Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 805/68 on the common organization of the market in beef and veal as regards the deseasonalization premium
Date: 1994-10-26
Institutions: European Commission
Subjects: beef, cattle, common organisation of markets, regional aid, slaughter premium

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(94) 451 final 
Brussels, 26.10.1994 

94/ 0243  (CNS) 

Proposal  for a 

COUNCIL REGULATION  (EC) 

amending Regulation  (EEC) No 805/68 on the common 
organization of the market  in beef and veal 
as regards the deseasonalization  premium 

(presented  by the Commission) 

EXPLANATORY MEMORANDUM 

When  the  agricultural  prices  and  related  measures  were  adopted  for  1994/95 
(in July  1994), the commission declared that it would examine  the operation 
of  the  slaughter  deseasonalization  premium  to  ensure  that  it  did  not 
interfere  with  the  ordered  placing  on  the  market  of  livestock  towards  the 
end  of  the  period  of  application  and  that  it  would  present  appropriate 
proposals to the Council for resolving this problem without any consequences 
for the budget before 1 September 1994. 

Statistics  (see  attached  table)  for  the  two  years  of  application  of  the 
deseasonalization  premium  (1993  and  1994)  and  for  the  numbers  of  animals 
slaughtered per month in the Member states eligible in 1995 for the premium, 
and  particularly  in  Ireland  where most  of  the  animals  concerned  are  held, 
show a sharp fall in the number of animals slaughtered  (-80%) at the end of 
the  period  of  application  of  the  premium  (end  of  April).  The  resulting 
disturbance  of  the market  for  beef  and  veal  continues  until  July  when  the 
summer lambs arrive. This problem could probably be overcome by a reasonable 
extension  of  the  period  of  application  combined  with  a  step-by-step 
reduction in the unit premium. 

The new levels of the deseasonalization  premium have been calculated  on the 
basis  of  the  average  number  of  animals  slaughtered  per  week  in  Ireland 
during 1993 and 1994.  The amount saved by reducing the level of the premium 
in  April  can  be  used  to  pay  the  premiums  applied  for  in  May  and  June, 
thereby avoiding any consequences for the budget. 

The  attached  proposal  therefore  fulfils  the  commitments  made  by  the 
Commission. 

The proposed measure falls within the exclusive competence of the Community. 
The most  suitable  instrument  for the proposed measure  is a regulation. The 
proposal  is  intended  to  correct  an  unwanted  disturbance  resulting  from 
application  of  the  deseasonalization  premium  which,  at  the  end  of  the 
period, indirectly gives rise to problems on the market for beef and veal in 
the Member States with producers eligible for the premium. 

- 1~ 

TABLE • NET PRODUCTION - BULLOCKS (number of animals (x 1 000) slaughtered per month) 

JAN. 

FEB. 

MARCH 

APRIL 

MAY 

JUNE 

JULY 

AUG. 

SEPT. 

OCT. 

NOV. 

DEC. 

TOTAL 

I r e l a nd 

Denmark 

Gemany 

1991 

1992 

1993 

1994 

1991 

1992 

1993 

1994 

1991 

1992 

1993 

1994 

45.1 

43.6 

57.9 

35.7 

0.2 

0.2 

0.1 

0 .8 

1.0 

1.0 

1.3 
2.3 

46.3 

65.0 

73.7 

35.1 

54.8 

32.3 

79.9 

115.7 

172.9 

151.9 

50.5 

923.2 

40.3 

71.5 

53.6 

62.0 

32.9 

68.7 

59.5 

92.0 

87.6 

0.1 

0.1 

0.2 

0.4 

1.1 

1.2 

1.6 

2.4 

0.2 

0.2 

0.3 

0.4 

1.1 

1.4 

2 .0 

2 .9 

0.2 

0.1 

0.3 

0 .6 

1.5 

1.5 

3.3 

4 .3 

38.9 

41.0 

52.1 

65.0 

140.8 

192.7 

126.1 

54.1 

925.6 

25.2 

37.5 

44.0 

63.1 

87.7 

104.9 

139.1 

45.5 

812.5 

13.0 

0.2 

0.2 

0.1 

0.1 

0.1 

0.1 

0.1 

0.2 

0.1 

0.2 

0.2 

0.2 

1.2 

1.4 

1.1 

1.1 

0.9 

1.3 

1.1 

1.0 

0.8 

1.0 

1.2 

1.5 

0 .9 

1.4 

0.7 

0.5 

0.6 

9.1 

7.9 

7.3 

1.6 

1.9 

1.6 

0.8 

1.1 

0.8 

0.1 

0.1 

0.1 

4.5 

4 .8 

4 .6 

22.4 

21.9 

14.4 

4 .9 

5.0 

4 .0 

1.1 

1.8 

46.2 

47.0 

1.3 

39.9 

{*) Figures * EIM05TAT - ama»t production. 

Proposal for a 

COUNCIL REGULATION  (EC) No 

/94 

Of 

1994 

amending Regulation  (EEC) No 805/68 on the common 
organization of the market  in beef and veal 
as regards the deseasonalization  premium 

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 Article  4c of Regulation  (EEC) No 805/68 on the common  organization 

of  the  market  in  beef  and  veal(l),  as  last  amended  by  Regulation  (EC) 

No 1884/94<2>,  provides  for  the  granting  of  a deseasonalization  premium  to 

encourage  the  putting  up  for  slaughter  of  castrated  male  bovine  animals 

outside the annual  "off-grass" period; 

Whereas  the sudden cessation of payment  of that premium  at the end of April 

can  cause  serious  distrubances  on  the  markets  of  the  Member  states 

concerned;  whereas  payment  of  the  premium  should  consequently  be  staggered 

to  avoid  the  said  adverse  effects;  whereas,  therefore,  the  period  of 

application  should be extended  and the  level of the premium  reduced  step by 

step, 

(1)  OJ No L  148, 28.6.1968, p. 24. 
(2)  OJ No L  197, 30.7.1994, p. 27. 

1 

HAS ADOPTED THIS REGULATION: 

. . ~ 

Article 1 

Article  4c(2)  of  Regulation  (EEC)  No  805/68  is  hereby  replaced  by  the 

following: 

"2.  The  amount  of  this premium  per castrated  male  bovine  animal which  has 

already benefited  from the special premium shall be: 

ECU  60  per  animal  slaughtered  during  the  first  15  weeks  of  the 

following year, 

.-.  ECO 45 per animal slaughtered during the 16th and  17th weeks of the 

following year, 

-  . ECU  30 per  anintai slaughtered  during  the  18th  to the 21st week of 

the following year, and 

- 

ECU 15 per animal slaughtered during the 22nd and 23rd weeks of the 

following year." 

Article 2 . 

This  Regulation  shall  enter  into  force  on  the  third  day  following  its 

publication in the Official Journal of the European Communities. 

It shall apply from 1 January  1995. 

This Regulation  shall be binding  in its entirety and directly  applicable in 

all Member States. •'" 

Done at 

, 

1994 

For the council 

F I N A N C I AL 

STATEMENT 

1.  BUDGET  HEADING:  Bl  -  212 3 

Date: ^^^^^^^^^^^^^^B 

APPROPRIATIONS: 

ECU  21  million 

2.  TITLE: 

Proposal  for  a  Council  Regulation  amending  Regulation  (EEC)  No  805/68  on  the  common  organization  of  the 

market  in  beef  and  veal  as  regards  the deseasonlization  premium. 

3.  LEGAL  BASIS: Article  4c  of  Regulation  (EEC)  No  805/68. 

4.  AIMS  OF  PROJECT: 

To  prevent  a  sudden  fall  in  the: number  of  animals  slaughtered  at  the  end  of  the  period  of  application  of  the 

deseasonalization  premium  (end  of  April)  by  providing  for  a  reasonable  extension  of  that  period  combined  with 

a  step-by-step  reduction  in  the  unit  premium  so  as  to  resolve  this  problem  without  any  consequences  for  the 

budget. 

5.  FINANCIAL  IMPLICATIONS 

PERIOD  OF  12  MONTHS 

CURRENT  FINANCIAL 

FOLLOWING  FINANCIAL 

YEAR 

(94) 

YEAR 

(95) 

p.m. 

p.m. 

1996 

p.m. 

199/ 

p.m. 

1998 

p.m. 

1999 

p.m. 

5.0.  EXPENDITURE 

-  CHARGED  TO  THE  EC  BUDGET 

(REFUNDS) 

-  NATIONAL  ADMINISTRATION 

-  OTHER 

5.1.  REVENUE 

-  OWN  RESOURCES  OF  THE  EC 

(LEVIES/CUSTOMS  DUTIES) 

-  NATIONAL 

5.0.1.  ESTIMATED  EXPENDITURE 

5.1.1.  ESTIMATED  REVENUE 

5.2.  METHOD  OF  CALCULATION: 

See  Annex 

6.0.  CAN  THE  PROJECT  BE  FINANCED  FROM  APPROPRIATIONS  ENTERED  IN THE  RELEVANT  CHAPTER  OF  THE  CURRENT  BUDGET? 

6.1.  CAN  THE  PROJECT  BE  FINANCED  BY  TRANSFER  BETWEEN  CHAPTERS  OF  THE  CURRENT  BUDGET? 

(. .?.  IS A  SUPPLEMENTARY  BUDGET  NECESSARY? 

6.3.  WILL  FUTURE  BUDGET  APPROPRIATIONS  BE  NECESSARY? 

COMMENTS: 

S 

A N N EX 

Calculation — 12 months : 

1. Current Regulation 

-  Weeks 1 to 17 (January to April) 

245 000 head x ECU 60/head x 1.207  (BR) =  (B) ECU  17.7 million 

2. Proposal 

-  Weeks  1 to 15 (January - mid-April) 

190 000 head x ECU 60/head x 1.207  (DR) =  (B) ECU 13.8 million 

-  Week  16 to 17 (end of April) 

55 000 head x ECU 45/head x 1.207  (DR) =  (B) ECU  3.0 million 

-  Weeks 18 to 21  (May) 

20 000 head x ECU 30/head x 1.207  (DR) =  (B) ECU  0.7 million 

Weeks 22 to 23  (mid-June) 

10 000 head x ECU  15/'head x 1.207  (DR) =  (B) ECU  0.2 million 
(B) ECU 17.7 million 

TOTAL 

Conclusion 

The draft proposal for a Regulation involves no extra expenditure. There are 
no financial consequences. 

L 

KSN 0254-1475 

COM(94) 451 final 

DOCUMENTS 

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03 

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