28-30 October Agriculture Council

Date: 31/10/1996

AFTER three days of intense negotiations, ministers agreed a package of temporary reforms to the beef sector to prop up farmers' incomes and reduce production. The key to a deal was the decision to make an extra 500 million ecu available to compensate producers directly. Some 230 million ecu had already been freed up under the deal done at an informal meeting of agriculture ministers in Killarney in September, but doubts remain about where the rest of the money will come from, or how it will be paid out. France will receive 23.8&percent; of the total, Germany 20.0&percent; and the UK 13.1&percent;.

A RANGE of other reforms were agreed, although these will be temporary measures pending a more thorough reform next year. These include giving farmers the choice of the so-called 'Herod premium' or an 'early marketing premium', in order to take 1 million calves off the market before they are fattened up. The number of animals qualifying for the special beef premium was reduced, although ministers managed to win some concessions from Agriculture Commissioner Franz Fischler. Young animals defined as “weanlings” will qualify for intervention in autumn 1997 and this year's intervention limit will rise from 400,000 to 550,000 tonnes. The premium for bulls will only be paid once, but at a higher rate, while payments for animals raised by non-intensive methods will also increase. More money will be committed to promoting sales of beef, and farm ministers asked their foreign ministry counterparts to renegotiate trade deals with the countries of central and eastern Europe to prevent as many cattle entering the Union. Likely to cost at least one billion ecu every year, these measures will be paid for next year by delaying oilseed payments, but it is not yet clear how the money will be raised after that.

FISCHLER made a brief presentation of his proposals for beef labelling and identification schemes, which will now be passed onto the Special Committee for Agriculture for further work.

THERE was also a brief discussion on the European Agency for Veterinary and Phytosanitary Inspection. Member states are still unable to agree whether it should have the status of an office or an agency, whether it should be funded by the EU budget or from member state inspection fees, and on the extent of its competence.

A number of ministers raised issues under Any Other Business. The Commission promised to bring forward follow-up proposals on animal transport as quickly as possible, and responded to Dutch concerns about conditions for horses imported into Italy from eastern Europe. It was agreed that the Standing Veterinary Committee would look into a recent Foot and Mouth Disease outbreak in Turkey. Fischler asked member states to reconsider his proposals for the removal of certain sheep offals from the food chain. Sweden asked the Commission to analyse the effect of the Common Agricultural Policy on third countries' ability to produce their own food. Ministers also considered the olive oil sector and farming in arid areas, and asked for the fruit grubbing up scheme to be put in place.