Eggs and poultry
CAP regime
Introduction
There are no direct intervention or market support arrangements in the eggs and poultry sectors. As a result, market prices within the EU closely reflect the supply and demand position for these products.
An EC eggs and poultry regime first came into operation in July 1967. The present regime is laid down in Council Regulations 2771/75 and 2777/75 on the Common Organisation of the Market in Eggs, and Poultrymeat, respectively. These incorporated all the changes made to the principal regulations between 1967 and 1975, creating a single trading system at the external frontiers of the Community. This system includes import tariffs, additional (safeguard) duties, and export refunds to facilitate the adjustment of supplies to market requirements. The Regulations also provide for the establishment of marketing standards for intra-Community trade in eggs and poultry products. Marketing standards Regulations were adopted in 1990 and 1991 and have been amended periodically since then.
The most recent notable amendments to the Common Organisation Regulations were made by Council Regulation 3290/94 which modified the regime with effect from 1 July 1995 in compliance with the EU's obligations under the GATT agreement. These include commitments over the following 6 year GATT implementation period on market access quotas, and reductions in the volume and value of subsidised exports.
Decisions concerning the implementation of policy are taken at the Eggs and Poultry Management Committee meetings, held once a month in Brussels. Decisions are taken by weighted voting procedure.
External regime
Import tariffs
The annual import tariffs are published each year in the Official Journal. The current tariffs are the result of the progressive annual reductions made during the 6 year GATT implementation period which finished in 2000. Imports under GATT minimum access quotas benefit from a reduction on the relevant basic tariff and are subject to licensing arrangements laid down in Commission Regulations. Specifically, for poultry, Regulations 1431/94 (zero duty) and 1251/96 (reduced duties). For eggs and egg products, Regulation 1474/95 (reduced duties). Applications to import under these quotas are administered in the UK by the Rural Payments Agency (RPA). To import under these quotas, traders must have a track record for each of the previous 2 calendar years of: at least 100 tonnes of poultry imports for the zero duty quotas, or 50 tonnes for the reduced tariff quotas. For egg/egg products the requirement is 50 tonnes of imports in each of the previous 2 calendar years (or be approved in accordance with the Egg Products Directive 89/437).
The overall minimum access quotas over the 6 year period commencing 1 July 1995 are shown below in table 1. (These figures have remained unchanged since the end of the period defined by the last GATT Agreement.)
Table 1. Minimum access (EU 15)
(tonnes) |
1.7.95 |
1.7.96 |
1.7.97 |
1.7.98 |
1.7.99 |
1.7.2000 |
EGGS |
98,067 |
98,805 |
113,479 |
128,152 |
142,826 |
157,500 |
POULTRY |
18,120 |
20,476 |
22,832 |
25,188 |
27,544 |
29,900 |
Additional duties
Where disruption of the EU market for a particular egg or poultry product is threatened by low priced imports from a particular country, Commission Regulation 1484/95 PDF (on Europa website) provides for safeguard action to be taken involving the imposition of additional duties on imports of that product. These are calculated by the Commission with regard to the difference between 'trigger' prices (based on 1986-88 import price levels and can be found in 1484/95), and a representative market price - RMP (set by the Commission with reference to current prices reported to them, and the product's origin). Following Management Committee approval, and notification by the Commission, these additional duties will be applied by HM Revenue and Customs (HMRC) in respect of imports of the particular product(s) concerned from the country concerned, if they arrive below their trigger price. Detailed information as to how these charges are calculated can be found in Regulation 1484/95 or by contacting the HMRC National Advice Service on 0845 010 9000. Alternatively, if you have access to the HMRC CHIEF system, you will find more information via noticeboard 040000 (DNBD function).
Export refunds
EU traders are assisted with their exports to third countries by a system of export refunds to enable them to compete on equal terms on traditional world markets. The EU's commitments under GATT require that the volume and expenditure limits shown in tables 2 and 3 must not be breached. Unused quota may be rolled over from one year to another. (Although these ceilings do not include EU25, they are still currently valid, as the year 2000 was the last step of the reductions provided by the Uruguay round.)
Table 2. volume ceilings (EU 15)
| ('000 tonnes) | 1.7.95 |
1.7.96 |
1.7.97 |
1.7.98 |
1.7.99 |
1.7.2000 |
| EGGS | 126.1 |
120.6 |
115.2 |
109.7 |
104.2 |
98.8 |
| POULTRY | 434.5 |
404.7 |
375.1 |
354.4 |
315.6 |
286 |
Table 3. expenditure ceilings (EU 15)
(MECU) |
1.7.95 |
1.7.96 |
1.7.97 |
1.7.98 |
1.7.99 |
1.7.2000 |
EGGS |
60.7 |
57.3 |
53.9 |
50.5 |
47.1 |
43.7 |
POULTRY |
136.3 |
127.2 |
118 |
108.9 |
99.8 |
90.7 |
To manage the refund budget within these ceilings and protect exports to traditional EU markets, exports for which a refund is requested (with the exception of chicks and hatching eggs) are subject to the presentation of an export licence with advance fixing of the rate of refund. Chicks and hatching eggs by the nature of the product concerned operate a post export licensing system. The licensing arrangements are laid down in Commission Regulations 1371/95 (eggs) and 1372/95 (poultry), as amended, and administered by the Intervention Board. Export refunds are determined in a pragmatic way in the light of market conditions. In consequence of the aforementioned ceilings, refunds in the poultry sector are in the main confined to exports of frozen whole chickens, and turkeys, bone-in cuts thereof and a few other products. Applicants for licences must be able to prove to the Rural Payments Agency (RPA) that they have been active in the eggs or poultrymeat sectors in the previous 12 months.
Details of refund rates can be found on the RPA website.
Internal regime
Marketing standards
Council Regulation 2777/75 provides for the setting of marketing standards for poultrymeat. Council Regulation 1906/90 and Commission Regulation 1538/91 set out those standards, which are designed to improve the quality of poultrymeat intended for the final consumer. The standards relate to grading, condition of presentation, extraneous water content, weight classification and specific criteria which must be met before certain claims about types of farming can be made (e.g. the type of feed used and the method of rearing, whether indoor (barn reared) or free range). The free range production criteria include: maximum indoor stocking densities, minimum access to open air runs, and age at slaughter.
Council Regulation No 1208/06 also provides for the setting of marketing standards for eggs. Council Regulation 2295/03 and Commission Regulation 1274/91 sets out those standards, which relate to grading by quality and weight, and packing, transport, presentation and marketing of hen eggs and egg packs. The Regulations are designed to facilitate trade in hen eggs by prescribing uniform standards designed to ensure that consumers are provided with good quality eggs of a common standard. They also specify minimum husbandry criteria which must be met before certain claims about types of farming can be made (e.g. free range, perchery/barn).
Legal framework
The EC Regulations for eggs and poultrymeat:
Eggs |
Council Regulation 2771/75 |
- on the Common organisation of the market in eggs |
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Council Regulation 1208/06 (which repeals 1907/90) |
- on certain marketing standards for eggs |
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Commission Regulation 2295/03 last amended by Reguilation 1515/04 |
- introducing detailed rules for implementing 1907/90 |
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Commission Regulation 1371/95 |
- laying down detailed rules for implementing the system of export licences in the egg sector |
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Commission Regulation 1474/95 |
- opening and providing for the administration of the tariff quotas in the egg sector and for egg albumin resulting from the agreements concluded during the Uruguay Round of multilateral trade negotiations |
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Poultry |
Council Regulation 2777/75 |
- on Common organisation of the market in poultrymeat |
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Council Regulation 1906/90 |
- on certain marketing standards for poultrymeat |
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Commission Regulation 1538/91 |
- introducing detailed rules for implementing 1906/90 |
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Commission Regulation 1431/94 |
- laying down detailed rules for the application in the poultrymeat sector of the import arrangements provided in Regulation 774/94 |
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Commission Regulation 1372/95 |
- laying down detailed rules for implementing the system of export licences in the poultrymeat sector |
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Commission Regulation 1251/96 |
- opening and providing for the administration of tariff quotas in the poultry meat sector |
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Commission Regulation 1484/95 |
- rules for implementing the system of additional import duties and fixing representative prices |
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All of the above Eggs and poultry Regulations are on the Commission website.
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Page last modified: 23 August 2007