WRITTEN QUESTION No. 2576/98 by John McCARTIN to the Commission. Pigmeat sector
Date: 1998-09-01
Institutions: European Parliament, MCCARTIN
Subjects: export, increase in production, market, pigmeat, price reduction, third country

C 135/76

Official Journal of the European Communities

EN

14.5.1999

Answer given by Mrs Wulf-Mathies on behalf of the Commission

(24 September 1998)

Direct structural fund support for Ireland is based on the Community support framework 1994-1999,
backed up by a series of Community initiatives for the same period. These sources of finance should
provide a total of ECU 5 900 million, of which ECU 3 250 million had been paid by 31 December 1997.

In addition, Ireland will benefit during this period from a further ECU 250 million being made available
under the Peace and Interreg Community initiatives which it jointly manages with the United Kingdom.
Under these programmes a global contribution of nearly ECU 550 million in Community support was
foreseen, of which ECU 171 million had been paid by 31 December 1997.

Ireland’s share of the Cohesion fund will be between 7 % and 10 % of the total budget allocation over the
period 1993-1999. This share is estimated to be between ECU 1 167 million and ECU 1 668 million. On
31 December 1997, payments totalled ECU 698,5 million.

The Commission recalls that its payments in respect of interventions for the current programming period
may, in general, continue to be made up to the end of 2001.

(1999/C 135/090)

WRITTEN QUESTION E-2576/98

by John McCartin (PPE) to the Commission

(1 September 1998)

Subject: Pigmeat sector

Is the Commission aware of the current disastrous situation in the pigmeat sector and has the Commission
made any proposals which might help to avoid widespread bankruptcies in the industry?

Answer given by Mr Fischler on behalf of the Commission

(16 September 1998)

The Commission is well aware that after two good years of exceptionally high pigmeat market prices,
European pig farmers have considerably increased their production for 1998, which has inevitably been
followed by lower market prices. There was a considerable increase in production already in 1997, which
was blanketed by the removal of a large amount of pigs from the markets due to classical swine fever. The
price drop in a situation of increased production is a typical cyclical phenomenon of pig production. On
the other hand the lower prices will enhance consumption.

The Commission has followed the situation closely and has already reacted by introducing export refunds
for carcasses and bone-in cuts on 14 May 1998. Certain boneless cuts were added to the list of eligible
products for export refunds on 3 August 1998 and an increase to the refund levels was made.

The exports to third countries have developed quite well. Total exports to third countries increased in 1997
to an all time high of 1,07 million tonnes, of which 78 % was possible without export refunds. During last
two years the Community increased pigmeat exports to Eastern Europe and Russia by 25 % and exports to
South East Asia (including Japan) increased by 51 % during the same period. The export figures for the
first quarter of 1998 suggest a further increase of exports.

The Commission is willing to consider further measures to support the market if necessary and possible,
but it can do little about the basic problem of increased production. It is up to farmers to decide whether
they will adapt production and thereby improve the market price.