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Food Magazine - The Food Commission

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health<br />

EC butter scandal<br />

continues<br />

In the late 1990s there was some<br />

consternation that the European<br />

<strong>Commission</strong>'s figures for butter production<br />

and consumption were misrepresenting the real<br />

situation.<br />

<strong>The</strong> European Court of Auditors was<br />

particularly anxious that Common Agricultural<br />

Policy (CAP) money was being wasted, and its<br />

investigation, published in 2000, showed there<br />

was considerable overproduction being<br />

encouraged by CAP support measures. <strong>The</strong> court<br />

was unhappy about the disposal measures for<br />

surplus butter, which effectively supported<br />

excess production while providing cheap<br />

ingredients for food manufacturers.<br />

<strong>The</strong>re was a clear market failure. While<br />

consumers were being urged by health<br />

professionals to cut their consumption of fatty<br />

foods, especially those rich in saturated fats (and<br />

butter is about as rich as it comes), the<br />

<strong>Commission</strong> was not only supporting overproduction,<br />

but was actively subsidising the<br />

surplus butter by selling it to industry at belowmarket<br />

costs. <strong>The</strong> industry happily pumped the<br />

extra butter into our food supply in the form of<br />

cakes, pastries, biscuits, ice cream and<br />

desserts.<br />

This is now history, surely Well, no, it isn't.<br />

We have taken a look at the agricultural<br />

figures for the last half decade and found that the<br />

situation remains as bad as ever it was.<br />

Consumers have reduced their purchases of<br />

butter to the lowest levels yet, but the EC's<br />

intervention purchases have been steadily rising.<br />

In 2003 (the latest published figures) consumers<br />

bought 1.2m tonnes of butter at normal prices,<br />

while the EC purchased into intervention another<br />

0.53m tonnes. <strong>The</strong> total being bought by the EC<br />

now amounts to nearly a third of all butter<br />

produced.<br />

And while some of the intervention butter is<br />

given to welfare schemes and non-profit bodies<br />

– for lucky pensioners, hospital<br />

patients and school children to<br />

be dosed up with<br />

saturated fat –<br />

the greatest<br />

amount by<br />

far is<br />

Butter trends 1998-2003 (% of total consumption) showing normal butter purchases<br />

(consumers), butter subsidised for social use (social) and butter sold cheaply to<br />

companies (industry)<br />

sold off to food processors. <strong>The</strong> latest figures<br />

show a record 490,000 tonnes of butter (and<br />

cream) being sold off, some 92% of the surplus.<br />

Milk production has become an intensive<br />

industry, requiring large amounts of home-grown<br />

and imported fodder, which in turn require large<br />

areas of land, water, pesticides and fuel. <strong>The</strong><br />

ecological 'footprint' of butter is especially high:<br />

the footprint of resources needed to produce a<br />

tonne of vegetables is less than one hectare, a<br />

tonne of milk needs between one and two<br />

hectares, a tonne of meat some 20 hectares, but<br />

a tonne of butter some 30 hectares. Cutting the<br />

butter surplus could reduce Europe's agricultural<br />

footprint by a massive 15 million hectares –<br />

about half of France's agricultural land.<br />

Source: <strong>The</strong> Agricultural Year 2004,<br />

European <strong>Commission</strong>, 2005.<br />

Buttery biscuits: Around half a<br />

million tonnes of subsidised butter<br />

and cream go into processed foods like<br />

these annually.

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