Dalsager, Poul.

English

Archive of European Integration

-------------~-~-------------------~--------------------------------SPEECH  GIVEN  BY  MR.  POUL  DALSAGER,  MEMBER  OF  THE  COMMISSION  0~ THE  EUROPEAN  COMMUNITIES  ON  THE  OCCASION  OF  THE  GENERAL ASSEMBLY  OF  THE  EUROPEAN  FEED  MANUFACTURERS  FEDERATION (FEFAC);  7  MAY  1982. THE  BENEFITS  OF  THE  NEW  GUIDELINES  FOR  EUROPEAN  AGRICULTURE FOR  LIVESTOCK  FARMERS 1SPEECH  GIVEN  BY  MR.  POUL  DALSAGER,  MEMBER  OF  THE  COMMISSION  OF THE  EUROPEAN  COMMUNITIES  ON  THE  OCCASION  OF  THE  GENERAL ASSEMBLY  OF  THE  EUROPEAN  FEED  MANUFACTURERS  FEDERATION (FEFAC);  7 MAY  1982. THE  BENEFITS  OF  THE  NEW  GUIDELINES  FOR  EUROPEAN  AGRICULTURE FOR  LIVESTOCK  FARMERS • MR.  PRESIDENT,  LADIES  AND  GENTLEMEN; LET  ME  BEGIN  BLSAYING  WHAT  A PLEASURE  IT  IS  FOR  ME  TO  BE  HERE TODAY.  YOUR  INDUSTRY  IS  EFFICIENT  AND  INNOVATIVE.  IT  MAKES  A DYNAMIC  CONTRIBUTION  TO  EUROPEAN  AGRICULTURE  AND  THE  ECONOMY  AS A WHOLE •.  IT  IS  COMFORTING  TO  SEE  THAT  DESPITE  THE  DIFFICULTIES OF  THE  1980S,  HIGH  INFLATION  AND  EXTREMELY  HIGH  LEVELS  OF UNEMPLOYMENT  YOU,  AS  REPRESENTATIVES  OF  YOUR  INDUSTRY,  ARE  TO BE  CONGRATULATED  ON  THE  CONTRIBUTION  YOU  ARE  MAKING  TO,  ON  THE ONE  HAND  A MODERATION  OF  THE  RISE  IN  FOOD  PRICES  AND,  ON  THE OTHER  HAND,  ·  EMPLOYMENT. - 2  -THE  THEME  WHICH  YOU  HAVE  ASKED  ME  TO  DEVELOP  HERE  WITH  YOU TODAY  IS  : THE  BENEFITS  OF  THE  NE  JUIDELINES  FOR  EUROPEAN  AGRICULTURE  FOR LIVESTOCK  FARMERS LET  ME  START  BY  SAYING  THAT  I  BELIEVE,  AND  0  JECTIVE  ANALYSIS SUPPORTS  THIS  BELIEF,  THAT  THE  NEW  GUIDELINE  FOR  EUROPEAN AGRICULTURE  WILL  BENEFIT  AGRICULTURAL  PRODU~£RS AS  A WHOLE. WHILE  OUR  PROGRAMME  OF  ADAPTATION  OF  THE  COMMON  AGRICULTURAL POLICY  SHOULD,  HOWEVER,  BE  SEEN  IN  A MEDIUM-TERM  CONTEXT  YOU, AS  PRAGMATIC  BUSINESSMEN,  ARE  MOST  IMMEDIATELY  CONCERNED  BY  THE SHORTER  TERM. FOR  SEVERAL  MONTHS  NOW,  WE  HAVE  BEEN  ENGAGED  IN  SERIOUS DISCUSSIONS  OF  THE  NEW  GUIDELINES  FOR  EUROPEAN  AGRICULTURE. THESE  DISCUSSIONS  HAVE  INCLUDED  THE  HEADS  OF  STATE  AND GOVERNMENT,  THE  COUNCIL  OF  MINISTERS,  THE  EUROPEAN  PARLIAMENT, THE  ECONOMIC  AND  SOCIAL  COMMITTEE  AND  THE  REPRESENTATIVES  OF ----------·---~--~--------~------------- 3  -ORGANIZATIONS  REPRESENTING  THE  DIFFERENT  GROUPS  HAVING  AN INTEREST  IN  THE  CONTINUING  DEVELOPl{ENT  OF  EUROPEAN  AGRICULTURE. TWO  PRINCIPAL  CONSIDERATIONS  HAVE  GUIDED  US  THROUGH  THESE DISCUSSIONS,  THE  NEED  FOR  : - A PRUDENT  PRICE  POLICY,  TAKING  INTO  ACCOUN:  BOTH  THE  INCOME • SITUATION  IN  AGRICULTURE  AND  THE  PROBLEMS  OF  MARKET EQUILIBRIUM,  AND  ALSO  THE  NEED  TO  PHASE  OUT  MONETARY COMPENSATORY  AMOUNTS; - THE  MODULATION  OF  THE  PRICE  GUARANTEES  THROUGH  THE INTRODUCTION  OF  PRODUCTION  GUARANTEES  IN  A MULTIANNUAL FRAMEWORK,  WITH  MEASURES  FOR  THE  PARTICIPATION  OF  PRODUCERS IF  THESE  THRESHOLDS  ARE  EXCEEDED. THESE  CONSIDERATIONS  HAVE  BEEN  INFLUENCED  BY  THE  CURRENT ECONOMIC  SITUATION  FACING  BOTH  THE  AGRICULTURAL  SECTOR  AND  THE - 4 -ECONOMY  AS  A WHOLE.·  BOTH  INFLATION,  WHICH  IS  EXPECTED  TO EXCEED  10%  IN  1982,  AND  U  ;MPLOYMENT  WHICH  NOW  AFFECTS  MORE THAN  10 MILLION  PEOP'  AND  THEIR  FAMILIES,  CONTINUE  TO  GIVE RISE  TO  CONCERN  r  ALL  QUARTERS.  THOSE  ACTIVE  IN  THE AGRICULTURAL  SECTOR  HAVE  SEEN  THEIR  INCOMES  FALL  IN  REAL  TERMS FOR  THREE  YEARS  IN  SUCCESSION,  ALTHOUGH  WE  H VE  RECENTLY WITNESSED  SOME  EVIDENCE  OF  A STABILIZATION  0 .  EVEN  AN • IMPROVEMENT  IN  THE  SITUATION. IN  ADDITION,  THERE  HAVE  BEEN  INCREASED  PRESSURES  ON  THE EUROPEAN  MONETARY  SYSTEM  WHICH  REFLECT  THE  DIVERGENT  RATES  OF INFLATION  AND  SHOW  THE  NEED  FOR  A GREATER  COORDINATION  OF  THE GENERAL  ECONOMIC  POLICIES  OF  MEMBER  STATES.  THIS  PROBL~~ HAS BEEN  EXACERBATED  BY  EXCESSIVELY  HIGH  RATES  OF  INTEREST PREVAILING  IN  THE  UNITED  STATES  THESE  FACTORS  HAVE  ALL CONTRIBUTED  TO  THE  DIFFICULTIES  WHICH  WE  HAVE  HAD  IN ESTABLISHING  A BALANCED  SET  OF  PROPOSALS  FOR  THE  1982/83 MARKETING  YEAR.  THE  EXTRANEOUS  FACTORS  HAVE  MADE  THIS  YEAR'S PRICE  FIXING  EXERCISE  CONSIDE:RAm,y  MORE  COI-4:PLICATED. - 5  -NEVERTHELESS,  I  BELIEVE  WE  ARE  NOW  VERY  CLOSE  TO  PRODUCING  A FAIR  AND  BALANCED  PACKAGE  OF  DECISIONS.  AS  YOU  KNOW,  THE COUNCIL  OF  MINISTERS  MET  MOST  RECENTLY  LAST  WEEK  IN  LUXEMBOURG, AND  ON  THE  BASIS  OF  REVISED  CO~{ISSION PROPOSALS  AND  A COMPROMISE  SUGGESTION  FROM  THE  PRESIDENCY,  A PACKAGE  WAS DEVISED  TO  WHICH  SEVEN  MEMBER  STATES  SUBSCRI~ ~.  THERE  WILL  BE ANOTHER  MEET!NG  UF  THE  AGRICULTURE  MINISTERS  JEXT  WEEK,  AND  I • VERY  MUCH  HOPE  THAT  THE  GREEN  LIGHT  WILL  FINALLY  BE  GIVEN  FOR THE  ADOPTION  OF  THESE  PRICE  DECISIONS.  ·  BOTH  THE  FARMERS  AND THE  INDUSTRIES  WHICH  SUPPLY  FARMING  HAVE  WAITED  LONG  ENOUGH, AND  THE  TIME  HAS  COME  FOR  THE  COUNCIL  TO  DECIDE. IN  MY  VIEW,  THE  FINAL  DECISIONS  WILL  CORRESPOND  VERY  CLOSELY  TO THE  PACKAGE  DEVISED  LAST  WEEK  IN  LUXEMBOURG.  THERE  WILL  NOT  BE FUNDAMENTAL  CHANGES.  LET  ME  THEREFORE  GIVE  YOU  SOME  DETAILS. FOR  THE  LIVESTOCK  SECTORS  WHICH  REPRESENT  THE  MAJORITY  OF AGRICULTURAL  ACTIVITY,  THERE  WILL  BE  INCREASES  OF  AROUND 10 1/2%  OR  11%,  10 1/2%  FOR  THE  TARGET  PRICE  FOR  MILK  AND  THE I BASIC  PRICE  FOR  SHEEPMEAT  ND  PIGMEAT.  THERE  WILL  BE  A  TWO STAGE  INCREASE  FOR  PHI,  ..  J  IN  THE  BEEF  SECTOR  GIVING  A NETT INCREASE  OF  11%.  ::,~iSTITUTIONAL PRICES  FOR  DRIED  FODDER,  SOYA AND  SUNFLOWER  SEEDS  WILL  RISE:J3Y  14%.  OTHER  OILSEEDS  (COLZA, RAPE,  FLAX  AND  CASTOR)  AS.WELL.:,AS  OLIVE  OIL WILL  INCREASE  BY 11%.  FOR  SUGAR,  SUPPORT  PRICES  WILL  INCREASE  BY  9  1/2$.  IN • THE  CEREALS  SECTOR,  MOST  TARGET  PRICES  WILL  INCREASE  BY  8.7% AND  INTERVENTION  PRICES  BY  8.5%.  THE  MOST  NOTABLE  EXCEPTIONS ARE  THE  INTERVENTION  PRI9E.FOR  RYE·WHICH  WILL  INCREASE  BY  6%  TO BRING  IT  INTO  LINE  WITH  BARLEY  AND  MAIZE,  AND  THE  PRICE  FOR BREAD  WHEAT  OF  MINIMUM  BREAD...,MAKING  QUALITY  7  1/2$.  SOME ·.MEDITERRANEAN  PRODUCTS  WILL  BENEFIT  FROM  HIGHER  INCREASES:  MOST FRUITS  11%  OR.12%,  RICE  12$,  COTTON  13%,  CERTAIN  VARIETIES  01<' TOBACCO  AS  :MUCH.AS  14%  OR  IN  THE  C.ASE  OF  BASMAS  16%.  IN ADDITION  THE  VARIOUS  J10NETARY  ADJUSTMENTS  MADE  DURING  THE  LAST YEAR  PROVIDE  ADDITIONAL  RELIEF  FOR  THE  PRESSURES  ON  THE  COSTS OF  FARMING  IN  FRANCE,  ITALY,  DENMARK  AND  .GREECE. - 7  -THIS  PACKAGE  SHOULD  PROVIDE  A GOOD  BASIS  FOR  A SATISFACTORY INCREASE  IN  AGRICULTURAL  INCOMES  OVER  THE  NEXT  YEAR.  THE  LOWER INCREASES  PROPOSED  FOR  CEREALS  WILL  MEAN  RELATIVELY  LOWER  COSTS FOR  THE  COMMUNITY'S  PRODUCERS  OF  ANIMAL  PRODUCTS. THE  HIGHER  INCREASE  FOR  SEVERAL  MEDITERRANEAN  PRODUCTS  WILL ASSIST  INCOMES  IN  THE  SOUTHERN  REGIONS  OF  THE  COMMUNITY.  SMALL MILK  PRODUCERS  WILL  BENEFIT  FROM  THE  DISTRIBUTION  OF  AID EQUIVALENT  TO  120  MILLION  ECU.  FOR  GREECE,  THE  DECISIONS • INCLUDE  A SERIES  OF  SPECIAL  MEASURES  IN  ADDITION  TO  THE ALIGNMENT  OF  SUPPORT  PRICES  TO  COMMUNITY  LEVELS,  AN  ALIGNMENT WHICH  _WILL  BE  ACCELERATED  FOR  SEVERAL  PRODUCTS.  THERE  ARE MEASURES  TO  IMPROVE  THE  WINE  MARKET  AND  OTHER  CHANGES  IN  MARKET REGULATIONS  IN  THE  PERSPECTIVE  OF  THE  ENLARGEMENT  OF  THE COMMUNITY  TO  INCLUDE  PORTUGAL  AND  SPAIN. IT  IS  SIGNIFICANT  THAT  WE  HAVE  MAINTAINED  IN  THIS  PACKAGE  THE CONCEPT  OF  GUARANTEE  THRESHOLDS,  WITH  MEASURES  TO  BE  TAKEN  IF PRODUCTION  EXCEEDS  THE  THRESHOLDS.  THIS  APPLIES  TO  MILK, CEREALS,  COLZA  AND  PROCESSED  FRUIT  AND  VEGETABLES.  THE '· --------- -------- 8  -CO~miSSION ATTACHES  GREAT  IMPORTANCE  TO  THIS  ADAPTATION  OF  THE COMMON  AGRICULTURAL  POLIC'  WHICH  WILL  HELP  TO  GUIDE  PRODUCTION IN  THE  LONGER  TERM. THE  BUDGETARY  COSTS  OF  OUR  PROPOSALS  CAN,  WE  BELIEVE,  BE CONTAINED  WITHIN  THE  EXISTING  CREDITS  FOR  19t 2,  AND  IN  THE LONGER  TERM  WILL  "ALLOW  THE  RATE  OF  INCREASE  N AGRICULTURAL • EXPENDITURE  TO  REMAIN  BELOW  THE  RATE  OF  INCREASE  IN  THE COMMUNITY1S  OWN  RESOURCES. THE  COSTS  TO  CONSUMERS  WILL  CONTINUE  TO  REMAIN  REASONABLE. OVER  THE  PAST  FEW  YEARS  THERE  HAS  BEEN  A RELATIVELY  PRUDENT RATE  OF  INCREASES  IN  THE  PRICES  OF  AGRICULTURAL  PRODUCE  AND CONSUMERS  HAVE  HAD  THE  BENEFITS  OF  PRICE  INCREASES  FOR FOODSTUFFS  WHI~H HAVE  BEEN  LOW~ THAN  THE  AVERAGE  RATE  OF INFLATION.  YOUR  CONTRIBUTION,  BY  HOLDING  DOWN  COSTS  OF COMPOUND  FEEDINGSTUFFS,  HAS  CONTRIBUTED  TO  THE  STEADY IMPROVEMENT  OF  THE  COSTS  OF  LIVESTOCK  PRODUCTION.  IT  IS - 9 -IMPORTANT,  THAT  IN  THEsE  DIFFICULT  TIMES,  THE  LESS  AFFLUENT CONSUMERS  SHOULD  BE  ABLE  TO  OBTAIN  FOOD  AT  REASONABLE  PRICES. MR.  PRESIDENT,  I  HAVE  GIVEN  YOU  A BRIEF  SUMMARY  OF  THE  PRICE PACKAGE  WHICH  IS  NOW  EMERGING.  LET  ME  SPEAK  NOW  IN  A LITTLE MORE  DETAIL  ABOUT  THE  BACKGROUND  CONCERNING  C ;REALS  AND  ANIMAL FEED,  THE  BALANCE  BETWEEN  THE  CROP  AND  LIVES]  JCK  SECTORS • • CEREAL  PRODUCTION  IN  THE  COMMUNITY  HAS  BEEN  INCREASING  FOR YEARS.  TOTAL  CEREALS  PRODUCTION  IN  THE  10 MEMBER  STATES  HAS INCREASED  FROM  109  MILLION  TONS  IN  THE  1973/74  MARKETING  YEAR TO  NEARLY  120  MILLION  TONS.  WE  NOW  PRODUCE  IN  ROUND  FIGURES 50. MILLION  TONS  OF  WHEAT,  40  MILLION  TONS  OF  BARLEY  AND 20  MILLION  TONS  OF  MAIZE. AS  YOU  KNOW,  ON  THE  OTHER  SIDE  OF  THE  COIN,  CONSUMPTION  OF CEREALS  HAS  TWO.MAIN  COMPONENTS.  USE  IS  MADE  OF  CEREALS  FOR HUMAN  CONSill~~TION AND  FOR  ANIMAL  FEED.  WHILE  HUMAN - 10 -CONSUMPTION,  PARTICULARLY  OF  WHEAT,  CONTINUES  TO  INCREASE  BY MODEST  AMOUNTS,  THE  USE  .i!  CEREALS  IN  ANIMAL  FEED  CAN  AT  BEST BE  SAID  TO  BE  STAGt; •"- .LNG.  THE  MARKET  FOR  FEEDINGSTUFFS  HAS BEEN  EXPANDING  OVER  THE  LAST  TEN  YEARS,  BUT  IT  IS  NOT HOME-GROWN  CEREALS  WHICH  HAVE  ENJOYED  THE  EXPANDED  MARKET. RATHER  THE  USE  OF  CEREALS  FOR  ANIMAL  FEED  HAS  STAGNATED  AT AROUND  70  MILLION  TONS  ANNUALLY,  WHILE  WE  HAVE  SEEN  A DR.ANATIC • RISE  IN  THE  IMPORTS  OF  THE  SO-CALLED  CEREAL  SUBSTITUTES. IN  SUCH  CIRCUMSTANCES  WE·ARE  COMPELLED  TO  TAKE  SOME  ACTION  TO FIND  ·A  BETTER  MARKET  BALANCE.  BUT  IT  WOULD  BE  UNREASONABLE  TO TAKE  PRECIPITATE  ACTION.  CEREALS  AND  FEEDINGSTUFFS  GENERALLY ARE  ESSENTIAL  TO  THE  VIABILITY  OF  THE  AGRICULTURAL  SECTOR  AND OUR  LIVESTOCK  SECTOR  IN  PARTICULAR.  THE  FACT  THAT  CEREALS STILL  MAKE  UP  THE  BULK  OF  COSTS  IN  INTENSIVE  LIVESTOCK PRODUCTION  SHOWS  THE  DEPENDENCY  OF  LIVESTOCK  PRODUCERS  ON RELIABLE  SUPPLIES  OF  REASONABLY  PRICED  GRAINS  TO  THE  LIVESTOCK SECTOR. - 11  -WE  MUST  THEREFORE  SEEK  A BALANCED  SOLUTION.  IF  WE  RESTRAIN  THE GROWTH  IN  IMPORTS  OF  CEREAL  SUBSTITUTES,  A PROGRESSIVE MODERATION  OF  THE  LEVEL  OF  SUPPORT  PRICES  TO  THE  CEREAL PRODUCER  WILL  BE  POSSIBLE.  THE  BENEFITS  FOR  THE  LIVESTOCK , SECTOR  CAN  BE  CONSIDERABLE;  THOSE  ENGAGED  IN  INTENSIVE  BREEDING WILL  OBVIOUSLY  ENJOY  A MARKED  IMPROVEMENT  IN  THEIR  COST STRUCTURE  BUT  EVEN  THOSE  PRODUCERS  MAKING  LESS  INTENSIVE  USE  OF • BOUGHT-IN  FEED  SHOULD  SEE  TANGIBLE  ADVANTAGES.  ON  BALANCE,  THE AGRICULTURAL  SECTOR  SHOULD  BENEFIT  ON  BOTH  SIDES  OF  THE  SCALE. WHILE  OUR  CEREAL  PRODUCERS  WILL  PROGRESSIVELY  BECOI<!E  MORE COMPETITIVE,  LIVESTOCK  PRODUCERS  SHOULD  ENJOY  AN  IMPROVED  COST STRUCTURE. LET  ME  MAKE  ONE  POINT  CLEAR  CONCERNING  OUR  OBJECTIVES.  THE EUROPEAN  COMMUNITY  IS  NOT  SELF-SUFFICIENT  IN  ANIMAL FEEDINGSTUFFS  AND  IT  IS  NOT  OUR  OBJECTIVE  TO  ATTAIN SELF-SUFFICIENCY.  IN  ALL  OF  OUR  ANALYSIS  OF  THE  SITUATION  WE HAVE  RECOGNIZED  THE  IMPORTANCE  OF  BEING  ABLE  TO  ENSURE  THE - 12 -AVAILABILITY  OF  AN  APPROPRIATE  MIX  OF  FEED  COMPONENTS  COMING FROM  BOTH  OUR  OWN  PRODUC  .LS  AND  OUR  TRADING  PARTNERS.  SO  THE PROPOSALS  WE  ARE  Ml  :7 ;1G  AND  THE  POLICY  WE  INTEND  TO  FOLLOW  OVER THE  COMING  YEARS  CONCERN  ADJUSTJtlENTS  TO  THE  PARTS  OF  THE VARIOUS  ELEMENTS  WHICH  GO  TO  MAKE  UP  THE  ANIMAL  FEEDSTUFFS PACKAGE.  IT  IS  YOUR  ROLE  TO  OPTIMIZE  THE  US  OF  THESE DIFFERENT  INGREDIENTS  IN  THE  RANGE  OF  GOODS  ,HICH  YOU  OFFER  TO • LIVESTOCK  PRODUCERS.  I  AM  CONFIDENT  THAT  THE  EFFICIENCY  WHICH YOU  HAVE  DEMONSTRATED  IN  THE  PAST  WILL  ENABLE  YOU  IN  YOUR  TURN TO  ADAPT  WITH  VERY  LITTLE  DIFFICULTY  TO  THE  MODEST  ADJUST.t-IENTS WE  ARE  SEEKING  TO  HAKE. WE  HAVE  MADE  PROPOSALS  FOR  RELATIVELY  MODEST  INCREASES  OF  THE INSTITUTION.AJ,'.  PRICES  FOR  MOST  CEREALS,  8.5%  FOR  MOST INTERVENTION  PRICES,.  8.7%  FOR  TARGET  PRICES  AND  7.5%  FOR  THE PRICE  FOR  BREAD  WHEAT  OF  MINIMUM  BREAD-MAKING  QUALITY,  BECAUSE WE  BELIEVE,  AS  I  SAID  EARLIER,  THAT  IT  IS  NECESSARY  TO  CONTINUE TO  INCREASE  THE  COMPETITIVITY  OF  OUR  CEREALS  BOTH  ON  DOMESTIC -·····--·------·-·-·------------------------ 13  -aND  INTERNATIONAL  l.fARKETS.  IN  ADDITION  WE  HAVE  PROPOSED  A PRODUCTION  THRESHOLD  OF  119.5 MILLION  TONS.  IF THE  AVERAGE PRODUCTION  FOR  THE  THREE  MARKETING  YEARS  1980/81,  1981/82  AND 1982/83  EXCEEDS  THIS  LEVEL,  INTERVENTION  PRICES  IN  1983/84 WILL BE  REDUCED. HOWEVER  THERE  IS. AN  IMPLICIT  SACRIFICE  BEING  ASKED  OF  EUROPEAN • CEREALS  PRODUCERS  AND  IT  IS  ONLY  REASONABLE  THAT  OVER  THE PERIOD  OF  YEARS,  WHILE  OUR  CEREALS  PRODUCTION  BECOMES  MORE COMPETITIVE,  OUR  CEREALS  PRODUCERS  SHOULD  NOT  BE  CALLED  ON  TO RESPOND  TO  THE  THREAT  OF  INCREASED  IMPORTS  OF  CEREALS SUBSTITUTES.  THEREFORE  THE  COMMISSION  HAS  PROPOSED  THAT COUNTRIES  WHO  EXPORT  CEREALS  SUBSTITUTES  TO  THE  EUROPEAN COMMUNITY  SHOULD  ALSO  MAKE  A PARALLEL  COMMITMENT,  SO  AS  TO AVOID  THE  DISRUPTION  OF  OUR  INTERNAL  MARKET.  IN  PARTICULAR  WE ARE  IN  THE  FINAL  STAGES  OF  FORMALIZING  AGRE~IENTS WITH EXPORTERS  OF  MANIOC.  WE  HAVE  INITIALED  AGREEMENTS  WITH INDONESIA  AND  THAILAND  AND  THESE  AGREEMENTS  ARE  AWAITING - 14  -RATIFICATION  BY  THE  COUNCIL.  A SIMILAR  AGREEMENT  IS  BEING FINALIZED  WITH  BRAziL.  )N  THE  ONE  HAND  WE  WISH  TO  AVOID DISRUPTING  THE  TRATJ:.~.;  PATTERNS,  WHICH  HAVE  GROWN  UP  SO  RAPIDLY OVER  THE  LAST  F'~li  YEARS  BUT,  ON  THE  OTHER  HAND,  WE  SHOULD RESTRICT  THEIR  GROWTH  TO  MORE  REASONABLE  LEVELS. AT  PRESENT  ONE  PRODUCT  IN  PARTICULAR  GIVES  R SE  TO  SERIOUS • CONCERN,  CORN  GLUTEN  FEED.  OUR  DISCUSSIONS  WITH  OUR  PRINCIPAL SUPPLIER~  THE  UNITED  STATES,  HAVE  SO  FAR  NOT  PRODUCED  A SATISFACTORY  SETTLEMENT  OF  THE  PROBLEM.  WE  WILL  PERSIST  IN  OUR ENDEAVOURS  TO  ARRIVE  AT  A SATISFACTORY  SOLUTION  USING  THE RELEVANT  INSTRUMENTS  OF  THE  GENERAL  AGREEMENT  ON  TRADE  AND TARIFFS  AND  WILL  FULLY  RESPECT  OUR  INTERNATIONAL  OBLIGATIONS. AS  I  HAVE  MAINTAINED,  THERE  IS  EVIDENTLY  A LINK  BETWEEN  THE DISCIPLINE  WHICH  WE  ARE  ASKING  FOR  FROM  OUR  CEREALS  PRODUCERS IN  TERMS  OF  PRODUCTION  THRESHOLDS,  AND  THE  ACTION  WHICH  IS REQUIRED  ON  THE  IMPORTS  OF  CEREALS  SUBSTITUTES.  FOR  THIS - 15  -REASON,  THERE  IS  A CONSENSUS  IN  THE  COUNCIL  THAT  IF  IMPORTS  OF SUBSTITUTES  IN  THE  COMING  MARKET  YEAR  EXCEED  15  MILLION  TONS, THE  PRODUCTION  THRESHOLD  WILL  BE  INCREASED  ACCORDINGLY. THE  FORTHCOMING  PRICE  DECISIONS  WILL  REPRESENT  THE  FIRST  STAGE OF  THE  APPLICATION  OF  THE  NEW  GUIDELINES  FOR  EUROPEAN AGRICULTURE.  IN  OCTOBER  OF  LAST  YEAR  WE  SET  OURSELVES  A NUMBER OF  TARGETS  AND  IN  A FEW  SHORT  MONTHS  WE  HAVE  MADE  SOME CONSIDERABLE  PROGRESS.  LET  ME  IN  CONCLUSION  RESUME  SOME  OF  THE '  MAIN  POINTS  OF  OUR  LONG-TERM  PROGRAMME • .  WE  AIM  TO  ALIGN  OUR  PRICES  MORE  CLOSELY  WITH  THOSE  OF  OUR  MAIN COMPETIWRS.,  AT  THE  SAME  TIME  NEGOTIATING  WITH  OUR  TRADING PARTNERS  TO  AVOID  INCREASED  DISRUPTION  OF  OUR  DOMESTIC  MARKETS. - WE  AIM  TO  MODULATE  OUR  PRICES  IN  ORDER  TO  DEVELOP  A HEALTHIER .. BALANCE  BETWEEN  THE  VARIOUS  TYPES  OF  AGRICULTURAL  ACTIVITY.  IT - 16  -IS  ONLY  REASONABLE  TO  ROGRESS  GRADUALLY  ALONG  THIS  PATH, BECAUSE  IT  TAKES  TH'  FOR  AGRICULTURAL  PRODUCERS  TO  ADAPT  TO CHANGED  REQUIR~  ;NTS. -WE  AIM  TO  IMPROVE  QUALITY  STANDARDS  TO  ENHANCE  THE  VIABILITY  OF OUR  AGRICULTURAL  SECTOR.  ON  THE  ONE  HAND  WE  ARE  INCREASING  THE PRICE  DIFFERENTIAL  BETWEEN  WHEATS  OF  DIFFERENT  QUALITIES  IN ORDER  TO  PROVIDE  A GREATER  FINANCIAL  INCENTIVE  TO  PRODUCE BETTER  QUALITY  WHEAT.  ON  THE  OTHER  HAND,  WE  HAVE  ANNOUNCED  TO THE  COUNCIL  THAT  WE  WOULD  LIKE  TO  SEE  HIGHER  STANDARDS  ON CEREALS  BOUGHT  INTO  INTERVENTION. 'IN  THE  LONGER  TERM  WE  CAN  ONLY  HOPE  TO  REMAIN  COMPETITIVE  IF  WE CONTINUE  TO  IMPRO~~ THE  PRICE/QUALITY  RATIO  OF  THE  PRODUCE WHICH  WE  CREATE  AND  ENSURE  THAT  IT  MEETS  THE  CUSTOMERS' REQUIREMENTS.  IN  PARTICULAR  WE  CAN  ONLY  HOPE  TO  INCREASE  OUR EXPORT  EARNINGS  FROM  PROCESSED  FOOD  PRODUCTS,  WITH  ITS  HIGHER VALUE-ADDED  CONTENT,  IF WE  COl~TINUE TO  IMPROVE. - 17  -SO,  I  BELIEVE  THAT  WE  HAVE  MADE  CONSIDERABLE  PROGRESS  ON SEVERAL  FRONTS.  WE  NOW  HAVE  TO  CONSOLIDATE  THESE  ADVANCES  WITH PRUDENT  MANAGEMENT  OF  THE  MEANS  AVAILABLE  TO  US.  THE  WORLD  WE ARE  LIVING  IN  IS  NOT  STATIC,  NEITHER  ARE  OUR  OBJECTIVES  TOO RIGID.  IN  THE  COMING  MONTHS  AND  YEARS,  IT  WILL  NO  DOUBT  BE NECESSARY  TO  ADAPT  OUR  POLICIES  AND  REDIRECT  OUR  ENERGIES  TO TAKE  ACCOUNT  OF  CHANGED  CIRCUMSTANCES. MR.  PRESIDENT,  I  HAVE  BEEN  DISCUSSING  EUROPEAN  AGRICULTURE  AND THE  GUIDELINES  FOR  ITS  CONTINUED  DEVELOPMENT.  I  WOULD  LIKE  TO POINT  OUT  FINALLY  THAT  THE  SOLUTIONS  WE  ARE  PROPOSING  AND  THE STEpS  WE  ARE  TAKING,  ARE  ONLY  POSSIBLE  IN  A EUROPEAN  CONTEXT. WITHOUT  A COMMON  MARKET,  A COMMON  POLICY  AND  A COHERENT POSITION  FROM  WHICH  WE  CAN  ESTABLisH  AGREEMENTS  WITH  OUR TRADING  PARTNERS,  IT  WOULD  NOT  BE  P~ACTICABLE TO  ENVISAGE SOLUTIONS  WHICH  AVOID  ON  THE  ONE  HAND  DISRUPTING  THE  EXISTING PATTERNS  OF  TRADE  AND  ON  THE  OTHER  HAND  DELICATELY  ADJUSTING THE  INTERNAL  BALANCE  OF  OUR  OWN  AGRICULTURE. - 18  -I  TRUST  THAT  AS  WE  GC'  .·'ORWARD  TOGETHER,  WE  CAN  CONTINUE  TO  RELY UPON  AN  EFFICIEJl  .AND  EFFECTIVE  FEEDSTUFFS  INDUSTRY.  YOUR CONTRIBUTION  TO  THE  DEVELOPMENT  OF  EFFICIENT  FARMING  HAS  IN  THE PAST  HELPED  CONSIDERABLY  TO  ENSURE  THAT  FOOD  IS  PRODUCED  AT  A REASONABLE  PRICE. IT  IS  NOW  UP  TO  YOU  TO  TRANSLATE  THE  PROGRESS  WHICH  WE  HAVE MADE  INTO  TANGIBLE  BENEFITS  FOR  AGRICULTURAL  PRODUCERS GENERALLY  AND  LIVESTOCK  PRODUCERS  IN  PARTICULAR. f 

The benefits of the new guidelines for European agriculture for livestock farmers. Speech by Mr. Poul Dalsager, Member of the Commission of the European Communities, on the occasion of the General Assembly of the European Feed Manufacturers Federation. 7 May 1982

The benefits of the new guidelines for European agriculture for livestock farmers. Speech by Mr. Poul Dalsager, Member of the Commission of the European Communities, on the occasion of the General Assembly of the European Feed Manufacturers Federation. 7 May 1982

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