Policy instruments for the poultry meat sector
The objectives of the EU policy instruments are to structure and safeguard the stability of market prices in the sector, 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.
Poultry regime covers:
- Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls
- Poultry meat of these five species and edible offal, fresh, chilled or frozen
- Poultry liver, fresh, chilled or frozen
- Poultry livers, salted in brine, dried or smoked
- Poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked
- Poultry fat
- Goose or duck livers, otherwise prepared or preserved
- Other prepared or preserved poultry meat or poultry offal.
The poultry meat legislation is integrated in the Council Regulation (EC) No 1308/20013 of 17 December 2013 establishing a common organisation of the markets in agricultural products.
1. Rules on Trade with Third Countries
Poultry meat exports are subject to export licences as provided for in Council Regulation (EC) No 1308/20013. The licences are issued by the competent authority in each Member State to economic operators that intend to export poultry products to a third country. On this basis the European Commission can monitor the volume of animal products exported out of the EU. If needed, the Commission may suspend the export licences issuance to facilitate the adjustment of supply to EU requirements.
Export refunds may be granted on the basis of the export licences. Granting refunds for poultry exports is intended to enable exports when there is a need to react efficiently and effectively against threats of market disturbance or to resolve specific problems. Granting export refunds nowadays is an exceptional market support measure.
Like the export licences, import licences are also a way of monitoring the trade flows, an important tool in the management of the EU poultry market. Imports of poultry meat from third countries are allowed under several conditions regarding animal welfare and food security.
Poultry imports from third countries are subject to import duties, as provided for in the Common Customs Tariff. By means of these import duties the EU ensures that its economic operators in the sector are able to face the competition on the internal market with third countries.
Common custom tariff duties
The imports are organized by a system of quotas with specific country allocations or open for all (erga omnes). Quota volumes may change per year due to programmed increase, new negotiations or accessions.
Additional import duties
Additional import duties may be applied to the imports of poultry meat in order to prevent or to counterbalance the unfavourable effects on the EU market that can result from the trade. These duties apply if the imported products have a lower price than the level notified by the EU to the WTO (the trigger price) or if the volume of imports in any year exceeds a certain level (the trigger volume).
2. Intervention: EU market support measures
Article 220 of Council Regulation (EC) No 1308/20013 states that the European Commission may take exceptional support measures at the request of a Member State, when animal disease outbreaks and loss in consumer confidence threaten to disturb the EU market. These measures, 50% co-financed by the EU, are taken only if the Member State concerned has taken the necessary health and veterinary measures to quickly stamp out the disease.
3. Marketing standards
Marketing standards applicable to the poultry sector are designed to improve the quality of the products, to protect the consumer and to harmonise the internal market.
Commission Regulation (EC) No 543/2008 of 16 June 2008 is laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 as regards the marketing standards for poultry meat, fixing the parameters for:
- monitoring water content
- labelling of different methods of production.
4. Price reporting system
Under Commission Regulation (EC) No 546/2003 of 27 March 2003 each Member State must submit to the Commission, no later than 12.00 noon (Brussels time) each Thursday, the selling price in slaughter plants or the wholesale prices recorded on the representative markets for whole class A chickens known
as ‘65 % chickens’, or for another whole chicken presentation if it is more representative.
Price reporting system is an important tool that reflects market developments and allows general trends in the poultry sector to be assessed. It plays an important role in triggering the market support measures and providing quality-based payment to suppliers of live animal while maintaining price transparency.