CCP: 03/6 - CCP: ME 02/8





Report



COMMITTEE ON COMMODITY PROBLEMS

64TH SESSION

REPORT OF THE 19th SESSION OF THE INTERGOVERNMENTAL GROUP ON MEAT AND DAIRY PRODUCTS
Rome, 27-29 August 2002

Table of Contents


I. INTRODUCTION

1. The 19th Session of the Intergovernmental Group on Meat and Dairy Products was held on 27-29 August 2002 at FAO Headquarters, Rome. The meeting was attended by 78 delegates from 45 Member Nations and 1 Member Organization. In addition, the following international organizations were present: the Common Fund for Commodities, the International Dairy Federation, the International Meat Secretariat, the European Association for Animal Production and the Permanent Interstate Committee for Drought Control in the Sahel. The list of participants was circulated as document CCP:ME 02/Inf.3.
2. Dr Louise Fresco, Assistant Director General of the Agricultural Department, welcomed delegates on behalf of the Director General.
3. The Session was opened by Dr Mostafa Jafar (Islamic Republic of Iran) and then Mr Richard Tudor Price, (Canada) was elected Chairperson. Mr Rui Eduardo Vargas (Brazil) and Mr Abderamane Coulibaly (Mali) were elected First and Second Vice-Chairpersons, respectively.
4. It was agreed that the Secretariat prepare the draft report after the conclusion of the meeting and distribute it to the delegates for review and comments. It would then be finalized in collaboration with the Chairperson.
5. Two informal Symposia were held in conjunction with the meeting, (i) Organic Markets for Meat and Dairy Products: Trade Opportunities for Developing Countries and (ii) Dairy Outlook 2010. The symposia were unique in that seventy-eight invited experts, who were not part of the delegations attending the IGG Session, also participated, enhancing the quality of the discussions and allowing networking to take place. The Secretariat also hosted the 48th International Congress of Meat Science and Technology contemporaneously with the IGG Session and made arrangements with the organisers to allow interested delegates to attend the sessions and to distribute the proceedings of the Congress.

II. MAJOR POLICY AND ECONOMIC ISSUES RELATING TO MARKETS FOR LIVESTOCK, MEAT AND DAIRY PRODUCTS

A. REVIEW OF WORLD MEAT AND DAIRY PRODUCT MARKET SITUATION IN 2002 AND SHORT TERM OUTLOOK

6. The Secretariat provided updated information on market prospects for meat and dairy products with respect to international prices, production, consumption and trade on the basis of the latest issue of Food Outlook (May 2002) and CCP: ME 02/CRS 1.
7. Several delegates also reported on recent market developments in their countries, with one developing country delegate highlighting the distorting effect of existing trade barriers which presently limit access to international meat markets.

B. MEDIUM-TERM PROJECTIONS FOR MEAT AND DAIRY PRODUCTS TO 2010

8. The Group reviewed the results of the FAO commodity projections to the year 2010 for livestock and dairy products on the basis of the document CCP: ME 02/2. The preliminary projections showed slowing growth for meat and dairy production, consumption and trade with the exception of transition countries. The results imply that the long term trend decline in real prices may have abated with productivity growth in agriculture more in line with the general economy. This reflected the major assumptions concerning policy developments, macroeconomic and population growth and productivity gains in the sectors involved. The group welcomed the change in focus on the food security concerns of developing countries, noting that meat and dairy products, while not playing a significant role in energy intake, contribute to the food security status of the rural poor through enhancing livelihoods and incomes. The Meeting noted the general trends outlined in the report and encouraged the Secretariat to focus on developing countries and food security issues.

C. ANIMAL DISEASES: IMPLICATIONS FOR INTERNATIONAL MEAT TRADE

9. In response to the request of the 17th Session of the IGG on Meat, the Secretariat reported on the costs associated with recent disease outbreaks in selected meat exporting countries and their impact on international meat trading patterns, and described the policy responses to cope with their effects (CCP: ME 02/3). Many delegates provided information on the current disease status of their countries. The Group welcomed the effort to quantify the cost associated with animal diseases, noting the difficulties of fully accounting for the true economic and social costs of these outbreaks. The Group recognised the importance of this issue for the future development of their livestock sectors, citing loss of export markets and productivity, as well as human health implications. It expressed the need to find solutions, including the need for coordination of international action and increased assistance for international disease control. The Group further highlighted the need for global and regional approaches to resolve the problem. Some delegations indicated that they were already taking initiatives in this respect following recommendations of FAO and the Office International des Épizooties (OIE) guidelines. The observer from the International Meat Secretariat (IMS) informed the meeting of proposals under consideration which would minimise the trade disruptions arising from Foot and Mouth disease outbreaks.

D. MARKET DEVELOPMENTS FOR ORGANIC MEAT AND DAIRY PRODUCTS: IMPLICATIONS FOR DEVELOPING COUNTRIES

10. The Secretariat presented a report describing the general trends in organic meat and dairy production and consumption (CCP: ME 02/4). The Group noted the balanced nature of the view of the paper and recognised that organic products were a niche market, participation in which requires careful research and evaluation. A number of Members expressed concern that organic certification might be a barrier to trade; however, other Members noted that the equivalent requirements applied to both domestic and external suppliers.

III. INTERNATIONAL POLICY ACTIONS

A. GUIDELINES FOR INTERNATIONAL COOPERATION IN THE LIVESTOCK AND MEAT SECTOR

11. The Group assessed recent policy changes of relevance to the livestock and meat sectors with a view to monitoring the progress made in achieving the objectives of the Guidelines adopted in 1976 and revised in 1998 (CCP: ME 02/6). The Group noted that international trade flows and patterns in meat products were influenced by increased market access and decreased use of export subsidies. Where there were exceptions to this underlying tendency, they were caused by implementation of stricter border measures and import bans brought on by widespread animal disease outbreaks experienced during the period covered.
12. Many delegates felt that while privatisation of veterinary services in many developing countries was consistent with the main policy thrust of reducing public intervention in the operations of agricultural markets, technical support would be required to ensure that the quality of the services thus provided are improved. The Group regretted the decline in multilateral assistance to the livestock sectors of developing countries and stressed the need to highlight the importance of the livestock sector in poverty reduction programmes.
13. The Secretariat's recommendations contained in paragraph 28 of Document CCP: ME 02/6 were accepted with the following improvements:

B. DEVELOPMENTS REGARDING THE COMMON FUND FOR COMMODITIES

14. The Group reviewed this agenda item on the basis of document CCP: ME 02/7 and took note of the status of five projects on meat and dairy products that are in various stages of development. It was appreciative of the projects undertaken, noting the need for improving marketing systems. Although there were no new proposals for endorsement by the Group, some delegates elaborated on potential project ideas for their countries. The Group noted the delays involved in progressing from project conception to implementation but the observer from CFC indicated that some of the contributing factors could be resolved through dialogue between the two Organisations. It was suggested that the Secretariat should give priority to completing projects presently in the pipeline. Some delegates noted the difficulties with projects having a regional scope, highlighting in particular the difficulty of selecting an appropriate and qualified project executing agency. They were informed by the observer from CFC about the nature and mandate of the CFC. The Group, also, appreciated the update provided by the observer from the Permanent Interstate Committee for Drought Control in the Sahel (CILSS) about the status of the West African Livestock Marketing Project.

C. WORK PROGRAMMES FOR MEAT AND DAIRY

15. The Group considered the planned work programme of the Secretariat related to its mandate on the basis of document CCP: ME 02/5. It broadly agreed with the general thrust of the activities listed, especially the increased focus on vulnerable countries and food security issues. In the context of the work programme outline and the agenda items discussed during the meeting, it was recommended that the Secretariat undertake further study into issues related to economic costs of animal diseases, including alternative ways of minimising the costs of the outbreaks related to market disruptions. It was also recommended that a study be undertaken assessing the market and animal health implications of privatising veterinary and other livestock services, benefiting from the multi-disciplinary expertise existing within FAO. In line with increasing focus of the work programme on vulnerable countries, some delegates noted the importance of work on school milk programmes specifically in food insecure countries.

IV. OTHER MATTERS

A. ACTIVITIES OF OTHER INTERNATIONAL ORGANIZATIONS OF INTEREST TO THE GROUP

16. Groups expressed appreciation for reports provided by the International Meat Secretariat (IMS) and the International Dairy Federation (IDF).

B. DATE AND PLACE OF THE NEXT SESSION OF THE GROUP

17. The date and place of the next Session will be determined by the Director-General in consultation with the Chairperson taking into account the availability of resources and the schedule of other meetings.

C. ADOPTION OF THE REPORT

18. The Group agreed that the Secretariat would draft the Report of the Session and would distribute the draft to participants for comments which should be returned to the Secretariat for finalization by mid-September.

ANNEX - LIST OF DOCUMENTS

PRE-SESSION DOCUMENTS

CCP: ME 02/1

Provisional Agenda and Agenda Notes

CCP: ME 02/2

Medium Term Projections for Meat and Dairy Products to 2010

CCP: ME 02/3

Animal Diseases: Implications for International Meat Trade

CCP: ME 02/4

Market Developments for Organic Meat and Dairy Products: Implications for Developing Countries

CCP: ME 02/5

Work Programmes for Meat and Dairy

CCP: ME 02/6

Follow-up to the Guidelines for International Cooperation in the Livestock and Meat Sector

CCP: ME 02/6-Supp.1

Guidelines for International Cooperation in the Livestock and Meat Sector

CCP: ME 02/7

Developments Regarding the Common Fund for Commodities

IN-SESSION DOCUMENTS

CCP: ME 02/CRS 1

Market Situation for Meat and Dairy Products

CCP: ME 02/CRS.2

Detailed timetable of Symposium on Organic Markets for Meat and Dairy Products: Trade opportunities for Developing Countries

CCP: ME 02/CRS.3

Detailed timetable of the Dairy Outlook Symposium - 2010

CCP: ME 02/8

Report of the 19th Session of the Intergovernmental Group on Meat and Dairy Products

INFORMATION DOCUMENTS

CCP: ME 02/INF.1

Proposed Timetable and List of Documents

CCP: ME 01/INF.2

EC Competence and Voting Rights

CCP: ME 02/INF.3

List of Delegates and Observers