The European Commissioner for Agriculture and Rural Development Mariann Fischer Boel has today announced her intention to immediately eliminate refunds for all EU exports of live cattle.

The proposal reflects the improved market situation for beef in EU. It comes only two days after the EU has vowed to eliminate all exports subsidies in agriculture before the end of 2013 as part of a global deal in the current World Trade Organisations talks on promoting international trade.

European Commissioner for agriculture and rural development Mariann Fischer Boel said: “Now is the right time to put an end to these exports refunds. The outlook for our own beef market is positive and therefore no longer justifies the continuation of this support to our farmers. I now call on member states to back this measure”.

The Commissioner added: “There has been lot of public concern about the respect of animal welfare during the long transports of these animals to third countries. We have imposed very stringent rules and controls in order to ensure that animal welfare is fully respected. However, experience has shown that 100% compliance with these rules cannot be ensured and that we cannot enforce those rules beyond our own borders. By putting an end to these exports refunds we clearly demonstrate that the European Commission considers animal welfare to be more than just words. Now I call on those who have been advocating the protection of animal welfare to continue their campaign in order to ensure that other exporters - such as Brazil – abide by the same standards.”

The market situation for beef in the EU has improved dramatically over the last couple of years (current EU price for adult male bovines (R3) is 300€/100kg. At the same period in 2003 the price was 265€/100kg). Consumption has fully recovered from the BSE crisis and is even exceeding levels known before the BSE crisis. Furthermore EU beef production has been falling, partly as a result of the 2003 CAP reform, which decoupled aid from production. The combination of these two factors has resulted in relatively high market prices and a favourable market situation. Beef is increasingly in short supply, exports of beef are continuously in decline, and imports are increasing.

EU exports of live cattle for slaughter is primarily sent to Lebanon. In 2005 66.301 head of cattle were exported to Lebanon for slaughter. This is a fall from 123.825 in the same period in 2004. In recent years there has been a surge in exports of live cattle to Lebanon from Brazil. In 2003 Brazil exported 1.000 head of cattle. For the first 10 months of 2005 Brazil has exported 84.000 heads for live slaughter in Lebanon.

The necessary draft regulation will be submitted by the Commission to the beef management committee, which is composed of member states’ representatives. The Committee will be called to express itself on the draft regulation during its next meeting Friday 23. December 2005. In the absence of a qualified majority against the draft the Commission will adopt the regulation in due course.