Memorandum on supply balance sheets

The supply balance sheets 1 compare the resources and uses of a product (or a group of products) in a reference area (European Union and/or Member States), over a reference period (calendar year and/or marketing year). When stocks are not available, they are replaced by the change in stocks which led to the following practical plan:

Special efforts will be made to determine the stocks in the beginning, and at the end of the reference period. The reason is that using only the change in stocks leads to systematically minimise the total of resources and uses and of exchanges within the resources. The change in the stocks does not enable any more to begin the current annual period of agricultural production where the preceding one has ended.

This involves the collected, sampled or produced and delivered quantities. The following should be included: marketed production, misrepresented quantities, self-provided quantities, self-consumed quantities and losses on the farm (handling, waste, pest damage, etc.). The following should be excluded: the quantities not harvested, harvest losses (on the plot) and losses at the time of transportation from the plot to the seat of the holding.

The Official Foreign Trade statistics is the source for value and volume of imports and exports covering goods (raw products or processed products) which:

The change in stocks corresponds to the level of stocks wherever they are held during the reference period : final stock - initial stock.

That excludes stocks at retail trade level and at household level (included in the various domestic uses).

Resources	Uses
Usable production Imports	Domestic uses Exports Changes in stocks

seeds or eggs for hatching: quantities of raw product used for the following production cycle,

losses: losses which have occurred after the delivery of products (at the time of storage, handling, processing or conditioning process, etc.), including the quantities withdrawn from the market and made unsuitable for consumption,

animal feed: quantities of product used for direct animal feed and/or for the manufacture of foodstuffs for animals

industrial uses: quantities of product used by the industry for the production of products not intended for animal feed or for human consumption, including beer and alcohol industries,

processing: quantities of product used for the production of a derived foodstuff for which an individual balance sheet exists,

human consumption: quantities of product placed at the disposal of human consumption in all forms: quantities consumed with or without processing.

As an example, the models of the various tables currently used for drawing-up the cereal balance sheets are provided in the annexes of the specific manuals.

General information

The statistics of the supply balance sheets are required for their own sake and for agricultural market management purposes. The various data appearing in these balance sheets is essential in order to appreciate the structure and development of these markets and to provide statistics upon which the decisions of the agricultural policy makers are made. The general instructions on how to compile supply balance sheets are described in this handbook.

The national supply balance sheets are worked out by the Member States on the basis of Community concepts proposed by Eurostat within the framework of the ad hoc Working Parties of the Agricultural Statistics Committee. The practical calculation of balance sheets and specific procedures, which are attached to it in each Member State, are described in an appendix. The national balance sheets are aggregated and consolidated by Eurostat to produce the Community balance sheets. The statistics of the supply balance sheets of the European Union and of its Member States are available in the NewCronos database, "Agricultural Products" (ZPA1) and "Fisheries" (FISH) domains.

The supply balance sheets are calculated for the principal agricultural products. They are produced in summary table form showing supply and demand for each balance sheet commodity:

They can be regarded as the complement in quantitative terms to the values expressed in the agricultural accounts, but be subdivided according to products. They also constitute the synthesis of a large number of quantitative statistical data available for agriculture and food.

In order to appreciate the whole market of a product, the supply balance sheet includes not only the raw agricultural product (for example, wheat), but also the most important processed products (for example, wheat flour or wheat starch) if they are not themselves the subject of a specific balance sheet. This allows an overall picture of foreign trade and the supplies of a product.

The balance sheet of a processed product (for example, sugar or oil) does not take account of the origin of the product (for example, sugar beet or oleaginous plants) if the latter are already the subject of a specific balance sheet.

"Balance sheet" handbooks for a product or a group of products are conceived in the form of an inventory: they analyse the characteristics of the supply balance sheets pertaining to various agricultural products. These characteristics are drawn from the nature of the products under consideration and the information available. In each handbook, the "Member State Remarks" describe the methods of calculation of the balance sheets of each Member State.

The appendices of the "balance sheet" handbook list, on the basis of the Combined Nomenclature, the raw product's codes (object of the balance sheet) but also those of the products resulting from its processing, and intervening in the foreign trade of the balance sheet.

Lastly, the fodder balance require a separate set of instructions (see document ASA/PE/614 and 633).

Principles of classification

Basic plan of the balance sheet items

In the supply balance sheets, it will be possible to calculate both "resources" and "uses". The most logical form is as follows:

But, the absolute stocks at the beginning or end of a period are not always available. In this case, only the change in stocks can be indicated. The lay-out of the balance-sheet is consequently the following:

However, when data on absolute stocks is communicated by the Member States, these results are always integrated into the balance sheets (see 4.4).

Domestic use is composed, where appropriate, of the following items: seeds or eggs for hatching, losses, animal feed, industrial uses, processing and human consumption.

It is essential to balance the balance sheet so that. resources = uses. To this end, it is sometimes necessary to adjust the data coming from different sources, which can sometimes be difficult.

Classification according to the processing stage

Unprocessed products

Resources	Uses
Usable production Imports	Domestic use Seeds Eggs for hatching Losses Animal feed Industrial uses Processing Human consumption Exports Variations of stocks

An unprocessed product is one in its initial state, which, therefore, does not undergo any processing. These products are listed in the NACE3 and described in the respective specific manuals.

The quantities of raw product are naturally dependent on the presentation of the product. The standards of product presentation are generally specified in the Community Regulations governing the agricultural markets. In the absence of market regulation, it is recommended to the agricultural statisticians to evaluate the quantities by weight of an raw product such as it is defined by current commercial rules: the concept of a healthy, fair and marketable product. These can differ from one Member State to another (such as vegetables).

Processed products

Processed products are always obtained by processing of one of the raw products defined above. There can be one or more processing stages. A by-product obtained at the time of processing is, theoretically, not taken into account in the balance sheet. But, it can also be regarded, in certain well defined cases, as a processed product.

The balance sheet handbook according to product or group of products specifies in its "A-definitions" section if a raw product is listed in the supply balance sheets separately or with processed products (if necessary, with processed products at various stages).

Sometimes, a processed product (for example, sugar, meat, cheese, skimmed milk powder) is also represented without the raw product from which it is derived.

If the raw product and the processed products appear together in the balance sheet, it is necessary to define with precision the unit in which they have to be added. If the unit of presentation is the raw product, it is appropriate to use technical coefficients (see 2.42) to convert the quantities of processed products into any quantities of raw product.

Example: the cereals balance sheet uses the raw product as a unit of presentation, that is to say the cereals in grains. The flour (first processing stage) and pasta (second processing stage) are converted using technical coefficients, into quantities of grain necessary for their manufacture.

Classification according to marketing stage

In certain balance sheets, two marketing stages can be distinguished, namely product flows in agriculture itself (farm balance sheet or more generally production balance sheet) and product flows on the market (market balance sheet). The separate compiling of a "farm balance sheet" and a "market balance sheet" (which can be added in a "total balance sheet") is not only advantageous for the balance sheets user, but also facilitates the development of the "total" balance sheet and the control of the data used.

Certain items of the balance sheet are located in different economic sectors. Thus, cereal stocks on the market are known in a more precise way than farm stocks. The latter are often simply estimated. But the estimate becomes more concrete if the data concerning production and the sales drawn from the farm balance sheet are compared with the information on stocks and the use of seeds, animal feed and human consumption on the farm. Similarly, the "animal feed" item distinguishes the quantities used directly in agriculture from those bought on the market. The result is a better quality of data for the development of fodder balance sheets.

Farm balance sheet

The development of farm balance sheets is limited to the products, of which a large part of production is used directly in agriculture, for example in the form of seeds, animal feed or for the direct consumption of the producers' household. The various items of the farm balance sheet, including the "Sales" and "Stocks" are also necessary for the calculation of crop production and its use, the calculation of fodder balance sheets, the accounts of the different economical sectors and the indexes of agricultural production.

In the farm balance sheets, the whole agriculture of a country is regarded as one big farm. This means that flows between farmers are not accounted in the balance sheets.

This balance sheet should make it possible to determine the quantitative data, which is necessary for the development of final agricultural production.

Market balance sheet

The starting point of the market balance sheet is made up of purchases from agriculture. The same quantities also appear in the farm balance sheet (agricultural sales) and consequently, form the link between the two balance sheets.

The compiling of a market balance sheet uses a large amount of detailed information coming from various sources. This information naturally has to be harmonised within the framework of the balance sheet. It is frequently the case that some of the information can only be drawn from official statistics. One has to then resort to the information provided by public services, professional associations, etc. To harmonise this diverse information, it is often necessary to draw up auxiliary tables (not published) in order to restore the flow of goods statistically.

Only the market balance sheets are worked out in individual cases when the production figures of kitchen gardens (vegetable gardens of farms and "workers' allotments") are either unknown or difficult to estimate. Such is the case for certain vegetable and fruit species.

It is appropriate to note that the products resulting from the processing of a raw product for which a balance sheet exists, are only the subject of a market balance sheet (for example, potato starch, sugar, etc.).

Total balance sheet

The total balance sheet refers to all the marketing stages. It gives an overall picture of the resources and uses of a product. It is the sum of the farm balance sheet and the market balance sheet. The total balance sheet lists for usable production, the usable production of the farm balance sheet. The "Agricultural sales" and "Purchases from agriculture" items, which link the farm balance sheet to the market balance sheet, cancel each other out and disappear.

It is appropriate to note that for certain products (for example, potatoes), only a total balance sheet is established although it is theoretically possible to calculate the farm and market balance sheets.

Classification according to the degree of aggregation

A supply balance sheet can be worked out for only one product in the form of a simple balance sheet or for a product and its processing in the form of an aggregated balance sheet.

Simple balance sheet

A simple balance sheet is only developed for a product without one carrying out aggregation between the product and its processed products. In this instance, it can act as a raw product (for example, sunflower seeds) or a processed product (for example, sunflower oil).

Aggregated balance sheet

The aggregated balance sheets refers to a defined raw product to which, for certain balance sheet items, the principal processed products resulting from this same product are added after conversion. It is necessary, for this purpose, to have common unit and conversion coefficients. The various products are defined in the "balance sheets" handbooks according to product from the Combined Nomenclature. In the absence of a national conversion coefficient, Eurostat systematically proposes a "Community" coefficient corresponding to the weighted average of the coefficients used by the other Member States.

Example: In the "common wheat" balance sheet, not only wheat grains are found, but also wheat flour, wheat starch, pasta products, etc. Conversion into grain is carried out using coefficients, which represent the quantity of common wheat necessary for the production of a unit of the processed product.

Overall balance sheet

The overall balance sheets refer to the set or groups of agricultural products. It can only act, in this instance, as products for which supply balance sheets exist. These supply balance sheets can be added, if necessary using conversion factors and after the elimination of double counting.

There is an overall balance sheet when, for example, the balance sheets of all the cereal species are gathered together in one single cereals balance sheet or the balance sheets of all the meat categories are gathered together in a single meat balance sheet. In these two cases, the various balance sheet items are added directly without using conversion coefficients.

When products are of different nature (different raw products), but of similar uses, the production of the overall balance sheet must be made using conversion coefficients.

For example, the balance sheet of fats involved various products such as margarine, animal fats, vegetable fat, cooking oil, etc. The simple balance sheets, which are generally worked out by weight of the product, are first converted separately into a common unit (the untreated fatty matter) before being added.

General scope concepts

Geographical sector

The supply balance sheets are worked out for the customs territory of the Member States, defined in accordance with Council Regulation (EC)No 1172/95 of 22 May 1995 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 .

The geographical sector of the supply balance sheets for the Community results from the fact that these territories are taken into consideration.

Reference periods

The reference period normally stretches over 12 consecutive months. This involves the calendar year for livestock products and the twelve months of a marketing year for crop products. Certain balance sheets (vegetable fat balance sheets) are worked out by calendar year, as well as by marketing year.

The marketing years for the various vegetable supply balance sheets can start at different dates. Council Regulations on the common organisation of the markets specify the starting and end dates of the marketing year required by the Community. All the useful details are to be found in the handbooks according to product. The preliminary balances are generally provided 3 to 6 months after the end of the current annual period of agricultural production and the final balance sheets are delivered a few months later. For the precise delivery dates, see item 8.

For some balance sheets, one also works out intermediate balance sheets, covering periods shorter than 12 months (months, quarters). Generally, this involves simplified balance sheets giving useful information for the management of markets (for example, the quarterly statements established for animal production under Eurostat's responsibility).

Population

The calculation of consumption per capita uses the population data appearing in official statistics. The following dates are retained:

Statistics refers to the residing population of each country: persons normally residing in a country but temporarily absent are included in the total population figure, while the foreigners residing temporarily in the country are excluded from it for the same reasons (see 5.2).

Units

The supply balance sheets are established in thousands of metric tonnes (1 000 t) or, for wine, in thousands of hectolitres (1 000 hl).

Specific concepts

Usable production

This item of the balance sheet corresponds to the concept of "usable production" of the Accounts of Agriculture. It represents the usable quantities resulting from the production process during the reference period, on the understanding that the losses suffered during this process and up until the delivery do not appear in this item.

This involves the production harvested during the reference period, even if this production started before the 1st day of the calendar year or marketing year.

According to the nature of the product, additional definitions are provided in the "balance sheets" handbooks according to product.

This involves the quantities collected and delivered to the seat of the holding. It is available to be sold off the holding or used or consumed directly on the holding. That includes marketed production, misrepresented quantities, self-provided quantities, self-consumed quantities and losses on the farm (handling, waste, pest damage, etc.). That excludes the non-harvested quantities, the losses to the harvest (on the plot) and the losses at the time of transportation from the plot to the seat of the holding.

"Usable production" (net production) is the overall tonnage of meat found suitable for human consumption by health services. This meat come from all the animals slaughtered in the country, of domestic and foreign origin.

This involves the unloading of fish by fishing vessels of the Member State to national or foreign ports and transfers at sea on foreign boats.

Agricultural sales

This balance sheet item appears when a farm balance sheet and a market balance sheet are established. The "Agricultural sales" constitute the last item of the farm balance sheet and the opening item of the market balance sheet ("Purchases from agriculture").

Sales refer to the quantities sold on the market by agricultural producers. They can be calculated from the "usable production" balance sheet item, after the deduction of the direct use on the farms (seeds, animal feed), that of the farmers' households (human consumption) and, if necessary, changes of stocks and losses on the holding.

Foreign trade

The quantities withdrawn from the market always appear in the "Agricultural sales" item. In Community term "withdrawal" means "to withdraw certain product species from the market which fulfil the conditions of quality required for their marketing, but do not find outlets in the normal distribution circuit".

The foreign trade of the supply balance sheets is established in accordance with the legal regulations of the Community concerning the trade of goods statistics (Council Regulation (EEC) n°1172/95 of 22 May 1995), while resting on the provisions concerning the Customs Code (Council Regulation (EEC) n°2913/92 of 12 October 1992).

The products selected correspond to the tariff and statistical nomenclature and to the Common Customs Tariff in force (see the appendices of the handbooks on specific balance sheets).

The source used for the "Imports" and "Exports" items of the supply balance sheets are the official Foreign Trade statistics which cover goods (gross products or processed products):

Summary of general conditions

Eurostat refers exclusively to the trade data arising from provisions contained in Council Regulation (EEC) n°1172/95 of 22 May 1995 relating to the trade of goods statistics of the Community and its Member States with non-member countries. However, the coming into force of the Intrastat enacting terms (within the framework of the single market) caused breaks in series and, in view of the different collecting systems from one country to another, created divergences between the national sources (which limit the aggregation of the data at community level).

The foreign trade statistics consider "ordinary" trade and "processing" trade. The "ordinary" imports of goods of extra-Community origin are called "direct" when products are put immediately on the market after payment of Community duties and national levies (for example, VAT). They are said to be "in free circulation" only after payment of Community laws. The products "in free circulation" can thereafter be put on the market in another Member State after payment of national fees.

For a given Member State, the "inward processing" trade concerns the products imported temporarily for processing on its territory and re-exported after processing. The "outward processing" trade concerns the products exported temporarily for processing on the territory of another State and re-imported after processing.

The foreign trade data is broken down by country of origin or source and destination, in accordance with the nomenclature of the countries for the foreign trade statistics of the Community and the trade between the Member States, which make it up. In the supply balance sheets of the Member States, the exchanges of foreign trade are broken down into intra-Community trade and extra-Community trade. This enables Eurostat to calculate foreign trade for the territory of the Community and intra-Community trade (see 4.34 and 4.54).

To convert the processed products in the unit of presentation of the supply balance sheet, it is advisable to use technical coefficients. Until those are harmonised for the Community, the various countries can use their national conversion coefficients. However, conversion coefficients are proposed by Eurostat in the handbooks according to product.

Community statistics ignore goods whose value or weight does not reach the statistical threshold defined in accordance with the provisions of Article 4 of Council Regulation (EEC) n°1172/95 of 22 May 1995.

Imports

For goods which are not in free circulation in the Community, the country of origin;

For goods which are in free circulation in the Community, the consignment country (this makes it possible to avoid the double-counting in the Community balance sheet with regard to imports from non-member countries for goods which originate from it).

The country of origin is the country from which the goods originate, within the meaning of Council Regulation (EEC) n°2913/92 of 12 October 1992, relating to the joint definition of the concept of origin of goods, as last amended by the acts of accession.

If for the application of the Common Customs Tariff, for the quantitative restrictions or for all other regulations concerning foreign trade, the origin of goods has to be attested owing to conventions or individual regulations of the Community, which diverge from Regulation (EEC) n°2913/92, it is appropriate to observe, in the cases provided for by these conventions and regulations, the rules, which are fixed for them.

If, before its arrival in the importing country, the goods in free circulation in the Community are forwarded by one or more countries and if there are, in this or these countries, delays or legal transactions other than those which concern transportation, one regards the last country, in which delays or legal transactions of this kind take place, as the consignment countries.

The product of the fishing on the high seas unloaded in the ports of a Member State will not appear in import statistics of this Member State if the fishing is carried out by boats approved or recorded in this Member State and flying its flag.

Exports

With regards to exportation, the destination country is listed. The destination country is the country to which goods have to be finally transported insofar as this destination is known at the time of exportation.

The quantities provided under the title food aid appear in the data concerning exports.

Community Foreign trade

In the questionnaire that the Member States have to fill out, a distinction is made between extra-Community trade and intra-Community trade, imports and exports having to appear separately.

Eurostat uses these documents to determine the Community trade with non-member countries, which has to be regarded as foreign trade for the Community territory. Theoretically, it will be sufficient to add the sum of the total imports and the total exports of the Member States then to deduct respectively the intra-Community sum of imports and the sum of intra-Community exports. The mathematical balance of the balance sheet will be preserved if, in the correct way, the amounts of imports and intra-Community exports are identical. Unfortunately this is not the case.

In the past, Eurostat has to choose the most representative piece of intra-Community trade data: the sum of inter-Community imports of the Member States. The following equalities result:

Community imports from non-member countries =
Sum of total imports of the Member States -
Sum of intra-Community imports of the Member States.

Community exports to non-member countries =
Sum of total exports of the Member States -
Sum of intra-Community imports of the Member States.

If the b) balance is negative, the sum of intra-Community imports will be reduced to the sum of total exports of the Member States, both under a) and under b).

As from 1999, Eurostat will endeavour to consolidate the data of intra-Community trade, in close co-operation with the Member States. From mirror tables established from the official statistics of foreign trade, flows of the principal agricultural products between Member States will be arbitrated in order to obtain a balance between the sum of intra-Community imports and the sum of the intra-Community exports of the Member States. Once consolidated, the arbitrated trade figures will be used in accordance with the theory.

Stocks

The stock at the beginning of the period refers to the quantities of products unused, but stored, existing from the first day of the reference period and coming from period (s) of previous reference (s). It can involve products of domestic origin or imported products.

The stock at the end of the period indicates the quantities stored existing on the last day of the reference period. This stock which is at the same time the initial stock of the following reference period, is published in the "final stock" item on the balance sheet.

The census of existing stocks at the beginning and at the end of a balance sheet reference period presents , according to the product and the nature of stocks, various degrees of difficulty. Sometimes, official statistics exist (for example, according to Regulation EC/1282/2001 regarding wine balance sheets), or base on administrative statistics (for example, on Community intervention stocks). Public services, national economic groupings or professional associations also have more or less detailed data. Sometimes, there is no information.

In general, it will be advisable to assemble and show on the data balance sheet as fully as possible the stocks at the beginning and end of the reference period for all the products which are stored. The significance and the scope of the balance sheets, in particular concerning the quantities available during the period covered by those (available for the country itself and for exports) - according to the products - will thus be appreciably improved.

As regards the storable products, of which stocks vary rather greatly (for example, cereals), it is absolutely imperative to have relatively complete data on stocks. For highly perishable goods (for example, fresh vegetables), it is possible to ignore them.

According to the products under consideration, stocks have to either jointly include or not include the reserves of raw products and processed products. With regard to processed products, only the products intervening in its foreign trade are normally included in the stocks of the balance sheet, after conversion into the unit of the balance sheet, such as they are defined in an appendix of the "balance sheets" handbook.

The stocks of processed products which intervene in foreign trade are always entered, after conversion into the unit of raw product.

The stocks of processed products which do not intervene in foreign trade are only entered if they are of domestic origin. If they are imported, they do not appear in the resources of the balance sheet and, therefore do not have to appear in the uses of this same balance sheet.

Stocks in agriculture (to be shown, if necessary, on the farm balance sheet);

The stocks of the market (to be shown, if necessary, on the market balance sheet) which can exist in wholesale trade companies, importers and exporters, processing businesses, public bodies of intervention or even national reserves in warehouses.

Stocks at retail trade level and those of households are excluded and appear in the various uses.

If part of the production process has already been carried out before the first day of the marketing year, this quantity can not be included in the stocks at the beginning of the period since it forms part of production (see 4.1).

Changes of stocks
(= end stocks - initial stocks)

The "Changes of stocks" item can be negative (reduction in stocks during the reference period) or positive (increase).

Domestic use

When in a balance sheet, a by-product from the raw product has various uses within the meaning of the balance sheet, the quantities of the raw product representing the processed product are broken down according to the uses which are made of the processed product.

Example: if the glucose manufactured from maize is used for industrial and food purposes, the corresponding quantities of maize are entered in the "Industrial uses" and "Human consumption" items.

Seeds

This involves the quantities of raw product used for the following production cycle. The quantities used directly on the farm (without passing through the market) and the quantities bought on the market appear in the total supply balance sheet. One distinguishes between seeds of domestic origin and those of foreign origin as far as possible in the market and total balance sheets.

Eggs for hatching

This item of the "Eggs" supply balance sheet indicates - like seeds in other balance sheets - the quantities of the raw product used for a new production cycle.

Losses

For production sector losses, the losses during harvest operations are already deducted to determine "usable production" (see 4.1). Losses on the holding (waste, loss in sorting, losses after the wine harvest statement) should be entered in this item.

For marketing sector losses, this involves losses, which have occurred during storage, transportation, processing and packing (including the losses by drying).

In the total balance sheet, the "Losses" item contains the losses on the farm and the losses on those markets. Losses, in general, are fixed in the most realistic way possible, but can be an estimate in percentage terms (according to the experience).

When certain produced quantities are not marketed, but withdrawn from the market and made unsuitable for consumption, these quantities also appear in the "Losses" item.

Animal feed

This position shows the quantities of raw products used for feeding animals during the reference period. It covers the quantities of raw products produced and consumed on the holdings (direct animal feeding) and those delivered to the animal fodder industry.

The quantities used directly as animal feed in agriculture (i.e. without having passed through the market) appear in the farm balance sheet. Animal fodder produced by the animal fodder industry appears in the market balance sheet.

The "Animal feed" item is the link which makes it possible to pass from the product balance sheet to the animal feed balance sheet, which breaks down the data according to the origin of the products.

By-products do not have to appear in the "Animal feed" item of a supply balance sheet (neither without modification, nor in equivalent of weights of the product of the balance sheet). They will normally be considered in the drawing-up of the fodder balance sheet

Industrial uses (see 4.56)

The quantities used by industry during the reference period appear in this item of the balance sheet, insofar as this involves quantities, which are intended neither for human consumption, nor for animal feed. The quantities used by the food industry do not have to appear in this item of the balance sheet, but in the "Human consumption" item (or according to the case, in exports or in stocks).

For example, the cereals (starch or starch from grains) used by the food industry for the manufacture of children's food have to appear in the "Human consumption" item while the cereals (starch or starch from grains) used for industrial purposes had to appear in the "Industrial uses" item.

The raw materials (for example, barley) or processed products (for example, malt) used for the manufacture of alcohol and beer had to be taken into account in the "Industrial uses" item. By convention and in accordance with the rules of agricultural accounts, beer and alcoholic drinks are regarded as industrial products, which do not enter into human consumption.

In the case where, after treatment, new products are manufactured and are the subject of an individual supply balance sheet, the quantities used for the manufacture of this new product can not appear in "Industrial uses", but must be taken into account in the "Processing" item (see 4.56).

Processing

The "Processing" item of the balance sheet is created to establish a link between the supply balance sheet of a product (raw) and that of another product resulting from the processing of the first. The processed product balance sheet contained information, which does not appear in the product of the original balance sheet.

The "Processing" item in the product of origin balance sheet is used as a production foundation (see 6) for the processed product balance sheet, i.e. after conversion using coefficients or using extraction rates, it became the usable production of the processed product balance sheet. In practice, statistics on the processed product are frequently very complete and its usable production is well-known. The foreign trade of a processed product, for which an individual balance sheet is worked out, is only included in the balance sheet of the processed product, and not in the balance sheet of the product of origin.

Human consumption

The position "Human consumption" of the balance sheet indicates the quantities of foodstuffs self-consumed or produced by the agro-industry for consumption of the inhabitants of the territory during the reference period. It involves the quantities delivered in various forms (unprocessed, processed, preserved, etc.) by the wholesalers to the retail trade, to the communities (canteens, restaurants, hospitals, etc.) and the quantities consumed directly by the producers. The losses and changes of stocks at retail trade level and at consumer level also appeared in this item.

The human consumption is "apparent" since the actual consumed quantities are different from those indicated by the position of the balance sheet.

First, the quantities of raw products contained in products of the first and second processing stage not taken into account in the list of CN codes for trade are:

Second, the data comprised in this item do not correspond to the real food purchases by consumers, (which are the subject of special statistical surveys in certain Member States) since self-consumption and community consumption are included.

In the farm balance sheet, this self-consumption item indicates the quantity of product, which - without passing through the market - is consumed directly by the producer and his family as a foodstuff (raw or processed). In the market balance sheet, the "Human consumption" item indicates the quantity, which, by market circuits, reaches the consumer (including the producer who is also supplied on the market).

Complementary calculations

The supply balance sheets can be used to make various calculations, e.g. the degree of self-sufficiency and human consumption per capita.

Degree of self-sufficiency

The degree of self-sufficiency of a given region indicates up to what point "domestic production" (from a domestic raw material) of this region is in a position to cover all the needs or "domestic use" (total use for humans, animals and industry) of this region. With regard to the balance sheets, the degree of self-sufficiency is calculated by Eurostat using the "domestic use" as with the "domestic production" quotient.

When the percentage is less than 100, it reflected a shortfall in supplies. A percentage higher than 100 indicated the existence of quantities, which exceeded the normal internal needs and can be exported or stored.

To crop products, to harvested production,

To the animal sector, to "gross domestic production" of "meat" balance sheets (see "Meats" handbook),

To cattle cakes, to "usable production" from the only domestic raw materials available (see "Oleaginous Products" handbook - ASA/PE/643).

"Balance sheets" handbooks specify for product or group of products the method for calculating degree of self-sufficiency.

The "Domestic use" item can possibly comprise of quantities, which are not sold inside the territory by the normal channels of the market. For example, large quantities of wine can be transferred for "exceptional" distillation (=subsidised), without modifying the degree of self-sufficiency calculated according to the formula above, since these quantities (listed under the item of "Industrial uses" balance sheet) formed part of the "domestic use". The same is true, by analogy, if quantities of fruit or vegetables are withdrawn from the market and are made unsuitable for consumption, these quantities will appear under the item of "Losses" balance sheet as well as "domestic use".

Human consumption per capita

The contents of the "Human consumption" item appearing in the supply balance sheet indicates the quantities of product (see 4.57) placed at the disposal of all the inhabitants of the territory for their consumption during the reference period. Consumption per capita is obtained by dividing these quantities by the number of inhabitants (see 3.3).

This method of calculation provides only the average of per capita human consumption over the whole of the reference period. Naturally there are differences as regards consumption according to age, gender, income level, consumer habits, the season, etc. Possible influences resulting from tourism or from daily commuters are difficult to eliminate. Moreover, as the statistics of the supply balance sheets do not stretch beyond wholesale trade, the quantities placed at the disposal of retail trade and private individuals remain unknown. Storage, losses, the consignments abroad and the influence of the economic situation are not always accurately reflected by the balance sheets. It is for all these reasons, it is better to refer to an "apparent Human consumption per capita".

The cereals balance sheet (unit: cereals in grains) represented an individual case where human consumption per capita is expressed as "equivalent flour". Conversion is carried out using retrieval rates, which often differed, between Member States, owing to the specific national data and production techniques.

Production raws

The complementary indications that are production foundations constituted a link between the various production statistics and the "usable production" item of the balance sheet.

With the adoption of the NewCronos database in the agricultural products field, the Commission (DG AGRI and EUROSTAT) always refers to the "harvested" production data of current statistics. In order to clarify the situation, Eurostat always asks the Member States, at the time of the data transmission of the balance sheets by the relevant services, to systematically describe how "Usable production" is obtained.

The value indicated as "adjustment" can be positive or negative. It can represent, amongst other things, a statistical adjustment between an administrative or professional source and the statistical source, a statistical adjustment between the monthly data and the annual piece of data...

For the whole milk (raw material) balance sheet and eggs balance sheet, the official statistics data is compared with the "production" item of the balance sheets concerned:

Number of animals who participated in production (in thousands of heads),

Output (in kg per animal),

Official production (in thousands of t) - adjustment (in thousands of t),

"Usable production" item of the balance sheet (in thousands of t).

For the supply balance sheets worked out in particular for the processed products (for example, potato starch), the "Usable production" item of balance sheet can be determined in two ways:

The quantity of raw products is the same as the one, which figures under the "Processing" item in the balance sheets of supplies of the previous stage(see 4.56). The extraction rate and the conversion rate represent averages, which include processing losses.

To get exact information about the production raws retained by Eurostat, users have to refer to the "balance sheets" handbooks according to the product or the group of products.

For crop products, the NewCronos database only contains the "harvested production", the "harvested area" and the "usable production". The output per hectare is always the result of the division of the contents of the "Harvested production" by "Collected surface items".

Tables

The questionnaires concerning the various supply balance sheets of the Member States comprised - in addition to the lay-out of the balance sheet as such - certain additional items or certain auxiliary tables. The correct and most precise development possible of the balance sheets requires that it be answered.

These auxiliary tables generally make it possible to gain a better understanding of the Member States' position in relation to the concepts proposed by Eurostat in the drawing-up of the balance sheets of Community supplies.

Auxiliary table of foreign trade

The data on imports and exports, which appear in the supply balance sheet is subdivided into two auxiliary tables.

The first table referred to intra-Community trade detailed by Member State and, in addition to extra-Community trade and the total comprised for certain balance sheets data of foreign trade concerning processed products.

Another table gave, according to the Combined Nomenclature, the list of the products as well as the conversion coefficients proposed by Eurostat. It is advisable to indicate not only the weight of the product, but also the conversion factor used (national or Eurostat) and the weight converted in the unit of presentation of the balance sheet.

Auxiliary table of stocks

This auxiliary table made it possible to comprehend certain details of stocks. It can involve distribution according to the stage of marketing of the product (farm, market), processing of the product (raw, processed) or according to the various places or bodies where products can be stored (importers/exporters, wholesale trade, intervention agencies, etc.).

Auxiliary table of domestic use

This auxiliary table is comprised of data of a diverse nature, which is necessary in order to be able to carry out certain classifications and aggregations of the balance sheet items. This comment is valid in particular for the subdivision according to the origin - foreign or domestic - and, if necessary, for the subdivisions, which are necessary, for certain balance sheet items, for the development of farm balance sheets and market balance sheets. Moreover, more detailed information is provided on industrial uses and, if necessary, on the processing. This data is particularly useful for a census, as complete as possible, for these two balance sheet items.

Overview of handbooks and calendar of transmission of the related data to Eurostat :


Handbooks of balance by product or group of products	Reference period	Preliminary data	Final data
001 general information, concepts
002 Cereals	01.07 - 30.06	15.11	15.02.
003 Rice	01.09 - 31.08	15.11	15.02.
004 Dried pulses	01.07 - 30.06		15.12
005 Potatoes	01.07 - 30.06	15.09	15.12
006 Vegetables Vegetables by species	01.07 - 30.06 01.04 - 31.03		15.12 15.12
007 Fruit Fruit by species	01.07 - 30.06 01.04 - 31.03		15.12 15.12
008 Sugar, beets, molasses, honey	01.07 - 30.06	30.11	28.02.
009 Wine	01.08 - 31.07	15.11	15.03.
010 Oil products Oil seeds and fruit Vegetable fats and oils Vegetable fats and oils Oil cakes	01.07 - 30.06 01.07 - 30.06 01.01 - 31.12 01.07 - 30.06		15.03. 15.03. 31.08. 15.03.
011 Fodder balance	01.07 - 30.06		15.05.
020 Meat	01.01 - 31.12	30.04	30.06
021 Milk and milk products	01.01 - 31.12	30.04	30.06
022 Eggs	01.01 - 31.12	30.04	30.06
023 Fats and Oils Vegetable fats and Oils Fats and Oils of land animals Fats and Oils of sea animals Prepared fats and Oils	01.01 - 31.12 01.01 - 31.12 01.01 - 31.12 01.01 - 31.12		31.08 31.08 31.08 31.08
024 Livestock	01.01 - 31.12		31.08
030 Fish	01.01 - 31.12		30.06

Note: The balances of glucose/dextrose are abandoned as from 1982/1983, see handbook 008.

Note: The balances of tobacco, hops, cacao, flax and hemp are not obligatory any more.

Access to the database NewCronos

The domain ZPA1 for crops

The annual statistics of the supply balance, which are compiled by the Member States following the rules of the Community, are stored in the database NewCronos. These statistics are frequently completed by quarterly data on the development of foreign trade of the Member States and the Community. Member States provide this economic information on balanced products in units of weight, serving their duties of Regulation EC n° 1736/75 of the Council. The data are also a result of a first treatment of the Combined Nomenclature (CN) by Eurostat.

The domain FISH for fish

The current statistics on fishery covered by NewCronos are unloaded quantities, catches by species and by fishery zones, the annual statistics on supply balance as well as a summary of data about the fishing fleets and the foreign trade.

1The balance sheet takes into account all the products - grains or fruit or meat or milk... and their main processed products - in particular for foreign trade.