26.7.2001 Official Journal of the European Communities L 201/1 | (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 1512/2001 of 23 July 2001 amending Regulation (EC) No 1254/1999 on the common organisation of the market in beef and THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 36 and 37 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parliament (%), Having regard to the opinion of the Economic and Social Committee (%), Whereas: (1)  The market for beef and veal has been seriously disrupted because consumers, concerned at the appear- ance of new cases of bovine spongiform encephalopathy (BSE), have lost confidence in, and turned away from, the sector's products. Demand has tumbled as a result of a sharp fall in consumption and exports and owing to a rise in the number of livestock held back on holdings. This is causing a serious deterioration of the market that is difficult to control. A number of measures that seek to regulate the market by reducing future production should accordingly be adopted. (2)  The special premium for male bovine animals provided for in Article 4 of Council Regulation (EC) No 1254/ 1999 (*) is one of the main support instruments for beeffveal production. The premium is currently subject to a regional ceiling. If the number of animals that can qualify for the special premium were smaller, there would be less incentive to produce. A reduction of the regional ceiling, based on payments made in previous years, should therefore be introduced for a limited period. Moreover, to encourage producers to convert store cattle animals to steers, which are kept for a longer period on grassland, a second payment of the premium (') Proposal of 6 February 2001 (not yet published in the Official Journal). (%) Opinion delivered on 16 May 2001 (not yet published in the Offi- cial Journal). (*) Opinion delivered on 25 April 2001 (not yet published in the Offi- cial Journal). () O L 160, 26.6.1999, p. 21. veal should be possible for steers for which a first payment has been made as bulls. The derogation enabling Member States to change or waive the headage limit of 90 animals per holding and age bracket which determines the granting of the special premium may produce an increase in the number of animals eligible for the premium on large production units. To reduce this incentive, the strict application of this headage limit should be envisaged by linking the possibility of changing or waiving it to the consideration of environmental and employment aspects in the frame- work of a rural development policy. As beef/veal production depends mainly on the number of cows, future meat production can be reduced by cutting down the number of suckler cows. To do this, the effect — in terms of reducing production — achieved by including heifers among the animals eligible for the suckler-cow premium provided for in Article 6 of Regulation (EC) No 1254/1999 should be reinforced by setting a minimum percentage for heifers for a limited period, and increasing the maximum percentage of such animals. Taking account of the reduced herd size due to foot-and-mouth disease, this obligation would not be applicable in the United Kingdom in 2002 and limited in 2003. This involves corresponding adjust- ments to the separate national ceiling for heifers referred to in Article 10 of Regulation (EC) No 1254/1999. To simplify the management of the measure, producers applying for a small number of premia would be exempted from this condition. To achieve a reduction of production, the possibility of reallocating premium rights returned to the national reserve should also be suspended for a limited period. In order to take account of the reduction in the number of available suckler cows because of foot-and-mouth disease, the United Kingdom should be exempted from this measure in 2002.