Beef and Veal: Policy Instruments
The objectives of the EU policy instruments are to structure and safeguard the stability of market prices for Beef & Veal to facilitate the marketing of products and to establish the rules in the trade with third countries, providing stability for the European producers and processors.
The European Commission may use public intervention to support beef prices if, over a representative period, the average market price in an EU country or in a region of an EU country drops below €2,224 per tonne. Additionally, the Commission may decide to grant private storage aid, if there is a drop in average prices, a substantial change in production costs or another factor causing significant changes in margins that is damaging to the sector.
The EU also has the power to use exceptional market support measures when specific circumstances mean that public support is required, for example, in cases of animal diseases or a loss of consumer confidence.
The EU also supports beef farmers through specific exemptions for producer organisations in the beef sector. Under certain conditions, producer organisations in the beef and veal sector may negotiate the extent of supply.
The European Commission may use public intervention to support beef prices if, over a representative period, the average market price in an EU country or in a region of an EU country drops below €2,224 per tonne. Additionally, the Commission may decide to grant private storage aid, if there is a drop in average prices, a substantial change in production costs or another factor causing significant changes in margins that is damaging to the sector.
The EU also has the power to use exceptional market support measures when specific circumstances mean that public support is required, for example, in cases of animal diseases or a loss of consumer confidence.
The EU also supports beef farmers through specific exemptions for producer organisations in the beef sector. Under certain conditions, producer organisations in the beef and veal sector may negotiate the extent of supply.
Market monitoring
The first step for activating a possible EU intervention is the monitoring of the Beef & Veal market in order to identify market instability, provide accurate information to farmers and processors on the market situation and to help public policy decision making.
There is an EU wide system of carcass classification, which alongside price reporting and other statistical information is the basis of the EU's price monitoring system. This is also used as a basis for the grading of carcasses in slaughterhouses and fair payment to farmers.
For the Market monitoring system, go to the related section.
The Legal bases are:
The main EU market instruments are:
Other EU instruments:
The first step for activating a possible EU intervention is the monitoring of the Beef & Veal market in order to identify market instability, provide accurate information to farmers and processors on the market situation and to help public policy decision making.
There is an EU wide system of carcass classification, which alongside price reporting and other statistical information is the basis of the EU's price monitoring system. This is also used as a basis for the grading of carcasses in slaughterhouses and fair payment to farmers.
For the Market monitoring system, go to the related section.
The Legal bases are:
- Regulation (EU) No 1308/2013 on the common organisation of the agricultural markets, providing market instruments to stabilize the sector when needed.
- EU regulation 2017/1182 – EU scales for the classification of beef
- EU regulation 2017/1184 – rules for reporting of market prices of beef
The main EU market instruments are:
- Public intervention: Public intervention is where products are purchased and stored by EU countries governments or their agencies until being sold back onto the market at a later date. It aims to prevent prices from dropping to unsustainably low levels. It may be opened by the Commission if, over a representative period the average market price in a Member State or in a region of a Member State is below EUR 2,224/tonne. There are strict standards on the quality of the goods that can be stored.
- Private storage aid: the Commission may decide to grant private storage aid taking into account the average market prices and the reference thresholds and production costs for the products concerned; and/or the need to respond in a timely way to a particularly difficult market situation or economic developments having a significant negative impact on the margins in the sector.
- Export refunds: only as an exceptional measure in case of market disturbance.
Other EU instruments:
- Collective negotiation: producer organisations in the beef and veal sector may negotiate contracts for the supply of live cattle under certain conditions. For a particular producer organisation, the quantity of beef and veal production covered by such negotiations must not exceed 15 % of the total national production.Publication of the volume of the quantity of beef and veal production as referred to in Article 170 (4) of Regulation (EU) No 1308-2013 of the European Parliament and of the Council:
- Exceptional market support measures are possible in case of animal diseases and loss of consumer confidence.
- Weekly price monitoring for beef carcasses and live bovine animals: the EU wide system of carcasses classification, the price reporting and statistic information provide the basis for market monitoring as well as for objective grading of carcasses in slaughterhouses and fair payment to producers
