EEC Farm Prices (Hansard, 9 May 1973)

§ Mr. Biffen
asked the Minister of Agriculture, Fisheries and Food how the final agreement of the Community Council of Agricultural Ministers for farm prices during the prospective year compares with the original proposals of the Commission, which on the basis of weighted averages suggested a 5.3 per cent. increase, subsequently increasing to 5.8 per cent. after taking account of the projected autumn charge in the price of milk.

§ Mr. Deakins
asked the Minister of Agriculture, Fisheries and Food what he estimates to have been the average increases in EEC agricultural prices agreed by the Agricultural Ministers.

§ Mr. Godber
The following table sets out the changes agreed for each commodity in comparison with the Commission's original proposals and gives the new levels of the common prices for 1973–74. These figures are based on the Council's announcement and are subject to detailed checking and possibly minor corrections. Most of the prices will not, of course, apply in the United Kingdom, where they will be reduced to take account of the transitional arrangements, including the 10 per cent. reduction in the price move permitted under Article 52 of the Act of Accession.
No attempt has been made to aggregate the effects of the price increases since they vary both between commodities and between member States.
121W

CAP COMMON PRICES FOR 1973–74

Increase over 1972–73 Price for 1973–74

Commodity Original proposals Per cent. Final settlement Per cent. Units of account (ua) per metric tonne £p per imperial unit (a) Period of application

Durum wheat:

Target price … +2.76 +1.0(b) 133.93 £62.87/ton 1st August 1973–31st July 1974

Common wheat:

Target price … +2.76 +1.0(b) 114.94 £53.96/ton

Basic intervention price … +2.76 + 1.0(b) 105.80 (c) £49.67/ton (c)

Barley:

Target price … +2.76 +1.0(b) 105.29 £49.43/ton

Basic intervention price … +2.76 +1.0(b) 96.66 (c) £45.38/ton (c)

Rye:

Target price … +6.76 +6.5(b) 112.30 £52.72/ton

Maize:

Target price … + 2.76 +1.0(b) 102.77 £48.24/ton

Rice:

Target price for husked rice … No change +0.8 213.25 £100.ll/ton 1st September 1973–31st August l974

Intervention price of paddy rice … No change + 1.0 131.30 £61.64/ton

Sugar:

Minimum beet price (basic quota) … +2.76 + 1.0(b) 17.86(c) £8.38/ton (c) 1st July 1973–30th June 1974

Target price for white sugar … +2.76 +1.0(b) 248.00 £116.42/ton

Intervention price of white sugar … +2.76 + 1.0(b) 235.70 (c) £110.65/ton (c)

Olive oil:

Target producer price … No change +10.0 1,371.70 £643.93/ton 1st November 1973–31st October 1974

Oilseeds:

Rape and colza seed:

Target price … +2.76 +1.0(b) 210.60 £98.86/ton 1st 1973–30th June 1074

Intervention price … +2.76 +1.0(b) 204.50 (c) £96 00/ton (c)

Sunflower seed:

Target price … +2.76 +1.0(b) 212.60 £99.80/ton 1st September 1973–31st August 1974

Intervention price … +2.76 +1.0(b) 206.50 £96.94/ton

Cotton seed:

Acreage subsidy … No change +2.5(d) 82 ua/ha £15.33/acre 1st August 1973–31st July 1974

122W 123W

CAP COMMON PRICES FOR 1973–74

Increase over 1972–73 Price for 1973–74 {final settlement)

Commodity Original proposals Percent. Final settlement Percent. Units of account (ua) per metric tonne £p per imperial unit (a) Period of application

Flax and hemp:

Flax:

Acreage subsidy … +18.5 +11.1 (d) 150 ua/ha(e) £28.05/acre (e) lst August 1973.31st July 1974

Hemp:

Acreage subsidy … No change + 8.7 (d) 125 ua/ha £23.37/acre

Silkworms

Subsidy per box … No change + 3.3(d) 31 ua/box £14.32/box 1st April 1973–31st March 1974

Seeds for Sowing:

Tonnage subsidy … About+3 No change Various Various 1st July 1973–30th June 1974

Wine:

Guide price for type:

RI … +2.76 +0.8 1.46 ua/degree hl 3.07 p/degree gallon 16th December 1973-15th December 1974

RII … +4.76 +3.0 1.38 ua/degree hl 2.90 p/degree gallon

RIII … +2.76 + 1.0 22.83 ua/hl 47.95 p/gallon

AI … +2.76 +0.7 1.37 ua/degree hl 2. 88 p/degree gallon

AII … + 2.76 + 1.0 30.40 ua/hl 63.85p/gallon

AIII … +2.76 + 1.0 34.74 ua/hl 72.97 p/gallon

Tobacco:

Norm price for:

Two varieties … No change No change Various Various 1973 harvest

Four varieties … No change +10

Fourteen varieties … + 2.76 +1.0

Fruit and vegetables:

Pears … About+1.6 +5.0 Various(f) Various(f) Various

Others … About+3 + 7.5

Beef:

Guide price for adult cattle … +10.76 +10.5 862.00(g) £20.23/live cwt. (g) 14th May 1973–31st March 1974

Guide price for calves … +5.76 +7.5 l,O37.5O(g) £24.35/live cwt. (g)

Basic price … + 6.7 + 4.2(b) 860.00 £3.60/score 1st November1973.31st October 1974

124W 125W

CAP COMMON PRICES FOR 1973–74

Increase over 1972–73 Price for 1973–74 (final settlement)

Commodity Original proposals Per cent. Final settlement Per cent. Units of account (ud) per metric tonne £p per imperial unit (a) Period of application

Milk: 14th May 1973-31st March 1974

Target price for milk + 2.76(h) + 5.5 124.20 26.86 p/gallon

+ 4.76

Intervention price of:

Butter –10.8 –5.4 1,760.00 (j) £826.21 /ton (j)

Skimmed milk powder +24.3(h) +22.2 660.00(k) £309.83/ton(k)

+29.2

Subsidy on skimmed milk for animal feed:

Liquid +33.3(h) +46.7 24.20 5.23 p/gallon

+40.6

powder +37.2(h) +47.8 260.40 £122.24/ton

+44.7

Consumer subsidy on butter (New) (New) 100.00 £46.94/ton

Notes:

(a) Based on £1 =2.1644 ua.

(b) There is to be a further 1 per cent. increase in the prices of cereals, sugar, oilseeds and pigmeat for those countries whose currencies have not appreciated when all member states take part in the joint float.

(c) The United Kingdom intervention prices for cereals, sugar and oilseed rape and the United Kingdom minimum price for sugar beet will be settled later.

(d) Estimated by the Commission to be equivalent to a 1 per cent. increase in total returns.

(e) In the United Kingdom the subsidy on flax will be 70 ua/ha (£13.09/acre) in 1973–74 and in Denmark it will be 125 ua/ha (£23.37/acre).

(f) Further information now received makes it clear that the increases in the basic and buying-in prices of cauliflowers for May 1973, are respectively 7.4 per cent. and 5.9 per cent. above the May 1972 levels and not 9 per cent. as indicated in my statement of 1st May 1973. The common basic and buying-in prices for cauliflowers in May 1973 are 87 ua/tonne (£40.84/ton) and 36 ua/tonne (£16.90/ton) respectively; these apply in the United Kingdom. Apart from these the prices for fruit and vegetables have not yet been calculated.

(g) In the United Kingdom and the Irish Republic the guide price for adult cattle will be 700 ua/tonne (£16.43/live cwt.) in 1973–74 and that for calves 843.50 ua/tonne (£19.80/live cwt.).

(h) The first figure relates to the first half of the milk year (to 14th September) and the second figure to the second half.

(j) The intervention price for butter (82 per cent. fat) in 1973-74 will be 879.60 ua/tonne (£412.92/ton) in the United Kingdom, 1,602.50 ua/tonne (£752.27/ton) in the Irish Republic and 1,715 ua/tonne (£805.08/ton) in Denmark.

(k) In Germany and the Benelux countries the intervention price for skimmed milk powder in 1973-74 will be 640 ua/tonne (£300.44/ton). In the United Kingdom the intervention price shown in the table applies.

126W

CAP COMMON PRICES FOR 1973–74
		Increase over 1972–73	Price for 1973–74
Commodity	Original proposals Per cent.	Final settlement Per cent.	Units of account (ua) per metric tonne	£p per imperial unit (a)	Period of application
Durum wheat:
Target price	…	+2.76	+1.0(b)	133.93	£62.87/ton	1st August 1973–31st July 1974
Common wheat:
Target price	…	+2.76	+1.0(b)	114.94	£53.96/ton
Basic intervention price	…	+2.76	+ 1.0(b)	105.80 (c)	£49.67/ton (c)
Barley:
Target price	…	+2.76	+1.0(b)	105.29	£49.43/ton
Basic intervention price	…	+2.76	+1.0(b)	96.66 (c)	£45.38/ton (c)
Rye:
Target price	…	+6.76	+6.5(b)	112.30	£52.72/ton
Maize:
Target price	…	+ 2.76	+1.0(b)	102.77	£48.24/ton
Rice:
Target price for husked rice	…	No change	+0.8	213.25	£100.ll/ton	1st September 1973–31st August l974
Intervention price of paddy rice	…	No change	+ 1.0	131.30	£61.64/ton
Sugar:
Minimum beet price (basic quota)	…	+2.76	+ 1.0(b)	17.86(c)	£8.38/ton (c)	1st July 1973–30th June 1974
Target price for white sugar	…	+2.76	+1.0(b)	248.00	£116.42/ton
Intervention price of white sugar	…	+2.76	+ 1.0(b)	235.70 (c)	£110.65/ton (c)
Olive oil:
Target producer price	…	No change	+10.0	1,371.70	£643.93/ton	1st November 1973–31st October 1974
Oilseeds:
Rape and colza seed:
Target price	…	+2.76	+1.0(b)	210.60	£98.86/ton	1st 1973–30th June 1074
Intervention price	…	+2.76	+1.0(b)	204.50 (c)	£96 00/ton (c)
Sunflower seed:
Target price	…	+2.76	+1.0(b)	212.60	£99.80/ton	1st September 1973–31st August 1974
Intervention price	…	+2.76	+1.0(b)	206.50	£96.94/ton
Cotton seed:
Acreage subsidy	…	No change	+2.5(d)	82 ua/ha	£15.33/acre	1st August 1973–31st July 1974

CAP COMMON PRICES FOR 1973–74
		Increase over 1972–73	Price for 1973–74 {final settlement)
Commodity		Original proposals Percent.	Final settlement Percent.	Units of account (ua) per metric tonne	£p per imperial unit (a)	Period of application
Flax and hemp:
Flax:
Acreage subsidy	…	+18.5	+11.1 (d)	150 ua/ha(e)	£28.05/acre (e)	lst August 1973.31st July 1974
Hemp:
Acreage subsidy	…	No change	+ 8.7 (d)	125 ua/ha	£23.37/acre
Silkworms
Subsidy per box	…	No change	+ 3.3(d)	31 ua/box	£14.32/box	1st April 1973–31st March 1974
Seeds for Sowing:
Tonnage subsidy	…	About+3	No change	Various	Various	1st July 1973–30th June 1974
Wine:
Guide price for type:
RI	…	+2.76	+0.8	1.46 ua/degree hl	3.07 p/degree gallon	16th December 1973-15th December 1974
RII	…	+4.76	+3.0	1.38 ua/degree hl	2.90 p/degree gallon
RIII	…	+2.76	+ 1.0	22.83 ua/hl	47.95 p/gallon
AI	…	+2.76	+0.7	1.37 ua/degree hl	2. 88 p/degree gallon
AII	…	+ 2.76	+ 1.0	30.40 ua/hl	63.85p/gallon
AIII	…	+2.76	+ 1.0	34.74 ua/hl	72.97 p/gallon
Tobacco:
Norm price for:
Two varieties	…	No change	No change	Various	Various	1973 harvest
Four varieties	…	No change	+10
Fourteen varieties	…	+ 2.76	+1.0
Fruit and vegetables:
Pears	…	About+1.6	+5.0	Various(f)	Various(f)	Various
Others	…	About+3	+ 7.5
Beef:
Guide price for adult cattle	…	+10.76	+10.5	862.00(g)	£20.23/live cwt. (g)	14th May 1973–31st March 1974
Guide price for calves	…	+5.76	+7.5	l,O37.5O(g)	£24.35/live cwt. (g)
Basic price	…	+ 6.7	+ 4.2(b)	860.00	£3.60/score	1st November1973.31st October 1974

CAP COMMON PRICES FOR 1973–74
	Increase over 1972–73	Price for 1973–74 (final settlement)
Commodity	Original proposals Per cent.	Final settlement Per cent.	Units of account (ud) per metric tonne	£p per imperial unit (a)	Period of application
Milk:	14th May 1973-31st March 1974
Target price for milk	+ 2.76(h)	+ 5.5	124.20	26.86 p/gallon
+ 4.76
Intervention price of:
Butter	–10.8	–5.4	1,760.00 (j)	£826.21 /ton (j)
Skimmed milk powder	+24.3(h)	+22.2	660.00(k)	£309.83/ton(k)
+29.2
Subsidy on skimmed milk for animal feed:
Liquid	+33.3(h)	+46.7	24.20	5.23 p/gallon
+40.6
powder	+37.2(h)	+47.8	260.40	£122.24/ton
+44.7
Consumer subsidy on butter	(New)	(New)	100.00	£46.94/ton
Notes:
(a) Based on £1 =2.1644 ua.
(b) There is to be a further 1 per cent. increase in the prices of cereals, sugar, oilseeds and pigmeat for those countries whose currencies have not appreciated when all member states take part in the joint float.
(c) The United Kingdom intervention prices for cereals, sugar and oilseed rape and the United Kingdom minimum price for sugar beet will be settled later.
(d) Estimated by the Commission to be equivalent to a 1 per cent. increase in total returns.
(e) In the United Kingdom the subsidy on flax will be 70 ua/ha (£13.09/acre) in 1973–74 and in Denmark it will be 125 ua/ha (£23.37/acre).
(f) Further information now received makes it clear that the increases in the basic and buying-in prices of cauliflowers for May 1973, are respectively 7.4 per cent. and 5.9 per cent. above the May 1972 levels and not 9 per cent. as indicated in my statement of 1st May 1973. The common basic and buying-in prices for cauliflowers in May 1973 are 87 ua/tonne (£40.84/ton) and 36 ua/tonne (£16.90/ton) respectively; these apply in the United Kingdom. Apart from these the prices for fruit and vegetables have not yet been calculated.
(g) In the United Kingdom and the Irish Republic the guide price for adult cattle will be 700 ua/tonne (£16.43/live cwt.) in 1973–74 and that for calves 843.50 ua/tonne (£19.80/live cwt.).
(h) The first figure relates to the first half of the milk year (to 14th September) and the second figure to the second half.
(j) The intervention price for butter (82 per cent. fat) in 1973-74 will be 879.60 ua/tonne (£412.92/ton) in the United Kingdom, 1,602.50 ua/tonne (£752.27/ton) in the Irish Republic and 1,715 ua/tonne (£805.08/ton) in Denmark.
(k) In Germany and the Benelux countries the intervention price for skimmed milk powder in 1973-74 will be 640 ua/tonne (£300.44/ton). In the United Kingdom the intervention price shown in the table applies.