fixed at 5,46 kilogrammes of a mixture of feed grain composed of 
Barley 40% 
Maize 35% 
Oats 25% 
by Council Regulation (EEC) No 2766/75 of 29 October 1975 establishing the 
list of products for which sluice-gate prices are to be fixed and laying down 
the rules for fixing the sluice-gate price for pig carcases (5), as last 
amended by Regulation (EEC) No 3906/87 (6); 
Whereas, in view of the evolution in the course of the last years, of the 
conditions for pigmeat production within third countries, it is appropriate to 
adjust the quantity of feed grain equivalent to the quantity of compound feed 
required for the production, within third countries, of one kilogramme of 
pigmeat, and to establish this quantity at 4,79 kilogrammes of feed grain with 
the following composition: 
(5) 0J No L 282, 1.11.1975, p. 25. 
(*) OJ No L 370, 30.12.1987, p. 11. 
- 3 -
Barley 40% 
Maize 35% 
Wheat 25%; 
Whereas the standard amount for overhead costs of production and marketing 
according to Article 12(2)(c) of Regulation (EEC) No 2759/75 has last been 
fixed at 38,69 ecu per 100 kilogrammes of slaughtered pigs by Council 
Regulation (EEC) No 772/79 of 18 April 1979 (7); 
Whereas the overhead costs for production and marketing, and in particular 
those for production, found on the world market have increased substantially 
in the course of the last years; whereas the standard amount representing such 
costs needs to be increased to a level of 43,57 ecu per 100 kilogrammes of 
slaughtered pigs, 
HAS ADOPTED THIS REGULATION: 
Article 1 
Regulation (EEC) No 2764/75 is amended as follows: 
1. Article 1 is replaced by the following: 
"Article 1 
The quantity of feed grain specified in Article 9(1)(a) of Regulation 
(EEC) No 2759/75 shall amount to 3,6 kilogrammes composed as follows: 
Barley 40% 
Maize 20% 
Wheat 40%". 
(7) OJ No L 99, 21. 4.1979, p. 1. 
- 4 -
2. In Article 2(1), the figure "4,2" is replaced by the figure "3,6". 
3. In Article 3(1), the figure "4,2" is replaced by the figure "3,6". 
Article 2 
Regulation (EEC) No 2766/75 is amended as follows: 
1. Article 2(1) is replaced by the following: 
"1. The value of the quantity of feed grain mentioned in Article 12(2)(a) 
of Regulation (EEC) No 2759/75 shall be equal to the price of 4,79 
kilogrammes of feed grain with the following composition: 
Barley 40% 
Maize 351 
Wheat 25%". 
2. In Article 2(2), the figure "5,46" is replaced by the figure "4,79". 
3. In Article 3(2), the figure "38,69" is replaced by the figure "43,57". 
Article 3 
This Regulation shall ester into force on 1 October 1989. 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 
Done at For the Council 
? 
FINANCIAL STATEMENT 
*•*• ! 5.9.1989 
i. BUDGET HEADING : Chapter 100 APPtOBIATIONS : 1419 
2. TITLE : Proposal for a CounciI Regulation amending Regulations (EEC) no 2764/75 
and no 2766/75 laying down the rules for calculating the levy and the sluice­
gate price for slaughtered pigs 
3. LEGAL sAsis : Regulation 2759/75 as last amended by Regulation (EEC) no 1249/89 
A. AIWS OF PROJECT» Revision and up-dating of parameters to be employed for the 
calculation of levies and sluice-gate price while taking into account technical, 
genetical and management improvements in the pigmeat sector. 
S. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
~ NATIONAL ADMINISTRATION 
- OTHER 
5.1 RECEIPTS 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PERIOD OF 12 MONTHS 
- 3,2 CURRENT FINANCIAL YEAR /"wn 
p.m. FOLLOWING FINANCIAL TEAR /ING ilNANCI 
- 3,2 
1991 
5.0.1 ESTIMATEO EXPENDITURE 
5.1.1 ESTIMATED RECEIPTS - 3,2 1992 
- 3,2 1993 
- 3,2 1994 
- 3,2 
5.2 «ETHOO OF CALCULATION 
The revision brings about a reduction of the sluice-gate price as well as for 
the levies of about 8,71. The impact can be estimated as: 
levy: 65.000 t x (513,2 - 468,6) ECU/t x 1,110 (DT) - -3,2 inio ECU (B) 
6.0 CAN THE PROJECT IE FINANCED FRON APPROBATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUOGET ? 
XXKKKX 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF.THE CURRENT BUDGET ? XXXftX 
6.2 IS A SUPPLEMENTARY BUOGET 8E NECESSARY T KXK** 
6.3 WILL i-'UTURE BUOGET APPROBATIONS BE NECESSARY ? XXKXdi 
OBSERVATIONS : 
EXPLANATORY MEMORANDUM 
Subject: Proposal for a regulation amending Regulation (EEC) No 2765/75 on the 
general rules to be applied in the event of a substantial rise in 
plgmeat prices 
1. In the communication from the Commission to the Council on the market 
situation in the plgmeat sector (COM (88) 428 final) It has been established 
that the plgmeat sector is characterised by quite a regular cycle with 
upward and downward movements in production and prices. 
Taking into consideration the conclusions of this communication In which the 
Commission has shown Its willingness to propose adequate measures In order 
to provide for greater stability on this market and also the conclusions of 
an initiative report of the European Parliament (PE 128.119) concerning the 
crisis in the plgmeat sector, the Commission considers It necessary to 
submit to the Council the present proposal amending Regulation (EEC) 
No 2765/75 on the general rules to be applied In the event of a substantial 
rise in prices In the plgmeat sector. 
In fact the present situation with regard to prices of slaughtered pigs 
within the Community and the forecasts with regard to the plgmeat market and 
animal foodstuffs In the coming months make It necessary, as soon as 
possible, to approve measures aimed at avoiding a repetition of a new 
serious crisis in the plgmeat sector. 
2. Article 11 of Regulation (EEC) No 2769/75 on the common organization of the 
market in plgmeat contains measures to be applied In the event of a 
substantial rise in prices. The general rules on this matter are laid down 
in Regulation (EEC) No 2765/75 of the Council of 29 October 1975. These 
"shortage" rules determine the conditions under which a substantial rise In 
plgmeat prices Is recorded on the Community market as well as the measures 
to be taken in such a situation (suspension, even partial, of import levies 
according to the so-called management committee procedure). 
Experience has shown that, because of the strong Interdependence between the 
prices for slaughtered pigs and the related production costs as well as the 
complexity of the formula, It Is not possible any longer to apply these 
rules. In fact, these rules were not applied until the end of 1969 and at 
the beginning of 1970 (EEC Regulations No 1956/69 and 530/70). 
- 2 -
As a result It Is proposed to amend the method of calculation In order to 
define a situation of substantial price rise. Such a situation exists if, 
following a general increase In prices In all the regions of the Community, 
the average price for slaughtered pigs recorded on the representative 
markets of the Community stays, for a period of nine months, at a level 
higher than the last average of those monthly prices recorded over a period 
of 36 months. 
This new formula would have meant that the "penury" rules could have been 
applied during years of high cyclical prices as was the case In 1969, 1973, 
1976, 1980, 1982 and 1984/85; that Is to say, in periods of good economical 
results preceding every time a period of low cyclical prices, brought about 
too strong expansion in pig herds. 
However, during periods of low cyclical prices this formula would not have 
been appiled. 
3. it is worth remembering that the measures to be taken In the case of 
"shortage" are discretionary and are also dependent on elements included In 
Article (1) paragraph 2 of (EEC) Regulation No 2765/75, being 
- the number of sows mated; 
- the price of piglets 
- the results of surveys op pig herds and 
- foreseeable trends In market prices for plgmeat. 
It is worth adding to these elements the evolution of prices for feedstuffs 
for pigs. The fluctuations In these prices have proved to be of crucial 
importance for pig economy In recent years. 
/lo 
Draft proposal 
REGULATION (EEC) No /OF THE COUNCIL 
Of 1989 
amending Regulation (EEC) No 2765/75 on the general rules 
to be applied in the event of a substantial rise in plgmeat prices 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community; 
Having regard to the proposal from the Commission; 
Having regard to Council Regulation (EEC) No 2759/75 of 29 October 1975 on the 
common organization of the market in plgmeat (1), as last amended by Regulation 
(EEC) No 1249/89 (2), and In particular the second paragraph of Article 11 
thereof; 
Whereas Article 11 of Regulation (EEC) No 2759/75 provides that when a 
substantial price rise is recorded on the Community market and this situation Is 
likely to continue, thereby disturbing or threatening to disturb the market, the 
necessary measures may be taken; 
Whereas Council Regulation (EEC) No 2765/75 of 29 October 1979 (3) lays down 
the relevant general rules; 
Whereas In order to better respond to the evolution In prices of plgmeat and the 
cost of production, greater flexibility In the practical application of this 
measure should be Introduced in order to record the presence of a substantial 
rise In prices on the Community market; 
Whereas It has also become necessary, In the light of acquired experience and 
with a view to estimate the eventual continuation of this rise, to take account 
of the evolution in prices of feedstuffs for pigs; 
HAS ADOPTED THIS REGULATION : 
(1) OJ No L 282, 1.11.1975, p. 1 
(2) OJ No L 129, 11. 5.1989, p. 12 
(3) OJ No L 282, 1.11.1975, p. 23 
yf 
- 2 -
Article 1 
Article 1 of Regulation (EEC) No 2765/75 Is replaced by the following 
"Article 1 
1. A substantial price rise within the meaning of Article 11 of Regulation 
(EEC) No 2759/75 shall exist when, as a result of a general price rise in 
all regions of the Community, the sliding average of monthly prices for 
slaughtered pigs recorded on the representative markets of the Community 
stays during the last nine months at a level higher than the sliding average 
of these prices recorded during the last 36 months. 
2. The substantial price rise Is considered to be likely to continue if there 
is an Imbalance between supply and demand In plgmeat to continue on account 
of : 
a) the results of surveys and estimates made in pursuance of Council 
Directive 76/630/EEC of 20 July 1976, concerning surveys of pig 
production (4) to be made by Member States and especially the 
conjunctural evolution of the number of sows; 
b) the foreseeable evolution of the market prices for slaughtered pigs and 
for piglets; 
c) the evolution of the prices for feedstuffs for pigs." 
Article 2 
This regulation shall enter Into force on the third day following Its 
publication In the official Journal of the European Communities. 
It Is applicable from 1 October 1989. 
This Regulation shall be binding in its entirety and directly applIcable In all 
Member States. 
Done at Brussels, For the Council 
(4) OJ L 223, 16. 8.1976, p. 13 
/it 
FINANCIAL STATEMENT 
o.tt : 5.9.1989 
1. BUDGET HEADING : chapter 100 APPROBATIONS : 1419 
2. TITLE : Proposal for a Council Regulation amending Regulation (EEC) no 2765/75 
on the general rules to be applied in the event of a substantial rise in 
pigmeat prices. 
3. LEGAL BASIS : Regulation (EEC) no 2759/75, as last amended by R. (EEC) no 1249/89 —J 
*. AIMS OFPROJECTI Proposal to amend the method of calculation for the conditions on 
which on the Community market a substantial rise in prices is recorded as well 
as measures to be taken in this case (suspension, even partial, of import 
levies) according to.the Management Committee procedure. 
5. FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
- NATIONAL ADMINISTRATION 
- OTHER 
5.1 RECEIPTS 
- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
- NATIONAL PER100 OF 12 MONTHS 
p.m. CURRENT FINANCIAL YEAR FOLLOWING LINANCIAL YEAR 
p.m. (1) 
1991 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED RECEIPTS p.m. 1992 
p.m. 1993 
p.m. 1994 
p.m. 
5.2 METHOD OF CALCULATION The amendment in the method of calculation does not have a 
financial impact, in itself. However, with the modification the Commission 
intends a suspension of 50X of the levies for the period 1.10.89-31.12.89. This 
means a 'loss in levies of: 65.000 t x 3/12 x 500 ECU/t x 501 x 1,11 (DT) -
-4,5 MECU.B. This suspension brings an increase in imported quantities about 
of 50.000 tons. As a result there is en increase in levies of 50.000 t x 
250 ECU/t x 1,11 (DT) - +13,9 MECU.B. The global impact of the suspension will 
therefore be about +9,4 mio ECU (B) for the period of 1.10.89 until 31.12.89. 
6.0 CAN THE PROJECT BE FINANCED FROM APPROBATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT 8U06ET ? 
XKttXK 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF.THE CURRENT BUDGET ? XX*XX 
6.2 IS A SUPPLEMENTARY BUOGET BE NECESSARY ? XK#X* 
6.3 WILL FUTURE BUOGET APPROBATIONS BE NECESSARY ? 
XWfNO 
OBSERVATIONS : 
A3 

ISSN 0254-1475 
COM(89) 437 final 
DOCUMENTS 
EN 03 
Catalogue number : CB-CO-89-403-EN-C 
ISBN 92-77-52885-0 
Office for Official Publications of the European Communities 
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