WRITTEN QUESTION E-3027/01

by Daniel Varela Suanzes-Carpegna (PPE-DE) to the Commission

(30 October 2001)

Subject: Data on the present 2001-2002 milk marketing year

1. What figures have been supplied by the various Member States in respect of the milk yields already recorded and the corresponding projections to the end of the present 2001-2002 marketing year, indicating the possible overshoots of the reference quantities for each country?

2. What forecasts does the Commission have at its disposal in respect of traditional intervention product quantities (skimmed powdered milk and butter) for 2002?

3. What is the estimated budgeting allocation for this heading? What unit price estimates were these allocations based on?

4. Is the Commission planning to take any further action in the event of a significant increase in production in 2002? What information does it have in this connection?

Answer given by Mr Fischler on behalf of the Commission

(18 December 2001)

1. The Commission wishes to point out that Member States are required to notify the official data on quotas by 1 September of each year following the end of the reference period(1). The data on deliveries for the 2001/02 quota year (1 April 2001 to 31 March 2002) will therefore not be known until 1 September 2002.

In practice, however, Member States voluntarily notify to the Commission the estimated trend of deliveries to the industry. A table containing these data and giving an overview as at mid-November has been sent direct to the Honourable Member and to Parliament's Secretariat.

The Commission nevertheless considers that it is too soon to draw any conclusions because the current estimates cover only April to August. Since the delivery data currently available to the Commission cover less than half the 2001/02 marketing year (ending 31 March 2002), they do not enable a reliable estimate to be made for the year as a whole.

2. Based on the latest estimates from Eurostat, Member States' notifications and the industry prior to adoption of the amending letter for the 2002 financial year, the Commission forecasts that 25 000 tonnes of butter and 13 000 tonnes of skimmed-milk powder (SMP) will be bought into intervention during the financial year. Estimated public stocks at the end of the accounting period in mid-October 2002 are 32 000 tonnes of butter and 13 000 tonnes of SMP.

3. The total cost for public stocks of butter is estimated at 8 million (comprising intake, storage, release and finance). Since most sales are expected to be to the internal market at the full intervention price, no depreciation is anticipated. The cost of intervention for SMP in 2002 is put at less than 1 million. There are currently no public stocks of SMP and intervention opens on 1 March 2002. For the 2002 financial year, the allocation for the milk and milk products chapter is estimated at 1 912 million. This includes export refunds, public and private intervention, and internal support measures.

4. The risk of a significant production increase is slight, given the disincentive effect of the quota system and the additional levy. It should be borne in mind, however, that in the event of such an increase the levy provides scope for financing intervention measures to absorb additional milk production.

(1) Article 8 of Commission Regulation (EEC) No 536/93 of 9 March 1993 laying down detailed rules on the application of the additional levy on milk and milk products OJ L 57, 10.3.1993.