The UK has been strongly against to a proposal for a regulation amending Regulation 1234/2007 establishing a common organisation of agricultural markets as regards the marketing standards for poultry meat. Despite UK strong opposition, on 19 October, the Agriculture and Fisheries Council adopted by qualified majority the regulation modifying the current marketing standards for poultry meat.
The regulation extends the scope of the current marketing standards for poultry meat to poultry meat in brine, poultry meat preparations and products. Moreover, a new definition was introduced under which fresh poultry meat preparation can only be obtained from fresh poultry meat meaning it has never been frozen before. Consequently, “poultry meat which has been frozen or quick-frozen must be sold in that state or be used in preparations marketed as frozen or quick-frozen, or in meat products.” Hence, a product will be prevented of being sold as fresh if it had previously been frozen or quick-frozen.
These new standards will have adverse consequences to the poultry industry, particularly to the production of poultry kebabs in the UK. According to Jim Fitzpatrick, the Minister of State at the Department for Environment, Food and Rural Affairs the regulation will prohibit a safe and lucrative business practice.
The Regulation will apply from 1 May 2010 and will be binding in its entirety and directly applicable in all Member States.
It is not clear yet how much the regulation will cost to producers, processors and consumers. The Commission has not provided an Impact assessment and the Government has promised the European Scrutiny Committee (ESC) to provide its own Impact Assessment in autumn 2008 but it has failed to do it. It seems that the government will provide an Impact Assessment this autumn.
The Minister said to the ESC that the poultry industry has estimated that the measure may cost it in excess of £160m in sales.
It is important to recall that the Commission, in May 2008, also put forward a proposal to amend this Regulation as regards the treatment of poultry carcases, allowing the authorisation of certain substances to remove surface contamination from poultry carcases. The US has been calling for the EU to reopen its borders to its chlorinated chicken but the EU has not satisfied its demands. Last December, at the Agriculture Council, 26 Member States have confirmed their opposition and rejected the proposal to lift the ban on the US chlorinated chickens. The UK has decided to abstain. This is effectively a blow on the EU and US trade relations. The US has recently decided to ask the World Trade Organization to rule whether the EU’s ban on imposts of chlorinated poultry breaches trade rules.
According to the, finally provided, Government Impact Assessment chicken processors would incur further annual cost of £27 million and turkey processors would incur further annual cost of £4.8 million to comply with the EU Regulation. Food processors will also face one-off costs of £10 million to convert production methods.
Moreover, the Government has stressed that there will be greater certainty for consumers, however the regulation will increase prices and there will be less choice.