WRITTEN QUESTION E-2630/96 by Michl Ebner (PPE) to the Commission (15 October 1996)

Subject: Reestablishment of the market in beef and veal

In the South Tyrol region, which has a total area of 740 000 hectares, with 2,3% for fruit-growing, 0,7% vineyards, 10% permanent grassland, 21% high pastures and meadows, 1% arable land, 42% forest and 23% non-productive land, situated at altitudes between 800 and 2 000 metres, there are 10 200 farms with 140 000 head of cattle.

- The fodder for cattle rearing and breeding comes from the holdings' permanent grassland, including high pastures and meadows, and their continued use is also extremely important for the conservation of the landscape.

- The agricultural holdings are often situated on hillsides or in valley or shaded locations and have greater labour requirements.

- Cattle breeding and rearing is geared towards the production of milk and meat, and in particular to the production of high quality agricultural and breeding animals.

- The revenue from full or part-time holdings represents the livelihood of small-scale farming families.

- The outbreak of BSE and the associated 20 to 30% reduction in beef and veal consumption has produced a drop in prices in the cattle breeding and rearing sector, with a fall in earnings for stock farmers which seriously endangers their survival as farmers.

The extremely difficult production conditions in mountain areas, the fall in prices in the cattle rearing and breeding sectors as a result of the BSE crisis and the unexpected 20 to 30% harvest shortfall caused by adverse weather conditions are threatening the livelihood of hill farmers and stock breeders throughout the Alpine regions. It should also be pointed out that in mountain areas there are no alternatives to the traditional forms of agriculture.

In view of the above, what interventions and measures are planned by the Commission to deal with this acute crisis in mountain farming in the Alps, caused by the collapse of prices in the stock sector, and the associated risk of abandonment of farms in mountain areas, resulting in depopulation of the agricultural and recreational areas of the Alps?

Answer given by Mr Fischler on behalf of the Commission (4 December 1996)

From the very start of the bovine spongiform encephalopathy (BSE) problem, all producers of beef, both from mountain regions and the lowlands, have been affected financially. Therefore, the Commission has taken measures to strengthen the market in beef and veal as a whole (intervention, slaughter programmes, private storage scheme for veal, increased export refounds and supplementary payments for producers, etc.).

To compensate for losses caused by BSE, the Council has approved the Commission proposal to give additional support of MECU 850 to producers, and Member States can grant a similar amount from their national budgets to compensate for losses caused by BSE.

The Council at its meeting on 18 November 1996 has agreed a medium-term reform designed to balance the market as a result of the reduction in beef consumption ((OJ L 296, 21.11.1996, p. 50. )).

Earlier the Council at its meeting on 30 October 1996 approved a further sum of MECU 500 to offset the continuing serious difficulties facing producers. This sum is for the direct support of producers' incomes or for the beef and veal sector. The Commission is now in the process of making the corresponding proposals.