Farm reform set to boost beef industry

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Series Details Vol.9, No.2, 16.1.03, p3
Publication Date 16/01/2003
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Date: 16/01/03

By David Cronin

INCOME for beef farmers should rise by 4 as a result of EU farm policy reform, according to the Union's agriculture commissioner.

Franz Fischler said that no less than six new reports on the impact of the reform refute claims that it will be disastrous for beef producers.

"The studies clearly show that doom-mongers who have claimed that our reforms would make British roast beef disappear or the Irish beef industry shut down have got it wrong," he added, as the studies were published yesterday (15 January).

The papers predict a 3 fall in beef production due to moves to cease paying subsidies based solely on the number of animals kept by livestock rearers. But they suggest that would be offset by a projected 7 price hike by 2009.

Two of the studies were undertaken by the European Commission itself, with the other four by universities in Bonn and Missouri, the Centre for World Food Studies in Amsterdam and the Netherlands Bureau for Economic Policy Analysis in The Hague.

Overall, they calculate that there will be a 1.7 rise in income for all farmers due to the implementation of the reform. This is despite plans to reduce the amount of direct subsidies for farmers, diverting the money saved to rural development, environment and animal welfare measures.

But the Committee of Agricultural Organisations in the European Union (COPA) voiced dismay at the reforms this week. Gerd Sonnleitner, the COPA president, accused the Commission of being "contradictory" because it has suggested reducing direct subsidies to farmers, while defending the EU's subsidy regime in a recent paper on the World Trade Organization.

Income for beef farmers should rise by 4% as a result of EU farm policy reform, according to the Agriculture Commissioner, Franz Fischler.

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