§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food, further to the answer on 9 March, Official Report, column 724, concerning United Kingdom consumption of the principal agricultural products, whether he will explain the basis of his estimate of £1,806 and £1,475 for the United Kingdom and the world price of butter, respectively; how this compares with the intervention price and the target price; what is the amount per tonne of the restitution payment on butter exported to non-EEC countries; and how much has been provided in the European Economic Community budget for such payments in the current year.
§ Mr. MacGregorThe figure of £1,806 represented the intervention price of butter in 1982 less the consumer subsidy paid in the United Kingdom. The estimate of £1,475/tonne is a measure of the price paid for supplies from New Zealand under the special arrangements. It was derived by subtracting the average levy paid on butter imports from New Zealand from the internal price of £1,806/tonne.
There is no target price for butter. The average of the daily export refunds available in 1982 was £846/tonne. The provision made in the 1984 Community budget for butter export restitutions is some 652 mecu.
§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food whether he will revise the answer of 9 March, Official Report, column 724, concerning United Kingdom consumption of the principal agricultural products to show in column (2) the value based on the first-hand wholesale or equivalent realised price and in column (3) the value based on the offer prices on which the levies are based; and if he will add a column showing the value per tonne of export restitutions.
§ Mr. MacGregorIn the following table the total quantities for human consumption in 1982 have been valued at the average estimated offer prices at the Community frontier underlying the Commission's
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Average prices used for valuing supplies for human consumption: Approximate United Kingdom* average rate of: farmgate or import price "world" price export restitution import levy† £/tonne £/tonne £/tonne £/tonne Wheat 125 76 49 67 Maize 139 74 9 66 Sugar (white) 336 306 ‡192 ║226 Butter 1,808 1,474 846 ¶1,048 calculation of the variable import levies; for pigmeat, poultrymeat and eggs the sluicegate prices, less supplementary levies where appropriate, have been used. The lowest offer prices relate to types of products which can differ from those consumed in the United Kingdom. For this reason the figures shown are approximations only. Furthermore, the prices used are the lowest recorded and are not necessarily representative of the prices that might be paid in different circumstances. I must caution strongly against drawing conclusions from the figures shown.
For many of the commodities listed in my reply of 9 March, there is no single wholesale price quotation: however, the value of consumption at first-hand prices would be broadly similar to the figures shown in column (2) of that reply. Information about rates of export refunds is shown in column (2) of the following table.
Supplies of principal foodstuffs for human consumption valued at estimated lowest offer prices £ million Approximate United Kingdom rate of export restitution* £tonne (1) (2) Wheat 404 49 Maize 109 9 Sugar 365 †l92 Butter 362 846 Cheese 275 722 Pork 541 193 Bacon and ham 449 179 Beef and veal 787 925 Sheepmeat 700 n.a. Poultry 501 123 Eggs 307 110 n.a.—not applicable. * The rates of restitution have been calculated simply by averaging the daily rates applicable throughout 1982. It is not possible to provide trade weighted estimates. † The restitutions vary between different tariff headings. The rates quoted are beef and veal—carcase; pigmeat—carcase; poultrymeat— 70 per cent. chicken; bacon—average smoked and salted sides; cheese —Cheddar.
§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food if he will revise the answers of 9 March, Official Report, column 724, concerning United Kingdom consumption of the principal agricultural products to show columns (2) and (3) in terms of price per tonne; and if he will include the amount of the export restitution and the amount of the levy per tonne.
§ Mr. MacGregorThe information is as follows. "World" prices have been derived generally by subtracting the export refund or import charge from the internal price. They do not represent those at which the United Kingdom might purchase supplies in different circumstances and I must caution strongly against drawing conclusions from the figures shown.
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Average prices used for valuing supplies for human consumption: Approximate United Kingdom* average rate of: farmgate or import price £tonne "world" price £tonne export restitution £tonne import levy† £tonne Cheese 1,771 1,049 722 1,168 Pork 1,403 1,210 193 312 Bacon and ham 1,346 1,084 179 430 Beef and veal 1,807 1,047 925 • 1,124 Sheepmeat 1,527 1,415 NA ■ Poultry 928 805 123 181 Eggs 562 452 110 190 NA—not applicable. Notes:
* The rates of levy and refunds shown have been calculated simply by averaging the daily rates applicable throughout 1982. It is not possible to provide trade weighted estimates.
† The levies and refunds vary between different tariff headings. The rates quoted are beef and veal—carcase; pigmeat—carcase; poultrymeat—70 per cent. chicken; bacon—average smoked and salted sides; cheese—Cheddar.
‡ Fixed rate of refund: many differ from tenders accepted.
║ In practice United Kingdom imports from third countries are normally covered by the Lomé convention and enter the Community levy free.
¶In practice, United Kingdom imports from third countries come from New Zealand under special arrangements: the average rate of levy on these imports was about £330 per tonne.
• Most imports of beef from third countries are subject to special arrangements allowing entry at reduced levy rates.
■ Imports of lamb under voluntary restraint agreements with principal suppliers and related arrangements are subject to a reduced charge of 10 per cent. ad valorem. Any imports outside these arrangements are subject to levies which cannot exceed the 20 per cent. tariff rate bound in GATT.
§ Mr. Austin Mitchellasked the Minister of Agriculture, Fisheries and Food, further to the answer of 9 March, Official Report, column 724, concerning United Kingdom consumption of the principal agricultural products, whether he will publish in the Official Report a table showing the corresponding figures for animal feedstuffs together with an estimate of (a) the cost of feedstuffs as a percentage of the farmgate price of bacon and ham, pork, poultry, and eggs, respectively, and (b) the difference in each case between the cost of feedstuffs at the United Kingdom price and the landed cost before payment of levies and so on.
§ Mr. MacGregorThe information on cereals for animal feeds, corresponding to my reply of 9 March, is as follows:
Use for animal feed 1982 '000 tonnes Column (1) valued at farmgate/import prices £ million "world" prices* £ million (1) (2) (3) Wheat 4,260 486 277 Barley 5,400 585 332 Oats 430 43 23 Maize 550 77 40 * "World" prices have been derived by subtracting the import levy or export refund from the internal farmgate price. They do not represent those at which the United Kingdom might purchase supplies in different circumstances, and I must caution strongly against drawing conclusions from the figures shown. Feedingstuffs generally account for some three quarters of the cost of production of pigmeat and some two thirds of the cost of production of poultry and eggs; only a proportion of these feed costs, however, relate to the cereal content. Information relating to the final part of the question is not readily available.