WRITTEN QUESTION No. 2524/98 by Niels KOFOED , Jan MULDER to the Commission. Low producer prices for pigmeat
Date: 1998-09-01
Institutions: European Parliament, KOFOED, MULDER
Subjects: export refund, market support, pigmeat, price list, producer price, production, single market

C 135/68

Official Journal of the European Communities

EN

14.5.1999

The amount of appropriations awarded to animal protection and nature in 1997 for awareness projects, and
in 1998 for NGOs, is ECU 628 000.

(1) OJ C 25, 24.1.1998.
(2) OJ L 354, 30.12.1997.
(3) OJ C 53, 22.2.1997.

(1999/C 135/079)

WRITTEN QUESTION E-2524/98

by Niels Kofoed (ELDR) and Jan Mulder (ELDR) to the Commission

(1 September 1998)

Subject: Low producer prices for pigmeat

At present European pigmeat prices are at an extremely low level, with heavy losses for the pig producers.
It is expected that this situation will deteriorate further in the coming months. Because of increased
production, this year an additional amount of some 800 000 to 900 000 tons of pigmeat will come onto the
European market. At the same time we are seeing the European pigmeat industry lose important and
traditional markets like southeast Asia and Russia, due to fierce competition from countries like the USA
and Canada. In many cases these exports are only possible because of government support. On the
European market every ton of pigmeat exported means one ton less on the internal market and more
consumption of beef, which costs about ten times more to take off the internal market.

Is the European Commission aware of the effect on the beef market of extra pigmeat coming onto the

1.
European market?

2.
Is the Commission willing to introduce export refunds on pigmeat products, which until last year
were exported in large quantities to important markets like Japan, South Korea, Eastern Europe, etc., in
order to try to prevent a further fall in pigmeat prices and to help the European pigmeat industry to face the
aggressive competition on third country markets?

3. Which other measures could the Commission envisage to prevent a further fall in pig prices to
producers?

Answer given by Mr Fischler on behalf of the Commission

(23 September 1998)

The Commission regularly assesses the links between different meat markets. However, the link

1.
between beef and pigmeat is certainly not as clear-cut as suggested by the Honourable Member.

2.
The Commission has followed the situation closely and 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.

3.
The market organization for pigmeat has only two measures available for supporting the market.
These are export refunds, which are limited by the World trade organisation (WTO) agreement, and aid for
private storage. At present, the Commission is supporting the market by a strengthening of the export
refund policy.

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.