16-17 September Agriculture Council

Date: 19/09/1996

BRITISH minister Douglas Hogg reported to his colleagues on developments on BSE since the last meeting. Despite rumours to the contrary, both Agriculture Commissioner Franz Fischler and Council President Ivan Yates denied that the UK was looking to abandon its selective slaughter programme. Fischler stressed it remained an integral part of the Florence framework for the staged lifting of the export ban.

A debate on the Commission's proposals for beef sector reforms and cuts in arable aid payments showed how hard it will be to reach agreement on these fundamental questions. Up to 700 German farmers had earlier staged an angry protest outside the Council building objecting to the Commission's proposals.

ON the beef proposals, French minister Philippe Vasseur demanded extra money for suckler cow herds. There was consensus on raising the intervention ceiling and broad agreement on extending intervention to lighter animals. Most member states called for the single bull premium payment to be increased, and several urged a single premium for steers. Germany, the Netherlands, Belgium and Denmark were strongly opposed to a reduction in the regional ceilings for the Special Beef Premium. Several ministers suggested offering an extra payment to farms with stocking densities of less than one livestock unit per hectare and leaving the current extensification rules untouched. The Dutch and Danes rejected the idea of making the calf processing scheme compulsory for all member states. Germany's Franz-Josef Feiter suggested an “early marketing premium”, under which a farmer would receive an extra premium if he brought forward an animal for slaughter at 15&percent; less than the average slaughter weight.

MEMBER states were split on the proposals to finance the measures through cuts in aid to cereal and oilseed producers. The UK, Sweden and Denmark appeared to accept the cuts, while France and the Benelux wanted them to apply for one year. Italy, Spain and Portugal want reductions across all agricultural sectors, while Austria and Germany said a deferment of oilseed payments into the 1998 budget need only be looked at next year. Fischler said the proposals, combined with current market prices, would only mean a 2&percent; average reduction in earnings for arable producers.

MINISTERS asked the Commission to look at how much spare money would be left in the farm kitty when the budget year ends on 15 October. Currently, around 1.2 billion ecu remains in surplus. The idea is to make certain 1997 payments in other sectors early, to free up money with which to compensate beef farmers next year. Fischler stressed there was no guarantee that this amount of money would be left over and that, at present, the legal basis did not exist to use the money in this way.

THE meeting gave ministers their first opportunity to react to the Commission's proposals to establish area quotas for traditional producers of durum wheat who receive supplementary aid. The Special Committee for Agriculture will now examine the dossier in detail.

DANISH minister Henrik Dam Kristensen asked the Council to look into the regulation on the protection of geographical denominations for certain regional foodstuffs. There is confusion over whether the five- year transitional period agreed as part of the final compromise should apply from the date the products are registered or from the date the regulation comes into force. Still awaiting the Parliament's decision, Council will have to return to the question at its next session.

COUNCIL adopted a new regime to encourage citrus fruit producers to improve the quality of their produce. Final agreement was reached after lengthy debate, with adjustments made to the types and volumes of fruit covered by the scheme.