WRITTEN QUESTION E-3987/00

by Jan Mulder (ELDR) to the Commission

(21 December 2000)

Subject: Consequences of the BSE crisis for the veal sector

The new BSE crisis has once again caused major problems on the EU beef market. The veal sector is also seriously affected by these market problems. Dutch veal producers who depend to a large extent on exports within the EU have seen these exports fall by over 30 %. As a result only a limited number of the veal calves which are ready for slaughter can be sent for slaughter. This situation cannot be prolonged in the veal calf enterprises, not least in welfare terms. Alternative marketing possibilities should therefore be created in the short-term so that it is once again possible to slaughter calves.

1. Does the Commission recognise that the current market problems resulting from the BSE crisis are not restricted to the beef sector but are also affecting the veal sector?

2. Does the Commission share the view that in order to prevent subsequent severe disruption of the markets it is better to adopt market provisions in good time and thus also prevent welfare problems?

3. Is the Commission also willing, now that it intends to adopt measures to support the beef market (private storage for cows, buying in arrangements for cattle over 30 months old and intervention for male adult bovine animals), to adopt measures to support the veal sector?

4. Does the Commission share the view that private storage of veal can be an effective and relatively cheap measure in order to deal with the problems on the market for veal?

Answer given by Mr Fischler on behalf of the Commission

(13 March 2001)

The questions put by the Honourable Member with regard to the veal sector reflect the general concern expressed recently by the industry.

The Commission is deeply concerned about the serious impact which the bovine spongiform encephalopathy (BSE) situation has had and still has on the Community market for beef and veal. From the market information available it seems nevertheless that the Community veal market is somewhat less affected by the crisis than the production, consumption and export of beef. Substantially higher prices for veal indicate a degree of confidence among veal consumers, which is not matched by beef consumers.

Forward planning is always the better tool in market management but unfortunately the good objectives are sometimes overtaken by events beyond our control.

With a limited budget available in 2001 for beef and veal, priority in terms of market support should be given to the sector most affected by the BSE crisis. The veal sector still obtains relatively good prices on the market on top of the slaughter premium for veal introduced as part of the Agenda 2000 reform. Measures intended to regain consumers' confidence should equally have a positive effect on the demand for veal.

Private storage for veal may not in itself always be a cost efficient measure. The experience from 1996 which has been the only year where aid for private storage (APS) for veal has been implemented indicated that a huge amount of aid (approximately three times as high as the normal private storage aid for beef) was needed in order to attract interest from the veal producers. The post-evaluation of the scheme did not confirm that the veal market improved substantially because of the private storage aid and due to the nature of the product and the current trade structure a similar conclusion may be drawn with regard to the present problems.