Working Group on Animal Production Statistics

EUROPEAN COMMISSION Luxembourg, 16 March 2009 EUROSTAT RAD/erm ------Directorate E: Agriculture and environment statistics; Statistical cooperation Unit E-2: Agricultural and Fisheries Statistics

Doc. ASA/TE/F/656

Orig. : EN

WORKING GROUP ON "ANIMAL PRODUCTION STATISTICS" OF THE AGRICULTURAL STATISTICS COMMITTEE

Meeting to be held on 28-29 April 2009 in Luxembourg

Manual for the compilation of supply balance sheets for milk – Version 2009 – Item 3.5 of the agenda

1 1. Introduction

Supply balance sheets (SBS) are "derived statistics", as they are obtained from primary information sources (e.g. statistical surveys, foreign trade statistics, etc.), used to compare the resources and uses of a product (or group of products) in a reference period. The increasing importance of food safety and food security underline the growing need for assessing the balance resources/uses of agricultural products.

Milk is the normal mammary secretion of milking animals obtained from one or more milkings without either addition to it or extraction from it, intended for consumption as liquid milk or for further processing (OIE and Codex Alimentarius). For the purpose of these supply balance sheets, "milk" means the milk of cows, ewes, goats and buffaloes.

2. Scope

There is no legal basis for the compilation of milk supply balance sheets. However, under a gentlemen's agreement, Member States have committed themselves to send this annual information to Eurostat. On the other hand, Eurostat is responsible for the aggregation of Member States' results at EU level.

3. Products

The list of products for which milk balances are drawn up is: - Whole milk (raw material) - Fresh products excluding cream - Drinking milk - Cream - Condensed milk powdered - Skimmed milk - Butter (product weight) - Cheese - Processed cheese

A detailed list of products (see Annex I) to be used for the compilation of the above- mentioned milk supply balance-sheets is provided by the Combined Nomenclature (CN) (Commission Regulations amending (annually) Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature on the Common Customs Tariff) which is updated annually as the list of products may change over time. Regular checks of CN codes need to be carried out at least once a year to determine whether new products have to be added or others removed as the case may be (e.g. if a new product appears on the market).

4. Geographical area

Supply balances are drawn up for the customs territory of the Member States as defined in accordance with Council Regulation (EC) No 1172/95 on the statistics relating to the trading

2 of goods by the Community and its Member States with non-member countries, as last amended by Regulation (EC) No 1882/2003.

The balance sheet for the EU as a whole is drawn up for the aggregated territory of all Member States.

5. Reference period and transmission deadlines

The reference period is the calendar year (1 January to 31 December).

Member States should transmit to Eurostat milk supply balance sheets for the reference period (N – 1) before 30 June (N).

6. Units and definitions

 1000 tonnes of milk weight equivalent.

Milk and milk products are quantified in milk equivalent by applying conversion coefficients (k). (see Annex I).

 Milk equivalent: k = 1.

Definitions

The products used for the compilation of milk supply balance sheets are defined by the Commission Decision 97/80/EC laying down provisions for the implementation of Council Directive 96/16/EC on statistical surveys of milk and milk products.

Whole milk: milk which has been subject to one heat treatment or an authorized treatment of equivalent effect by a milk processor and whose fat content is either at least 3,50 % naturally or has been brought to at least 3,5 % (Council Regulation (EEC) No 1411/71 of 29 June 1971, OJ No L 148, 3. 7. 1971, p. 4).

Fresh products excluding cream: includes drinking milk, buttermilk, acidified milk drinks with a milk base and other fresh products excluding cream as defined in Annex I of Decision 97/80/EC.

Drinking milk: raw milk, whole milk, semi-skimmed and skimmed milk containing no additives.  Relates only to milk directly intended for consumption, normally in containers of 2l or less,  Also includes milk with vitamin additives.

Cream: a film of fat which forms naturally on the surface of the milk by slow agglomeration of emulsifying fat globules. If it is removed by skimming it from the surface of the milk or extracted from the milk by centrifuging in a cream separator, it has, in addition to the other

3 components of the milk, a relatively high fat content (usually exceeding 10 % of the weight of the product).

Condensed milk powdered: (see powdered dairy products in Annex I of Decision 97/80/EC).

Whole milk powder: milk powder with a milk fat content of not less than 26 % and less than 42 % by weight of the product.

Skimmed milk: milk which has been subject to at least one heat treatment or an authorized treatment of equivalent effect by a milk processor and whose fat content has been brought to not more than 0,30 % (Council Regulation (EEC) No 1411/71 of 29 June 1971, OJ No L 148, 3. 7. 1971, p. 4).  Also includes the Swedish drinking milk types designated as ‘Lättmjölk’ and ‘Minimjölk’ whose milk fat contents are 0,5 % and 0,07 % respectively,  Also includes Austrian drinking milk whose milk fat content is 0,5 %.

Butter: a product with a milk fat content of not less than 80 % and less than 90 %, a maximum water content of 16 % and a maximum dry non-fat milk material content of 2 %.  Includes also butter which contains small amounts of herbs, spices, aromatic substances, etc. on the condition that the product retains the characteristics of butter.

Cheese: shall be a fresh or matured, solid or semi-solid product, obtained by coagulating milk, skimmed milk, partly skimmed milk, cream, whey cream or buttermilk, alone or in combination, by the action of rennet or other suitable coagulating agents, and by partly draining the whey resulting from such coagulation. (Codex Alimentarius — FAO, Volume XVI, Standard A-6).

Processed cheese: product obtained by grinding, mixing, melting and emulsifying under the action of heat and with the aid of emulsifying agents one or more varieties of cheese, with or without the addition of milk components and/or other foodstuffs. (Codex Alimentarius — FAO, Volume XVI, Standard A-8 (b)).

4 7. Methodology used for the calculation of milk supply balance sheets

Milk supply balance sheets measure the use of available resources taking into account:

Resources (= usable production + imports) from one side and Uses (= total domestic uses + exports +/- stock variation) from another side. Total domestic uses are broken down into losses, animal feed, industrial uses and apparent human consumption.

In theory, resources equal uses: Total resources (code 99) = Uses Usable production + Imports = Domestic uses + Exports + Stock variation

Member States should use data obtained from the statistical surveys of milk and milk products to compare the resources and uses of a product in the reference period. Commission Decision 97/80/EC lays down detailed information on useful figures, tables and definitions.

For the compilation of milk supply balance sheets, Member States should take all appropriate measures to prevent duplication of results as far as possible. For example, intermediate products re-used within the same production unit are not taken into account (e.g. the cream used by a butter producer taken directly from the milk is not counted, while cream purchased from another enterprise would be recorded).

Milk supply balance sheet tree

Milk production Losses

Usable production Imports

Exports

Losses Total resources Stocks

Domestic uses

Industry Human consumption Animal feed

Resources

Milk production is the milk produced by cows, ewes, goats and buffaloes, expressed in 1000 tonnes.

Total resources = Usable production (12) + Imports of all milk and milk products (20) + stocks at the beginning of the year

5 Uses

Domestic use (code 50) is the country's total use of milk and milk products. It can be calculated in two different ways:

Domestic use = Total resources – Exports (milk and milk prod.) – Stock variation – Losses or Domestic use = Human consumption + Animal feed + Industrial uses + Losses

Stocks are normally regarded as uses and comprise milk and milk products. Stock variation (code 45) is the change in stocks over the reference period. End stocks (code 40). The concept of stocks cover:  producers' stocks;  public and food security stocks;  intervention stocks (including market withdrawals under subsidised storage);  stocks on the market including wholesaling, importers/exporters and processing plants. Retail and household stocks are not covered.

Stock variation = Stocks at the end of the year – Stocks at the beginning of the year

Losses (code 53) concern losses incurred during the marketing stage: stocking; transport; processing; and packing. As there is no accurate account of losses, an estimate must be possible.

Animal feed (code 55) includes all milk and milk products used for the production of animal feedingstuffs without further processing (apart from packaging).

Industrial uses (code 60) are milk products used in manufacturing processes falling outside the scope of milk and milk products as defined by Directive 96/16/EC and not included in the list of milk products of Decision 96/16/EC.

Human consumption (code 70) concerns milk and milk products intended for human consumption excluding quantities in certain products such as cream in pastry products.

Complementary calculations

Degree of self-sufficiency (code 80) is the relationship between agricultural production, represented by "gross indigenous production", and domestic use.

Degree of self-sufficiency = Gross indigenous production (1) x 100 Domestic use (50)

Human consumption per capita (code 90) is the apparent human consumption per capita which is obtained by dividing the human consumption by the number of inhabitants (i.e. the resident population recorded in official statistics on 30 June). Persons normally residing in a country but temporarily absent are included in the total population figure whereas foreigners (and tourists) residing temporarily in the country are excluded.

6 List of Eurosat's (Newcronos) codes used for the compilation of milk SBS Code Description Unit 12 Usable production 1000 t of milk equivalent 20 Total imports of milk and milk products 1000 t of milk equivalent 30 Total exports of meat and meat-based products 1000 t of milk equivalent 40 Final stocks 1000 t of milk equivalent 45 Change in stocks 1000 t of milk equivalent 50 Total domestic uses 1000 t of milk equivalent 53 Losses 1000 t of milk equivalent 55 Animal feed 1000 t of milk equivalent 60 Industrial uses 1000 t of milk equivalent 70 Gross human consumption 1000 t of milk equivalent 80 Degree of self-sufficiency % 90 Gross human consumption per capita kg/head 99 Total resources = Uses 1000 t of milk equivalent

8. Relevant EU legislation

Relevant EU legislation for the compilation of supply balance sheets:  Council Directive 96/16/EC on statistical surveys of milk and milk products (as amended by Regulation (EC) No 1882/2003 and Directive 2003/107/EC).  Commission Decision 97/80/EC laying down provisions for the implementation of Council Directive 96/16/EC (as amended by Council Decision 98/582/EC and Commission Decision 2005/288/EC).  Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature on the Common Customs Tariff;  Commission Regulation No 1031/2008 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (revised every year);  Council Regulation (EC) No 1172/95 on the statistics relating to the trading of goods by the Community and its Member States with non-member countries, as last amended by Regulation (EC) No 1882/2003;

9. Transmission of milk supply balance sheets to Eurostat

Under a gentleman's agreement, Member States have committed themselves to transmit milk supply balance sheets to Eurostat as specified above.

As agreed by the Standing Committee for Agricultural Statistics in November 2008, from 1 January 2009 onwards, eDAMIS/Webforms became the official single entry point for the transmission of agricultural statistics to Eurostat including data on milk supply balance sheets. For simplification reasons, Member States are requested to send the following data to Eurostat:

7 8 ANNEX I

The table below shows the correspondence between: product code / Conversion coefficient (k) / Combined Nomenclature 2009 code.

Correspondence table for milk SBS

SBS code K CN 2009 Self-explanatory texts in English 4410 1.00 0401 10 10 Milk and cream of a fat content by weight of <= 1% 4410 1.00 0401 20 11 Milk and cream of a fat content by weight of <= 3% but > 1% 4410 1.00 0401 20 91 Milk and cream of a fat content by weight of > 3% but <= 6% 4410 1.00 0403 10 11 Yogurt (excl. flavoured or with added fruit 4410 1.00 0403 10 13 Yogurt (excl. flavoured or with added fruit 4410 1.00 0403 10 19 Yogurt (excl. flavoured or with added fruit 4410 1.00 0403 10 31 Yogurt (excl. flavoured or with added fruit 4410 1.00 0403 10 33 Yogurt (excl. flavoured or with added fruit 4410 1.00 0403 10 39 Yogurt (excl. flavoured or with added fruit 4410 7.74 0403 10 51 Yogurt, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, sweetened, in solid forms, of a milkfat content by weight of <= 1,5% 4410 7.74 0403 10 53 Yogurt, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, sweetened, in solid forms, of a milkfat content by weight of > 1,5% but <= 27% 4410 7.74 0403 10 59 Yogurt, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, sweetened, in solid forms, of a milkfat content by weight of > 27% 4410 1.00 0403 10 91 Yogurt, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, sweetened, of a milkfat content by weight of <= 3% (excl. in solid forms) 4410 1.00 0403 10 93 Yogurt, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, sweetened, of a milkfat content by weight of > 3% but <= 6% (excl. in solid forms) 4410 1.00 0403 10 99 Yogurt, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, sweetened, of a milkfat content by weight of > 6% (excl. in solid forms) 4410 1.00 0403 90 51 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, unsweetened, with a fat content by weight of <= 3% (excl. in solid forms, yogurt, flavoured or with added fruit, nuts or cocoa) 4410 1.00 0403 90 53 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, unsweetened, with a fat content by weight of > 3% but <= 6% (excl. in solid forms, yogurt, flavoured or with added fruit, nuts or cocoa) 4410 1.00 0403 90 59 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, unsweetened, with a fat content by weight of > 6% (excl. in solid forms, yogurt, flavoured or with added fruit, nuts or cocoa) 4410 1.00 0403 90 61 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, sweetened, with a fat content by weight of <= 3% (excl. in solid forms, yogurt, flavoured or with added fruit, nuts or cocoa) 4410 1.00 0403 90 63 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, sweetened, with a fat content by weight of > 3% but <= 6% (excl. in solid forms, yogurt, flavoured or with added fruit, nuts or cocoa) 4410 1.00 0403 90 69 Uttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, sweetened, with a fat content by weight of > 6% (excl. in solid forms, yogurt, flavoured or with added fruit, nuts or cocoa) 4410 1.00 0403 90 91 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, whether or not sweetened, with a fat

9 content by weight of <= 3% (excl. in solid forms and yogurt) 4410 1.00 0403 90 93 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, whether or not concentrated, flavoured or with added fruit, nuts or cocoa, whether or not sweetened, with a fat content by weight of > 3% but <= 6% (excl. in solid forms and yogurt) 4410 1.00 2202 90 91 Non-alcoholic beverages containing < 0,2% fats derived from milk or milk products 4410 1.00 2202 90 95 Non-alcoholic beverages containing >= 0,2% but < 2% fats derived from milk or milk products 4410 1.00 2202 90 99 Non-alcoholic beverages containing >= 2% fats derived from milk or milk products 4412 1.00 0401 30 11 Milk and cream of a fat content by weight of <= 21% but > 6% 4412 1.00 0401 30 31 Milk and cream of a fat content by weight of > 21% but <= 45% 4412 1.00 0401 30 91 Milk and cream of a fat content by weight of > 45% 4420 1.00 0402 91 10 Milk and cream, concentrated, of a fat content by weight of <= 8%, unsweetened (excl. in solid forms) 4420 1.00 0402 91 30 Milk and cream, concentrated, of a fat content by weight of > 8% but <= 10%, unsweetened (excl. in solid forms) 4420 1.00 0402 91 51 Milk and cream, concentrated, of a fat content by weight of > 10% but <= 45%, unsweetened, in immediate packings of <= 2,5 kg (excl. in solid forms) 4420 1.00 0402 91 91 Milk and cream, concentrated, of a fat content by weight of > 45%, unsweetened, in immediate packings of <= 2,5 kg (excl. in solid forms) 4420 1.00 0402 99 10 Milk and cream, concentrated, of a fat content by weight of <= 8%, unsweetened (excl. in solid forms) 4420 1.00 0402 99 31 Milk and cream, concentrated, of a fat content by weight of > 9,5% but <= 45%, sweetened, in immediate packings of <= 2,5 kg (excl. in solid forms) 4420 1.00 0402 99 91 Milk and cream, concentrated, of a fat content by weight of > 45%, sweetened, in immediate packings of <= 2,5 kg (excl. in solid forms) 4430 1.00 0402 21 11 Milk and cream in solid forms, of a fat content by weight of > 1,5%, unsweetened, in immediate packings of <= 2,5 kg 4430 1.00 0402 21 91 Milk and cream in solid forms, of a fat content by weight of > 27%, unsweetened, in immediate packings of <= 2,5 kg 4430 1.00 0402 29 11 Special milk for infants, in solid forms, sweetened, of a fat content by weight of > 10% but <= 27%, in hermetically sealed containers of <= 500 g 4430 1.00 0402 29 15 Milk and cream in solid forms, of a fat content by weight of <= 27% but > 1,5%, sweetened, in immediate packings of <= 2,5 kg (excl. for infants in hermetically sealed containers of <= 500 g) 4430 1.00 0402 29 91 Milk and cream in solid forms, of a fat content by weight of > 27%, sweetened, in immediate packings of <= 2,5 kg 4440 1.00 0403 90 11 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream in solid forms, unsweetened, with a fat content by weight of <= 1,5% (excl. yogurt, flavoured or with added fruit, nuts or cocoa) 4440 1.00 0403 90 31 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream in solid forms, sweetened, with a fat content by weight of <= 1,5% (excl. yogurt, flavoured or with added fruit, nuts or cocoa) 4440 1.00 0403 90 71 Buttermilk, curdled milk and cream, kephir and other fermented or acidified milk and cream, flavoured or with added fruit, nuts or cocoa, whether or not sweetened, in solid forms, with a fat content by weight of <= 1,5% (excl. yogurt) 4450 1.00 0405 10 11 Natural butter of a fat content 4450 1.00 0405 10 30 Recombined butter of a fat content 4450 1.00 0405 10 50 Whey butter of a fat content 4450 1.10 0405 10 90 Butter of a fat content 4450 0.95 0405 20 90 Dairy spreads of a fat content, by weight, of > 75% but < 80% 4450 1.20 0405 90 Fats and oils derived from milk 4460 1.00 0406 10 Fresh cheese "unripened or uncured cheese", incl. whey cheese, and curd 4460 1.00 0406 20 Grated or powdered cheese 4460 1.00 0406 40 Blue-veined cheese and other cheese containing veins produced by Penicillium roqueforti"" 4460 1.00 0406 90 Cheese (excl. fresh cheese

10 4461 1.00 0406 30 Processed cheese, not grated or powdered 4461 1.00 2106 90 98 Food preparations, n.e.s., containing, by weight, >= 1,5% milkfat, >= 5% sucrose or isoglucose, >= 5% glucose or >= 5% starch