Proposal for a COUNCIL ESTIMATE concerning beef and veal intended for the processing industry for the period 1 January to 30 June 1995
Date: 1994-11-18
Institutions: European Commission
Subjects: beef, import policy, market supervision, meat processing industry, supply balance sheet, tariff quota

COMMISSION OF THE EUROPEAN COMMUNITIES 

COM(94)  511  final 
Brussels,  I 8 . I I . W4 

MEMORANDUM 

on  the  forecast  for  frozen  meat  for  processing  and 
live  animals  for  fattening 

Proposal  for  a 
COUNCIL  ESTIMATE 

concerning  young  male  bovmc  animals  weighing  100  kilograms 
or  less  and  intended  for  fattening  for  the  period 
1 January  to  30  June  1995 

Proposal  for  a 
COUNCIL  ESTIMATE 

concerning  beef  and  veal  intended  for  the processing  industry 
for  the  period  1 January  to  30  June  1995 

(presented  by  the  Commission) 

z 

M E M O R A N D UM 

ON 
THE FORECAST FOR FROZEN MEAT FOR PROCESSING 
AND LIVE ANIMALS FOR FATTENING 

In accordance with the commitments made by the EC within the framework of 
the  Multilateral  Trade  Negotiations,  the  Commission  has  held 
consultations  with Australia, New  Zealand,  Slovenia,  Hungary,  Slovakia, 
Poland,  Romania, Bulgaria,  the Czech  Republic, Argentina  and  Uruguay  on 
their  forecast  for their export  potential of  frozen beef  for  processing 
and live animals. 

Summary of each country's presentation 

Australia : 

The  Australian  representative  reported  that  her  authorities  were  in 
favour of a full  conversion of processing beef into high quality  grade, 
she  renewed  the  Australian  demand  for  a  permanent  conversion  into  High 
Quality beef which otherwise could be considered as a reduction in market 
access and voiced concern toward the total share in the EU market of East 
European exports of meat for processing. 

New Zealand 

The  New  Zealand  spokesperson  stressed  the  importance  of  implementing 
rapidly Council's decision in the first half of  1995 since a GATT tariff 
quota will supercede the existing arrangement as from July 1995. 

she  also  reserved  her  country's  rights  to  further  comment  on  the 
presentation given by the Commission Services. 

Romania 

Romania's  authorities  expressed  the  same  concern  as  New  Zealand  with 
respect to the need for a timely implementation of Council's Decision but 
was  not  in  the  position  to  state whether  their  country  will  export  any 
meat for processing to the EU in the first 6 months of 1995.  Furthermore 
the  Romanian  representative  indicated  that  the  situation  in  the  animal 
breeding  sector  is  improving,  therefore  it  is  hoped  that  live  animal 
exports into the EU will increase. 

Czech Republic : 

The  Czech  authorities  explained  that  a  sectorial  restructuring  has 
entailed  a  significant  reduction  of  the  Republic's  herds,  expected  to 
continue  till  1996.  Their  country  forecasts  export  totals  to the EU of 
500  tonnes  of  frozen  meat  for  processing  and  8  to  10.000  calves  (max. 
weight 80  kg). 

3 

Hungary : 

This  country  requested  the  creation  of  a  sub-quota  in  the  framework  of 
the  balance  sheet  (first  6  months  in  1995)  for  25.000  heads  of  young 
calves. 

Slovenia : 

The  Slovenian  authorities  explained  that  due  to  new  economic  priorities 
and  the  ensuing  structural  changes,  their  country  will  not  be  in  the 
position to export meat  for processing  to the E.U. but could export some 
live animals. 

Poland : 

This  country  expressed  a  strong  interest  in  exporting  more  young  live 
animals.  It  regretted  that  the  EU  has  the  intention  to  maintain  an 
import  ceiling  (safeguard measures)  in  spite  of  an  improved  beef  market 
and  the  stabilisation  of  the  E.U.'s  herd.  Poland  also  explained  her 
difficulties  in  working  with  a  quarterly  system  (because  most  young 
bovines are ready to be exported early in the year). 

Slovakia : 

The Slovakian  authorities  indicated that internal consumption  of meat is 
higher  than  production  therefore  this  country  is more  likely  to  import 
than export meat. 

Argentina : 

The Argentinian  representatives, after having  stressed  that  situation in 
the beef  sector  in their country  is not good, argued  that the  fixing of 
the  full balance sheet for meat for processing without any conversion to 
high quality meat will worsen this sector's  situation. 
Furthermore  it 
was  stressed  that exports  of meat  for processing  are more vulnerable  to 
competition from  Eastern European countries. 

Uruguay : 

The  Uruguayan  representative  stated  that  his  country  expects  to  export 
2.000  to  4.000  tonnes  of  meat  for  processing  to  the  E.U.  in  1995.  He 
conveyed  the  same  concern  as  Argentina  with  respect  to  East  European 
exports. 

Bulgaria; 

Has  given  some  statistics  on  the  number  of  animals  for  1994,  but  no 
provisions were available for imports and exports of meat or live animals 
for 1995. 

Y 

EXPLANATORY  MEMORANDUM 

Within the framework of the Uruguay Round, the two estimates provided  for in 
Articles  13  and  14  of  Regulation  (EEC)  No  805/68  are  to  be  replaced  by 
tariff  quotas  with  effect  from  1 July  1995.  Consequently,  these  two 
estimates need be fixed only for the first half of 1995. 

In  accordance  with  the  bilateral  agreements  between  the  Community  and 
certain  supplier  countries  introducing  arrangements  for  cooperation  in the 
preparation of the two estimates, consultations have been held with the non-
member countries in question. 

The  first  draft  estimate  proposes  that  the  number  of  young  male  bovine 
animals  that may  be  imported  for  fattening  be  fixed  at  99 000 head,  taking 
account  of  the  foreseeable  shortfall  for  this  type  of  animals  and  the 
Community's  interest  in maintaining  harmonious  relationships  with  the  non-
member  supplier countries. 

In the case of frozen beef  for processing,  the draft estimate proposes that 
the  quantity  of  imports  be  fixed  at  25 000  tonnes  on  the  basis  of  the 
calculated  Community  supplies  and  the  requirements  of  the  beef  processing 
industry. 

Proposal for a Council estimate 

concerning young male bovine animals weighing 
300 kilograms or less and intended for fattening for the period 
1 January to 30 June 1995 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to Council Regulation  (EEC) No 805/68 of 27 June 1968 on the 
common organization of the market in beef and veal*, as last amended by 
Regulation  (EEC) No 1884/94^, and in particular Article  13(2) thereof, 

Having regard to the proposal from the commission, 

HAS ADOPTED THIS ESTIMATE: 

Introduction 

Article  13(2) of Regulation  (EEC) No 805/68 provides that each year, before 
1 December, the Council must draw up an estimate of the young male bovine 
animals which may be imported under the arrangements laid down in that 
Article. This estimate must take account both of the forecast supplies of 
young bovine animals intended for fattening within the Community and of 
Community livestock farmers• requirements. 

In order to establish the volume of imports under this estimate, in 
accordance with the Community's undertakings within the framework of the 
General Agreement on Tariffs and Trade  (GATT), consultations are held 
between the Commission and representatives of some non-member countries 
before the annual draft estimate is put forward. The Commission proposed 
consultations with representatives of the following non-member countries: 
Hungary, Poland, the Czech Republic, the Slovak Republic, Romania, Bulgaria 
and the Republic of Slovenia. 

These consultations  included an exchange of views on the beef and veal 

market  as a whole, the production  and consumption  prospects within the 

Community  and  the scope for exports of young male bovine animals by the non-

member  countries. 

(1) OJ No L 148, 28.6.1968, p.24. 

(2) OJ No L 197, 30.7.1994, p. 27 

G 

This estimate relates only to the period  1 January to 30 June  1995, since 
this type of estimate is to be replaced by a tariff quota within the 
framework of the Uruguay Round from 1 July  1995. It has been prepared in the 
light of information available to the Commission and on the basis of the 
foreseeable trend for 1995 of supplies of and requirements  for young male 
bovine animals intended for fattening in the community. The commission will 
continue to apply appropriate management measures if forecasts suggest that 
imports of young bovine animals into the Community could exceed the 
traditional 425 000 head per year and that such imports of beef could 
threaten seriously to disturb the Community market. 

It should be noted that this estimate is likely to be supplemented in the 
event of ah enlargement of the European Union on 1 January  1995. 

I.  Assessment of Community supplies for 1994 

In view of the number of breeding  females  (cows and heifers) anticipated for 
1995  (about 36 000 000), some 28 300 000 births of calves are expected 
during that year. Production over the year of male calves would therefore be 
about 14 150 000 head. 

II. Estimated Community requirements for 1995 

1.  On the basis of data collected from the Member states, the number of 
slaughterings of male calves envisaged for 1995 should be about 
4 000 000 head. 

2.  The number of male animals intended for slaughter  (steers, fattened 
young bulls or bulls for breeding) should be about 10 250 000 head. 

3.  In the light of information provided by the Member States and of the 
above, it is expected that in 1995 the requirements of Community 
livestock farmers as regards young male bovine animals for fattening 
will be 10 250 000 head. 

4.*  From the considerations set out in 1. and 3. it follows that the 

Community's overall requirements for male calves will be 14 250 000 head 
in 1995. 

} 

CONCLUSION 

in view of the above estimates and the tariff quota to be applied from 
1 July  1995, a slight Community  shortfall of around  50 000 head may be 
expected during the period  1 January to 30 June 1995. 

However, in order to maintain harmonious trade relations with the non-member 
countries concerned, as in previous years, the number of young male bovine 
animals which may be imported under the estimated  supply balance for the 
period in question should be fixed on the basis of an annual reference level 
of 198 000 head, taking account of the traditional level of imports of young 
bovine animals which the Commission envisages for 1995. The estimate for the 
first half of 1995 will therefore be fixed at 99 000 head. 

Proposal for a Council estimate 

concerning beef and veal intended for the 
processing industry for the period 1 January to 30 June 1995 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, 

Having regard to Council Regulation  (EEC) No 805/68 of 27 June 1968 on the 
common organization of the market in beef and veal*, as last amended by 
Regulation  (EEC) No 1884/942, and in particular Article 14(2) thereof, 

Having regard to the proposal from the Commission, 

HAS ADOPTED THIS ESTIMATE: 

Introduction 

Article 14(2) of Regulation  (EEC) No 805/68 provides that each year, before 
1 December, the Council must draw up an estimate of meat which may be 
imported under the arrangements laid down in that Article. This estimate 
must take account both of the forecast Community supplies of meat of a 
quality and type of cut suitable for industrial use and of industrial need. 
The estimate is to mention separately the quantities: 

(a) intended for the manufacture of preserves which do not contain 

characteristic components other than beef and jelly; 

(b) intended for the processing industry for the manufacture of products 

other than the preserves referred to at (a). 

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

3 

The- annual presentation of the draft estimate is preceded by consultations 
between the Commission  and certain non-member countries. The purpose of 
these meetings is to review the overall situation of the beef market in the 
Community  and the non-member countries, as well as current  forecasts of 
production and consumption  so that a joint analysis can be made of the 
factors which could contribute towards drawing up estimates of Community 
requirements  for frozen beef for processing and so that  information 
concerning the potential export market can be exchanged. 

The Commission  has consulted representatives of Argentina, Uruguay, 
Australia, New Zealand, Hungary, Poland and Romania. 

This estimate concerns only the period  1 January to 30 June  1995, since this 
type of estimate is to be replaced by a tariff quota within the framework of 
the Uruguay Round from 1 July 1995. 

It should be noted that this estimate is likely to be supplemented  in the 
event of an enlargement of the European Union on  1 January  1995. 

I.  Supplies of meat for processing 

According to information supplied to the Commission  by the Member States, 
Community  supplies of home-produced  fresh meat for processing  for 1995 can 
be estimated at 1 230 000 tonnes of bone-in meat. 

At the end of 1994 the Community will hold a public stock of meat as a 
result of intervention buying. The quantity of this meat suitable for 
processing can be estimated at 100 000 tonnes of bone-in meat. 

-7;> 

with  effect  from 1 January 1995 the Community  Intends to open a tariff  quota 
for 53 000 tonnes of boned  frozen meat, which  corresponds  to 68 900 tonnes 
of  bone-In  meat. 

Past experience indicates that, under this quota,  13 000 tonnes of frozen 
bone-in meat will be imported  for processing  in 1995. 

In 1995 the quantity of meat originating  in the ACP states which satisfies 
the requirements  for processing may be estimated at 7 000 tonnes of bone-in 
meat. 

For 1995 the total available supplies intended for processing will thus be 
as follows : 

fresh meat: 
frozen meat bought into intervention 
frozen meat imported under GATT quota: 
frozen meat imported under ACP 
Convention arrangements: 
TOTAL 

(tonnes) 

1 230 000 
100 000 
13 000 

7 000 
1 350 000 

II.  Industrial demand for meat for processing 

According to information supplied to the Commission by the Member states, 
Community demand for meat for processing in 1995 can be estimated at 
1 400 000 tonnes of bone-in meat. 

This figure includes the quantity required for the preparation of preserved 
foods as referred to in Article  14(1)(a) of Regulation  (EEC) No 805/68. This 
latter quantity is estimated at 210 000 tonnes. 

1  0 

CONCLUSION 

It emerges from the foregoing that requirements can only partially be met 
from Community supplies of such meat. 

The foreseeable Community shortfall for 1995 of beef for processing will 
therefore be about 50 000 tonnes. Accordingly, the deficit for the first 
half of 1995 corresponds to 25 000 tonnes. 

It has been decided, in accordance with Article  14(1) of Regulation  (EEC) 
No 805/68, that this quantity should be divided so that: 

12 500 tonnes of meat for the manufacture of preserves which do not 
contain characteristic components other than beef and jelly are eligible 
for total suspension of the levy; 
12 500 tonnes of meat intended  for the processing  industry  tor the 
manufacture of products other than the preserves referred to in the 
first indent are eligible for partial suspension of the levy. 

Done at Brussels, 

For the Council 

/) z 

1. BUDGET HEADING: Article 120  (customs duties) 

APPROPRIATIONS: ECU 13 712 million 

Item 1000  (agricultural  levies) 
Article 210  (refunds) 

ECU 861 million 
ECU 1 452 million 

2. TITLE: Proposal for an estimate concerning young male bovines weighing up to 300 kg and intended for 

fattening  for the period  1 January to 30 June 1995 

3. LEGAL BASIS: Article 13 of Regulation  (EEC) No 805/68 

4. AIMS OF PROJECT: 

To set the Community's  import requirements of young male bovines intended  for fattening at 99 000 head for 
the first half of 1995 

5. FINANCIAL  IMPLICATIONS 

PERIOD OF 6 MONTHS 

CURRENT FINANCIAL 
YEAR 
(1995) 

FOLLOWING  FINANCIAL 
YEAR 
(1996) 

5.0. EXPENDITURE 

- CHARGED TO THE EC BUDGET 

(REFUNDS) 

-  xxxxxxxxxxxxxxxxxxxxxxx 
- xxxxx 

5.1. REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

- xxxxxxxx 

+ ECU 52 million 

+ ECU 52 million 

+ ECU 15.6 million 

+ ECU 15.6 million 

1997 

1998 

1999 

2000 

f>. 0 . 1 . ESTIMATED  EXPENDITURE 
5.1.1. ESTIMATED REVENUE 

Measure restricted to 1995 

5.2. METHOD OF CALCULATION: Given the surplus in the sector, these imports would not take place without that 

concession. 
Levy: 85 000 head X 230 kg X ECU 1 450/t x 25% x 1.207  (DR) 
14 000 head x 230 kg x ECU 1 450/t x 35% x 1.207  (DR) 

= + ECU  8.6 million  (B) 
= + ECU  2  million  (B) 
+ ECU 10.6 million  (B) 
Customs duties: 22 700 t  (live) x 0.55 x ECU 2 500/t  (dead) x 16% = + ECU  5.0 million  (B) 
Refund: An equivalent quantity should be exported: 
99 000 head x 300 kg  (net slaughter weight) x ECU 1 450/t x 1.207  (DR) = + ECU 52 million  (B) 

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? 

' 

' 

yes 

xxx) 

6.2. IS A SUPPLEMENTARY  BUDGET NECESSARY? 

6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

COMMENTS: 
The 1995 APB takes account of this measure. 

F I N A N C I AL 

STATEMENT 

BUDGET HEADING: Article  120  (customs duties) 

APPROPRIATIONS: ECU 13 712 million 

Item 1000  (agricultural  levies) 
Article 210  (refunds) 

ECU 861 million 
ECU 1 452 million 

TITLE: Proposal for a Council estimate concerning  supply and demand for beef and veal in the processing 

industry for the period  1 January to 30 June 1995 

LEGAL BASIS: Article 14 of Regulation  (EEC) No 805/68 

AIMS OF PROJECT: 
To set the Community's  import requirements for frozen beef and veal for the processing  industry at 
25 000 tonnes for the first half of 1995 

FINANCIAL  IMPLICATIONS 

PERIOD OF 6 MONTHS 

CURRENT FINANCIAL 
YEAR 
(1995) 

FOLLOWING  FINANCIAL 
YEAR 
(1996) 

.0. EXPENDITURE 

- CHARGED TO THE EC BUDGET 

(REFUNDS) 

+ ECU 43.8 million 

+ ECU 4 3.8 million 

- xxxxxxxxxxxxxxxxxxxxxxx 
- xxxxx 

. 1. REVENUE 

- OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 

- NATIONAL 

0.1. ESTIMATED  EXPENDITURE 
1.1. ESTIMATED REVENUE 

.2. METHOD OF CALCULATION: 

+ ECU 19.3 million 

+ ECU 19.3 million 

1997 

1998 

1999 

2000 

Measure restricted to 1995 

Levy: - suspension of levy  (scheme  a ):  12 500 t 

- reduction of levy by 55% (scheme b ): 

12 500 t X ECU 2 100/t x 45% x 1.207  (DR) = + ECU 14.3 million  (B) 

Customs duties: 25 000 t x ECU 200/t = + ECU  5 million  (B) 
Refund: An equivalent quantity  should be exported: 
25 000 t x ECU 1 450/t x 1.207  (DR) 

= + ECU 43.8 million  (B) 

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

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

2.  IS A SUPPLEMENTARY  BUDGET NECESSARY? 

3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OMMENTS: 
he  1995  APB  t a k es  a c c o u nt  of  t h is  measure. 

ISSN 0254-1475 

COM(94) 511 final 

DOCUMENTS 

EN 

03 

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ISBN 92-77-82365-5 

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