April 15, 2008

EU beef output to fall 6 percent by 2014

Beef production in the EU will decline by 6 percent to 7.6 million tonnes between 2007 and 2014, according to the EU Commission's latest forecasts for the beef sector.

Over the same period, beef consumption is predicted to decrease by 3 percent, which should result in a 27 percent growth in imports by 2014, according to the Livestock and Meat Commission bulletin.

Last year, beef production went down slightly due to shrinking cattle herds and increasing feed costs.

Higher milk prices, the fluctuation of feed prices and the effect of animal diseases across the EU will affect the beef market situation in the short and medium term.

Aside from these, the ban on Brazilian beef could affect future market developments.

In the medium and long term, the EU's beef production could be affected by the decrease in the dairy herd and the continued effects of decoupling.

All these factors plus the increasing prices of cereal are expected to lessen the incentives for intensive beef production systems, and reduce yield from unprofitable production, affecting total output.