WRITTEN QUESTION No. 695/97 by Jan MULDER to the Commission. The current crisis in the European veal sector and the need for market-support measures
Date: 1997-03-06
Institutions: European Parliament, MULDER
Subjects: aid system, animal disease, beef, calf, deep-frozen product, private stock













EUR-Lex - 91997E0695 - EN






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91997E0695

WRITTEN QUESTION No. 695/97 by Jan MULDER to the Commission. The current crisis in the European veal sector and the need for market-support measures  


Official Journal C 367 , 04/12/1997 P. 0039 





WRITTEN QUESTION E-0695/97 by Jan Mulder (ELDR) to the Commission (6 March 1997)Subject: The current crisis in the European veal sector and the need for market-support measuresThe veal sector in Europe is of great importance for managing the market in the beef sector. If fewer calves are used in the calf sector, this leads to additional production of beef. The importance of this factor has increased with the BSE crisis.The objective of the early marketing premium which was introduced for beef calves is to use more calves, in the longer term, in the calf sector.However, the short-term effect of this premium is a temporary increase of the supply of veal on the EU market. Consequently, the market price for veal is in a state of free fall and there is a crisis in the European veal sector.1. Is the Commission aware of this temporary crisis, with a shrinking calf sector, and the effect it has on the beef and veal sector resulting?2. How does the Commission intend preventing the situation in the calf sector resulting in a reaction to foreign veal on the part of producers in importing countries, such as the action taken in France in December 1996 in response to veal from the Netherlands?3. Does the Commission endorse the increasing need, for the reasons given above, to support the market for veal in the form of an arrangement for private storage?Answer given by Mr Fischler on behalf of the Commission (21 April 1997)First of all, it should be stressed that the early marketing premium for calves (EMP) was introduced to help rebalance the beef market, seriously disturbed following the appearance of bovine spongiform encephalopathy (BSE), and not as long-term support for calf production. In addition, the measure was planned for two years as from 1 December 1996. Moreover, it cannot be said that there was a sudden influx of calves on the market as a direct consequence of the application of the EMP, because, except in Belgium, it was introduced rather gradually (because of the administrative difficulties in developing any new aid scheme). By the end of February, applications for premiums had covered some 180 000 calves, i.e. about 10% of annual production. In reply to the Honourable Member's three questions:1. While the beef sector has generally recovered, the same cannot be said for the calf sector, which has continued to deteriorate in recent months, particularly in France.2. The Commission deplores any reactions that undermine the single market. It is currently examining the various options for dealing with the problems raised by the Honourable Member.3. The adoption of private storage measures in the current situation does not seem an appropriate way of solving the crisis in the calf sector. Indeed, private storage only postpones the problem, creates products (frozen) for which there is no traditional market and can benefit production in certain Member States in relation to others. Moreover, the experience of private storage gained last year was rather disappointing in terms of both cost and effectiveness.