February 15, 2006

EU beef and pork production to rise in 2006

EU-25 cattle slaughter numbers and beef production are expected to increase in 2006, according to USDA's Jan 31 report on EU-25 livestock and products. The increase is due to the end of the Over-Thirty-Month Scheme in the UK, which will make about half a million extra cattle born after Aug 1, 1996 available for slaughter.

This will displace beef imports to the EU continent from Brazil, keeping EU cattle and beef markets firm. EU cattle prices have already reached record prices by the end of 2005 due to the tight market situation.

As a result of tight supplies in the EU, beef exports are expected to further decline despite good market opportunities, especially in Russia, which has recently banned the import of Brazilian beef.

USDA predicts pig production and slaughter in the EU will increase in 2006. This is timely as export conditions in the Balkans and Romania are favourable.

EU domestic consumption of pork is expected to increase in 2006. Furthermore, USDA pointed out the possibility of consumers switching to pork from poultry meat due to bird flu concerns, further adding to the popularity of pork.

For the full USDA report, click here.