Proposal for a COUNCIL REGULATION (EC) on measures to promote and market quality beef and veal and on publicity measures on the labelling of beef and veal and repealing Regulation (EEC) NO 2067/92
Date: 1997-03-19
Institutions: European Commission
Subjects: beef, consumer information, labelling, marketing, sales promotion

COMMISSION OF THE EUROPEAN  COMMUNITIES 

Brussels,  19.03.1997 
COM(97) 70 final 

97/0058 (CNS) 

Proposal  for  a 

COUNCIL  REGULATION  (EC) 

on measures to promote and market quality beef and veal and on publicity measures 
on the labelling of beef and veal and repealing Regulation (EEC) N<T2067/92 

(presented  by the  Commission) 

EXPLANATORY MEMORANDUM 

1. 

2. 

The decline in  the consumption  of  beef  and  veal,  which  has  drastically  worsened 
owing to the BSE crisis, has created extremely difficult  market conditions. 

It is becoming more and more evident that clearly marked quality beef and veal can 
win the consumer's confidence. 

Furthermore,  it  has  also  been  found  during  this  crisis  that  a  lack  of  information 
regarding the origin of products has increased the uncertainty felt by the consumer. 

This leads to the following conclusions: 

only  publicity  campaigns  for  quality  beef  and  veal  of  proven  origin  can 
increase consumer confidence, 
under  certain  conditions,  it  must  be  allowed  to  refer  to  the  special 
characteristics and origin of beef and veal. 

3. 

The promotional  and  publicity  campaigns  part-financed  so  far  by  the  Community 
have been carried out by trade and inter-trade organizations. It has been shown that 
the organizations which have worked together at European level and consulted each 
other on a continual basis have been most effective  in coping with the crisis. 

This  means  that  when  adopting  programmes  submitted  by  trade  and  inter-trade 
organizations,  account  should  be  taken  of  the  quality  programmes  already 
recognized  by consumers in certain  Member States,  so that the content of publicity 
programmes can be improved and their effectiveness  increased. 

4. 

Since  new  labelling  rules  for  beef  and  veal  have  been  introduced  by  Regulation 
(EC) No ...,  consumers should be informed  of the guarantees these rules bring. 

Use  of  the  labelling  system  is  currently  voluntary.  In  order  to  accelerate  its 
universal  adoption,  special  publicity  measures  should  be  implemented  to  inform 
consumers about it. 

5. 

Balance on  the Community  market  for  beef  and  veal depends  to a  great extent on 
foreign  markets.  Given  the  current  crisis,  third  country  buyers  and  consumers 
should be made aware of the measures taken in order to restore and strengthen their 
confidence  so  that  specially  labelled  quality  beef  and  veal  can  be  produced  and 
exported. 

This could be done in a number of ways, for example by means of: 

high-level official  visits with the participation of members of the trade, 
participation of exporter Member States at events, fairs and exhibitions with 
"European" stands. 

O 

6. 

In view  of  the  above  and  the important  role  of  the trade organizations  concerned, 
their  efforts  must  continue  to  receive  financial  assistance.  Given  the  size  of  the 
budget available,  priority  should be given  to  supporting  activities  in  third  countries 
and the Community financial contribution increased. 

Furthermore,  technical  assistance is required to ensure that the planned  measures 

are as effective as possible. 

O 

Draft proposal  for 

COUNCIL REGULATION (EC)  No 

of 

on  measures  to promote and market quality  beef  and veal  and on publicity  measures on 

the labelling  of  beef and veal  and repealing  Regulation  (EEC)  No  2067/92 

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 Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas Council Regulation (EEC) No 2067/92 of 30 June  19923 allows the Community to 

part-finance  specific  measures  undertaken  by  trade  and  inter-trade  organizations  to 

encourage the consumption and marketing of quality beef and veal;  whereas,  in the light of 

experience and in order better to deal with the market problems arising from the BSE crisis, 

changes should be made to the current promotional  scheme; 

Whereas  Article  1 of  Regulation  (EEC)  No 2067/92  lays  down  that promotional  measures 

providing  for  the  control  of  meat  quality  throughout  the  chain  of  production,  from  the 

producer  to  the  consumer,  may  be  given  priority  and  qualify  for  a  higher  Community 

1 OJ No  C 

2  OJ No  C 

3  OJ No L 215,  30.7.1992,  p.  57. 

O 

contribution;  whereas  most  of  the  programmes  submitted  so  far  by  trade  and  inter-trade 

organizations provide for such control; whereas this is what is required  to restore consumer 

confidence;  whereas,  therefore,  Community  financing  should  be  reserved  for  those 

programmes; 

Whereas  Council  Regulation  (EC)  No  ...V964  established  a  new  Community  labelling 

system  for  beef  and  veal  intended  to  provide  the  consumer  with  additional  guarantees; 

whereas consumers should be informed about the new  system by  means of  special  measures 

financed  by the Community; 

Whereas  national  programmes  to  promote  identified  beef  and  veal  exist  alongside  the 

Community programmes in a number of Member States; whereas provision  should be made 

to take account of  such programmes so as to ensure the necessary coordination; 

Whereas  consumer  reaction  to  the  crisis  has  shown  that  consumers  invariably  prefer 

products  whose  origin  is  indicated;  whereas an approval  procedure  should be  laid  down  to 

permit  the  identification  of  the  origin  of  products  under  certain  conditions  preventing 

infringement of Article 30 of the Treaty; 

Whereas  balance  on  the  Community  market  also  depends  on  the  demand  on  foreign 

markets;  whereas,  in  order  to  restore  consumer  confidence  on  those  markets,  the  means 

should  be  provided  to  implement  suitable  publicity  measures  in  third-country  markets;  in 

order to achieve this objective,  the Community financial contribution should be increased; 

Whereas,  in order to ensure that the measures are as effective  as possible,  the  Commission 

should be able to call for technical assistance in the areas concerned; 

Whereas,  given  the extent of  the changes envisaged,  Regulation  (EEC)  No 2067/92  should 

be repealed and replaced by this Regulation, 

4O J N oL 

O 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  Community  may  part-finance  measures  undertaken  by  trade  and 

inter-trade 

organizations to promote quality Community beef and veal identified as such. 

As  soon  as  the  Community  labelling  system  is  put  in place,  the  Community  may  finance 

publicity  measures  intended  to  inform  the  consumer  of  the  guarantees  offered  by  this 

system. 

Article 2 

Part-financed  measures  referred  to  in  Article  1  first  sub-paragraph  shall  provide  for  the 

control  of  meat  quality  throughout  the  chain  of  production,  from  the  producer  to  the 

consumer. 

Account  shall  be  taken  of  existing  measures  in  the  Member  States  to  promote  identified 

beef and veal when programmes part-financed  by the Community are adopted. 

Promotional  and  marketing  measures  must  not be  biased  in  favour  of  any  trade  mark nor 

confer advantage on products from a particular Member State. 

Article 3 

The  use  of  logos  or  symbols  identifying  the  origin  of  products  in  accordance  with 

Regulation  (EC)  No  .../96  on  the  labelling  of  beef  and  veal  and  beef  products  may  be 

authorized  in accordance with the terms and the procedure  to be  laid  down  in  the detailed 

rules for the application of this Regulation. 

Article 4 

The  Community  may  finance  suitable  measures  to  publicize  the  qualities  of  Community 

beef and veal in third countries. 

Article 5 

The  Community  financial  contribution  to  the  measures  referred  to  in  Article  1  may  not 

exceed  60%  of  their  actual  cost.  However,  for  the  actions  under  Article  4,  this financial 

contribution may be increased up to 80% of their actual cost. 

Article 6 

For the application of  Articles  1, 3 and 4,  and particularly as regards the choice of  strategic 

means,  assessment  and monitoring,  the Commission  may  ask for  technical  assistance  from 

publicity experts with a thorough knowledge of the beef and veal  sector. 

O 

Article 7 

Expenditure relating to the Community  financial  contribution referred to in Articles  1 and 4 

and  the  financing  of  the  measures  referred  to  in  Article 3  and  the  technical  assistance 

referred  to  in  Article  6  shall  be  considered  to  be  intervention  within  the  meaning  of 

Article 3(1) of Regulation (EEC) No 729/70. 

Article 8 

Detailed  rules  for  the  application  of  this  Regulation,  and  in  particular  those  defining  the 

promotion  and publicity  measures,  shall  be  adopted  in  accordance  with  the  procedure  laid 

down in Article 27 of Regulation (EEC) No  805/68. 

Article 9 

Regulation (EEC) No 2067/92 is hereby repealed. 

It shall,  however,  continue to apply to applications for a Community contribution  submitted 

under that Regulation prior to the entry into force of this Regulation. 

Article  10 

This  Regulation  shall  enter  into  force  on  the  seventh  day  following  its  publication  in  the 

Official Journal of the European Communities. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

For the Council 

O 

LEGISLATIVE FINANCIAL STATEMENT 

1.  TITLE OF OPERATION 

Measures  to  promote  quality  beef  and  veal  and  information  measures  on  the 
labelling of beef and veal. 

2.  BUDGET HEADING INVOLVED 

B l - 38 

3.  LEGAL BASIS 

Article 43 of the Treaty 

4.  DESCRIPTION OF OPERATION 

4.1  General objective 

To  indicate  to  the  consumer  the  beef  and  veal  whose  characteristics  have 
been identified  and checked in order to maintain consumption at a good level 
and  obtain  better  prices  for  meat  produced  under  stricter  rules  than  the 
ordinary ones. 

Continuation  of  measures  adopted  since  1993  under  Regulation  (EEC) 
Nol318/93. 

To inform consumers on the new labelling arrangements for beef and veal. 

4.2 

Period covered and arrangements for renewal or extension 

Permanent operation: annual programme. 

5.  CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 

Compulsory 

5.2 

Non-differentiated  appropriations 

5.3 

Type of revenue involved 

6.  TYPE OF EXPENDITURE OR REVENUE 

-  100% subsidy: information on new labelling arrangements. Technical assistance 

i 

-  Subsidy for part-financing with other public or private sector sources 

-  60% part-financing  for promotion within the EC 

-  80% part-financing  for promotion in third countries. 

7.  FINANCIAL IMPACT 

7.1  Method  of calculating  cost of operation  (connection  between  individual 

costs and total cost) 

Budget  broken  down  by  item  according  to  the  eligibility  criteria  of  the 
standard contract 

7.2 

Itemized breakdown of cost 

Breakdown 

- Promotion in EC 
- Promotion in third countries 
- Labelling information 
- Assistance 

Year 
n 

24 
2 
6 
0,1 

Total 

12 + 20 (reserve) 

Year 
n +1 

11 
4 
7 
0,1 

22 

8.  FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 

Indirect management 

-  quarterly checks of the competent bodies provided for in the standard contracts 

- 

lodging of an advance security (110%) and an implementation guarantee (15%) 

-  where necessary, on-the-spot auditing of accounts by Commission  staff. 

9.  ELEMENTS OF COST-EFFECTIVENESS  ANALYSIS 

9.1 

Specific and quantifiable objectives; target population 

-  The  objective  is  to  achieve  a  situation  in  which  500 000  tonnes  of 
beef/veal  (i.e. about  10% of consumption)  comply  with the requirements 
specified  in the Annex to Regulation (EC) No 1318/93. 
The 
those 
requirements  and  subjected  to  additional  controls  in  comparison  with 
other meats was approximately  150 000 tonnes in 1995. 

level  of  consumption  of  meat 

identified  as  meeting 

The  promotion  measures  are  targeted  at  all  consumers  and  are based  in 
particular  on  advertising,  point-of-sale  promotion  and  participation  in 
trade fairs and similar events. 

s 

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-  The  second  component  is  intended  to  inform  present  and  potential 

consumers of beef and veal about the new labelling arrangements. 

-  Furthermore, given the importance of demand on certain external markets 
for maintaining the balance of the Community market, it is appropriate to 
provide  funding  for  promoting  quality  beef  and  veal  on  the  markets  of 
certain third countries. 

Finally,  a  specific  action  is  to  be  carried  out  on  the  subject  of  the  new 
meat-labelling  system  as  soon  the  Council  has  adopted  the  proposal  on 
this subject. 

9.2  Grounds for the operation 

The  products  can  only  be moved  upmarket  if a sufficient  proportion  of the 
sector organizes for this purpose. The Community  financial  contribution has 
been decisive in several countries in enabling measures to promote  identified 
quality  meat  to  start  up. The compulsory  external  independent  checks have 
proved to be the main condition of the success of the programme. 

It seems necessary to step up the operation as regards information  in order to 
reassure  the  public  which  is  very  concerned  about  the  issue  of  BSE  and 
which  has  reduced  its  consumption  of  beef  and  veal  in  general.  The 
promotional operation should stress the tracability of the meat from producer 
to consumer, which enables the products to be  identified. 

Given  the  importance  of  certain  external  outlets,  external  promotional 
measures should be launched on those markets. 

In  the  crisis  situation  provoked  by  BSE,  it  is  also  necessary  to  inform 
consumers  about  the  meaning  and  advantages  of  the  new  meat  labelling 
arrangements. 

9.3  Monitoring and evaluation of the operation 

The two performance  indicators of the measure are as follows: 

(1) 

the  proportion  of  the  market  for  meat  thus  checked  and  identified, 
obtained by comparing the consumption volumes checked; 

(2) 

development of the image of beef and veal with consumers. 

Available  assessment  reports  show that  sales of quality  meat  are  increasing 
and also show the need for a long-term operation to restore the image of beef 
and  veal  and  achieve  the  abovementioned  objectives.  Following  the  BSE 
crisis,  high-quality  meat  has  been  identified  as  the  segment  of  the  meat 
market  which  has  best  resisted  the  general  fall  in  consumption.  In  several 
countries consumption of this meat has not fallen. 

The  need  to  continue  this  operation  is  evident  in  the  light  of  the  current 
situation. 

4> 

10.  ADMINISTRATIVE  EXPENDITURE  (PART  A,  SECTION  III  OF  THE 

GENERAL BUDGET) 

This section must be sent simultaneously to DG XIX and DGIX; the latter will then 
forward  it to DG XIX with its opinion. 

The  effective  mobilization  of  the  necessary  administrative  resources  will  be  the 
result  of  the  annual  Commission  decision  on  the  allocation  of  resources  with 
particular  account  taken  of  the  staff  and  additional  amounts  allocated  by  the 
budgetary authority. 

Types of employment 

Staff to be allocated to administration of the 
operation 

Officials  or 
temporary agents 

A 
B 
C 

Other resources 

Total 

* Seconded national experts 

Permanent 

Temporary 

1 A 
IB 

1 SNE* 

1  A + 1B 

1SNE 

Indicate  the  timing  of  the  provision  of  any  additional  resources  which  would  be 
necessary. 

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ISSN 0254-1475 

COM(97) 70 final 

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ISBN 92-78-16181-0 

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