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Evaluation of the exceptional market support measures in the poultry and egg sector
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Evaluation of the exceptional market support measures in the poultry and egg sector

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This study evaluates the impact of the exceptional market support measures in the poultry and egg sectors introduced in 2006 to deal with the market disturbances that originated from fear of Avian Influenza (AI) and the resulting confidence crisis. Severe market disturbances and a crisis of confidence occurred despite the absence of the disease among domestic birds in the EU; the crisis could therefore be considered a perceived crisis of confidence. The consumer fear of AI destabilised the whole production and trade chain. Data shows that the EU average weighted price of poultrymeat dropped by 17.3% between August 2005 and March 2006. Production also dropped by around 12.6% between November 2005 and February 2006, though this figure may have been affected by seasonality. Against a background of reduced demand and hence market instability, the industry took measures to reduce production. Some Member States also introduced national measures to assist the sectors. At the same time the European Commission increased the scope and rate of export refunds available within the poultry Common Market Organisation (CMO) to remove excess supply from the EU market. However, the combination of reduced demand in some Third Countries, and the introduction of bans on EU poultry and egg products in others following outbreaks of H5N1 within the EU restricted the impact of these measures on market stability. Because no regular measures were foreseen for these circumstances in the CMOs, the Commission amended Article 14 of the poultry and egg CMOs to allow the use of exceptional market support measures in the event of a drop in consumer confidence. This was the first time that the Commission had implemented market support measures due to a perceived lack of consumer confidence. A payment scheme was then established by the Commission in order to reduce supply and address the market disruption through Regulation (EC) No 1010/2006 which was adopted on July 3, 2006 and entered into force on May 11, 2006. The methodology for this evaluation included desk research and analysis; analysis of FADN data; literature review; online survey of Competent Authorities; interviews with Commission Services and key EU stakeholders; and, case studies in France, Greece, Hungary, Italy, the Netherlands, Poland and Spain.
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Katalognummer KF-01-13-374-EN-N
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ISSN ISBN DOI Katalognummer KF-01-13-374-EN-N
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