November 6th 1999

French lose beef war

THERE is no scientific reason to make any changes to the UK Date-Based Export Scheme for British beef exports, according to the unanimous opinion of the EU Scientific Steering Committee published on Friday evening at the end of a two-day meeting.

The Special Committee findings which unambiguously reject the scientific argumentation of the French food safety agency, which was basis the French government has maintained its import ban on British beef.

The finding was more clear cut than many EU watchers had expected. EU Health and Consumer Protection Commissioner David Byrne has now made it clear that he expects France (and Germany) ``to take stock of the science and lift their ban on imports of UK beef''.

With the political stakes having been raised so high in recent days, the main problem now will be finding a way of enabling France to save face in implementing the decision.

Byrne confirmed that he would soon be meeting Nick Brown and Jean Glavany, the UK and French farm ministers, maybe even next week, with a view to finding a diplomatic solution.

Asked about additional labelling requirements for UK beef exported to France - one potential compromise - he merely confirmed that the Commission could not oblige the UK to provide additional labelling.

Management committees

Dairy: Thursday's meeting reduced export refunds for skim milk products by -5.0% and whole milk powder by -2.75% and the rate of aid for incorporating SMP into casein/caseinates (-7.0%).

While the Commission has indicated that these changes are in part because of the relatively comfortable market situation for these products, it is clear that the major reason for the move is the severe pressure on the 2000 CAP budget (which formally started on October 16) given the ceiling on spending set at the Berlin Summit last March and forecast expenditure on other CAP issues.

It is worth noting that export refunds are the most costly CAP tool completely under Commission competence, i.e. adjusting refunds is the most obvious way to make savings without going to the farm Council. The Committee also confirmed the purchase of a further 1613t of butter into EU intervention stocks, taking the total accepted since the start of the year to 50080t but Bel and Lux will no longer be eligible. Bids for the sale of 7766t of intervention SMP for calf feed were accepted at prices from 199.50 EURO/100kg, thereby taking the volume accepted since the tender opened in September to 34491t.