The EU beef regime has traditionally focused intervention support on male cattle and income support through the premium system on male cattle and suckler cows. The rationale for this approach is that the removal of appropriate quantities of male beef from the market through intervention purchasing should be sufficient to maintain prices for all cattle, including heifers, at reasonable levels. In addition, premium payments on suckler cows and male cattle are designed to compensate producers for the reduction in prices for all cattle following the 1992 reform of the beef regime.
These arrangements have worked reasonably well up to the present. However, I am concerned about the implications of the outline Santer proposals for the continued viability of heifer-beef production. For that reason, I have raised at the Council of Agriculture Ministers — and I have made strong representations to Commissioner Fischler — that appropriate provision needs to be made in the detailed proposals to ensure that heifer-beef production will continue to be economically viable under the reformed regime. I believe that the EU Commission has an understanding of the problem. Detailed proposals are expected to be adopted and published by the Commission towards the end of next month.