Commission adopts proposal aimed at simplifying sheep and goat sector

Brussels, 17/05/2001 (Agence Europe) - On Wednesday, the European Commission adopted a draft regulation aimed at simplifying certain provisions of the Common Market Organisation (Cmo) in the sheep and goat sector (see EUROPE of 30 April, p.4). As a reminder, the most important change consists in proposing the introduction of a set annual premium of 21 euro for producers of lambs and 16.8 euro for sheep farmers who produce sheep's milk, and goat farmers. This premium, calculated in relation to the average aid paid between 1993 and 2000, is to substitute current deficiency payments established on the basis of Community market prices. Adoption of the proposal was delayed, as, at the last moment, Commissioner David Byrne wanted to introduce a paragraph, in the explanatory memorandum, condemning the shortcomings in the traceability of the movement of sheep, shortcomings that were brought to light with the propagation of the foot-and-mouth disease in Europe. The Commission refers to its intention of enhancing measures for identifying sheep, if need be through markings on the ears or through an electronic procedure.

Here are the details of the proposals that could take effect on 1 January 2002:

• Set premium: replacing the existing deficiency payment;
• Single "rural world premium": the Commission suggests a single rate for the supplementary premium (7 euro) for both producers of meat and those making milk or milk products, as opposed to the dual rates existing up to now. This modification also aims to simplify and provide a uniform basis to all producers in less-favoured areas.
• Maintaining individual quotas: the system of producers' individual limits of premium rights should continue, given its success in maintaining a balance on the market. However, in the interests of simplification and transparency, the sum of individual limits per Member State will be published in the regulation.
• Maintaining a lower premium for milk producers: the differentiation in the level of the premium between producers of meat and those marketing milk or milk products should be maintained on the grounds that it recognises that milk producers enjoy an additional source of income.

The sheep and goat sector represents a small part of meat production in the EU. It represents less than 10% of pigmeat production and around 12% of beef and veal production and is by nature a predominantly extensive form of farming. Worth noting, that in anticipation of the implementation of this reform, the Commission has, in its preliminary draft budget 2002, provided for a drastic cut in funds devoted to this sector (600 million euro in 2002, against 1.6 billion in 2001).