WRITTEN QUESTION E-2729/00 by Christopher Huhne (ELDR) to the Commission. Commodity prices.
Date: 2000-09-01
Institutions: European Parliament, Provisional data
Subjects: farm prices, foodstuff, price increase, world market price

18.4.2001

EN

Official Journal of the European Communities

C 113 E/159

(2001/C 113 E/166)

WRITTEN QUESTION E-2729/00

by Christopher Huhne (ELDR) to the Commission

(1 September 2000)

Subject: Commodity prices

Will the Commission indicate the average rise in world commodity prices (taking as a basis the five most
significant commodities produced in the EU) if there were to be a gradual alignment of EU farm prices
with world market prices?

Answer given by Mr Fischler on behalf of the Commission

(5 October 2000)

The gradual alignment of Community farm prices with world prices and its impact on world market prices
were a long-debated issue in the 1980(cid:146)s, when the gap between Community internal agricultural prices and
world market prices was relatively high for several products. At that time, several analyses were published
showing that, in general, the effect of a unilateral alignment of Community prices on world market prices,
other things being equal, would generate a significant fall in the Community agricultural production and a
sharp increase in world market price levels. The implementation of a series of reforms by the Community
during the 1990(cid:146)s, implying a strong fall in the Community support prices for several products (cereals,
beef and dairy products) has considerably reduced this gap and will continue to reduce it over the next few
years.

An estimation of the impact on world market prices of the alignment of Community internal agricultural
prices towards world market prices would necessitate the use of a complex modelling framework covering
a whole range of aspects (including supply and demand as well as domestic and trade policy instruments
for the key producing and trading regions). At present, this framework is not available within the
Commission.

(2001/C 113 E/167)

WRITTEN QUESTION E-2730/00

by Christopher Huhne (ELDR) to the Commission

(1 September 2000)

Subject: Commodity prices

What is the Commission(cid:146)s estimate of the percentage difference between the prices of the five most
significant farm products within the EU at the end of each year for the last five years and the prices for the
same commodities quoted on world markets?

Please indicate the price in euros per unit for each farm product, plus the percentage difference, and also
indicate an average percentage difference based on the weights of the production of each product in the
total.

Answer given by Mr Fischler on behalf of the Commission

(11 October 2000)

Comparing internal prices and world market prices is very difficult owing to methodological
issues
(notably the evaluation of the most appropriate reference border price). Therefore results from such an
exercise should be considered with great caution. The table below gives an estimate of the average annual
percentage difference between Community internal prices and the equivalent world market prices. This
estimate is derived from producer and reference border prices extracted from the Organisation for