Donal Moynihan
Ceist:142 Mr. D. Moynihan asked the Minister for Agriculture and Food the overall benefits which will flow to producers and consumers following his successful negotiation of the Agenda 2000 CAP reform deal [11199/99]
Written Answers. - Agenda 2000.
Details are set out in the following table. In summary, the final Agenda 2000 deal will mean a gain of £395 million to farm income over the period 2000-2006, and the national gain over the period will be even greater, £666 million, because of the additional domestic benefits from lower product prices.
This is in marked contrast to the original detailed Commission proposals of March 1998, which would have cost Irish farmers up to £233 million in the first year after all the changes were phased in in 2003. The total cost to farmers would have been £1,386 million over the seven year period 2000-06.
The agreement as finalised by the European Council in Berlin on 24-26 March 1999 will result in a much reduced loss of £14 million in the first year after all changes have been phased in, and this does not occur until 2007.
Effect of Agenda 2000 Agreement 2000-2006
|
IR£m |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2000-2006 |
|
Beef Output (b) |
-75.7 |
-151.3 |
-229.7 |
-229.7 |
-229.7 |
-229.7 |
-229.7 |
|
|
Beef Premia |
+109.9 |
+193.4 |
+281.4 |
+281.4 |
+281.4 |
+281.4 |
+271.9 |
|
|
BEEF |
+34.2 |
+42.1 |
+51.7 |
+51.7 |
+51.7 |
+51.7 |
+42.2 |
+325.4 |
|
Milk Output (b)(c)(d) |
+25.2 |
+40.9 |
+40.9 |
+40.9 |
+40.9 |
-19.7 |
-80.4 |
|
|
Milk Premia |
– |
– |
– |
– |
– |
+34.4 |
+68.8 |
|
|
MILK |
+25.2 |
+40.9 |
+40.9 |
+40.9 |
+40.9 |
+14.7 |
-11.5 |
+192.0 |
|
Arable Output (e) |
-15.1 |
-30.2 |
-30.2 |
-30.2 |
-30.2 |
-30.2 |
-30.2 |
|
|
Arable Premia |
+4.5 |
+11.5 |
+11.5 |
+11.5 |
+11.5 |
+11.5 |
+11.5 |
|
|
ARABLE |
-10.6 |
-18.7 |
-18.7 |
-18.7 |
-18.7 |
-18.7 |
-18.7 |
-122.6 |
|
Total Output (a) |
-65.6 |
-140.6 |
-219.0 |
-219.0 |
-219.0 |
-279.6 |
-340.2 |
|
|
Total Premia (f) |
+114.4 |
+204.9 |
+292.9 |
+292.9 |
+292.9 |
+327.4 |
+352.2 |
|
|
Net Effect on Producers |
+48.8 |
+64.3 |
+74.0 |
+74.0 |
+74.0 |
+47.8 |
+12.0 |
+394.8 |
|
Domestic Gain (g) |
+14.8 |
+29.5 |
+36.6 |
+36.6 |
+36.6 |
+51.3 |
+66.0 |
+271.2 |
|
Net Gain to Ireland |
+63.6 |
+93.8 |
+110.5 |
+110.5 |
+110.5 |
+99.1 |
+78.0 |
+666.1 |
(a) Output value is based on average 1995-97 output value. Using 1996-98 output value, which is lower, would reduce output losses, and therefore increase overall gains, by about £100 million over the period 2000-2006.
(b) Output value for beef and milk includes an adjustment for the lower cost of feedstuffs due to the price cut for arable crops.
(c) Output value for milk includes an adjustment for the quota increase (1.83 per cent in 2000, 2.86 per cent from 2001).
(d) The milk price reduction of 15 per cent will take place in three stages from 2005 to 2007. The final 5 per cent cut in 2007 is not shown above.
(e) Output value for arable crops includes the value of on-farm consumption.
(f) Premia values are based on a comparison of current entitlement to premia with the new rates and conditions applicable under Agenda 2000.
(g) Domestic gain is calculated by estimating the percentage of each commodity which is consumed in Ireland and applying the Agenda 2000 price reduction.