Problem statement

Introduction

The handbook for meat supply balances was compiled from various documents, including:

a handbook written in 1983;
the working tables currently being used.

The handbook should not be considered complete in its current state as Member States have taken action under TAPAS to improve meat supply balances. Changes have to be incorporated.

Several issues were brought to light while work was being done on the handbook. To a certain extent, they require a common approach.

Other uses

The principle of the balance is to establish an equilibrium between resources and uses. However, certain uses are not recorded in the meat supply balances, particularly industrial use and animal feed, although, as is to be expected, the primary focus of the balances is on human consumption.

Problem:

It would be useful to record items in the balance other than those that concern human consumption. If these entries were to be filled out, would this constitute a break in the series with regard to the past, and would there be a need to change certain coefficients?

List of meat-based products

The list of meat-based products is used for external trade. It makes it possible to determine which products should be used to calculate the balance. In addition, by applying conversion coefficients, the relationship between product weight and the equivalent carcass weight can be determined.

The product list is based on the NC9800 nomenclature.

Problems:

This list changes regularly. There is a need to reflect on whether new products should be added.

As regards the conversion coefficients, the Eurostat proposal could be replaced by national coefficients. If necessary, Eurostat could revise the coefficients on the basis of the coefficients submitted by each country (see working tables).

There is no distribution by species for products made up of meat from several species. If fact, there are no products shared between several species. However, certain products, with different codes and similar names, are defined for several species and for offal (e.g. sausages).

Reporting thresholds for intra-Community trade

Reporting thresholds for intra-Community trade have been introduced both for export and import. In practice, this has resulted varying approaches:

declaring all exchanges;
declaring all exchanges if the threshold is reached;
declaring only exchanges over the threshold.

Problem:

Because of the varying approaches, the balances are inconsistent:

intra-Community imports and exports differ;
a certain percentage of the products disappears, because internal trade is underestimated.

International trade in livestock

International trade in livestock covers:

pure-bred breeding animals;
animals for rearing;
animals for slaughter.

The combined nomenclature (CN) does not always make a distinction between animals for slaughter and other animals, particularly pigs, sheep and goats.

Problem:

Gross indigenous production is calculated from the number of animals slaughtered and the international trade balance. Two different approaches have good arguments in their favour:

strictly from the point of view of meat production:
In order to record meat produced from indigenous animals, only imported or exported animals for slaughter should be recorded in relation to trade.
from the point of view of `capacity for self-sufficiency':
Livestock represents potential production which, when later slaughtered, may meet the needs of the country in question.

The approach taken should be realistic and only include under meat production animals for slaughter, i.e. those slaughtered in the country of production, imported or exported. The way in which other marketed animals are included in GDPs should then be looked at.

Assessing stocks

The principle of stock variation applies to meat supply balances. Stock variation is the difference between the stocks at the beginning and at the end of the year.

Stocks comprise meat and meat-based products.

As a rule, the product list used for international trade should be used to assess stocks.

Problem:

Certain countries do not provide the variation in stocks, i.e. between stocks at the beginning and at the end of the year.

Stock assessment methods should be clarified, and the elements that are included (products) should be defined.

Is stock variation considered to be practically negligible? In the balance, it makes up approximately 0.5% of resources.

Definitions

Eurostat calculates the balance for the European Union on the basis of the meat supply balances drawn up by Member States. Balances are drawn up for the various kinds of meat and for offal intended mainly for human consumption. However, in order to ensure consistency, other uses should also appear, the most important being animal feed and industrial uses.

There are various balances, according to the species of origin:

beef;
pigmeat;
sheep and goatmeat;
horsemeat;
poultrymeat;
other meats;
offal;
total meats, including offal.

General principles

Meat supply balances contrast the resources and uses of the product known as `meat'. The following is a diagram of the structure of the balances:

Balances are first drawn up by the Member States on the basis of gentlemen's agreements. A supply balance for the European Union is then drawn up on the basis of these national balances. For the purpose of drawing up the balances, each country is viewed as a vast production unit. The difference between the EU and the Member States is that the EU does not include commercial trade between Member States. It only includes commercial trade between the EU and non-member countries.

Another peculiarity of the meat supply balance is that it takes account of international commercial trade in both livestock and in meat or meat-based products. This will be mentioned when resources are defined.

Methodology

The meat-supply situation is determined on the basis of:

gross indigenous production, defined as usable indigenous production;
external trade balance for livestock.

The method of calculation must take account of the special nature of meat production, i.e. that the animals slaughtered to produce meat may be either of indigenous or foreign origin. This distinction is not always made at abattoirs. Therefore, in order to determine indigenous production on the basis of a given country's own means, i.e. animals coming from the country itself, the percentage made up by external trade of livestock must be identified.

The external trade balance includes all livestock, including that which is not immediately intended for slaughter. The concept of supply also covers potential meat supply from livestock to be slaughtered subsequently. This potential is included in external trade.

Products

Balances include meat from animals which have been declared suitable for human consumption at the time of slaughter, wherever they were slaughtered. Meat which has been declared unfit for human consumption (diseased or dead animals) is not included in the balances.

The various animals (species, categories, meat and meat-based products) which are taken into account when drawing up the balances are listed in Annex 4.

The annexes comprise:

the summary tables for balances;
the working documents for trade, import and export;
the coefficients.

Reference area

Supply balances are drawn up for the customs territory of Member States, as defined in accordance with Council Regulation (EC) No 1172/95 of 22 May 1995 on the statistics relating to the trading of goods by the Community and its Member States with non-member countries as last amended by Regulation (EC) No 374/98.

Reference period

Balances are drawn up for calendar years (1 January - 31 December).

Units

For meat, the unit is 1000 t carcass weight. For offal it is 1000 t product weight.

For certain species, carcass weight is defined in Directives 94/432/EEC, 94/433/EEC and 94/434/EEC, as follows:

for pigs:
Carcass weight is the weight of the slaughtered pig's cold body, either whole or divided in half along the mid-line, after being bled and eviscerated and after removal of the tongue, bristles, hooves, genitalia, flare fat, kidneys and diaphragm.
for cattle:
Carcass weight is the weight of the slaughtered animal's cold body after being skinned, bled and eviscerated, and after removal of the external genitalia, the limbs at the carpus and tarsus, the head, the tail, the kidneys and kidney fats, and the udder.
for sheep and goats:
Carcass weight is the weight of the slaughtered animal's cold body after having been bled, skinned and eviscerated, and after removal of the head (severed at the atlanto-occipital joint), of the feet (severed at the carpo-metacarpal or tarso-metatarsal joints), of the tail (severed between the sixth and seventh caudal vertebrae) and of the genital organs (including udder).

Kidneys and kidney fats are included in the carcass.

As there is no specific legislation for other species, carcass weight is always considered to be the weight of the animal's cold body:

for horses, donkeys, mules and sheep and hinnies:
Carcass weight is the weight of the slaughtered animal's cold body after having been bled, skinned and eviscerated, and after removal of the head, tail, udders and part of the limbs. Kidneys, kidney fats and butcher fat are included in the carcass. Slaughter grease is not.
for poultry:
Carcass weight is the weight of the cold body of the slaughtered farmyard poultry (hens, chicken, geese, ducks, guinea fowl, turkeys) after being bled, plucked and eviscerated. It includes poultry offal, with the exception of foie gras.
for other meats:
Carcass weight is the slaughtered animal's cold body (by analogy to the other species) after being bled, eviscerated, plucked or skinned, as applies, and after removal of certain parts of the body (tail, etc.).

Live animals, deboned meat and meat-based products are always converted to the equivalent carcass weight using conversion coefficients. The product list and the Eurostat conversion coefficients are given in the Annexes. The product list is based on the Combined Nomenclature. Countries may add to the list if a product that is not included is of particular interest.

Offal is defined as edible offal recovered when animals for human consumption are slaughtered. Offal intended for industrial use is not included. More specifically, offal includes the liver, lungs, heart, spleen, snout, cheeks with bone, brain, tongue, trotters with hair, udder, rumen, caul and flare fat, blood, etc. Depending on the species, the above offal may not exist, or may not be used. Usage may also differ between countries.

Market balance

Given the mode of production and hygiene and public health standards, only a market balance is taken into consideration. Under such conditions, one cannot consider that a significant proportion of production is used in agriculture.

International trade

A distinction is made between trade between EU members and trade with non-member countries. That is why imports and exports always include a subdivision for intra-Community trade, which makes it possible to establish EU commercial trade with non-member countries.

The accuracy of data on intra-Community trade is affected by the application of reporting thresholds which vary between Member States and for imports and exports, and by failures to declare. As a result, intra-Community trade is underestimated.

At EUR-15 level, intra-Community trade is no longer taken into account, as the purpose is to evaluate EU trade with non-member countries.

Balance sheet entries

Entries in the balance are grouped into the three sections to which they make a contribution:

usable production;
resources;
uses.

The number after the name of the entry in the balance sheet is the code used when recording data.

Usable production (12)

Total tonnage of meat recognised as fit for human consumption by the health services. This meat comes from all the animals slaughtered in the country, whatever their origin, whether indigenous or foreign. In addition to slaughter carried out in abattoirs, domestic slaughter must also be taken into account.

Usable production can also be obtained from gross indigenous production and the international trade in livestock intended for slaughter.

Gross indigenous production (1)

A country's gross indigenous production may be defined as production originating from that country's total livestock population. It is expressed as the number of head.

In the regulations it is defined as the sum of slaughterings and the external trade balance for livestock intended for slaughter, that is, slaughterings + exports - imports.

Livestock imports [for slaughter] (6 & 8)

Livestock which is introduced into a country's cycle of production and consumption.

A distinction is made by origin of the livestock in order to identify trade between EU members and trade with non-member countries.

Livestock exports [for slaughter] (2 & 4)

Livestock which is sent to another country rather than entering a country's cycle of production and consumption.

A distinction is made according to the destination of the livestock in order to identify trade between EU members and trade with non-member countries.

Usable production (12)

A country's usable production is calculated as follows:

gross indigenous production + exports - imports.

However, the number of head slaughtered is an easier way to determine usable production.

Resources (99)

By definition, a country's resources consist of usable production, imports of meat or meat-based products, and stocks at the beginning of the year.

Usable production (12)

Usable production is defined as the production of meat from a country's abattoirs plus the few domestic slaughterings.

Imports (20 & 24)

Imports of meat and meat-based products.

The list of products covered is included in Annex 4.

Technical coefficients are applied to make carcass weight correspond to the weight of the finished product. Eurostat provides coefficients, but countries may use their own. The coefficients are given in the working tables.

The product list changes as the nomenclature for international trade products evolves.

Stocks at the beginning of the year

For balances, stocks at the beginning of the year are in principle considered to be resources. An alternate approach is to take stock variation into account. This approach is used for the meat supply balances.

Resources (99)

This entry gives the amount of meat available for use and consumption in a given country.

As a rule, resources are equal to use.

Uses

Several uses of meat are taken into account:

export (30);
stock variation (45);
domestic use (50);
stocks at the end of the year (40).

Exports of meat and meat-based products (30 & 34)

Exports are included as uses.

The above observations on imports of meat and meat-based products also apply to exports.

Stock variation (45)

Stock variation is the change in stocks over the reference period. It is the difference between stocks at the beginning and at the end of the period.

Negative variation in stocks means stocks have decreased, that is, been used. Positive variation in stocks means stocks have increased, that is, not been used.

The concept of stock covers:

producers' stocks;
stocks on the market, including wholesaling, importers/exporters and processing plants;
public stocks, intervention stocks and security stocks.

The following are not covered:

retail stocks;
household stocks.

Stocks at the end of the year

This entry is associated with the entry for "stocks at the beginning of the year" so as to reveal stock variations. If the "stock variation" method is chosen for the meat supply balances, the "stocks at the end of the year" entry is not used.

Domestic use (50)

Domestic use is a country's consumption of meat. It can be calculated in two different ways:

Resources (99) - exports (30) - stock variation (45)
Losses (53) + human consumption (70) + animal feed (55) + industrial uses (60) + processing (65)

As the focus is on human consumption, meat balances are not broken down according to the second formula. Balances would be more precise if all of the "domestic use" entries were filled in.

Losses (53)

This entry concerns the losses incurred during marketing: stocking, transport, processing and packing.

In principle, meat which has been declared unfit for human consumption is not included in the balances, as it is eliminated at the slaughtering stage and is not included as slaughter. On the other hand, meat which is rendered unfit for human consumption during marketing is recorded.

Losses are not currently entered in the balances. There is no actual accurate account of losses. Instead, they are estimated by applying a coefficient.

Animal feed (55)

The figures for meat used for animal feed are recorded. As a rule, given the nature of the product, it is not directly used in agriculture: market balance is enough to determine the amounts used.

This heading is not currently filled in. This may change, due to the appearance of problems linked to the use of animal meals in animal feed, particularly because animal feed balances are in the process of being drawn up.

Human consumption (70)

The figures for meat and meat products used for human consumption are recorded. This is currently the only "domestic use" item filled in.

Industrial uses (60)

These are the amounts used by industry which are not intended for either human or animal consumption.

The amounts used by the agri-food industry to produce food products are included under human consumption, animal feed, exports or stocks.

This heading is not currently filled in.

Processing (65)

There is no product in the meat sector that is a result of such processing that special information regarding it needs to be provided.

Complementary calculations

Degree of self-sufficiency (80)

This concerns establishing the relationship between gross indigenous product and domestic use for each country.

Degree of self-sufficiency =
(Gross indigenous production / Domestic use) x 100

Human consumption per capita

Consumption per capita is obtained by dividing human consumption by the number of inhabitants.

This calculation is based on the population data in the official statistics on 30 June for the balances for each calendar year.

The statistics refer to the resident population of each country. Persons normally residing in a country but temporarily absent are included in the total population figure, while foreigners residing temporarily in the country are excluded for the same reasons.

In this way, apparent human consumption per capita is obtained.

Data transmission

Data are transmitted over a communications network, using the tables in Annexes 1 and 2.

The deadline is the month of June in the year following the year concerned.

National particularities

Contains comments from Member States and candidate countries on the methods applied.