Common Agricultural Policy - UK Food Group

The Common Agricultural Policy 8
Oilseeds
In 1998 overall oilseed production in the EU was 15.9 million
tonnes (including 1.2 million tonnes of non-food production)
which was an increase of 44 per cent and 11 per cent
compared to 1996 and 1997, respectively. The European
Union is a significant net importer of oilseeds. Soya beans
account for most imports and between 1996 and 1998 the
proportion of total imports varied between 81 and 86 per
cent. Two product categories derive from oilseeds: oil for
human consumption, and cake for animal feed. The latter is
responsible for the main European imports, as soya beans
(mostly from the US) are used as a important protein
source in the EU livestock feed sector (fig 1.6).
Milk production is the most important segment of EU
agriculture in economic terms, particularly in northern
Europe. The four biggest Member States and the
Netherlands are responsible for three-quarters of output.
The EU is the world’s largest exporter of milk. In 1998 EU
dairy exports were about 15 million tonnes milk equivalent
while imports were in excess of 3.6 million tonnes. Major
export markets for EU dairy products include the Russian
Federation, Asia and Latin America, Japan and North
Africa. Exports rely heavily on subsidies, with volumes
bound under GATT agreements. Imports into the EU
include butter and cheese, particularly for the UK market,
with New Zealand a major supplier.
Dairy products
Because of the variety of products derived from milk, it is
more difficult to obtain a supply balance of the kind available
for other commodities. The table shows output of the main
products and trade levels in three key commodities (fig 1.7).