1. Market price monitoring
Technical Assistance for Development of Strategy for Alignment with
Common Market Organization (CMO) Requirements
TR2014/AG/10-A1-01/001
This Project is co-financed by the European Union and the Republic of Turkey
Market price monitoring
Recording and reporting of beef, pig and sheep carcass prices
Training on classification March 2018

2. Overview of current legislation
Quick review of Union legislation
Calculating average national prices
Calculating average EU-28 prices
Annual reporting of Member States to the European Commission

3. Review of Union legislation (1)
Regulation (EC) No 1249/2008 (beef , pig and sheep carcasses)
Overall aim:
continuous monitoring of developments on Union beef, pig and sheep market
basis for EU support measures
(e.g. public intervention, private storage, exceptional support measures, etc.)

4. Review of Union legislation (2)
BEEF
Member State and EU market prices are recorded and relate to the following conformation and fat
cover classes for the categories :
Category Z: U2, U3, R2, R3, O2, O3
Category A: U2, U3, R2, R3, O2, O3
Category B: R3
Category C: U2, U3, U4, R3, R4, O3, O4
Category D: R3, R4, O2, O3, O4, P2, P3
Category E: U2, U3, R2, R3, R4, O2, O3, O4

5. Review of Union legislation (3)
PIG
The prices are determined using the quotations recorded for carcasses
weighing:
— 60 to less than 120 kg of grade E, S
— 120 to less than 180 kg of grade R.
The choice of weight categories and any weighing is left to the Member States concerned.
The market price for pig carcasses in a Member State shall be equal to the average of the quotations for pig carcasses recorded on the representative markets or quotation centres of that Member State.

6. of Union legislation (4)
LAMB of Union origin
Member States whose sheepmeat production exceeds 200 tonnes per year communicate to the Commission the average price for each quality of lamb within the Community scales, together with an indication of the size of each quality
The term ‘quality’ means the combination of classes of conformation and of fat cover
HEAVY Lamb prices
LIGHT Lamb prices

7. Beef price reporting

8. Review of Union legislation (3): Who should report weekly prices?
Abattoirs slaughtering per year
≥ 20,000 adult bovines
reared by it or on its behalf
and/or animals purchased by it
Natural or legal persons
sending per year
≥ 10,000 adult bovines
for slaughter to an abattoir
Abattoirs, designated by the Member State, slaughtering per year
< 20,000 adult bovines
reared by it or on its behalf
and/or animals purchased by it
Natural or legal persons,
designated by the Member State, sending per year
< 10,000 adult bovines
for slaughter to an abattoir

9. Review of Union legislation (4): Representative prices for national production
Prices must be recorded for at least:
25% of slaughtering in regions
covering at least 75% of total slaughtering
in the Member State
and
30% of adult bovines slaughtered
in the Member State

10. Review of Union legislation (5)
Market price to be established =
price paid to supplier for animal
upon delivery to slaughterhouse,
excluding VAT,
expressed per 100 kg of the cold weight of the carcass
presented according to EU reference presentation

11. Corrections? Cold weight? Warm weight minus 2% Excluding VAT?
Reference presentation of carcass?
Coefficents in Regulation (EC) No 1249/2008
Price at entry of abattoir?
Correction for (average) transport costs
Supplementary payments?
Correction if amounting to more than 1%

12. Correction for transport costs?
Who delivers animals at abattoir gate?
Price to be reported
Supplier delivers animal and is paid 100.
100
Abattoir collects animal and charges supplier (5). Supplier receives 100 – 5 = 95.
100
Abattoir collects animal and pays 95.
Supplier is not charged for transport costs (5).
= 100
Estimate

13. Per head or live weight purchases
In case it relates to significant number, to derive individual price on carcass weight basis:
Aim: to ensure representative prices
Note: rules on flat-rate purchases (if > 35% of total national
slaughtering)
Price for live animal
Carcass weight
Live weight price per kg × live weight
Carcass weight

14. Flat-rate purchases (1)
If carcasses in a batch relate to not more than 3 consecutive conformation classes and 3 consecutive fat classes in the same category: OR
Price shall be taken into account for conformation class in which
largest number of carcasses
is classified
If they are equally divided amongst the classes, for the middle of those classes,
where such class exists
In all other cases, price is not taken into account

15. Flat-rate purchases: Some examples (2)
Batch 1:
10 carcasses (Category A)
(3xU4) 1xR3
4xU3 2xO2
Class U predominant
Flat rate price applicable to conformation class U only (fat class 3)
Batch 2:
12 carcasses (Category C)
(1xU5) 4xR3
1xU4 2xO4
2xU3 2xO3
No predominant class
Flat rate price applicable to (middle)
conformation class R only (fat class 3)
Batch 3:
10 carcasses (Category D)
3xR4 2xP2
2xO3 2xP3
(1xP4)
Class P predominant
Flat rate price applicable to conformation class P only (fat class 3)
Batch 4:
10 carcasses (Category E)
5xU3
3xR2
2xR4
No predominant conformation class (5U/5R)
No middle class possible
This batch cannot be used for price reporting
Batch 5:
10 carcasses (Category E)
7xU3
1xR2
2xR3
Class U predominant
Flat rate price applicable to conformation class U only (fat class 3)

16. Weekly reporting of beef carcass prices
Market price to be established = price paid to supplier for animal
upon delivery to slaughterhouse, excluding VAT, expressed per 100 kg of the cold weight of the carcass, presented according to EU reference presentation
Regulation defines:
Who should report: abattoirs, traders
How to report: methodology to calculate prices, electronic data transmission (Commission Implementing Regulation (EU) 2017/1185), etc.

17. Average Union prices BEEF – average EU price For a given category:
the weighted average of the national market prices recorded for the class.
Weighting is based on the proportion of quantities of that class slaughtered in each Member State to total EU slaughterings of that class.
the weighted average for each conformation class shall be the weighted average of the average Community prices for the fat cover classes which constitute that conformation class.
Weighting is based on the proportion of slaughterings of each fat cover class to total slaughterings of that conformation class in the EU.

18. Average Union prices BEEF – average EU price For a given category:
the weighted average of the average Union prices .
Weighting is based on the proportion of the quantities slaughtered in each class to total EU slaughterings in the category.
The average Community price for all categories together is the weighted average of the average prices.
Weighting is based on the proportion of each category to total slaughterings of adult bovine animals in the EU.

19. Average Union prices
PIG – average EU price Determined on the basis of the prices on entry into the slaughterhouse, excluding value added tax, paid to suppliers of live pigs. For the calculation of the Union market price, the prices recorded in each Member State are weighted by using coefficients expressing the relative size of the pig population of each Member State. The coefficients are determined on the basis of the number of pigs counted at the beginning of December each year.

20. Average Union prices
LAMB (light and heavy) – average EU price Prices are weighted by using coefficients expressing the relative size of the sheepmeat production in each Member State to the total EU sheepmeat production. Please note that EU prices for sheep, are averages of the national prices communicated by Member States weighted with coefficients. The coefficients attributed to Member States' prices were modified on 1rst July 2017; from this date, the coefficient used for each Member State corresponds to this Member State 's share in volume in total EU production over the last three years.

21. Average national price
BEEF: The prices reported are the average price per class. PIG: The market price for pig carcases in a Member State must be equal to the average of the quotations for pig carcases recorded on the representative markets or quotation centres of that Member State. LAMB: The prices reported are the average price per class

22. Member States’ annual reporting to the European Commission
BEEF:
confidential list of price reporting abattoirs and natural/legal persons
a list of the regions for which prices are recorded and the weighting attached to each
the total number of adult bovine animals slaughtered in the previous calendar year broken down for each category, conformation and fat cover classes

23. Role of carcass classification and weekly price reporting
You can find the beef and pig prices on the website of the Meat Market Observatory (see statistics):
and the sheep ones:
You can also have a look at the new AGRI portal data in the pilot for pigmeat data:

24. Role of carcass classification and weekly price reporting
Continuous monitoring of EU beef, pig and sheep market developments
basis for the weekly price reporting by all 28 MS. These prices constitute the most direct and regular market indicator we get. They are published on the website, and provide market transparency. From experience, we know that these prices are used by the sectors (industry and producer organisations); agricultural lobby; specialised media; public administrations; market research institutes; etc.

25. Role of carcass classification and weekly price reporting
Role in commercial operations
=> quality-based payment of cattle, pig and sheep suppliers, price transparency, etc.
=> used for intra-EU trade: the animal's sex; category; lean meat content (pig) carcass weight and classification results are among the key factors determining the price
=> the classification system provides a "common EU language" to describe the quality of carcasses

26. Thank you for your attention. Any questions?

27. This publication has been produced with the financial assistance of the European Union
The contents of this publication is the sole responsibility of NIRAS IC Sp. z o.o. and can in no way be taken to reflect the views of the European Union