Development of a Strategic Approach for a Single EU Beef Market: An Evaluation of Changes in the EU Intervention system and Labelling Regulations in Relation to Irish Cattle Prices.

Abstract

The intervention system for beef in the EU has undergone major changes since its inception. These changes were introduced because of changing circumstances in the EU beef market and because of cost factors and inefficiencies associated with and arising from the intervention system itself. While justified from these perspectives it can be said that from the perspective of beef producers the system has changed from being a mechanism which aimed at and operated to achieve a producer Guide Price which in turn was defined as “……..the price which it is hoped to attain on average on the Community market for all the quantities marketed during a given marketing year” (Com 370, July 1976) to one which has abandoned all efforts at achieving a desirable producer price and which provides at best very short term stabilisation of price at its market level. The aim of this paper is to trace the major changes which have occurred to the intervention system and the concomitant price achievement of beef in general in the EU and especially that of Irish beef. These changes together with other market and policy factors occurring on and since 1996 have combined to give a historically poor price performance for Irish beef which despite the growing importance of direct payments is still of major significance in the incomes and welfare of beef producers.