The price of finished cattle next spring will be determined by the market conditions prevailing at the time. At present, the market prospects for the spring are reasonably favourable because of the continuing recovery in beef consumption in the EU and the decline in production arising from the implementation of the calf slaughtering measures which were adopted by the Agriculture Council in November 1996. Nevertheless, the WTO ceiling on subsidised beef exports will continue to act as a serious constraint on the market. In addition, the European Commission has indicated its intention, from the beginning of 1998, to minimise the use of intervention purchasing as a market support and to commence the disposal of intervention stocks. In view of the many factors involved, it is not possible therefore at this stage to predict with any degree of accuracy the likely price levels six months hence.