January 10, 2008

China to surpass EU as the world's largest beef producer in 2008

China gears for a more competitive beef production this year, aiming to trample on EU's current position as the leading world beef supplier, as EU contends with issues like contraction of its dairy herd.

According to Meat and Livestock Commission's (MLC) economics department, China has strong chances of claiming EU's position as the EU market is currently plagued by some detrimental factors to its otherwise robust beef trade.

On the first nine months of 2007, EU beef exports were greatly reduced year-on-year as Brazil overtook the trade in Russia, a major importer of EU beef.

The general outlook for the EU beef trade seem bleak as the downward trend in production will persist due to structural contraction of the dairy herd and the withdrawal of EU support from production.

Jenny Spencer, MLC industry services manager, said that the sharp rise in world cereal prices had adverse impact on producer costs, particularly for those countries in southern Europe which rely more heavily on feedlots.

Spencer pointed that France and Spain are the only member countries that are anticipated to increase its beef production this year.