EU beef consumption seen to decline

Beef consumption in the EU is expected to continue falling in 2010, mainly the result of lower production, limited supplies from Brazil, the economic slowdown since 2008 and high beef prices, according to the USDA forecast.

Beef production is expected to be particularly lower in Germany and France, the two main producers in the region. This is in line with the long term decline in the EU cattle herd, affected by rising input costs, lower milk prices and decreased government support.

The decline in herd numbers has been driven by lower dairy herd numbers, which decreased 1.8% in 2009 when compared to the 0.4% decline in beef cattle numbers during the same period.