CELEX: 51994DC0511
Language: en
Date: 1994-11-18 00:00:00
Title: MEMORANDUM on the forecast for frozen meat for processing and live animals for fattening

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(94) 511 final
                                                   Brussels, I 8 . I I . W 4
                           MEMORANDUM
          on the forecast for frozen meat for processing and
                       live animals for fattening
                            Proposal for a
                        COUNCIL ESTIMATE
    concerning young male bovmc animals weighing 100 kilograms
           or less and intended for fattening for the period
                       1 January to 30 June 1995
                            Proposal for a
                        COUNCIL ESTIMATE
     concerning beef and veal intended for the processing industry
               for the period 1 January to 30 June 1995
                    (presented by the Commission)
 ---pagebreak---                                                                       z
                             M E M O R A N D U M
                                      ON
                THE FORECAST FOR FROZEN MEAT FOR PROCESSING
                       AND LIVE ANIMALS FOR FATTENING
 In accordance with the commitments made by the EC within the framework of
 the   Multilateral   Trade    Negotiations,   the   Commission   has   held
consultations with Australia, New Zealand, Slovenia, Hungary, Slovakia,
 Poland, Romania, Bulgaria, the Czech Republic, Argentina and Uruguay on
their forecast for their export potential of frozen beef for processing
and live animals.
Summary of each country's presentation
Australia :
The Australian representative reported that her authorities were in
 favour of a full conversion of processing beef into high quality grade,
she renewed the Australian demand for a permanent conversion into High
Quality beef which otherwise could be considered as a reduction in market
access and voiced concern toward the total share in the EU market of East
European exports of meat for processing.
New Zealand
The New Zealand spokesperson stressed the importance of implementing
rapidly Council's decision in the first half of 1995 since a GATT tariff
quota will supercede the existing arrangement as from July 1995.
she also reserved her country's rights to          further  comment  on  the
presentation given by the Commission Services.
Romania
Romania's authorities expressed the same concern as New Zealand with
respect to the need for a timely implementation of Council's Decision but
was not in the position to state whether their country will export any
meat for processing to the EU in the first 6 months of 1995. Furthermore
the Romanian representative indicated that the situation in the animal
breeding sector is improving, therefore it is hoped that live animal
exports into the EU will increase.
Czech Republic :
The Czech authorities explained that a sectorial restructuring has
entailed a significant reduction of the Republic's herds, expected to
continue till 1996. Their country forecasts export totals to the EU of
500 tonnes of frozen meat for processing and 8 to 10.000 calves (max.
weight 80 kg).
 ---pagebreak---                                                                3
 Hungary :
 This country requested the creation of a sub-quota in the framework of
 the balance sheet (first 6 months in 1995) for 25.000 heads of young
 calves.
Slovenia :
The Slovenian authorities explained that due to new economic priorities
and the ensuing structural changes, their country will not be in the
position to export meat for processing to the E.U. but could export some
live animals.
Poland :
This country expressed a strong interest in exporting more young live
animals. It regretted that the EU has the intention to maintain an
import ceiling (safeguard measures) in spite of an improved beef market
and the stabilisation of the E.U.'s herd. Poland also explained her
difficulties in working with a quarterly system (because most young
bovines are ready to be exported early in the year).
Slovakia :
The Slovakian authorities indicated that internal consumption of meat is
higher than production therefore this country is more likely to import
than export meat.
Argentina :
The Argentinian representatives, after having stressed that situation  in
the beef sector in their country is not good, argued that the fixing   of
the full balance sheet for meat for processing without any conversion  to
high quality meat will worsen this sector's situation.     Furthermore it
was stressed that exports of meat for processing are more vulnerable   to
competition from Eastern European countries.
Uruguay :
The Uruguayan representative stated that his country expects to export
2.000 to 4.000 tonnes of meat for processing to the E.U. in 1995. He
conveyed the same concern as Argentina with respect to East European
exports.
Bulgaria;
Has given some statistics on the number of animals for 1994, but no
provisions were available for imports and exports of meat or live animals
for 1995.
 ---pagebreak---                                                                  Y
                           EXPLANATORY MEMORANDUM
Within the framework of the Uruguay Round, the two estimates provided for in
Articles 13 and 14 of Regulation (EEC) No 805/68 are to be replaced by
tariff quotas with effect from 1 July 1995. Consequently, these two
estimates need be fixed only for the first half of 1995.
In accordance with the bilateral agreements between the Community and
certain supplier countries introducing arrangements for cooperation in the
preparation of the two estimates, consultations have been held with the non-
member countries in question.
The first draft estimate proposes that the number of young male bovine
animals that may be imported for fattening be fixed at 99 000 head, taking
account of the foreseeable shortfall for this type of animals and the
Community's interest in maintaining harmonious relationships with the non-
member supplier countries.
In the case of frozen beef for processing, the draft estimate proposes that
the quantity of imports be fixed at 25 000 tonnes on the basis of the
calculated Community supplies and the requirements of the beef processing
industry.
 ---pagebreak---                         Proposal for a Council estimate
                 concerning young male bovine animals weighing
        300 kilograms or less and intended for fattening for the period
                           1 January to 30 June 1995
 THE COUNCIL OF THE EUROPEAN UNION,
 Having regard to the Treaty establishing the European Community,
 Having regard to Council Regulation (EEC) No 805/68 of 27 June 1968 on the
 common organization of the market in beef and veal*, as last amended by
 Regulation (EEC) No 1884/94^, and in particular Article 13(2) thereof,
 Having regard to the proposal from the commission,
 HAS ADOPTED THIS ESTIMATE:
                                 Introduction
 Article 13(2) of Regulation (EEC) No 805/68 provides that each year, before
 1 December, the Council must draw up an estimate of the young male bovine
 animals which may be imported under the arrangements laid down in that
 Article. This estimate must take account both of the forecast supplies of
 young bovine animals intended for fattening within the Community and of
 Community livestock farmers• requirements.
 In order to establish the volume of imports under this estimate, in
 accordance with the Community's undertakings within the framework of the
 General Agreement on Tariffs and Trade (GATT), consultations are held
 between the Commission and representatives of some non-member countries
 before the annual draft estimate is put forward. The Commission proposed
 consultations with representatives of the following non-member countries:
 Hungary, Poland, the Czech Republic, the Slovak Republic, Romania, Bulgaria
 and the Republic of Slovenia.
These consultations included an exchange of views on the beef and veal
market as a whole, the production and consumption prospects within the
Community and the scope for exports of young male bovine animals by the non-
member countries.
 (1) OJ No L 148, 28.6.1968, p.24.
 (2) OJ No L 197, 30.7.1994, p. 27
 ---pagebreak---                                                                       G
This estimate relates only to the period 1 January to 30 June 1995, since
this type of estimate is to be replaced by a tariff quota within the
 framework of the Uruguay Round from 1 July 1995. It has been prepared in the
light of information available to the Commission and on the basis of the
foreseeable trend for 1995 of supplies of and requirements for young male
bovine animals intended for fattening in the community. The commission will
continue to apply appropriate management measures if forecasts suggest that
imports of young bovine animals into the Community could exceed the
traditional 425 000 head per year and that such imports of beef could
threaten seriously to disturb the Community market.
It should be noted that this estimate is likely to be supplemented in the
event of ah enlargement of the European Union on 1 January 1995.
I.   Assessment of Community supplies for 1994
In view of the number of breeding females (cows and heifers) anticipated for
1995 (about 36 000 000), some 28 300 000 births of calves are expected
during that year. Production over the year of male calves would therefore be
about 14 150 000 head.
II. Estimated Community requirements for 1995
1.   On the basis of data collected from the Member states, the number of
     slaughterings of male calves envisaged for 1995 should be about
     4 000 000 head.
2.   The number of male animals intended for slaughter (steers, fattened
     young bulls or bulls for breeding) should be about 10 250 000 head.
3.   In the light of information provided by the Member States and of the
     above, it is expected that in 1995 the requirements of Community
     livestock farmers as regards young male bovine animals for fattening
     will be 10 250 000 head.
4.* From the considerations set out in 1. and 3. it follows that the
     Community's overall requirements for male calves will be 14 250 000 head
     in 1995.
 ---pagebreak---                                                                  }
CONCLUSION
in view of the above estimates and the tariff quota to be applied from
1 July 1995, a slight Community shortfall of around 50 000 head may be
expected during the period 1 January to 30 June 1995.
However, in order to maintain harmonious trade relations with the non-member
countries concerned, as in previous years, the number of young male bovine
animals which may be imported under the estimated supply balance for the
period in question should be fixed on the basis of an annual reference level
of 198 000 head, taking account of the traditional level of imports of young
bovine animals which the Commission envisages for 1995. The estimate for the
first half of 1995 will therefore be fixed at 99 000 head.
 ---pagebreak---                        Proposal for a Council estimate
                  concerning beef and veal intended for the
        processing industry for the period 1 January to 30 June 1995
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
Having regard to Council Regulation (EEC) No 805/68 of 27 June 1968 on the
common organization of the market in beef and veal*, as last amended by
Regulation (EEC) No 1884/942, and in particular Article 14(2) thereof,
Having regard to the proposal from the Commission,
HAS ADOPTED THIS ESTIMATE:
                                Introduction
Article 14(2) of Regulation (EEC) No 805/68 provides that each year, before
1 December, the Council must draw up an estimate of meat which may be
imported under the arrangements laid down in that Article. This estimate
must take account both of the forecast Community supplies of meat of a
quality and type of cut suitable for industrial use and of industrial need.
The estimate is to mention separately the quantities:
(a) intended for the manufacture of preserves which do not contain
    characteristic components other than beef and jelly;
(b) intended for the processing industry for the manufacture of products
    other than the preserves referred to at (a).
1   OJ No L 148, 28.6.1968, p.24.
2   OJ No L 197, 30.7.1994, p. 27.
 ---pagebreak---                                                                  3
The- annual presentation of the draft estimate is preceded by consultations
between the Commission and certain non-member countries. The purpose of
these meetings is to review the overall situation of the beef market in the
Community and the non-member countries, as well as current forecasts of
production and consumption so that a joint analysis can be made of the
factors which could contribute towards drawing up estimates of Community
requirements for frozen beef for processing and so that information
concerning the potential export market can be exchanged.
The Commission has consulted representatives of Argentina, Uruguay,
Australia, New Zealand, Hungary, Poland and Romania.
This estimate concerns only the period 1 January to 30 June 1995, since this
type of estimate is to be replaced by a tariff quota within the framework of
the Uruguay Round from 1 July 1995.
It should be noted that this estimate is likely to be supplemented in the
event of an enlargement of the European Union on 1 January 1995.
I.  Supplies of meat for processing
According to information supplied to the Commission by the Member States,
Community supplies of home-produced fresh meat for processing for 1995 can
be estimated at 1 230 000 tonnes of bone-in meat.
At the end of 1994 the Community will hold a public stock of meat as a
result of intervention buying. The quantity of this meat suitable for
processing can be estimated at 100 000 tonnes of bone-in meat.
 ---pagebreak---                                                                 -7;>
with effect from 1 January 1995 the Community Intends to open a tariff quota
for 53 000 tonnes of boned frozen meat, which corresponds to 68 900 tonnes
of bone-In meat.
 Past experience indicates that, under this quota, 13 000 tonnes of frozen
 bone-in meat will be imported for processing in 1995.
 In 1995 the quantity of meat originating in the ACP states which satisfies
 the requirements for processing may be estimated at 7 000 tonnes of bone-in
 meat.
 For 1995 the total available supplies intended for processing will thus be
 as follows :
                                                          (tonnes)
     fresh meat:                                         1 230 000
     frozen meat bought into intervention                   100 000
     frozen meat imported under GATT quota:                  13 000
     frozen meat imported under ACP
     Convention arrangements:                                 7 000
                         TOTAL                           1 350 000
 II. Industrial demand for meat for processing
 According to information supplied to the Commission by the Member states,
 Community demand for meat for processing in 1995 can be estimated at
 1 400 000 tonnes of bone-in meat.
 This figure includes the quantity required for the preparation of preserved
 foods as referred to in Article 14(1)(a) of Regulation (EEC) No 805/68. This
 latter quantity is estimated at 210 000 tonnes.
 ---pagebreak---                                                             1 0
CONCLUSION
It emerges from the foregoing that requirements can only partially be met
from Community supplies of such meat.
The foreseeable Community shortfall for 1995 of beef for processing will
therefore be about 50 000 tonnes. Accordingly, the deficit for the first
half of 1995 corresponds to 25 000 tonnes.
It has been decided, in accordance with Article 14(1) of Regulation (EEC)
No 805/68, that this quantity should be divided so that:
    12 500 tonnes of meat for the manufacture of preserves which do not
    contain characteristic components other than beef and jelly are eligible
    for total suspension of the levy;
    12 500 tonnes of meat intended for the processing industry tor the
    manufacture of products other than the preserves referred to in the
    first indent are eligible for partial suspension of the levy.
Done at Brussels,                                       For the Council
 ---pagebreak---                                                                                                           /) z
 1. BUDGET HEADING: Article 120 (customs duties)                                 APPROPRIATIONS: ECU 13 712 million
                      Item 1000 (agricultural levies)                                             ECU 861 million
                      Article 210 (refunds)                                                       ECU 1 452 million
 2. TITLE: Proposal for an estimate concerning young male bovines weighing up to 300 kg and intended for
             fattening for the period 1 January to 30 June 1995
 3. LEGAL BASIS: Article 13 of Regulation (EEC) No 805/68
 4. AIMS OF PROJECT:
    To set the Community's import requirements of young male bovines intended for fattening at 99 000 head for
    the first half of 1995
 5. FINANCIAL IMPLICATIONS                    PERIOD OF 6 MONTHS        CURRENT FINANCIAL       FOLLOWING FINANCIAL
                                                                               YEAR                     YEAR
                                                                              (1995)                   (1996)
 5.0. EXPENDITURE
       - CHARGED TO THE EC BUDGET
          (REFUNDS)                            + ECU 52 million          + ECU 52 million
       - xxxxxxxxxxxxxxxxxxxxxxx
       - xxxxx
 5.1. REVENUE
    - OWN RESOURCES OF THE EC
       (LEVIES/CUSTOMS DUTIES)                + ECU 15.6 million       + ECU 15.6 million
    - xxxxxxxx
                                                  1997               1998                 1999             2000
f>. 0 . 1 . ESTIMATED EXPENDITURE                            Measure restricted to 1995
5.1.1. ESTIMATED REVENUE
5.2. METHOD OF CALCULATION: Given the surplus in the sector, these imports would not take place without that
       concession.
       Levy: 85 000 head X 230 kg X ECU 1 450/t x 25% x 1.207 (DR)         = + ECU 8.6 million (B)
              14 000 head x 230 kg x ECU 1 450/t x 35% x 1.207 (DR)        = + ECU 2    million (B)
                                                                             + ECU 10.6 million (B)
       Customs duties: 22 700 t (live) x 0.55 x ECU 2 500/t (dead) x 16% = + ECU 5.0 million (B)
       Refund: An equivalent quantity should be exported:
       99 000 head x 300 kg (net slaughter weight) x ECU 1 450/t x 1.207 (DR) = + ECU 52 million (B)
6.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET?
                                                                                 '    '                         yes
6.1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?                           xxx)
6.2. IS A SUPPLEMENTARY BUDGET NECESSARY?
6.3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
COMMENTS:
The 1995 APB takes account of this measure.
 ---pagebreak---           FINANCIAL                                STATEMENT
    BUDGET HEADING: Article 120 (customs duties)                                           APPROPRIATIONS: ECU 13 712 million
                       Item 1000 (agricultural levies)                                                     ECU 861 million
                       Article 210 (refunds)                                                               ECU 1 452 million
    TITLE: Proposal for a Council estimate concerning supply and demand for beef and veal in the processing
           industry for the period 1 January to 30 June 1995
   LEGAL BASIS: Article 14 of Regulation (EEC) No 805/68
   AIMS OF PROJECT:
   To set the Community's import requirements for frozen beef and veal for the processing industry at
    25 000 tonnes for the first half of 1995
   FINANCIAL IMPLICATIONS                               PERIOD OF 6 MONTHS        CURRENT FINANCIAL      FOLLOWING FINANCIAL
                                                                                         YEAR                    YEAR
                                                                                        (1995)                  (1996)
 .0. EXPENDITURE
      - CHARGED TO THE EC BUDGET
        (REFUNDS)                                       + ECU 43.8 million       + ECU 4 3.8 million
      - xxxxxxxxxxxxxxxxxxxxxxx
      - xxxxx
 . 1. REVENUE
   - OWN RESOURCES OF THE EC
      (LEVIES/CUSTOMS DUTIES)                           + ECU 19.3 million       + ECU 19.3 million
   - NATIONAL
                                                            1997               1998                1999             2000
  0.1. ESTIMATED EXPENDITURE                                           Measure restricted to 1995
  1.1. ESTIMATED REVENUE
.2. METHOD OF CALCULATION:
      Levy: - suspension of levy (scheme a ) : 12 500 t
            - reduction of levy by 55% (scheme b ) :
              12 500 t X ECU 2 100/t x 45% x 1.207 (DR) = + ECU 14.3 million (B)
      Customs duties: 25 000 t x ECU 200/t = + ECU 5 million (B)
      Refund: An equivalent quantity should be exported:
              25 000 t x ECU 1 450/t x 1.207 (DR)                   = + ECU 43.8 million (B)
.0. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? yes
  1. CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET?
 2.   IS A SUPPLEMENTARY BUDGET NECESSARY?
  3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY?
OMMENTS:
he 1995 APB t a k e s a c c o u n t of t h i s measure.
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(94) 511 final
                                                     DOCUMENTS
EN                                                                            03
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                                                            ISBN 92-77-82365-5
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