NORWAY: ESTIMATES OF SUPPORT TO AGRICULTURE

 

Contact person: Darryl Jones

Email: darryl.jones@oecd.org

Tel :

(33-1) 45 24 14 80

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(33-1) 44 30 61 02

 DEFINITIONS AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific budget lines indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, barley, oats, milk, beef and veal, pigmeat, poultrymeat, sheepmeat, wool and eggs. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in brackets.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pigmeat, poultrymeat, sheepmeat, wool and eggs), provided that the value of production of that commodity exceeds 1 per cent of the total value of production in the country concerned. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

Table 2. Market Price Support and Consumer Support Estimate by commodity

Definitions:

I. Level of production

Cereals: Total domestic production of wheat, barley, oats [1].

Milk: Total domestic production of milk, excluding goat milk [1].

Meats: Total domestic production of beef and veal, pigmeat, poultrymeat and sheepmeat, expressed in carcass weight equivalent [1].

Wool: Total domestic production of wool [1].

Eggs: Total domestic production of eggs [1].

II. Producer prices

Wheat: Weighted average market price of food and feed wheat at farm gate (excluding storage payment), adjusted for water content and quality [1, 2]. For wheat a consumption price (at farm gate) is calculated, which is different from the producer price. Up until and including 1994 this price, which is used in the calculation of the value of consumption, is a weighted average of the domestic market prices of food and feed wheat and the world market price of wheat (reference price). From 1995 on, the consumption price is a weighted average of the domestic market prices of food and feed wheat, with imports valued at an implicit import price (equal to the average market price for wheat less the price reducing transfer).

Barley, oats: Average market price at farm gate (excluding storage payment) adjusted for water content and quality [1, 2].

Milk: Average price of cow milk received by milk producers. Does not include deficiency payments but includes the marketing fees paid by producers. Since the milk price received by farmers is net of the marketing fee, the unit marketing fee is added in again to obtain the producer price [1, 4, 7].

Beef and veal, pigmeat: Average live-weight prices at farm gate, converted to carcass weight, excluding deficiency payments, but including the marketing fees paid by producers [1, 7].

Poultrymeat: average farm gate price of poultry carcasses, including the marketing fee paid by producers [1, 7].

Sheepmeat: Average price of sheep carcasses, excluding deficiency payments but including the marketing fees paid by producers. Until 1988 lowered by a coefficient of 0.95 to correct for the different processing stage compared to the one implicit in the reference price [1, 7].

Wool: Until 1992, average guaranteed price to producers set in the Agricultural Agreement. Since 1993, average market price at farm gate [1, 7].

Eggs: Average price of eggs at farm gate including the marketing fees paid by producers [1, 7].

IV. Level of consumption

Cereals: Total domestic consumption of wheat, barley, oats [2, 3].

Milk: Consumption of milk from domestic production plus imported dairy products expressed in milk equivalent [4].

Meats: Total domestic consumption of beef and veal, pigmeat, poultrymeat and sheepmeat, expressed in carcass weight equivalent [1, 5].

Wool: Calculated as the sum of domestic production plus imports, minus exports [1, 6].

Eggs: Total domestic consumption of eggs [1].

VII. Reference prices

Wheat, barley: EU export prices of standard common wheat and barley, f.o.b. Rouen, calendar year [8], minus EU handling costs and commercial margins [9] so that the prices corresponds to farm gate prices.

Oats: EU import price of oats, c.i.f. Rotterdam, calendar year, minus EU handling costs and commercial margin [9].

Milk: Farm gate price of milk in New Zealand, calendar year, actual fat content (x%), plus transport cost for butter and skimmed milk powder in milk equivalent (56 kg and 82 kg per tonne of milk, respectively) from New Zealand to the United Kingdom (Pnz), adjusted to Norwegian fat content (y%). The reference price is (Pnz)*[ (x%)+(y%)] /2*(x%) [10].

Beef and veal, pigmeat: EU reference price (based on unit value of exports minus EU handling and processing costs) [11].

Poultrymeat: EU unit export value of chicken [12], calendar year. The EU unit export value is multiplied by 1.3 to correct for differences in the processing stage, and processing costs are subtracted to adjust the reference price to the farm level [13].

Sheepmeat: EU import price of New Zealand frozen lamb, c.i.f. United Kingdom [9], calendar year, processing costs deducted, and adjusted by a coefficient of 1.3 for the price difference between frozen lamb and fresh EU supplies.

Wool: New Zealand producer price [14].

Eggs: EU unit export value of eggs [12], calendar year. Processing costs are subtracted to make the reference price applicable to the farm level prices [13].

X. Budgetary transfers

Price levies: Levies and fees paid by livestock producers (except wool) to finance market regulation expenditures.

Sources:

[1] Budsjettnemnda for jordbruket, Totalkalkylen for jordbruket (Budget Committee for Agriculture, Aggregate Accounts for Agriculture).

[2] Statens Kornforretning (Norwegian Grain Corporation).

[3] OECD Food Consumption Statistics.

[4] Norske Melkeprodusenters Landsforbund (National Association of Norwegian Milk Producers).

[5] OECD, Meat Balances in OECD Countries.

[6] Norsk Kj÷tt (Norway Meat) and Statistisk Sentralbyro, Utenrikshandelsstatistikk (Statistics Norway, External Trade Statistics).

[7] Omsetningsradet (Agricultural Marketing Board).

[8] International Wheat Council.

[9] EC Commission.

[10] Data provided by New Zealand authorities.

[11] EU reference price data.

[12] Eurostat, External Trade -- Exports.

[13] Ministry of Agriculture, Oslo. Communication to the OECD Secretariat.

[14] New Zealand PSE/CSE database.