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Sheepmeat and goatmeat

A new version of the text below is currently being prepared

On a proposal from the Commission, Council Regulation (EC) No 2529/2001 on the common organisation of the market in sheepmeat and goatmeat was published on 22 December 2001 and brought into effect on 1 January 2002.

Objectives

The common organisation makes it possible to stabilise the market and to ensure an equitable standard of living for producers by means of two main components: rules on direct payments and rules on trade with third countries.

Provisions

While providing for market price monitoring on the basis of which exceptional measures could be taken to support private storage, the common organisation of the market does not allow for a real system of prices including setting of institutional prices.

The most important change introduced since 2001: a fixed premium for producers has replaced a price-dependent variable compensatory payment. This change simplifies administrative procedures for producers and at the same time significantly reduces the cost for Member States.

The Regulation covers lambs, live sheep and goats, meat of sheep or goats - fresh, chilled or frozen, edible offal, fats, prepared and conserved meat or offal of sheep or goats.

Its key components are:

  • Rules on direct payments

    Annually, producers may receive a ewe premium of €21/head or €16.8/head if their milk is marketed. For goats intended for meat production, the premium is €16.8/head for holdings located in eligible areas.

    An additional premium of €7/head is granted in less-favoured areas where sheep or goat production constitutes a traditional activity. This premium contributes to maintaining rural employment and to transhumance to less-favoured areas in the case of a traditional practice.

    Each Member State is also allocated a flat-rate sum (approximately €1 per female) which is distributed to producers. These are additional payments which supplement the premiums and which are intended to achieve specific objectives, such as supporting certain types of production or establishing producer organisations.

  • Rules on trade with third countries

    For a majority of products (except for the free-trade countries), imports are subject to the issue of an import licence by the Member States.

    Common customs tariff duty rates apply to products in the sheep and goat sector. Certain products, in quantities laid down by tariff quotas, qualify for zero or reduced customs duty. The tariff quotas correspond to preferential import arrangements, bilateral agreements or multilateral commitments within the World Trade Organisation (WTO).

  • Market monitoring

    Member States monitor market price trends. In the event of a major change threatening to disrupt the Community market, appropriate measures may be taken.

    Prices recorded on the market are calculated on the basis of carcase prices, excluding value-added tax.

    Prices are recorded on the representative market(s) during the week preceding that in which the information is given. If there are several representative markets in a quotation area, the price for that area is equal to the average of the prices recorded on those markets, weighted by coefficients set by the Member States reflecting the relative importance of each market or category.

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Market prices:
Carcasses [pdf] [xls]

Management Committee


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