Council Regulation (EC) No 1512/2001 of 23 July 2001 amending Regulation (EC) No 1254/1999 on the common organisation of the market in beef and veal
Date: 2001-07-23
Institutions: Council of the European Union
Subjects: agricultural guidance, beef, common organisation of markets, production quota

26.7.2001

EN

Official Journal of the European Communities

L 201/1

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 1512/2001

of 23 July 2001

amending Regulation (EC) No 1254/1999 on the common organisation of the market in beef and
veal

THE COUNCIL OF THE EUROPEAN UNION,

should be possible for steers for which a first payment
has been made as bulls.

Having regard to the Treaty establishing the European
Community, and in particular Articles 36 and 37 thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parliament (2),

(3)

Having regard to the opinion of the Economic and Social
Committee (3),

Whereas:

(1)

(2)

The market
for beef and veal has been seriously
disrupted because consumers, concerned at the appear-
ance of new cases of bovine spongiform encephalopathy
(BSE), have lost confidence in, and turned away from,
the sector's products. Demand has tumbled as a result of
a sharp fall in consumption and exports and owing to a
rise in the number of livestock held back on holdings.
This is causing a serious deterioration of the market that
is difficult to control. A number of measures that seek to
regulate the market by reducing future production
should accordingly be adopted.

The special premium for male bovine animals provided
for in Article 4 of Council Regulation (EC) No 1254/
1999 (4)
is one of the main support instruments for
beef/veal production. The premium is currently subject
to a regional ceiling. If the number of animals that can
qualify for the special premium were smaller,
there
would be less incentive to produce. A reduction of the
regional ceiling, based on payments made in previous
years, should therefore be introduced for a limited
period. Moreover, to encourage producers to convert
store cattle animals to steers, which are kept for a longer
period on grassland, a second payment of the premium

(1) Proposal of 6 February 2001 (not yet published in the Official

Journal).

(2) Opinion delivered on 16 May 2001 (not yet published in the Offi-

cial Journal).

(3) Opinion delivered on 25 April 2001 (not yet published in the Offi-

cial Journal).

(4) OJ L 160, 26.6.1999, p. 21.

The derogation enabling Member States to change or
waive the headage limit of 90 animals per holding and
age bracket which determines the granting of the special
premium may produce an increase in the number of
animals eligible for the premium on large production
units. To reduce this incentive, the strict application of
this headage limit should be envisaged by linking the
possibility of changing or waiving it to the consideration
of environmental and employment aspects in the frame-
work of a rural development policy.

(4)

As beef/veal production depends mainly on the number
of cows, future meat production can be reduced by
cutting down the number of suckler cows. To do this,
the effect — in terms of
reducing production —
achieved by including heifers among the animals eligible
for the suckler-cow premium provided for in Article 6
of Regulation (EC) No 1254/1999 should be reinforced
by setting a minimum percentage for heifers for a
limited period, and increasing the maximum percentage
of such animals. Taking account of the reduced herd size
due to foot-and-mouth disease, this obligation would
not be applicable in the United Kingdom in 2002 and
limited in 2003. This involves corresponding adjust-
ments to the separate national ceiling for heifers referred
to in Article 10 of Regulation (EC) No 1254/1999. To
simplify the management of
the measure, producers
applying for a small number of premia would be
exempted from this condition. To achieve a reduction of
reallocating premium
production,
rights returned to the national reserve should also be
suspended for a limited period. In order to take account
of the reduction in the number of available suckler cows
because of foot-and-mouth disease, the United Kingdom
should be exempted from this measure in 2002.

the possibility of

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Official Journal of the European Communities

26.7.2001

(5)

(6)

(7)

the special
The number of animals qualifying for
premium and the suckler-cow premium is currently
limited by the application of a stocking density of two
livestock units (LU) per hectare pursuant to Article 12 of
Regulation (EC) No 1254/1999. To reduce the number
of animals on intensive holdings that qualify for those
premiums, and so to encourage extensification,
the
stocking density should be progressively brought down
to 1,9 LU in 2002 and 1,8 LU in 2003.

To deal with current production generated by the fall in
consumption, the quantities that must be bought in are
likely to lead to an overrun in the ceiling set in Article
47(2) of Regulation (EC) No 1254/1999. That ceiling
should be replaced by a higher one for 2001 in order to
prevent
the ‘safety net’ system
provided for in Article 47(5) of that Regulation.

triggering the use of

The measures provided for in this Regulation seek to
address the current situation on the market. Further
measures could be required in the future depending on
the way the situation develops,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1254/1999 is hereby amended as follows:

1. the following subparagraph shall be added to Article 4(2):

‘However, for the year 2001, the second payment referred
to in the second indent of point (b), may also be granted
for bovine animals for which a first payment as referred to
under point (a) has been made.’;

2. the following subparagraph shall be added to Article 4(4):

‘However, for the years 2002 and 2003, the following
regional ceilings shall apply:

Belgium
Denmark
Germany
Greece
Spain
France
Ireland
Italy
Luxembourg
Netherlands
Austria
Portugal
Finland
Sweden
.
United Kingdom

228 787
221 688
1 536 113
141 606
643 525
1 734 779
1 028 153
478 997
18 922
126 346
338 720
160 720
200 000
233 481
1 361 978

The existing footnotes to Annex I remain valid during this
period. However, during this period, the maximum ceiling
for the United Kingdom referred to in the last footnote is
1 461 978.’;

3. the first indent of Article 4(5) shall be replaced by the

following:

‘— on the basis of objective criteria that are part of a rural
development policy and only on the condition that
they take into account environmental as well as
employment aspects, change or waive the headage
limit of 90 animals per holding and age bracket and,’;

4. the following sentence shall be added to Article 4(7), point

(b):

‘However, for bovine animals referred to in the second
subparagraph of paragraph 2, the amount of the premium
shall be set at EUR 98.’;

5.

in the first subparagraph of Article 6(2), the figures ‘80 %’
and ‘20 %’ shall respectively be replaced by ‘60 %’ and
‘40 %’;

6. the following second, third and fourth subparagraphs shall

be inserted in Article 6(2):

‘However, for the years 2002 and 2003, the number of
heifers to be kept shall be equal to at least 15 % of the
total number of animals for which the premium is
requested.

In the United Kingdom, the obligation to keep a minimum
number of heifers is not applicable in 2002 and is limited
to 5 % in 2003.

than 14 suckler-cows
A producer applying for
premium shall be exempt from the application of the
condition regarding the minimum number of heifers.’;

less

7. the following subparagraph shall be added to Article 9(3):

‘However,
in 2002 and 2003, rights returned to the
national reserve according to the second indent of para-
graph 4 shall not be reallocated until 31 December 2003.
For the United Kingdom, this rule is only applicable in
2003.’;

8. the following third, fourth and fifth subparagraphs shall be

inserted in Article 10(1):

‘However, for the years 2002 and 2003, such separate
national ceiling shall be at least 10 % and not exceed 40 %
of the national ceiling of the Member State concerned set
out in Annex II to this Regulation.

If, in 2002 and 2003, Member States decide to apply the
possibility provided for in the first subparagraph,
the
suckler-cow premium shall be granted to any producer
keeping a number of heifers equal to at least 5 % and at
most 20 % of the total number of animals for which the
premium is requested.

A producer applying for
than 14 suckler-cows
premium shall be exempt from the application of the
condition regarding the minimum number of heifers.’;

less

9. the first sentence of Article 12(1) shall be replaced by the

following:

‘The total number of animals qualifying for the special
premium and the suckler-cow premium shall be limited by
the application of a stocking density on the holding of two
livestock units (LU) per hectare and calendar year. The
stocking density shall be 1,9 LU from 1 January 2002 and
1,8 LU from 1 January 2003.’;

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10. the second subparagraph of Article 47(2) shall be replaced by the following:

‘Such buying-in may not cover more than 350 000 tonnes per year for the Community as a whole.
However, for the year 2001, the maximum buying-in is fixed at 500 000 tonnes.’.

Article 2

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

It shall apply from 1 January 2002. However, Article 1(1), (4) and (10) shall apply from the date of entry
into force of this Regulation.

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

Done at Brussels, 23 July 2001.

For the Council

The President

A. NEYTS-UYTTEBROECK