3-4-Dec-07 Meeting of the Working Group “Agricultural Accounts and Prices” Calculation of GFCF in livestock (Doc. ASA/AAP/094)

3-4-Dec-07Calculation of Gross Fixed Capital Formation in livestock  WG meeting 2005: Eurostat raised the issue of GFCF calculation. Member States, in particular those which have negative GFCF values in livestock, were asked to provide detailed information about their method.  WG meeting 2006: Eurostat put forward a proposal which recommends using the methodology as described in the EAA regulation. The vast majority of the Member States were in favour of this, although no clear consensus regarding the choice of calculation method was reached. Background

3-4-Dec-07Calculation of Gross Fixed Capital Formation in livestock A ‘gross’ method should be used by all MS in order to make the results comparable, even if the level of income is artificially high. (‘Gross method’ means that a positive element corresponding to the annual growth of livestock is taken into account in some way in the calculation of GFCF.) Eurostat proposal of 2006

3-4-Dec-07Calculation of Gross Fixed Capital Formation in livestock  SCAS meeting in March 2007: Member States expressed a willingness to converge and to adopt common practices and to respect the existing rules rather than changing them. With this in mind, Member States were asked to re-examine the issue and to look at what further improvements could still be made to achieve convergence. Progress made

3-4-Dec-07Calculation of Gross Fixed Capital Formation in livestock A ‘gross’ method should be used by all MS in order to make the results comparable, even if the level of income is artificially high. (‘Gross method’ means that a positive element corresponding to the annual growth of livestock is taken into account in some way in the calculation of GFCF.) Conclusion

3-4-Dec-07Calculation of Gross Fixed Capital Formation in livestock  All Member States using a 'net' measure of GFCF (and output) in animals are asked to provide revised GFCF (and output) data, both at current and constant prices.  Deadline: end of September 2008 (together with the 'final' data for 2007).  Member States having no data on GFCF in animals are requested to provide them by the same deadline.  Member States having no (or incomplete) EAA inventories are requested to provide them or to supplement them with the information on the calculation of GFCF in animals. Further Action