In the context of the discussion, on the reform of the Common Agricultural Policy, which are currently ongoing at European Community level, the Portuguese Presidency has put forward a compromise paper recently which suggests that in future eligibility for both the suckler cow premium and the male beef premium should be limited. During the course of the Common Agricultural Policy reform debate, several countries have expressed concern at the possibility of a larger influx of new entrants coming into beef production directly as a result of the impact of the reforms on other commodity sectors. There is a danger that such a development would give rise to further surplus beef production.