restricted dpc/p/w/11 general agreement on … · restricted dpc/p/w/11/suppl.2 dpc/f/w/10/suppl.2...

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DPC/P/W/11 /Suppl.2DPC/F/W/10/Suppl.2

GENERAL AGREEMENT ON DPC/C/W/10/Suppl.21 December 1983

TARIFFS AND TRADE Special Distribution

International Dairy Arrangement

Committee of the Protocol RegardingCertain Milk PowdersCommittee of the Protocol RegardingMilk FatCommittee of the Protocol RegardingCertain Cheeses

SURVEY OF GOVERNMENT MEASURES TO EXPANDDOMESTIC CONSUMPTION OF DAIRY PRODUCTS

1. This document has been prepared in response to the request made by theCommittees at their joint meeting on 28 September 1983 which was devoted toa survey of government measures to expand domestic consumption of dairyproducts.

2. The Committees instructed the secretariat to undertake, with the aidof delegations, a first compilation of information furnished to facilitateits evaluation. This document is based primarily on information alreadycirculated in the addenda and supplements to document DPC/P/W/11, DPC/F/W/10DPC/C/W/10.

83-2668

DPC/P/W/11/Suppl.2DPC/F/W/10/Suppl.2DPC/C/W/10/Suppl.2

Contents

Page

Table 1 - Data on total consumption, proportion ofconsumption covered by government supportmeasures, and expenditure on direct governmentprogrammes in regard to consumption 3

Table 2 - Comparative general overview - skimmed milk powder 6

Table 3 - Comparative general overview - butter 7

Table 4 - Comparative general overview - cheese 8

European Economic Community 9

Finland 15

Sweden 16

Switzerland 17

United States 17

Canada 22

New Zealand 23

Australia 25

Japan 25

South Africa 25

Uruguay 26

TABLE

IDP

C/P/

W/11

/Sup

pl.2

DPC/F/W/10/Suppl.2DPC/C/W/10/Suppl.2

Page

3

Data

on

tota

lconsumption,

prop

orti

onof

cons

umpt

ion

covered

by

government

support

measures,

and

expenditure

ondirectgovernment

programs

inre

gard

toconsumption

Skimmed

milk

powder,

butt

er,

cheese,Milk

forhu

manconsumption

Skimmed

milk

powd

erButter

Cheese

Milk

forhu

man

consumption

Total

con

Percentage

Total

con-

Percentage

Total

con-

Percentage

Total

con-

Percentage

Total

pibllo

sump

tlon

ofCon-

Publ

icsu

mpti

onof

con-

Publ

icsu

mpti

onof

con-

Publ

icsuimption

of

Con-

Eubl1o

expenditure

sump

tion

expe

ndl-

sump

tion

expe

ndi-

sumption

expe

ndi-

sumption

expe

ndi-

('00

0m.

t.supported

ture

'000

m.t.

)su

ppor

ted

ture

('000

m.t.

)supported

ture

('00

0m.

t.)

supported

turo

(ECU

(ECU

(ECU

(ECU

million)

million)

mill

ion)

mill

ion)

mill

ion)

EEC

1919

19%

901

I16

9540

605,

53383

..

.45

Oin'

2062

5a1

1980

1601

19125

611

3J41

0,3

3466

.68

,g58

5819

81I5601

8369

61625"

31409,2

351

4..

..62:1J

451

31982

163

AV84

843

I64

3451

279

3601.

....

83.6

1'

(PIC

K(FM

(P(FIN

PMmlin

Finl

andmi

llio

n)million)

million)

mill

ion)

(F1l

mill

ion)

Finl

and

19196O

72..58

100

.32

**

.*

864,9

1980

5281

.51

SCC

..34

.89

4,9

1981

6069

559100

.37

..

.1029,0

1982

4486.a

5910

0.

390,6

.99.6

(SEK

(SE.

.(SE

K(S

EEmillion)

mill

ion)

mill

ion)

million)

(SEE

mill

ion)

Sweden

1919

32,9

_-

29,0

3..

108.

310

0100

..2115,2

1980

31,1

-_

30,1

3.,

114,1

100

100

..243

1,4

1981

21,1

-30

,53

.116,0

100

..10

0..

2286,9

1983

26,0

_-

29.8

I11

1,0

100

.,100

.244

9,6

Switzerland

1979

1980

1981

1932

29,0

30,5

31,7

28,0

(Sw

Fmillion)

46,0

49,1

45,8

45,4

80 10 15 68

(SW

Fmillion)

228,

422

6,8

216,8

200,

4

80,0

Oaks

85,8

81,2

15 15 15 15

(SW

Fmillion)

334,

239

3,1

348,

634

6,8

(SWP

mill

ion)

(Su

Fmi

llio

n)

562

fig

620Q5

565,

4-56

1,:

1/Es

tima

te2/

publ

icexpenditure

onth

emilk,

fres

hpr

oduc

tsand

cheese

sector

(school

milk

)

Total

publ

icexpenditure

also

Incl

udes

direct

subsidies

onut

iliz

atio

nof

liquid

skimsmed

milk

for

feeding

calv

es:

ECU

301

million

In19

79,

ECU

322

million

in1982,

ECU

290

mill

ion

in1901

and

ECU

313

million

In19

82.

Gove

rnme

ntexpenditure

for

valo

riza

tion

ofbutter

nnd

cheese.

Ther

eis

noaubsidization

ofsk

imme

dmilk

powder

cons

umpt

ion.

Pric

ere

duct

ions

are

gran

ted

on

fresh

skimmed

milk

used

onthe

farm

for

feeding

swin

e(SW

F0.09/kg.).

consumptionDPC/P/W/1

1/Suppl.2expenditure

(000R.l)DPC/F/W/10/Suppl.2

TABL

E1(

cont

'd)DPC/C/W/10/Suppl.2

Skimmed

milk

powderPa

ge4

Percentage

of

consumption

supported

Butter

Percentage

of

consumption

supp

orte

d

Public

expenditure

Chee

se

Total

cons

umpt

ion

('000

R.I.)

Percentage

of

cons

umpt

ion

supp

orte

d

1N11

kfo

rhu

manconsumption

Publ

IcTotal

expendIture.

..('

0.t.)

Perc

enta

ge

of

cons

umpt

ion

supp

orte

d

Public

expe

ndilu

re

Tota

lpu

blic

expenditure

Unit

edSt

ates

(1mil

lion)

3mil

lion)

|m|IG

ion))

(1mil

lion)

|(

millio

n)

(191

9351

1926S1

65110

111,4

I149.

1275

.2650

(I980

30Y19

30,9

452

1113

2.9

1815'

1590

9323P

2Fiscal

year

(198

1252

1732.2

445

121621

1881

9933141.3y

(198

2250

20S7

,96

166

13185,1

21.,.

..69,

(1983

299

22..

538-

24.

.

(Can

5(CanS

(Cant~n

million)

C|anada

mill

ion)

million)

million)

1919

518

lo0

..10

5,8

111

1.5

91/

..02

27

250.0

1980

429

I00!

/10

8,2

Is.

183.

196.

0,00

.8,3

266,

.1981

48F.

100!'

,.19

1,6

9?2

8.

.OOS

10,3

290,

01982

I'..

IOS

Il00

.190

.89:

.6,

028

2,0

South

Africa

(Rmi

llio

n)(1

*million)

(Rmi

llio

n)(R

million)

(Rmillion)

1919

l8.,

3.1

0.

16,0

,29

,5h

A..,

l!980

194

COO

IIsl

171

31|7

sosv

e79

1981

19,02_

31..

^..

3,21

Japan

(0million)

(mi

llio

n)

(191

9.

3905

158

1117.

I17.8

fiscal

year

(1980

-01

016

,118

000

18O00

(198

1_

4141

16.0

16381

1638

1(1982

-.

-.

16209

1620

9

5'Da

tare

late

toc;Aendar

years

£/ln

fisc

alye

ar1982,

some

1,15

2million

lires

were

cons

umed

under

flui

dmilk

prograsses.

Gove

rnme

ntcosts

are

not

avai

labl

e.

2/0v

eral

lestimale

oftotal

gove

rnme

ntpa

ymen

tsfo

rfo

odan

dnu

trit

ion

programmes

Insu

ppor

tuf

dairy

products,

not

including

specia

lmi

lkpr

ogra

mmes

.In

addition,

tiers

are

skim

med

milk

powder

sales

for

anim

al

toed

.Volumes

and

expenditure

are

asfollows:

for

fisc

alyear

1919

,32

,840

tons

,5l

1.5

mill

ion;

for

fiscal

year

1980

,33

,067

tons

,126.9

million;

for

fisc

alyear

1931

,23,451

tons

,119.5

million;

for

fiscal

year

1982.

2',358

tons,

120.

6million.

/Exc

ludi

nglaports

2/Na

tgovernment

expenditure

under

dire

rian

dIn

dire

ciprogrammes

L/for

all

dairy

products

letal

cons

umpt

ion

('00

0m.t

.)

TABLE

I(cont'd)

DPC/P/W/11/Suppl.2

UruguayDPC/F/W/10/Suppl.2

1981DPC/C/

W/10/Suppl.2

Skilmed

Milk

Powder

Page5Butter

Chee

seMilk

for

humanConsumption

Total

con-

sumption

('000m.t

Percentage

ofco

nsum

ptio

nsu

ppor

ted

Publ

icexpendt-

ture

Tota

con-

sumption

('00

0m.t.)

Percentage

of

cons

umpt

ion

supp

orte

d

Public

expe

ndt-

ture

Total

con-

sump

tion

('000m.

t.)

Perc

enta

geof

consumption

supp

orte

d

Publ

icexpendi-

ture

Total

con-

sumption

('00

0m.

t.)

Percentage

ofco

nsum

ptio

nsu

ppor

ted

5.18

Publ

icex

pend

i-ture

Total

public

expe

ndit

ure

(mil

lion

new

peso

s)

1.3

1,3

New

Zealand

$NZ

fre1

1ml

mill

ion

mill

ion

518

56,6

56.6

1980

31,0

37,0

1981

435.2

35,2

1983

8929.6

/Year

endi

ngin

June

for

12Li

quid

milk

and

cream

13Provisional

tota

lco

nsum

ptio

n:year

endi

ng51

Marc

hforgovernment

expenditure.

14Fo

reca

stat

maximum

subsidy

voted

DPC/P/W/11/Sup

pl.2

DPC/F/W/10/Sup

pl.2DPC/C/W

/10/Suppl.2

SkliamedMilk

PouderPag

e6

Comparative

general

overview

EEC

Finland

Swed

enUn

iite

rlNe

w0auth

Swit

zrla

ndSt

ate

Cana

daZealand

Japan

Africa

Uruguay

Total

production

1919

2165

5943

,129

.011

4,3

166,

913

518

.67/.

("'0

004)

1980

2126

5142

.830

,5526

109,0

111,

112

118.9

2.1

1511

208

61/

5639.9

31.1

596

131,0

198.3s

121

11.0

2.3

1982

2260!

5149,1

28,0

634

161.

016

8,9

131

22,6

3,8

Total

cosumptlon

1919

1M990S

n2.

19,o

51,8

',,s

244

18,4

0,5

MT1000)

~19

8016

0252

31,

30,5

4Z304

22qk'

1981

560!Y

6021.1

31,1

252

42.9

6,6

232

19,4

0,6

1982

1653

W~

4426

,028,0

248Yl5,

54,1

241

12,6

0,5

1983

l95!~V9209211,

,

Pero

ei-i

tage

of

1919

9012

--Is

100

--

cons

umpt

ion

1980

19e1

-I9

100

-.supported

1981

8368

-10-.

*OD

1992

6486

?;,

1198

3221

/lTo

tal

oxLta

1919

665

-11

,9-

8493

,014

6,0-

1,6

(MT

'000

1"19

80611

-11

,46,3

13160,2

164,1

-052,3

1911

501!

'-

14,-

3,4

156

61,1

141,6

---

19e1

349"

-16

,8-

126

119,0

141.

3-

1,3

Tota

lImports

1919

I0,

0I

-12

53,6

-

I14T

'oo0

)19

803

-0,0

-2

--102--

1981

-0,0

-I

--832,

1982

-0,6

-I

--93

1,6

0,1

Clos

ing

stoc

ks19

1920

110

10,0

11,0

220

10,9

108

108

5,6

I'0

(Ifir

00)

1980

230

159,

85,1

266

16,1

99101

4,8

0,2

1981

219

111,

01,

1A40

843,6

148

114,

21,

819

82516

2412

,41,

8582

26,1

149

5315,6

2,8

(ECU

11Il

lion

)(P'H

mill

ion)

ISKr

million)

(Sw

Fmi

llio

n)us

$mi

llio

n($Can

mill

ionI[$

HZmillion)

(Vmillion)

ftmillion)

(mif

lkno

wpe

sos)

Tota

lpublic

1919

111III

-26

,I'.

expenditure

for

1960

125

..--

309u

-

prograumpti

1982

8324

:~-

Human

cons

umpt

ion

1919

303

132?

.6*.

28.*.133

..0,5

(14?

'000

~~~198

019?

1221

,6..34

0.

.148

..0,6

1981

260

1219

,3..331

.161

..0,5

1982

240

1211

.630

8..

III

.1,

4

Animal

consumption

1919

I691

41I

10,3

32..II

I(M

T'000)

1980

1415

4010.1

..38

..84

Eitizaato

1981

1300

488/

...

5...14

.19

8239

432

8,2

2110

.

Note:

Australia

has

indicated

that

the

bulk

or

the

information

sought

in

this

survey

In

not

applicable

to

Austv..Aia

where

policies

and

measures

directly

aimed

at

Increasing

domestio

consumption

of

dairy

products,

Including

skimmed

milk

powder

and

butter.

are

implemented

through

timopromotional

activities

of

the

Australian

Dairy

Coiporation.

TABL

E3DPC/P/W/11/Suppl.2

ButterDPC/F/W/10/Suppl.

2Comparative

general

over

viewDP

C/C/W/10/Suppl.2Page

7

EEC

Finland

Swed

enSwitzerland

United

Cawa

Now

JpnSouthUrga

States

Zeil

arrd

Afri

ca

ITotal

prod

ucti

on19

192

009

1340,5

36,0

'.41

96,0

222,4

68II

's5,

5(M

ir'0

00)

s980

I53

01.

'0.05

34,3

519

10?,.4

196,

76.

Il,'.

6,0

198)

9471

40,1

34,1

551

112.8

211,6

6'.

15,0

8.0

1962

208

69'4.

,630,8

511

122,

5239,5

6'.11,

.46,

5

Tota

lco

nsariokh

1919

1695

5629,0

46.6

0'45!

105.

0'.

3162

16,0

3,5

(HI'

'000)

1980

1611

5130

,149

,1'

108,2

'1.3

68II's

3,5

1981

16251

5930,5

'.5,8

445

101.1

41,0

1311

,33,

019

821

6'.5

29,8

'5.54

105,1

39,8

1616,0

2,5

1983

5313

Percentage

of'1919

'.0100

380

100

--.

cons

umpt

ion

1980

34100

310

supported

1211981

31100

315

100

1982

34100

368

100

1983

Tota

lexports

1919

509

1912

.3-

-165

,1-

0,2,6

(MT

'000)

1980

590

Il10

,4-

-142,0

-1,0

4,0

1981

5301'

Is10

,054

168,

0-1,2

4,8

198?

'.031'

a13,6

-68

0220

6,2

-1,'

.3,8

Tota

lIm

port

s19

19123

-0,2

8,0

I-2

2,5

-(M

T''000)

1980

III

0,2

13,2

3-

092

-419

8111

0,1

O'12,3

1118

,62

1,6-

1982

1231'

O0,15,3

1-6,

15

4,'-

Clos

ing

atocks

1919

329

41,

5.4,0

8el0,

53,6

286,0

0,6

(MTP

1000

)19

80239

101,

12,

413

614,6

31,6

263,

62,

319

8114

a2,

03,6

195

19,6

42,0

191,

12,6

198?

306

103,2

4,3

212

36,9

28,0

124,2

4,8

WEU

mill

ion)

(FIN

million)

MSrmillion)

(Sw

PMi

llio

n)(U

S$million)

($an

mill

ion)

(4NZ

mill

ion'

(Wmi

llio

n),

(Rmi

llio

nmillioni

new

poesos

Tota

lpu

blic

1919

605,5

.228,.4

III-

-expenditure

for26,13

--

prog

rame

1980

'.10,3

2268

'2,Y

reagerding

1981

409,2

..216,8142i?

'.?1-.

-ao

ns.*

npti

on19

8251

2,9

.200'.4

185,

1!'

-

Huma

~,co

nsum

ptio

n1919

6,3

12,1

3,5

1,2

2,0

4,5

13,9

0,5

0,5

I,?

(kg3

1980

6,0

11,9

3.6

1,6

2,0

4,5

13,9

0,6

0,6

1,2

1901

6,0

3,6

1.11

94,

413,1

0,6

0,5

1,0

1982

6,1

12,2

3,5

4212,6

0,6

,0,8

Estimate

Fieo

alje

ar

Note:

Australia

has

Indlcat-'d

that

the

bulk

of

the

information

sought

In

this

survey

Is

not

applicable

to

Australia

where

policies

and

measures

directly

aimed

at

Increasing

domestic

consumption

of'dairy

products,

including

skimmed

milk

powder

and

butter,

are

Implemented

through

the

promotional

activities

of

the

Australian

Dairy

Corporation.

TABL

E4DPC/P/W/11/Suppl.2

CheeseDPC/F/W/10/Suppl.

2

Comparative

general

overviewDPC/

C/W/

10/S

uppl

.2

United

South Page8

EEC

Finl

and

Swed

enSwitzerland

St3t

esCa

nada

New

Zeal

and

Japan

Afri

onUr

utgu

y

Total

produc

tion

1919

3539

1095,

1121

,016

63161

,095,

010

33,0

12,9

(wr'oo

o)198

036

1113

100,6

111,9

1191

177,1

9,811

31,2

14,4

1981

3830

1210

8,4

121,

31940

116,

196,

110

35,0

15,0

1982

389

214

113,

9122,9

2059

110,2

123,9

1231

,110,0

Total

oonstuption

1919

3211

32lo0

,380

,0I1

49117

,526,0

8429,5

10,7

(MTG

OOO)

1980

3311

34114

,181,

418

01183

,121,

8a5

31,1

10,8

1981

342

131

116,

085a8

1885

191,6

26,5

8134,2

10,1

1982

3607

J38

111,0

Q7,

2123

190,4

21,4

32,3

1,1

Perc

enta

geor

1919

..100

15..

9-

-..

oosa

~npt

iOn

1980

1..

1596b!/

..supported

1981

100

15..

92A2

__

..

1982

.0,6

10015

V89,

__

_Tot

alexp

Orts

1919

21441

3,059,

021

3,165,

80,2

2,2(K

T'oo

s)1980

28246

2,662,

81

3,016,

30,2

3,119

8131

238

5,1

64,8

54,

491

,2-

0,2

4,1

1982

380

346,1

61,3

185,

078,5

-0,3

I,7

Tota

lim

port

s19

1910

-15,9

19,0

113

21,0

0,3

140,

6(HT'OO)

1980

92-

16,2

20,0

10420,

50,4

15-

1981

95-

16,3

20,3

112

20,5

0,4

110,

1198

210

-14,

320,

1122

21,0

0,214

-0-

1

Clos

ing

stocks

1919

S02

10,0

24,0

233

43,9

36,0

..9,

31,

8(M

ToOO

O)198

055

109,8

18,5

31354,

242,

9..

8,5

2,319a1

4911

1,0

15,3

443

53,9

24,0

..9,

23,2

1982

5913

12,4

11D1

483

48s,5

48,0

13,6

3,8

(ECU

mill

ion)

(FIN

million)

(SEK

million)

(Sw

Pmi

llio

n(U

S0mi

llio

n)($Canmi

llio

n)(S

Z2mi

llio

n(I

mill

ion)

Rmillion

mill

ionnow

penoc

Total

publ

ic1919

,*334,

212

1,5-

expe

ndit

ure

*for

proigramme

s19

80-.

3311

59,9

rega

rdin

g19

81..

..348,6

199,3

._

_consumption

1982

366,

846

5,9

.._

UtAn

anoo

nsta

ptio

n19

7911

.96

713,1

12,6

1,8

7,1

6,*

0.7

1,0

3,7

(kg

1980

12,2

1,1

13,1

13,4

1,9

1,6

8,9

0,1

1,0

3,1

1981

12,6

?,7

13,9

13,3

8,2

1,1

8,40,1

1,1

3,1

1982

1,9

14,0

1,1

8,6

2,6

Prov

isio

nal

2/Excludingimports

Note:

Australia

has

indicated

that

the

bulk

of

the

information

sought

in

this

survey

is

not

applicable

to

Australia

where

policies

and

measures

directly

aimed

atincreasing

domestic

consumption

of

dairy

products,

including

skimmed

milk

powderend

butter,

are

implemented

through

the

prom

otio

nal

activities

of

the

Aust

rali

anDairy

Corporation.


EUROPEAN ECONOMIC COMMUNITY

A. Information on government programmes to expand consumption

Table I gives the quantities of dairy products and the expenditure bythe European Agriculture Guidance and Guarantee Fund (FEOGA) for 1979,1980, 1981 and 1982. Estimates for 1983 have not been included in thetables owing to the uncertainty of such estimates, since some activitiesmay be considerably expanded and others reduced or terminated followingdecisions by the Council of Ministers.

Nevertheless, for activities that have continued over a number ofyears, a certain stabilility can be noted in the quantities subsidized.

Programmes to expand human consumption of dairy products are limitedto butter and the "school milk" scheme, which subsidizes the consumption ofmilk, fresh dairy products and cheese in schools. In Table I, thequantities subsidized in this programme are expressed in terms of milkequivalent.

The level of the subsidy is fixed for the milk year, which is normallythe period between 1 April and 31 March of the following year. This doesnot mean, however, that the level cannot be adjusted in the course of theyear.

As regards the sale of butter to manufacturers and the sale of skimmedmilk powder (SWM) to producers of pig and poultry feed, the level of thesubsidy is fixed by a tendering procedure and may therefore vary during themilk year.

The average level of the aid provided by FEOGA is obtained directly bydividing its expenditure by the quantities subsidized. In two cases,additional subsidy is provided by the member States: for "school milk",a national subsidy increases Community aid by at least 12.5 per cent; forthe permanent butter-consumption subsidy, a national subsidy increasesCommunity aid by at least 25 per cent (except for the United Kingdom, whichdoes not have a national subsidy).

TABLE

IDPC/P/W/11/Suppl.2

A.In

form

atio

non

Gove

rnme

ntProgrammes

toExpand

Cons

umpt

ionDPC/F/W/10/Suppl.2

DPC/C/W/10/Suppl.2 Page10

Quantities

('000t)

Expe

ndit

ure

(million

Ecus)

Ecus/100

kg

1979

1980

1981

1980

1979

1980

1981

1982

1979

1980

1981

1982

1Hel

lfar

and

social

progra

mmes

..

..

.u

(a)

scho

olmi

lk34

2344

288

281

45,0

:68,5

:62,1

;83,6

:13

,16

19,91

21,5

629,75:

0

(b)

subsidize.1sJ

esof

butter

tono

n-pr

ofit

-mak

ing

grou

ps24

,4.

26,2

.19,7

.28

,841,6

.44

,733

,553

,9:170,49

170,

61170,05

187,

15I

[(c)

subsidized

sale

sof

butter

towelfare

recipients

3,7

3,8

.3,8

.3,6

*2,2

;2,3

2,3

*2,2

59,46

60,5

360

,53

61,1

1j

:1Direct

consumer

subs

idie

sfo

rbu

tter

a:

(a)

permanent

price-reduction

schemes

368

.-34

9340

263

172,

9.16

3,6

151

118,

344

,98

46,88

44,4

144

,98

a(b

)red

uced-p

rice

sale

sto

manufacturers

bakers'

products

84,0

:10

8,1

:10

3,8

:10

6,4;

159,

6184,9:

176,5;

193,6

:190,00

171,05

170,

0418

1,96

Ice-cream

32,0

:44,2

:29

,7:

31,6

:42

,9:

49,1

33,0

:44

,0134,06

111,09

111,

1111

7,02

(c)

1.sales

toth

emi

lita

ry8,

6:

8,6

7,6

:6,8

:14

,7:

14,7

:12

,9:

12,7

:17

0,93

170,

9316

9,74

186,

772.

special

schemes:

uChr

istm

asbu

tter

"156,9

--

:120

164,8

-1

-:

142,

5;10

5,0/

--

1t8,75

(d)

curo

cent

rate

dbu

tter

for

cooking

4,0

4,7

:-

:3,0

6,8

:8,

0:

-5,

5170,00

170,

21-

183,

33a

TO

TA

L(I

11)

:650,5:

538,8:

471,

3656,5

:

..

..

.--

-L============.

======a=====

=_a;======-===

_===a===s=a===='======='_,=

I========_a=_

=====

TABL

EI

(con

t'd)

Quantities

('00

0t)

Expo

ndit

ure

(mil

lion

Ecus

)Ecus/100kg

1979

1980

1981

1982

1979

1980

1981

1982

W979

1980

1981

1982

:1.

Direct

subs

idie

sfo

ruse

ofsk

imme

dmi

lkpowder

and

liquid

:skimmed

milk

for

anim

alfeed

:(a)

liqu

idsk

imod

milk

a:

::

::

:1.

for

calves

;1

835

:1

832

:1

713

:1

760

:125

:105

:98

117:

6,81

5,?3

5,72

6,65

;2.

for

other

annals

2584

:2684

:2437

:2190:

176

;21

7;192

:19

6:

6,81

8,09

7,88

8,95

(b)

skia

Led

milk

powd

er.

a..

aa

*1.

for

calv

es:

130

64;

127

5;

130

01

265

:707

:72

5;

696

;75

3;.54,14

56,8

653

,54

59,5

32.

for

other

animals

;50

7;-

;-

;85e

404*

:-

;-

;90:

79,69

__

105,

88

:(c)

othe

ranimal

feod

prog

ramm

es.

..

a.

a.

.a

-NONE--

aa .

..

a

:TOTAL

III

:1412:1047:

986:1156:

GRAN

DTOTAL

(I+

II+

III)

206

2258

1451.

1812.5

Estimate

DPC/P/W/11/Suppl.2DPC/C/W/10/Suppl.2 Page1

1

DPC/P/W/11/Add.5/Suppl.1DPC/F/W/10/Add.5/Suppl.1DPC/C/W/10/Add.5/Suppl.1

Summary Description of Disposal Measures forDairy Surpluses on the Internal Market of the Community

1. Milk, fresh products and cheese sector

Regulation 1598/77 (school misk)

Aid is granted to pupils in any of the various types ofeducational establishments for utilization of milk products: wholemilk, semi-skimmed milk, buttermilk, fresh products, cheese with notless than 40 per cent fat content.

Level of aid for the 1983/84 marketing year: ECU 30.86/100 kg.for whole milk.

2. Butter sector

(a) Regulation 1762/78

Member States are authorized to grant aid for the purchase ofbutter at reduced prices by welfare recipients. At present, onlyIreland is applying this provision.

The level of aid for the 1983/84 marketing year is ECU 80/100 kg.

(b) Regulation 2191/81

Aid is granted on butter purchased by non-profit-makinginstitutions and organizations of member States. The latter determinethe bodies eligible for aid. This Aid is granted to the bustersupplier at his written request and on submission of a numberedvoucher issued by the competent authority of the member State.

For the 1983/84 marketing year, the level of aid has been fixedat ECU 195/100 kg. Most member States apply this provision.


(c) Regulation 2192/81

Aid is granted on butter used by the armies and similar forces ofmember States.

It is granted to the butter supplier at his request and onsubmission of a numbered voucher issued to the beneficiary unit by thecompetent authority of the member State. The voucher is accompaniedby a duplicate of the receipted invoice or of the delivery slip,countersigned by the beneficiary.

For the 1983/84 marketing year, the amount of aid isECU 195/100 kg.

(d) Regulation 1932/81

Aid is granted for butter and concentrated butter for use in themanufacture of products falling within the following tariff headings:

A - CCT heading 19.08

B - ice-cream falling within CCT sub-headings 18.06 B and 21.07 Cwith a milk-derived fat content not exceeding 20 per cent

- preparations other than yoghurt and yoghurt powder fallingwithin CCT sub-heading 18.06 D or heading 21.07

C - products falling within CCT sub-heading 19.02 B II (b)(uncooked pastry and preparations in powder form).

The amount of the aid is fixed by tender procedure. There aretwo invitations to tender each month. The amount of aid is currentlyECU 235/100 kg. for butter with 82 per cent fat content intended forproducts A and C, and ECU 150/100 kg. for products in group B.

(e) Regulation 262/79

Butter in storage that meets certain specified age conditions issold at reduced prices to manufacturers of protects A, B and C listedin the preceding paragraph.

The amount of the price reduction is fixed by tender procedure.There are two invitations to tender each month.

The minimum sale price for butter with 82 per cent fat content iscurrently:

ECU 115/100 kg. for products in Groups A and C,

ECU 200/100 kg. for products in Group B.

DPC/P/W/11 /Add.5/Suppl.1DPC/F/W/10/Add.5/Suppl.1DPC/C/W/10/Add.5/Suppl.1

(f) Regulation 649/78

Butter in public storage not less than four months old is sold atreduced prices to manufacturers who undertake to process it intoconcentrated butter for cooking, provided that during the processing atracer substance (stigmasterol) is incorporated and that it is sold insmall packages (500 gram tubs).

The amount of the price reduction is currently ECU 190/100 kg.Aid of the same amount can be accorded on butter covered by a privatestorage contract. These provisions are currently applied only by theFederal Republic of Germany.

(g) Regulation 1269/79

Member States are authorized to accord aid on butter used fordirect consumption. Community financing is limited to 75 per cent ofthe amount of the subsidy granted by the member States, subject to amaximum of ECU 51/100 kg. The United Kingdom, however, can receivethis amount (ECU 51/100 kg.) without the requirement of nationalparticipation.

This provision is applied by four member States: United Kingdom,Ireland, Denmark and Luxembourg. In addition, butter can be sold atreduced prices under special schemes such as "Butter for Christmas".

No such measures are expected to be applied in 1983.

3. Skimmed milk

- Liquid skimmed milk:


Aid is provided for liquid milk consumed on the farm for thefeeding of animals other than young calves. It varies in amountdepending, inter alia, on the price of other proteins used in animalfeed. This aid is actually at the rate of ECU 9.10/100 kg.

(b) Regulation 1105/68

This provides for aid on liquid milk used on the farm for thefeeding of young calves. It is currently at the rate ofECU 6.10/100 kg.

- Skimmed milk powder


Aid is granted on skimmed milk powder used in processed composedfeed, in particular for calves.


The milk is denatured either by the addition of alfalfa meal,fish meal and starch or by the direct incorporation into compound feedcontaining not less than 60 per cent and not more than 80 per centmilk and marketed under certain conditions. This aid is actually atthe rate of ECU 61/100 kg.

(b) Regulations 348/77 - 443/77

Skimmed milk powder is sold at reduced prices to manufacturers ofpig and poultry feed. The processed product must correspond to aformula selected among those proposed by the Commission. Thecomponent elements must be such as to prevent the products being usedfor feeding young calves and piglets.

The sale price of the powder is fixed by a monthly tenderprocedure. In October 1983, the price was ECU 25.50/100 kg.

Under the provisions of Regulation 443/77, during one week permonth manufacturers can purchase skimmed milk powder at the pricefixed by tender increased by ECU 1.5/100 kg.

(c) Regulation 1844/77

Fresh skimmed milk powder used for feeding pigs and poultry canbe granted aid which is also fixed by a monthly tender procedure. Theconditions for denaturing skimmed milk are those laid down inRegulations 368/77 and 443/77.

In the October invitation to tender, the amount of the aid wasfixed at ECU 118.50/100 kg.

B. Indirect government programmes for expanding consumption of dairyProducts

A consumption promotion drive for dairy products is being funded fromproceeds from the co-responsibility levy, as is part of the cost of certaindisposal programmes.

FINLAND

The most important measure taken to expand domestic consumption isa deficiency payment for milk, called price supplement, used to dampeninflationary pressures on the economy and to subsidize consumer prices.

Total net expenditure of government programmes to support orsubsidize the consumption of milk production has been as follows:

DPC/P/W/11/Suppl .2DPC/F/W/10/Suppl.2DPC/C/W/10/Suppl.2

School lunch programme1

Sales to military1Price subsidy for butterButter sale to industrySkimmed milk to animal feedMilk price supplement

Total

1979

85.925.982.5

60.5136.9

473.2

864.9

1980

94

288166

130554

894

FIM million

10 1981

4 1 104.11.8 31.9.7 80.11.0 801a1.1 118.14.2 615.0

4.9 1,029.0

SWEDEN

The most important government measure to expand domestic consumption ofdairy products is the consumer subsidy programme which covers the totalmarketed volumes of fresh milk and cheese (except mould cheese).

Total net expenditure of government programmes to support or subsidizethe consumption of milk products has been as follows:

Price rebates; butter, etc.

Price rebates; cheese

Consumer subsidies; fresh milk

Consumer subsidies; cheese )

1979/80

3.8

SKr million

1980/81 1981/82

400 3.8

2,111.4 2,433.4 2,283.1 2,436-0ij

Total 2,115.2 2,437.4 2,286.9 2,449.6

1The figures for 1979-1981 are based on the volumes of t982 and currentprices.

2Preliminary.

1982

119.036.877.7

632.0

994.6

1982/83

3.5


SWITZERLAND

A combination of various schemes has been established to support thebase price of milk: there are government subsidies, and in addition importmeasures that are differentiated according to the products concerned. Lossesresulting from the differences between the production cost and the sale priceare covered by government subsidies, by producer participation and by theproceeds from import charges on dairy products. In addition, there arecertain special programmes designed to encourage disposal of dairy productssuch as temporary reduced-price sales of butter, cheese and other dairyproducts. With respect to Liquid skimmed milk, price reductions are grantedregularly on fresh skimmed milk used on the farm for swine feed. Chargeswhich contribute to reduce the gap between the price of butter and of otherfats are applied on imports of edible fats and oils, thereby indirectlyencouraging butter consumption.

Expenditure on valorization of butter and cheese has been as follows:

(Sw F million)

1978/79 1979/80 1980/81 1981/82

Valorization of butter 228.4 226.8 216.8 200.4

Valorization of cheese 334.2 393.7 348.6 366.8

UNITED STATES

I. Welfare and social programmes

The principal government measures to expand domestic consumption consistof welfare and social programmes. The quantities of dairy products and totalfederal expenditure for food and nutrition programmes are indicated here-under, together with a description of the various programmes.


Food and Nutrition ProgramsSupport Dairy Products

(Butter, Cheese, and Nonfat Dry Milk)

1978 1979 1980 1981 1982

(metric tons)

School food and institution and needy persons programmes

1. Child Nutrition Programs:

ButterCheeseNDM

29,24230,7345,686

33,78943,00511,673

34,66550,54514,1 88

35, 53955,37511,351

2. Charitable Institutions and Summer Camps:

ButterCheeseNDM

3,61 72,7982,360

7,2313,5392,803

6,3063,9183,710

7,4577,1613, 537

3. Comnmodi ty Food Programs:

ButterCheeseNMI

27152915

36053514

339633146

5441,4591, 064

4. Elderly Nutrition Programs:

ButterCheeseNDM

41 957831 0

39938831 9

3453?7186

2912431 55

7431 ,0l 2

177

5., Other Programmes (Disaster Relief & Special Distribution Programs):

57 9,0721 87 66,225

1 21,406

Food stamp proqrammes

Consumption of dairy products supported by food stamps. (DataFY 1982 is only an estimate. No empirical survey information isavailable.)

ButterCheeseNDM

provided forcurrently

_ 44,000- 133,000- 32,000

32,36050,73813,787

2,76415,8855,387

4812,5892,055

ButterCheeseNDM

1

3

1

5

7

48

3101


Estimated Total Federal Payments forFNS Dairy Product Programmes1

(million dollars)

Butter Skimmed Milk Powder Cheese Total

FY 1978 80.2 23.4 83.3 286.9FY 1979 111.4 26.1 127.5 265.0FY 1980 132.9 30.9 159.9 323.7FY 1981 142.7 32.2 199.3 374.3FY 1982 185.1 47.9 465.9 698.3FY 1983 (est.) n.a. nr.a. n.a. n.a.

1Excludes special miLk programmes

Food and Nutrition Programmes

Supporting Dairy Products(Butter, Cheese, Nonfat Dry -Milk)

1. Child Nutrition Programs

The Child Nutrition Programs-the National Schrool Lunch, SchoolBreakfast, Suer Food Service and Child Care Food Programs-servenutritious meals to needy children and other children attendingschools, child care institutions, axis s-er recreational programsas a means of safeguarding the health and proper physical developmentof the nation's children. The Food and Nutrition Service worksthrough State agencies, providing them with cash and commodities foruse in preparing and serving meals, and administers the various ChildNutrition Programs directly in cases where the State has chosen notto administer the programs.

2. Charitable Institutions and Sumer Camps

Commodities are distributed to nonprofit charitable institutionsserving needy persons and summer camps for children, under Section 416price support and Section 32 surplus removal activities. Among thecharitable institutions receiving donated commodities are homes forthe elderly, hospitals that offer general and long term health care,soup kitchens, meals-on-wheels programs and orphanages that do notparticipate in one of the child nutrition programs. To be eligible,an institution must be nonprofit and serve meals on a regular basis.Similar rules govern the participation of summer camps in the program.These camps may not also participate in the Summer Food Service Program.


In Fiscal Year 1982, foods valued at $112.0 million were distributedto, charitable institutions. In addition, sumer camps received foodvalued at $6.7 million in Fiscal Year 1982.

3. Commodity Food Programs

a. Commodities in lieu of Food Stamps for Needy Families

Food and Nutrition Service acquires and distributes agriculturalcommodities to needy persons and families on Indian reservations, andin the Trust Territory of the Pacific. Cash assistance is alsoprovided to help finance the administrative cost of operating theprogram.

At the close of Fiscal Year 1981, the program alas operating on91 reservations. Participation on Indian reservations grew from69,400 in September 1980 to 73,800 in September 1981 as the resultof the entry of 23 additional reservations into the program duringthe year. As of September 1981, there were 32 Indian tribalorganizations which operated the program on 63 reservations and6 agencies of State government which operated the program on28 reservations.

In addition, 9,700 persons participated in the program in the TrustTerritory and the Commonwealth of the Northern Mariana Islandsduring September 1981.

b. Commodity Supplemental Food Program (CSFP)

The Commodity Supplemental Food Program provides supplemental foodto a target population similar to that of the WIC program. The foods,however, are purchased directly by the Department of Agriculture anddistributed to eligible women, infants and children through State andlocal agencies. The Food and Nutrition Service provides cash assistanceto distributing agencies to offset their operating expenses at15 percent of the funds appropriated for comnodities.

4. Elderly Nutrition Program

Nutrition Program far the Elderly provides low cost meals served insenmor citizen centers and similar settings where participants canzIso receive socJial. and rehabilitative services. The managementaxdL operation of this program is in the Administration on Aging (ADA)and. the Department of Health and BHuan Services (DUES). The mealsserved are the focal point forthe nutrition projects which have thedual objectives of promoting better health and reducing the isolationof old age. The activities performed by the Food and Nutrition Serviceare receiving and processing States orders for commodities, andproviding cash-in-lieu of commodities.


5. Food Stamp Program

The Food Stamp Program, which is authorized through 30 September 1985by the Food Stamp Act Amendments of 1982, helps individuals andfamilies with low inches to obtain a more nutritious diet. Eligibleparticipants receive food stamp allotments based on their householdsize and net income after provision has been made for certain deductions.The food stamps increase the food purchasing power of eligiblehouseholds and thus enable them to attain a better diet than would havebeen possible without the assistance of the Food Stamp Program.

6. Fluid Milk Programs

Through such programs as the Special Milk Program, Surmmer Food ServiceProgram, Child Care Program, National School Lunch Program and the SchooBreakfast Program, the Food Nutrition Service subsidies the consumptionfluid milk. For FY 1982 approximately 4,185 million half pints of milk(1,152 million litres) were consumed under these programs. Governmentcosts are not available.

II. Direct subsidies for use of skimmed milk for animal feed

No breakdown available on powder used for calf feed or pig and poultryfeed. Most of skimmed milk powder is used for calf feed. Commodity CreditCorporation sales of skimmed milk powder for animal feed as follows:

FY 1978 FY 1979 FY 1980 FY 1981 FY 1982

Tonnage of skimmedmilk powder (MT) 23,360 32,840 33,067 23,451 24,358

Net loss to CCCper ton1/ $920.65 $563.06 $814.17 $832.90 $844.63

Cost to CCC(million dollars) $21.5 $18.5 $26.9 $19.5 $20.6

1/Acquisition price to CCC less selling price for animal feed.


CANADA

I. Direct subsidy paid to dairy-industry producers

The major element in terms of government measures to encourage consump-tion is the direct subsidy paid to dairy-industry producers.

As part of Canada's dairy-products policy, the Federal Government helpsto pay milk producers a subsidy of $1.68/kg. of fat content. This subsidyhas the double purpose of guaranteeing milk producers a decent return and ofreducing the consumer prices of all dairy products.

Direct Subsidy Paid to Dairy-IndustryProducers - Canada, 1979-82 (in Canadian dollars)

1979 1980 1981 1982

Subsidy per kg.of fat content $1,675 $1,675 $1,675 $1,675

Total quantityof fat contentsubsidized* $146,934.93 $152,318.21 $167,840.00 $163,843.58

Totalexpenditure $246,116,000 $255,133,000 $281,132,000 $274,438,000

*In metric tons

II. Welfare and social programmes: school milk programme

The latter is a provincial programme and only one province administerssuch a programme. It consists of the free distribution, during recesses,of a fixed quantity of homogenized milk (3.6 per cent fat content) to allprimary-level pupils. The period of this distribution is the same as theschool year, i.e. from September to June.


School Milk Programme of the Province of Quebec(in Canadian dollars)

Year Quantity of milk distributed Cost

1979-80 53,557,991 cartons of 200 ml $6,825,0001980-81 71,457,155 cartons of 150 ml $10,527,0001981-82 69,411,935 cartons of 150 ml $10,048,0001982-83 Not Available - Not available

III. Direct subsidies for the use of skimmed milk powder for animal feed

Manufacturers of animal feeds pay only part of the price of skimmed milkpowder, and the subsidy consists of the remaining part of the price.

Subsidy Programme for Animal-Feed Sector(In Canadian dollars)

19791 1980 1981 1982

Subsidy, $ perunit (kg.) 0.83 0.83 0.83 0.832/1.053

Tonnage onwhich paid5 1,479 3,604 3,071 1,732

Total expenditure $1,227,570 $2,991,320 $2,548,930 $1,628,0804

June to December

2January to September3September to December

4Estimate based on the average of the two subsidy levels

5In metric tons

NEW ZEALAND

Government involvement in the promotion of consumption of dairy productsis currently restricted to the subsidy on liquid milk for human consumption.As an important item of food, the New Zealand Government has had a policy ofsubsidizing the domestic price of liquid milk sold for direct human con-sumption. Prior to 1979/80 the consumer subsidy on liquid milk was variablefrom year to year depending on movements in production, processing and dis-tribution costs, retail price and volume of consumption. Since 1979/80however, the New Zealand Government has had a policy of restricting the totallevel of subsidy on milk sold for direct human consumption to $NZ 30 million


per annum. Liquid milk accounts for around 50 per cent of local market dis-appearance of dairy products and is the largest single item of dairy productsconsumed on the domestic market. The consumer subsidy is intended tomaintain consumption in this segment of the market.

Details of absolute and per unit subsidy provided for liquid milk soldfor direct consumption are set out in the following table, which also showsaverage retail prices and expresses the subsidy as a proportion of the retailprice for each year from 1977/78 to 1983/84.

Milk Subsidy Payments

Year Total cost Cost of Average Derived proportionended of subsidy subsidy retail retail price

31 March ($NZ '000) (cents/litre) price supported by(cents/litre) subsidy (%)

1978 41,535 10.489 15.0 69.91979 56,688 14.393 16.7 86.21980 37,023 9.795 25.0 39.21981 35,217 9.564 32.1 29.81982 29,685 8. 211 39.3 20.91983P 22,300 6.291 48.7 12.91984F 30,000 8.571 50.0 17.1

P - ProvisionalF - Forecast at maximum subsidy voted

Sources: New ZeaLand Milk BoardEstimates of expenditure of the Government of New Zealand

In a commentary New Zealand has indicated in particular that theNew Zealand dairy industry is heavily oriented to export. The domesticmarket for liquid milk, cream, and manufactured products accounts for onlyabout 20 per cent of the total milk produced. The industry is reliant almostentirely on the returns from expert markets to maintain its viability.Because the domestic industry is highly sensitive to international marketforces it is inappropriate for the Government to attempt to stimulatedomestic offtake through establishing internal disposal measures.


AUSTRALIA

The bulk of the information sought in this survey is not applicable toAustralia where policies and measures directly aimed at increasing domesticconsumption of dairy products, including skimmed milk powder and butter,are implemented through the promotional activities of the Australian DairyCorporation (ADC). The ADC is a statutory body established underCommonwealth Legislation, but its. activities, including promotion of dairyproducts, are funded by the dairy industry through a Levy on whole milkproduction. There is no government financial input.

There are no direct government measures such as product subsidies,which are aimed at increasing the domestic consumption of dairy products,but individual dairying companies fund promotion of their own dairyproduct brands.

JAPAN

Two weLfare schemes are in operation in order to increase milkconsumption. School lunch programmes are designed to stabilize thesituation of dairy farmers by increasing milk consumption, and to improvethe physical condition of children. In the context of the secondprogramme, certain organizations and groups receive milk at special Lowprices because of subsidization.

Annual total net government expenditure on these programmes has beenas follows:

Fiscal Year t million

1979 17,4481980 18,0001981 16,3811982 16,209

SOUTH AFRICA

Most of the measures designed to expand consumption comprise indirectgovernment schemes. The Dairy Board is empowered to impose levies on dairyproducts and to establish funds into which all revenue derived from theLevies has to be paid for financing expenditure in respect of administration,advertising and promotional campaigns. With respect to subsidization ofdairy products for promotion purposes, the emphasis is on school milkprogrammes and schemes for the benefit of institutions and persons in need.

DPC/P/W/11/Suppl.2DPC/F!W/10/Suppl.2DPC/C/W/10/Suppl.2

Total expenditure on direct and indirect consumption support programmeshas been as follows:

Financialyear Unit.year

1979/80 R 4,207,5571980/81 R 7,997,9291981/82 R 4,081,9681982/83 R 3,589,7461983/84 R 3,925,000

URUGUAY

Under the "programme of nutritional education and food supplements"for pre-school and school children an annual quantity of 475 tons of wholemilk powder is furnished. The agreement has been extended for the period1983-1985.

The National Cooperative of Milk Producers sells annually to theMunicipality of Montevideo up to 60,000 litres of milk daily, subsidized atthe rate of 0.06 new pesos per litre. Government expenditure on thisconsumption programme for milk is close to US$50,000 per year.

restricted dpc/p/w/11 general agreement on … · restricted dpc/p/w/11/suppl.2 dpc/f/w/10/suppl.2...

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