Commission Regulation (EC) No 690/2001 of 3 April 2001 on special market support measures in the beef sector
Date: 2001-04-03
Institutions: European Commission
Subjects: award of contract, beef, carcase, health legislation, market support, purchase price

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COMMISSION REGULATION (EC) No 690/2001

of 3 April 2001

on special market support measures in the beef sector

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to the Council Regulation (EC) No 1254/1999
of 17 May 1999 on the common organisation of the market in
beef and veal (1), and in particular Article 38(2),

Whereas:

(1)

(2)

(3)

The Community beef market is currently going through
a deep crisis due to a lack of consumer confidence in
beef created by the appearance of new cases of bovine
spongiform encephalopathy (BSE). Consumption as well
as production have recently fallen to unprecedented
levels followed by substantial reduction of producer
prices. It is estimated that the crisis is likely to continue
still for some time. Article 38(1) of Regulation (EC) No
1254/1999 provides that when a substantial rise or fall
in prices is recorded on the Community market and this
thereby disturbing or
situation is likely to continue,
threatening to disturb the market, the necessary meas-
ures may be taken.

Such a measure was taken by Commission Regulation
(EC) No 2777/2000 of 18 December 2000 adopting
exceptional support measures for the beef market (2), as
amended by Regulation (EC) No 111/2001 (3), which
provides for a purchase scheme for destruction of
animals aged more than 30 months and primarily
animals which at slaughter are not tested for BSE.

Regulation (EC) No 2777/2000 is applicable until 30
June 2001 at the latest. Commission Decision 2000/
764/EC of 29 November 2000 on the testing of bovine
animals for the presence of bovine spongiform ence-
phalopathy and amending Decision 98/272/EC on the
epidemio-surveillance
sprongiform
encephalopathies (4) provides that Member States shall
ensure that all bovine animals over 30 months of age
subject to normal slaughter for human consumption are

transmissible

for

(1) OJ L 160, 26.6.1999, p. 21.
(2) OJ L 321, 19.12.2000, p. 47.
(3) OJ L 19, 20.1.2001, p. 11.
(4) OJ L 305, 6.12.2000, p. 35.

(4)

(5)

(6)

(7)

examined by one of the approved rapid tests listed in
Annex IV(A) to Commission Decision 98/272/EC of 23
April 1998 on epidemio-surveillance for transmissible
spongiform encephalopathies and amending Decision
94/474/EC (5), as last amended by Decision 2000/764/
EC, as of 1 July 2001 at the latest.

In the light of the foregoing, it is appropriate to provide
for a new special purchase scheme for meat from tested
animals which would allow Member States to store meat
as an alternative to destruction as of 1 July 2001 at the
latest but which would be applicable earlier in Member
States which wish to apply it before that date or in
Member States which are authorised to cease to apply
Regulation (EC) No 2777/2000.

In view of the extent of the BSE crisis and in particular
of its probable duration, and consequently of the magni-
tude of the efforts needed to support the market,
it
would be appropriate for such efforts to be shared
between the Community and the Member States espe-
cially in view of the large number of animals expected to
be purchased under the scheme as well as the limited
nature of
for
Community financing.

the budgetary

resources

available

This Regulation need not apply in the United Kingdom
since Commission Regulation (EC) No 716/96 of 19
April 1996 adopting exceptional support measures for
in the United Kingdom (6), as last
the beef market
amended by Regulation (EC) No 1176/2000 (7), already
provides for a special scheme in that Member State with
regard to animals over 30 months of age.

amending Decision

Dispatches of meat
from the United Kingdom and
Portugal continue to be subject to Council Decision
98/256/EC of 16 March 1998 concerning emergency
measures to protect against bovine spongiform ence-
and
phalopathy,
repealing Decision 96/239/EC (8), as last amended by
Commission Decision 98/692/EC (9), in the case of the
United Kingdom, and to Commission Decision 98/653/
EC of 18 November 1998 concerning emergency meas-
ures made necessary by the occurrence of bovine spon-
giform encephalopathology in Portugal (10), as
last
amended by Decision 2000/104/EC (11).

94/474/EC

(8)

To guarantee a proper functioning of the scheme it is
essential
speculative movements of meat and
animals are avoided. In this context, a retention period
for the animals concerned should be determined.

that

(5) OJ L 122, 24.4.1998, p. 59.
(6) OJ L 99, 20.4.1996, p. 14.
(7) OJ L 131, 1.6.2000, p. 37.
(8) OJ L 113, 15.4.1998, p. 32.
(9) OJ L 328, 4.12.1998, p. 28.
(10) OJ L 311, 20.11.1998, p. 23.
(11) OJ L 29, 4.2.2000, p. 36.

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(9)

(10)

(11)

(12)

Products bought in might be sold after 1 January 2002,
when the system of compulsory labelling based on
origin laid down by Regulation (EC) No 1760/2000 of
the European Parliament and of the Council of 17 July
2000 establishing a system for the identification and
registration of bovine animals and regarding the label-
ling of beef and beef products and repealing Council
Regulation (EC) No 820/97 (1), will apply. The labels of
the products should therefore be required to include an
indication of
the country or countries of birth and
fattening of the animals concerned, in accordance with
Article 13(5) of Regulation (EC) No 1760/2000,
together with the indications laid down in Article 2(2) of
Commission Regulation (EC) No 1825/2000 (2) laying
down detailed rules for the application of Regulation
(EC) No 1760/2000, as appropriate.

In order to obtain the best result
in terms of cost
efficiency, purchases should be limited to categories of
animals over 30 months securing the withdrawal from
the market at the lowest possible costs. For the same
reason and with a view to increasing the necessary flexi-
the scheme, purchases
bility of
should be decided following a tendering procedure.

the management of

The market prices for the categories eligible under the
scheme and in particular the prices for cows which is
the most representative category differ largely from
Member State to Member State. It is thus appropriate to
determine whether in a Member State the market situa-
tion for cows is so weak that it justifies exceptional
support of the market. To this end, a system of national
trigger prices should apply. Such trigger prices should be
by taking into account the average market prices for a
representative quality in the three most recent years with
normal market situation.

In order to ensure the highest possible impact on the
market it should be provided that different maximum
tender prices are fixed per Member State being eligible
for purchases in application of the trigger price system.
In fixing the maximum price account should be taken of
an amount corresponding to the net costs created by the
slaughter for human consumption. No maximum price
should be fixed which exceeds the prevailing market
price increased by the abovementioned amount.

(13)

Provisions should be laid down in respect of conditions
of delivery and payment of the quantity awarded. It is
appropriate within certain limits to adjust the payments
to the successful tenderer where his actual deliveries of
meat differ from the reference quality subject of the
tender.

(14) Member States should be free to decide whether the
meat taken over should be stored or destroyed. In the
latter case, Member States should take all necessary
measures to guarantee the final destination for all the

meat concerned. Where the meat is intended for storage
Member States should determine appropriate methods of
storage.

In order to avoid market disturbance placing on the
market of the products stored should be subject to prior
approval
from the Commission acting in accordance
with the Management Committee procedure. Where
products are released for purposes of humanitarian aid
compliance with international agreements should be
guaranteed.

Taking into consideration the costs under the scheme to
be financed by national authorities it is appropriate to
provide that receipts from sales of products stored
should belong to Member States.

Provision should be made for Commission experts to
check compliance with the conditions as specified.

The Management Committee for Beef and Veal has not
delivered an opinion within the time limit set by its
Chairman,

(15)

(16)

(17)

(18)

HAS ADOPTED THIS REGULATION:

Article 1

1. Member States shall purchase chilled carcasses or half
carcasses from bovine animals over 30 months of age of the
following categories as defined in Article 3(1) of Council Regu-
lation (EEC) No 1208/81 (3):

— Category B,

— Category D, and

— Category E.

Chilled carcasses and half carcasses may be bought in

2.
only where they:

— come from animals which at slaughter have been tested
negatively by one of the approved rapid tests listed in
Annex IV to Decision 98/272/EC,

— have obtained the health mark referred to in Chapter XI of

Annex I to Council Directive 64/433/EEC (4),

— come from animals which have been present on one or
several holdings located in the Member State concerned
during at least 6 months prior to slaughter,

— come from animals slaughtered not more than six days

previously,

— are presented in accordance with Article 2 of Regulation
(EEC) No 1208/81. Where appropriate, Article 1(2) and (3)
of Commission Regulation (EEC) No 563/82 (5) shall apply
when determining the weight of
the carcasse. Member
States may lay down further specific conditions with regard
to presentations of carcasses,

(1) OJ L 204, 11.8.2000, p. 1.
(2) OJ L 216, 26.8.2000, p. 8.

(3) OJ L 123, 7.5.1981, p. 3.
(4) OJ 121, 29.7.1964, p. 2012/64.
(5) OJ L 67, 11.3.1982, p. 23.

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— are classified correctly in accordance with the Community
scale provided for in Regulation (EEC) No 1208/81,
— are identified by slaughter number and by a stamped
marking indicating the category and the conformation,
— are labelled in accordance with the system introduced by
Regulation (EC) No 1760/2000 including the indications
laid down in Article 13(5) of that Regulation.

Article 2

The purchase price for chilled carcasses to be bought in a
this Regulation shall be determined

1.
Member State under
following a tender procedure.

2.
Tendering shall be opened in a Member State which for
two consecutive weeks have recorded the average market price
for the reference class of category D equal to or below the
trigger price listed in Annex I in respect of the Member State
concerned.

Tendering shall be suspended in a Member State which for two
consecutive weeks have recorded the average market price for
the reference class of category D above the trigger price listed
in Annex I in respect of the Member State concerned.

The Commission shall decide on the opening and the suspen-
sion referred to above.

The reference class shall be 04 in Ireland and 03 in other

3.
Member States.

4.

The conditions for tendering are laid down in Annex II.

5.
The provisions of this Regulation shall serve as a perma-
nent general notice of invitation to tender. For each individual
tender, the intervention agencies concerned shall draw up a
notice of invitation to tender for publication no later than
Friday before the closing date for submission of tenders, indi-
cating in particular the address of the competent body author-
ised to receive tenders. The deadline for submission of tenders
shall be 12 noon (Brussels time) on the dates indicated in
Annex III.

Within 24 hours of the deadline for the submission of tenders,
the intervention agencies shall notify the Commission of the
tenders they have received.

Article 3

In the light of the tenders received under each individual
1.
invitation to tender and in accordance with the procedure laid
down in Article 43 of Regulation (EC) No 1254/1999 a
maximum buying-in price relating to the reference class shall
be fixed. A different price may be set per Member State.

The maximum price shall not exceed the trigger price plus
EUR 14 per 100 kg carcasse weight.

2.

Tenders shall be rejected

— if the price quoted is higher than the prevailing price for
the reference class of category D plus EUR 14 per 100 kg
carcasse weight,

— if the price quoted is higher than the maximum price

referred to in paragraph 1.

3.

A decision may be taken to make no award.

Rights and obligations arising under invitations to tender

4.
shall not be transferable.

Article 4

The competent authorities shall

1.
tenderers immediately of the outcome of their tenders.

inform the individual

At the same time the successful tenderers shall be informed of
the quantity to be delivered and the price at which the award
was made.

2.
Delivery of the quantity awarded shall take place within
17 calendar days from the day of publication of the Regulation
fixing the maximum buying-in price. The Member State may in
exceptional cases extend that period by a maximum of one
week.

Taking into account the provisions of paragraph 3 the Member
State shall determine the point of take-over and publish it in
the notice of invitation to tender referred to in Article 2(5).

3.
Carcasses delivered shall be accepted and taken over
subject to verification by the competent authority that they
comply with the requirements laid down in this Regulation.
The competent authority shall furthermore systematically check
and record the weight and classification of each carcasse and
keep the records produced.

If the quantity actually delivered and accepted is less than

4.
the quantity awarded, the security shall:

(a) be released in full where the difference is not more than

5 %;

(b) except in cases of force majeure, be forfeited;

— in part, corresponding to the quantities not delivered or
not accepted where the difference is not more than
15 %,
— in full

in other cases.

Article 5

The competent authority shall pay successful tenderers
1.
the price quoted in their tenders no later than 65 days after
completion of take-over of the products concerned.

Only the quantity actually delivered and accepted shall be

2.
paid for within the limit of the quantity awarded.

3. Where carcasses of classification classes other than O are
taken over, the price to be paid to the successful tenderer for
the carcasses concerned shall be adjusted by applying the coef-
ficients fixed in Annex IV.

4.
The rate to be applied to the maximum buying-in price
and the price at which the award is made shall be the exchange
rate applicable on the day of entry into force of the Regulation
fixing the maximum buying-in price under the invitation to
tender concerned.

The Community shall finance 70 % of the price of the

5.
meat purchased under this Regulation.

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The Member State concerned shall finance the remaining 30 %
as well as all costs related to the operations under Articles 6, 7,
8 and 9.

2. Member States shall take all necessary measures to ensure
that
three indents of
the products released under the last
paragraph 1 are used for the purpose intended.

Article 6

After taking over the meat the competent authority may use
the products concerned in conformity with Article 9 or elimi-
nate them in accordance with Article 7, with or without prior
storage.

Article 7

Where the option of elimination is applied the competent
authority shall take all necessary measures to ensure that all the
meat concerned is processed through rendering and that the
products subsequently obtained cannot be used for food or
feed purposes.

3.
Release of the products under the first three indents of
paragraph 1, shall be made in a way which avoids both distur-
bance of the market and direct competition with disposal of
intervention products.

Release of the products under paragraph 1 can only be
4.
made upon prior approval from the Commission acting in
accordance with the procedure laid down in Article 43 of
Regulation (EC) No 1254/1999.

5. Where a Member State intends to release stored products
with a view to providing humanitarian aid to a third country it
shall ensure that all relevant provisions under international
agreements are complied with.

Article 8

Article 10

1. Where a Member State decides to store the meat it may
be stored in bone-in or boneless form or in form of canned
products. The Member State concerned shall determine specifi-
cations related to cutting, deboning, canning, storage and/or
any other operations linked to the products and their storage.

2. Member States shall notify to the Commission at the end
of each month, in respect of the preceding month, the quant-
ities and characteristics of the stored products.

3.
During storage, the competent authority shall conduct
regular checks in particular with a view to ensuring the perma-
nent presence in stocks of the products.

Article 9

1. Where meat is intended to be used for purposes other
than under Article 7,

it may be released:

— without a specific destination or use,
— with a specific destination or use on the Community

market,

— for commercial export, or
— for the purpose of a specific humanitarian aid operation in

a third country.

Proceeds from sales of products in conformity with this Regu-
lation shall belong to the Member State concerned.

Article 11

Without prejudice of Article 9 of Council Regulation (EC) No
1258/1999 (1), Commission experts
accompanied where
appropriate by experts from Member States may carry out
on-the-spot checks to verify compliance with all the provisions
of this Regulation.

Article 12

This Regulation shall enter
into force on the third day
following its publication in the Official Journal of the European
Communities.

It shall apply in all Member States except the United Kingdom
from 1 July 2001 until 31 December 2001. However, from the
entry into force of this Regulation:

— it shall apply in Member States which no longer apply
Regulation (EC) No 2777/2000 in application of Article
3(4) of that Regulation,

Where the meat is used in accordance with the third or fourth
indent above no export refunds shall be granted on the quant-
ities concerned.

— it may be applied in other Member States which shall
inform the Commission if and from which time they wish
to apply it.

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

Done at Brussels, 3 April 2001.

For the Commission

Franz FISCHLER

Member of the Commission

(1) OJ L 160, 26.6.1999, p. 103.

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ANNEX I

Trigger prices referred to in Article 2(2)

Until 30 June 2001

1 July to 31 December 2001

(EUR/100 kg carcasse weight)

180,0

178,2

177,7

158,0

158,0

218,3

193,3

158,0

188,2

185,2

161,5

158,0

169,4

205,7

167,3

165,6

165,2

146,9

146,9

202,9

179,6

146,9

174,9

172,1

150,1

146,9

157,4

191,1

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

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ANNEX II

Tendering conditions

Tenders

1. Only the following may submit tenders:

(a) slaughterhouses for bovine animals approved in accordance with Article 3(1)(A)(a) of Directive 64/433/EEC,

whatever their legal status; and

(b) livestock or meat traders who have slaughtering undertaken therein on their own account and who are entered in a

national VAT register.

2. In response to invitations to tender, interested parties shall submit their tenders to the competent authorities of the
Member States where they have been issued, either by lodging a written bid against a receipt or by any other written
means of communication accepted by the said authority, with advice of receipt.

3. Interested parties may submit only one tender in response to each invitation to tender.

The Member States shall ensure that tenderers are independent of each other in the terms of their management,
staffing and operations.

Where there are serious indications to the contrary or that tenders are not in line with economic facts, tenders shall be
deemed admissible only where the tenderer presents suitable evidence of compliance with the second subparagraph.

Where it is established that a tenderer has submitted more than one tender, all the tenders from that tenderer shall be
deemed inadmissible.

4. Tenders shall state:

(a) the name and address of the tenderer;

(b) one total quantity, expressed in tonnes, of the products of the eligible categories;

(c)

the price expressed per 100 kg of products of the reference class of category D in euro rounded off to not more
than two decimal places.

5. Tenders shall be valid only if:

(a) they relate to at least 10 tonnes;

(b) they are accompanied by a written undertaking from the tenderer to comply with all the provisions relating to the

invitation to tender concerned; and

(c) proof is furnished that by the closing date for the submission of tenders the tenderer has lodged a tendering

security as provided for below in respect of the invitation to tender concerned.

6. Tenders may not be withdrawn after the expiry of the deadline for submission.

7. Tenders shall be confidential.

Securities

1. The maintenance of tenders after the deadline for the submission of tenders and the delivery of the products at the
designated point of take-over within the time limit laid down in Article 4(2) shall constitute primary requirements, the
fulfilment of which shall be ensured by the lodging of a security of EUR 25 per 100 kg.

Securities shall be lodged with the competent authority in the Member State in which the tender is submitted.

2. Securities shall be lodged in the form of cash deposits as defined in Article 13 and Article 14(1) and (3) of Commission

Regulation (EEC) No 2220/85 (1) or in one of the forms provided for in Article 8(2) of that Regulation.

3. In the case of tenders which are not accepted, securities shall be released as soon as the outcome of the invitation to

tender is published.

In the case of tenders which are accepted, securities shall be released on completion of take-over of the products,
without prejudice to Article 4(4).

(1) OJ L 205, 3.8.1985, p. 5.

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ANNEX III

Dates referred to in Article 2(5)

17 April 2001

30 April 2001

14 May 2001

28 May 2001

11 June 2001

25 June 2001

9 July 2001

23 July 2001

27 August 2001

10 September 2001

24 September 2001

8 October 2001

22 October 2001

12 November 2001

26 November 2001

10 December 2001

ANNEX IV

Coefficients referred to in Article 5(3)

Classification class

S E U R

1,13 (1)

1,24

1,12

1,15

1,27

1,22

1,07

1,17

1,20 (1)

1,07

1,09

1,17

1,15

1,09

O

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

1,00

P

0,74

0,78

0,74

0,98

0,67

0,88

0,91

0,89

0,83

0,92

0,87

0,83

0,84

0,76

Belgium

Denmark

Germany

Greece

Spain

France

Ireland

Italy

Luxembourg

Netherlands

Austria

Portugal

Finland

Sweden

(1) Where carcasses delivered are classified as S or E the coefficient shall be 1,65.